Approved
by decision of the Riga United Arbitration Court
founding company „Strīdu pietura”
dated 22 May 2015
with Amendments approved
by decision of the Riga United Arbitration Court
founding company „Strīdu pietura”
dated 15 April 2019
with Amendments approved
by decision of the Riga United Arbitration Court
founding company „Strīdu pietura”
dated 18 October 2019
Rules of Procedure
of Riga United Arbitration Court
I. GENERAL RULES
1. Grounds of Operation of the Court of Arbitration
(1) The Riga United Arbitration Court (hereinafter – the arbitration court) is an independent arbitration court operating pursuant to the Law on Arbitration Courts, these Rules of Procedure (hereinafter – the Rules), and agreement of the parties.
(2) The arbitration court was established by company „Strīdu pietura”, reg. No.40008233919.
(3) The website of the arbitration court is www.arbitri.lv.
(4) The arbitration court shall settle disputes within the jurisdiction of arbitration courts ensuing from civil legal relations, provided that the parties have agreed to submit the dispute to the arbitration court and the dispute falls under jurisdiction of the arbitration court pursuant to Section 5 of the Law on Arbitration Courts.
2. Governing Body of the Arbitration Court
(1) The work of the arbitration court shall be managed by a chairperson of the arbitration court (hereinafter – the Chairperson) who shall perform the functions set forth in these Rules to supervise and ensure the formation of the structure of the arbitration court and the operation thereof.
(2) The Chairperson shall be appointed by the decision of Board of company „Strīdu pietura”.
(3) The Chairperson shall not settle disputes by him- or herself, except for the cases when the Chairperson is appointed as an arbitrator.
(4) The Chairperson may certify the genuineness of copies, extracts and duplicates of the documents issued by the arbitration court, including signatures of arbitrators on awards.
(5) The Chairperson is entitled to unilaterally settle any issue, the settlement of which is within the jurisdiction of the Chairperson.
3. Procedural Law Norms Applicable in Dispute Settlement
(1) The norms of the Law on Arbitration Courts and these Regulations shall be binding on the arbitration court.
(2) The parties are entitled to freely set the procedure of the arbitration.
(3) If the parties have not agreed upon the procedure of the arbitration, it shall be considered that the parties have agreed upon dispute settlement in accordance with the Rules in force on the day of conclusion of the arbitration court agreement.
(4) When agreeing upon referring the dispute to the arbitration court, the parties may additionally agree upon the number of arbitrators, the procedure of the arbitration, viva voce or written proceedings, place of dispute settlement, language of the arbitration, applicable law, and other issues in accordance with the law.
(5) If the parties have only agreed upon specific regulations of the arbitration, the arbitration court shall comply with the agreement of the parties and shall be guided by the Rules as regards other issues.
(6) If the dispute is being settled by three or more arbitrators, the Chairperson of the arbitration court body may independently decide procedural issues if the parties or the other arbitrators have entrusted them with this.
4. Substantive Law Norms Applicable in Dispute Settlement
When resolving a dispute, the arbitration court shall be guided by laws and customary transaction practices, the application of which the parties have agreed upon, as far as such agreement of the parties is not contrary to the provisions of Sections 19, 24 and 25 of the Civil Law of the Republic of Latvia. If the parties do not agree upon the laws or customary transaction practices to be applied on their mutual relations, or the arbitration court has found it to be invalid, the law applicable to the legal relations of the parties shall be determined in accordance with provisions of the Introduction to the Civil Law.
II. ARBITRATION COURT AGREEMENT
5. Concept of the Arbitration Court Agreement
(1) The arbitration court agreement is an agreement entered into by parties in accordance with procedures of the Law on Arbitration Courts regarding the referral of a dispute for settlement to the arbitration court.
(2) The parties may agree to refer a dispute that has arisen or may arise in future to the arbitration court for settlement.
(3) If the arbitration court agreement does not prescribe the laws according to which the validity of this agreement is to be discussed, the law applicable to the arbitration court agreement shall be determined in accordance with Sections 19 and 25 of the Civil Law.
6. Parties to the Arbitration Court Agreement
The arbitration court agreement may be entered into by:
1) an individual who has the capacity to act, regardless of their citizenship and place of residence;
2) L a legal entity registered in Latvia or in another country;
3) another private law subject.
