Claims Procedure, Extrajudicial

in the USSR, one of the forms of settling disputes between creditors and debtors. Under this procedure, the creditor must submit the claim to the debtor before turning the dispute over to the appropriate arbitration tribunal or court. The debtor must respond to the claim within a set period. If the debtor refuses to satisfy the claim or if no answer is received within the set period, the creditor has the right to bring suit.

Extrajudicial claims procedure is regulated by the Statute on the Procedure for Submitting and Reviewing Claims by Enterprises, Organizations, and Establishments and Settling Disagreements Related to Economic Contracts, ratified by the Council of Ministers of the USSR on Oct. 17, 1973. The statute applies to claims submitted by socialist organizations, with the exception of claims that arise from relations involving kolkhozes and inter-kolkhoz organizations, claims against transport and communications organizations related to shipping freight and rendering communications services, and other types of claims. Claims for compensation for the value of missing or incomplete product deliveries and for poor-quality products are to be submitted and reviewed within one month; other claims are handled within two months. An extrajudicial claims procedure has also been established for claims arising from violation of contracts for foreign deliveries that have been concluded between economic organizations of countries that belong to the Council for Mutual Economic Assistance (COMECON).

Special legislation covers the extrajudicial procedure to be followed by organizations and citizens that wish to make a claim against a carrier because of alleged violations of a shipping agreement. Claims related to shipment of freight by various means of transport are to be submitted within a period of six months, while claims for payment of penalties and bonuses are to be submitted within 45 days and reviewed by the appropriate agency within 45 days. If the shipment was made by direct, mixed transportation, the review must take place within three or six months. A special claims procedure has been established for international shipping. The Rules on Communications of the USSR also stipulate a special claims procedure for demands by clients against communications agencies.