ARMENIA Law and Practice Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
6.3 Timing of Applications for Interim Relief Applications for interim relief can be made at any stage of the dispute. Parties can seek “pre-action” relief before a lawsuit is even filed, which is useful when there is an urgent threat to assets. In such cases, the court will grant the relief on the condition that the main lawsuit is filed within 14 days. Failure to meet this deadline results in the immediate lifting of the interim measure. Relief can also be requested simultaneously with the filing of the lawsuit or at any time during the trial if new information about the defendant’s financial situation emerges. Even after a verdict is issued but before it becomes final, a party can request interim measures to secure the execution of the judgment. The court’s goal is to provide a continuous shield against the frus- tration of justice throughout the entire legal process. 6.4 Security for Costs A party to the case against whom an interim relief has been applied may file a motion to request coun- ter‑security (security in return) from the party who filed the motion for securing the claim, in order to com- pensate for potential damages they may incur. This is most frequently used when the plaintiff is a foreign entity with no assets in Armenia or a shell company with no significant capital. If the court grants the appli- cation, the plaintiff must deposit funds or provide a bank guarantee before the case can proceed. This mechanism protects defendants from “frivolous” lawsuits where the plaintiff has nothing to lose. The court must balance this protection against the plain- tiff’s right of access to justice, ensuring that security for costs is not used as a tool to prevent legitimate claimants from pursuing their rights. The amount of security is typically based on a reasonable estimate of the defendant’s likely legal fees and court costs. 6.5 Interim Injunctions Interim injunctions are granted when there is an urgent need to prevent irreparable harm or the destruction of evidence. These are often sought in intellectual prop- erty disputes, where a party needs to stop the sale of counterfeit goods, or in corporate disputes to prevent an unlawful shareholders’ meeting. The court will grant an injunction if the applicant can show a prima facie
case (a likelihood of success on the merits) and that the “balance of convenience” favours the injunction. In cases of extreme urgency, the court can issue an ex parte injunction without first hearing from the defend- ant. However, the defendant has the right to immedi- ately challenge the injunction once they are notified, and the court will hold a hearing to decide whether to maintain, modify or lift the measure. This ensures that the rights of both parties are protected while address- ing the need for rapid judicial action. 6.6 Summary Judgment While Armenia does not have a “summary judgment” procedure identical to common law systems, it offers simplified and accelerated procedures for clear-cut cases. For example, if a claim is based on an undis- puted written contract or involves a small monetary amount, the court can decide the case within a very short timeframe based solely on the written evidence. These cases are often handled without an oral hear- ing. Additionally, the court has the power to reject a lawsuit at the outset if it is “manifestly unfounded” or if the plaintiff clearly lacks the right to sue. This serves as a filter to remove cases that have no legal merit before they consume the court’s resources. For debt collec- tion where there is no genuine dispute, the “payment order” (writ) procedure allows a creditor to obtain an enforceable act in as little as two weeks if the debtor does not file a formal objection. 7. Mass Claims and Class Actions 7.1 Procedural Mechanisms Armenia recognises group actions (class actions) as a specific procedural mechanism for handling multi- ple claims with common factual and legal issues. This allows a large number of claimants to have their cases resolved in a single proceeding, which is more effi- cient for the court and less expensive for the parties. Group actions are primarily used in consumer protec- tion, environmental litigation and corporate disputes. The Civil Procedure Code provides the detailed frame- work for these actions, specifying how the case is initi-
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