7. Form of the Arbitration Court Agreement
(1) The arbitration court agreement shall be entered into in writing. It may be included in any agreement as a separate provision (the arbitration court clause).
(2) A written agreement is deemed to be entered into by an exchange of letters, faxes or telegrams, or by other means of telecommunication that ensure that the intent of both parties to refer a dispute or a possible dispute for settlement to the arbitration court is recorded.
(3) The agreement may include a stipulation regarding disputes settlement procedures in accordance with the Rules or the agreement of the parties.
(4) The arbitration court agreement may be repealed or amended in accordance with a written agreement of the parties.
8. Mandatory Nature of the Arbitration Court Agreement
(1) The persons who have entered into an agreement to refer a dispute for settlement to the arbitration court are not entitled to withdraw therefrom, unless the arbitration court agreement has been amended or repealed pursuant to provision of law or the agreement.
(2) The arbitration court agreement shall be in force until the legal relations in relation to which it has been entered into have been terminated.
(3) If an agreement to refer a dispute for settlement to the arbitration court is included in the agreement entered into by parties as a separate provision, such agreement shall be regarded as an independent agreement. If the agreement has expired or the agreement has been declared invalid, the agreement to refer a dispute for settlement to the arbitration court shall remain in effect.
(4) Each party is entitled to unilaterally withdraw from the arbitration court agreement by notifying the other party thereof if the parties have not stipulated another time period for the adjudication of the matter by the arbitration court and if one of the following provisions applies:
1) the composition of the arbitration court is not established or from procedural activities are being performed for more than four months of the arbitral proceedings;
2) the arbitration court has not completed the adjudication of the matter with a decision within a period of one year from the initiation of the arbitral proceedings, except in the event when the arbitration court has decided to defer the settlement of the dispute or to suspend the proceedings on the matter.
III. PREPARATION OF ARBITRAL TRIBUNAL
9. Jurisdiction of a Dispute
(1) If the parties have agreed to refer a dispute ensuing from a particular agreement for settlement to the arbitration court, it shall be considered that the parties have agreed to settle any dispute ensuing from this agreement, related to it or its violation, termination, or invalidity in the arbitration court.
(2) A dispute ensuing from non-contractual illegal activities may be also referred for settlement to the arbitration court.
(3) Any civil dispute may be referred for settlement to the arbitration court, except a dispute:
1) where the award may infringe the rights or interests protected by law of such a person who is not a party to the arbitration court agreement;
2) where at least one party is a state or municipal institution or the award of the arbitration court may affect the rights of state or municipal institutions;
3) which is related to records to the Civil Records Registry;
4) which is related to the rights and duties of persons under guardianship or trusteeship, or to their interests protected by law;
5) regarding the establishment, alteration or termination of property rights regarding real property if a party to the dispute is a person whose rights to acquire real property in ownership, possession or use are restricted by law;
6) regarding the eviction of a person from living quarters;
7) between an employee and employer if the dispute arose upon entering into, amending, terminating or implementing an employment contract, as well as in applying or translating provisions of regulatory enactments, a collective labour contract or code of conduct (individual labour rights dispute);
8) regarding the rights and obligations of such persons who have been declared insolvent;
9) related to issued subject to consideration under separate court proceedings.
10. Determination of Jurisdiction of a Dispute
(1) The arbitration court shall decide on jurisdiction regarding a dispute, including those challenging validity of the arbitration agreement. The arbitration court may determine jurisdiction of the dispute at any stage of the arbitral proceedings.
(2) A submission regarding the fact that a dispute is not subject to the arbitration court may be submitted by a party until the time period for submission of a response expires.
(3) If a party fails to submit the submission to the arbitration court within the set period of time regarding the fact that a dispute is not subject to the arbitration court, such party is not entitled to bring such objections later and it shall be considered to have waved its right to bring such objections, including when the court decides on the execution of its judgement.
(4) If the arbitration court finds that the arbitration court does not have jurisdiction over the dispute or its part, the arbitration court shall terminate the proceedings on the dispute or its part taking a decision on termination of the arbitration.
(5) If the parties dispute existence or effect of the arbitration agreement, and the state court has admitted that the dispute is within the jurisdiction of the arbitration court, the arbitration court is entitled to settle the dispute as being within its jurisdiction.
