ARMENIA Law and Practice Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
2.6 Interim Relief Litigants in Armenia can seek interim relief (security of the claim) to ensure that a future judgment remains enforceable. Common types of interim relief include: • freezing the defendant’s property or funds within the value of the claim price; • prohibiting the defendant or third parties from performing specific actions related to the subject of the dispute; • obliging the defendant or other persons to perform specific acts to prevent harm or preserve property; • suspending the sale or realisation of property in cases where a lawsuit has been filed to remove an attachment from that property; and • placing an attachment on property that belongs to the plaintiff but is currently in the possession of the defendant. These measures are available if the applicant can demonstrate that failure to apply them would make the enforcement of a judgment impossible or signifi- cantly more difficult. Applications for interim relief are typically reviewed without a hearing and often within one to three days of being filed. This speed is necessary to prevent the respondent from dissipating assets before the relief can take effect. The court has the power to grant relief ex parte, meaning the respondent is only notified after the order has been issued and sent for enforcement. To protect the respondent against potential losses, the court may require the applicant to provide coun- tersecurity. This involves depositing funds or providing a bank guarantee to compensate the respondent if the claim is ultimately found to be meritless and the interim relief caused damage. If the interim relief is granted before the lawsuit is officially filed (pre-action relief), the plaintiff must file the main claim within a short period (typically two weeks), or the relief will be automatically lifted. 2.7 Final Relief The key types of final relief available in commercial litigation include monetary damages, specific perfor- mance and declaratory judgments. Monetary relief is the most frequent, and covers the payment of debts,
compensation for losses and the collection of pen- alties. Courts also have the power to order a party to perform a specific obligation, such as delivering goods or transferring ownership of a property. Declaratory relief involves the court formally recognis- ing the existence or non-existence of a specific legal right or relationship. This is often used to clarify own- ership status or the validity of a contract. Additionally, courts can invalidate transactions or legal acts issued by state or local government bodies that are found to be unlawful. A final judgment becomes binding and enforceable once it enters into legal force, typically after the period for appeal has expired. If the judgment involves the payment of money or the transfer of property, the court issues a writ of execution, which is handled by the Compulsory Enforcement Service. The prevailing party is also entitled to the reimbursement of their liti- gation costs as part of the final relief. 2.8 Damages Damages are assessed based on the principle of full compensation, which aims to restore the injured party to the position they would have been in had the breach not occurred. Under the Civil Code, dam- ages consist of two components: actual damage (the expenses incurred and the loss or damage to prop- erty) and lost profits (the income the party would have received under normal circumstances). The claimant bears the burden of proof to establish the extent of the damage and the direct causal link between the defendant’s breach and the loss. Arme- nian courts do not generally award punitive or exem- plary damages; the focus remains strictly on compen- satory outcomes. However, parties can agree in their contract on liquidated damages (penalties) for specific breaches, which the court will enforce unless they are found to be clearly disproportionate to the actual loss or if they exceed the maximum amount established by law. In cases of non-pecuniary (moral) damage, such as injury to honour, dignity or business reputation, the court may award monetary compensation. The amount of such compensation is determined by the
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