ARMENIA Law and Practice Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
7.4 Class Actions, Mass Claims and Arbitration
ated, how the representative is chosen, and how the final judgment is applied to the group. The court plays an active role in managing the group, ensuring that all members are properly notified and that their interests are adequately protected throughout the litigation. 7.2 Standing Requirements To bring a class action in Armenia, there must be a minimum of 20 claimants who share the same legal and factual grounds for their claims. The group must be represented by a single representative (or a small committee of up to five people), who manages the liti- gation on behalf of everyone. The representative can be one of the group members, a specialised non-gov- ernmental organisation (NGO) or a qualified advocate. The representative must demonstrate to the court that they will fairly and adequately protect the inter- ests of the group. Any member of the group has the right to “opt out” of the class action if they prefer to pursue their claim individually, but those who remain are bound by the court’s final decision. This require- ment for a large, cohesive group ensures that the class action mechanism is reserved for cases with a signifi- cant social or commercial impact. 7.3 Relief The relief available in class actions includes monetary damages, injunctions and declaratory judgments. In cases involving consumer harm, the court may order the defendant to compensate each member of the group for their individual losses. Damages are typically calculated based on the specific evidence provided for each member, though the court may establish a general formula for distribution if the losses are uni- form. In environmental or corporate cases, the relief often takes the form of an injunction requiring the defendant to stop a harmful activity or a declaratory judgment nullifying an unlawful corporate decision. The final judgment in a class action is binding on all members of the group who did not opt out, and it prevents them from bringing individual lawsuits on the same issue in the future.
Class actions and mass claims are not common in Armenian arbitration. While the Law on Commercial Arbitration is flexible, the existing institutional rules and the legal culture are focused on bilateral (two- party) disputes. For a mass claim to be arbitrated, the arbitration agreement would likely need to explicitly authorise such a procedure, which is rare in standard commercial contracts. Furthermore, the privacy and confidentiality that are the hallmarks of arbitration are difficult to maintain when dozens or hundreds of claimants are involved. Most mass claims involving public interests, such as consumer protection or environmental harm, are considered better suited for the public state courts, where transparency and broad judicial oversight are The most significant trend is the increasing use of group actions by NGOs and consumer rights groups. As the legal framework has become more settled, these organisations are more confident in using class actions to challenge the practices of large utility pro- viders, banks and telecommunications companies. This has led to a greater awareness among the general public of their collective legal power. There is also a growing trend towards environmental class actions, where local communities join to sue mining or industrial companies for pollution. These cases often involve complex scientific evidence and high stakes, and the class action mechanism is seen as the only viable way for individuals with limited resources to hold large corporations accountable. The government is also considering further legislative reforms to make it easier for groups of citizens to seek judicial relief. guaranteed. 7.5 Trends
8. Evidence 8.1 Disclosure
Armenia does not have the extensive “discovery” process used in common law jurisdictions; instead, it utilises a system of mandatory disclosure. Parties
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