11. Arbitration Expenses
(1) Arbitration expenses shall include:
1) litigation expenses;
2) arbitrator’s (arbitrators’) fee;
3) travel and accommodation expenses of the arbitrator (arbitrators);
4) payment for rent of premises, if a dispute is being settled outside the headquarters of the arbitration court pursuant to the agreement of parties;
5) payment for interpreter services;
6) remuneration to the secretary of the arbitration court hearing;
7) payment for expert services.
(2) The procedure for calculation of the arbitration expenses referred to in Paragraph 1 above is provided in Annex 1 to the Rules.
(3) Arbitration expenses referred to in Paragraphs 1, 2 and 3 of Section 11 of the Rules are payable by the person filing the claim pursuant to the invoice issued by the arbitration court within 5 (five) days after acceptance of the claim.
(4) The amount of the arbitration expenses indicated in Annex 1 to the Rules may be changed by a decision of the Chairperson taking into consideration complexity of the dispute, the time required to settle the dispute and any other circumstances related to settlement of the dispute if the parties agree to that.
(5) The arbitration expenses shall include other possible expenses related to settlement of the dispute the payment procedure of which shall be determined by the arbitration court in compliance with the Rules.
(6) During the proceedings, the arbitration court may request payment of additional arbitration expenses.
(7) A secretary, interpreter or an expert shall only be invited to the arbitral proceedings after the party has paid the remuneration set by the arbitration court for the services of these persons.
(8) If resolving a dispute requires invitation of an interpreter, ordering an expert examination, or inviting an expert and the party who requested it fails to pay the remuneration for services of the interpreter or the expert within the timeframe set by the arbitration court, the other party may pay the set remuneration.
(9) If a party paid the remuneration for services of a secretary, interpreter and/or expert but said services are not provided, the paid amount shall be refunded to the party who paid it.
(10) When taking a decision as regards the dispute, the arbitration court shall decide on collection of the arbitration expenses and expenses related thereto. Expenses related to the arbitral proceedings shall be expenses of legal assistance in the matter, expenses related to hearing attendance and to gathering evidence.
(11) The parties may agree upon allocation of the arbitration expenses between them.
(12) If the plaintiff recalls the claim thereof until appointing the arbitral tribunal, the chairperson may decide on refunding the paid arbitrator’s fee.
12. Interim and Conservatory Measures
(1) A potential plaintiff may petition to secure their claim prior to bringing court action in accordance with the location of the plaintiff or their property.
(2) An application for securing a claim or an application for varying security for a claim shall not be considered as failure to observe the arbitration court agreement and shall not impede settlement of the dispute by the arbitration court.
13. Terms
(1) During the arbitral proceedings, the arbitration court may set procedural terms at its own discretion in compliance with provisions of the Rules.
(2) In individual cases, the arbitration court may extend the time period set in the Rules, if required.
(3) Upon request of an interested party, the arbitration court may renew the time periods set by the arbitration court if they are missed, if the arbitration court believes it is appropriate.
14. Correspondence, Notifications and Summonses
(1) The arbitration court shall send its prepared documents (judgments, rulings, notices, etc.) by mail, by e-mail, or shall issue them to the addressee against signature. The arbitration court sends documents prepared and submitted to it by a party (the submission, response on the submission, etc.) to the other party by mail.
(2) The documents listed in part one of the Article above shall be sent to an individual by registered mail to their declared residence address and, in case of an additional address in the declaration – to the additional address, unless the indivudal specified a different address for communication with the arbitration court, and to a legal entity – to its registered address. If the address cannot be obtained by reasonable investigation actions, the correspondence shall be sent to the addressee’s last known residence address or to the location of the legal entity.
(3) The documents listed in part one of the Article above shall be sent to an individual by e- mail if the party notified the arbitration court of their consent to use e-mail for communication with the arbitration court. In this case, the arbitration court sends the documents to the e-mail provided that the party. If the arbitration court detects technical obstacles for sending the documents by e-mail, it shall send them by registered mail.
(4) Notice about the first arbitration hearing shall be sent to the parties by registered mail not later than 15 days in advance, unless the parties agreed on a shorter notice.
(5) The documents listed in part one of the Article above shall be considered received on the day of their issue if delivered to the addressee in person. If they were sent by mail, they shall be considered received on the seventh day after dispatch of the mail; if they were sent by e-mail, they shall be considered received within two business days after the sending day.
15. Confidentiality
(1) The arbitral proceedings shall be confidential. Arbitration court hearings shall be closed. Persons who are not participants of the proceedings may only participate in the hearing upon agreement of both parties.
(2) The arbitration court shall not provide or publish information on the arbitral proceedings to third parties.
(3) The obligation to observe confidentiality shall apply to the arbitral tribunal, employees of the arbitration court, participants of the arbitral proceedings and their representatives.
16. Place of Arbitration
(1) The parties may agree upon the place of the arbitration.
(2) If the parties do not agree upon the place of the arbitration, it shall be determined by the arbitration court.
(3) The arbitration court may determine its seat or any other place it believes is suitable as the place of the arbitration in accordance with the circumstances of the arbitral proceedings.
(4) In order to become acquainted with the circumstances the parties refer to, including to examine a product or other property or documents or to verify them, the arbitration court may meet at any place it believes to be suitable by notifying the parties that are entitled to participate in the examination.
(5) If the parties agree upon a place of the arbitration outside Riga, the parties shall cover travel and accommodation expenses of the arbitrators, as well as expenses for rent of premises to hold arbitration court hearings.
17. Language of Arbitration
(1) The arbitration shall be conducted in Latvian, unless the parties agreed upon another arbitration language.
(2) If the arbitral tribunal or any of the arbitrators, or any of the participants to the proceedings is not fluent or proficient in the language agreed upon by the parties, the arbitration court shall invite an interpreter.
(3) The arbitration court shall determine the procedure of paying for the interpreter’s services in compliance with the provisions of Annex 1 of the Rules.
(4) Parties may apply for removal of an interpreter in accordance with the procedures set forth in Sections 29 and 30 of the Rules.
(5) The arbitration court may require from parties a translation of any written evidence or a translation certified by a notary into the language of the proceedings.
18. Representation of Parties
(1) Individuals shall conduct their matters in the arbitration court themselves or through their authorised representatives.
(2) Matters of legal entities shall be conducted in the arbitration court by their officials, who act within the scope of the authorisation conferred pursuant to law, articles of association or by-law, or by another authorised representative of such legal entities.
(3) An authorised representative can be any individual, except a person:
1) who is underage;
2) who is under guardianship;
3) whose rights to conduct other persons’ affairs have been withdrawn pursuant to a court ruling;
4) who is in kin relations up to the third degree or in in-law relations up to the second degree with an arbitrator who is settling the civil dispute;
5) who provided legal assistance to the other party of a civil dispute in this or in another related case;
6) who participated in mediation on this or another related case.
(4) The person who is included in the arbitrator list of the arbitration court or was included therein in the past five years may not represent a party and such person may not be invited for provision of legal assistance in arbitral proceedings.
(5) The parties may retain advocates to provide legal assistance during the arbitration.
19. Commencement of Arbitration
(1) The arbitration shall commence at the moment of submitting a request for arbitration.
(2) The request for arbitration shall be submitted to the arbitration court in writing at the seat of the arbitration court.
(3) The request for arbitration shall be submitted in the number of copies equal to the number of participants in the matter.
(4) The arbitration court shall ensure that the request for arbitration is sent to the defendant.
20. Request for Arbitration
(1) A request for arbitration shall be submitted to the arbitration court in writing.
(2) The request for arbitration shall include:
1) the plaintiff’s name, surname, identity code, declared residence address, if none – their residence; for a legal entity — its title, registration number and registered address. The plaintiff may provide their telephone number or e-mail if they consent to communicate with the arbitration court via the telephone or e-mail;
2) the defendant’s name, surname, identity code, declared residence address and the additional address specified in the declaration, if none – their residence; for a legal entity — its title, registration number and registered address. The defendant’s identity code or registration number is specified if it is known;
3) if the request is filed by a representative, — the representative’s name, surname, identity code, and address for communication with the arbitration court; for a legal entity — its title, registration number and registered address;
4) in requests regarding money collection — the name of the credit institution and the account number, if any, where the payment should be made;
5) the subject of the claim, amount claimed, and calculation of the amount claimed;
6) the grounds for the claim and evidence that confirms it;
7) the claims of the plaintiff;
8) a list of accompanying documents;
9) other data if necessary for consideration of the case;
10) the arbitrator selected on their side if the dispute is to be settled by three or more arbitrators.
(3) The following is enclosed to the request for arbitration:
1) the arbitration agreement, unless it is included in an agreement in relation to which the dispute has arisen;
2) the agreement in relation to which the dispute has arisen;
3) the documents referred to by the plaintiff in the request for arbitration.
(4) The arbitration court may determine the list of documents that should be requested from or may be submitted by the parties in addition to the request for arbitration and response to the claim and shall determine the time limits for the submission of such documents.
(5) After receiving the request for arbitration and the accompanying documents, the Chairperson or the arbitrator within 5 (five) days shall issue the submitter of the request for arbitration an invoice regarding payment of the arbitration expenses – fees related to the dispute settlement and arbitrator fees.
(6) The Chairperson may independently set a time period for paying the arbitration expenses; however the time period may not exceed 20 days from the day the request for arbitration has been received at the arbitration court and in any case the arbitration expenses shall be paid one day prior to the dispute settlement.
(7) If the arbitration expenses are not paid before start of dispute settlement, the request for arbitration shall be returned to the submitter without adjudication.
(8) If the submitter of the request for arbitration has a justified reason for not paying the arbitration expenses in due time, the Chairperson may set another payment period, also setting another date for dispute settlement, notifying the parties thereof in writing in compliance with the provisions of Section 34 of the Rules.
21. Actions of Chairperson of Arbitration Court after Receiving Request for Arbitration
(1) If a request for arbitration and the accompanying documents meet the requirements of the Rules, the Chairperson, without delay, but from later than within 5 days, shall send a notification to the defendant regarding receipt of the claim and the copy of the request for arbitration, offering the defendant to submit a response to the claim, indicating objections, if any, and attaching documents confirming them, as well as indicating the preferred arbitrator if the number of arbitrators is three.
(2) If a request for arbitration and accompanying documents do not meet the requirements of the Rules, the Chairperson shall inform the submitter thereof, giving them time to eliminate the errors. During this period of time, the request for arbitration shall not be proceeded with.
(3) If the errors are eliminated within the period of time set by the Chairperson of the arbitration court, the request for arbitration shall be considered submitted and the arbitration shall start.
(4) If the errors are not eliminated within the period of time set by the Chairperson of the arbitration court, the request for arbitration shall be returned to the submitter without adjudication.
22. Response to the Claim
(1) The defendant shall be granted at least 15 days to submit a response to a claim.
(2) In the response, the defendant shall indicate:
1) whether they admit the claim in full or in part;
2) their objections to the claim;
3) evidence that certifies their objections to the claim and the justification thereof;
4) requests to accept or demand evidence;
5) other circumstances, which they considers to be important in the adjudication of the matter;
6) their telephone number or e-mail address if they consent to communicate with the arbitration court via the telephone or e-mail;
7) the preferred arbitrator (arbitrators) if the number of arbitrators is three or more.
(3) Taking into consideration the location of the defendant, complexity of the dispute, and number of defendants, the chairperson, at their own discretion, may set a longer period of time for submission of a response; however, it may not be more than objectively required and may not exceed 30 days.
(4) Failure to submit a response shall not obstruct adjudication of the dispute.
(5) The response shall be submitted to the arbitration court in as many copies as there are parties to the arbitration proceedings.
23. Counterclaim
(1) The defendant may submit a counterclaim that may be settled by the arbitration court together with the claim, if the subject of the counterclaim is included in the arbitration court agreement.
(2) The counterclaim shall be submitted in writing. The same provisions of the Rules that apply to the request for arbitration shall apply to the counterclaim.
(3) The counterclaim may be submitted within the same period of time as set for the submission of a response.
(4) If the defendant misses the set date due to a justified cause, the defendant may request the arbitration court to renew the missed date.
(5) If the arbitration court justifies the delay and renews the period of time to submit the counterclaim, the arbitration court shall accept the counterclaim for the settlement.
(6) If the arbitration court does not justify the delay and does not renew the counterclaim submission date, the arbitration court shall leave the counterclaim without adjudication.
24. Amendment of Claim, Counterclaim and Response
(1) During the arbitration, any of the parties may amend and supplement the claim in writing until the settlement of the dispute is commenced on the merits.
(2) If the essence of the claim is amended or supplemented, the defendant may submit a written response within the time period set by the arbitration court. Provisions of Section 22 of the Rules apply to submission of the response.
(3) If the amount claimed is increased when amending or supplementing a claim or counterclaim, the respective party shall additionally pay the respective the arbitration expenses.
(4) When commencing settlement of the dispute in a hearing, the arbitration court may consider it inappropriate to allow amendments or supplements to the claim, counterclaim or response (objections) to the claim in accordance with the delay, or if the arbitration court admits that such amendments or supplements impede the arbitration or complicate settlement of the dispute.
(5) A claim or counterclaim may not be amended in a way that exceeds the limits of the arbitration agreement.
IV. ARBITRATORS AND COMPOSITION OF ARBITRATION COURT
25. Status of Arbitrator
(1) An arbitrator is a person who is appointed from the arbitrator list to settle the dispute under provisions of the arbitration agreement and the Rules.
(2) Any person of full age who agreed in writing to be put on the arbitrator list of the arbitration court, who is not under guardianship, has an impeccable reputation, graduate professional or academic degree (except first level professional education) and a lawyer’s qualification, at least three years of practical work experience as academic staff at a law school or at another legal position, and to whom restrictions listed in Section 15 of the Law on Arbitration Courts do not apply may be appointed an arbitrator.
(3) Prior to inclusion of a person on the arbitrator list of the arbitration court, the chairperson shall demand such person to submit:
1) a written consent to act as an arbitrator,
2) documents proving the arbitrator’s qualification,
3) evidence that restrictions listed in Section 15 of the Law on Arbitration Courts do not apply do not apply to such person.
(4) Upon receipt of the documents listed in clause three of this Section, the chairperson shall verify the submitted documents, compliance of the person with provisions of Section 15 of the Law on Arbitration Courts, and the person’s reputation using any publicly available resources.
(5) The arbitrator is not a representative of the party who has assigned them. The arbitrator shall perform their duties in good faith, without being subject to any influence; they shall be independent, objective, and fair.
26. Person Who May Not Be Appointed an Arbitrator
The following person may not be appointed an arbitrator:
1) who does not match provisions of part two of Section 14 of the Law on Arbitration Courts;
2) who was announced a suspect or the accused in wilful commitment of a crime;
3) criminal proceedings regarding whose wilful commitment of a crime were terminated on non-rehabilitating grounds;
4) who was convicted for wilful commitment of a crime – regardless of conviction expiry or withdrawal;
5) who was convicted for wilful commitment of a crime even though released from service of their sentence due to expiry of the period of prescription, remission, or amnesty;
6) against whom insolvency proceedings were announced in the last five years.
27. Prohibition to Participate in Case Adjudication and Removal of Arbitrator
(1) An arbitrator may not participate in case adjudication if they:
1) have been representing a party, acting as an expert or witness on a case where the parties participated;
2) is in kin relations up to the third degree or in in-law relations up to the second degree with any of parties to the dispute or their representatives;
3) is in in kin relations up to the third degree or in in-law relations up to the second degree with any of the arbitrators of the arbitration court adjudicating the dispute;
4) is in labour relations with any of the parties to the civil dispute or their representatives or the arbitrator provides legal assistance to any of the parties;
5) or their spouse, a relative to the third degree, a business partner, or a company that is a party to the dispute and whose participant, shareholder, member, supervisory, controlling, or a member of the executive body is such arbitrator or their relative to the third degree, have material interest in the outcome of the dispute.
(2) The arbitrator may remove themselves, stating the reasons thereof, not later than within 5 days after the day they learned about their appointment or after the day when they learned about circumstances that could give rise to reasonable doubts as to their objectiveness or independence.
(3) If the arbitrator has removed themselves, a new arbitrator is appointed pursuant to the agreement of the Rules.
28. Number of Arbitrators
(1) The number of arbitrators shall be an odd number.
(2) Unless the parties agreed upon the number of arbitrators, the arbitration court shall consist of three arbitrators.
(3) The arbitration court may also consist of one arbitrator if the parties agreed upon such.
(4) The parties may also agree upon another (odd) number of arbitrators.
29. Procedure of Appointment and Dismissal of Arbitrators
(1) The procedure of appointing arbitrators shall be determined by the parties.
(2) If the parties agree to refer a dispute for settlement to the arbitration court but do not agree upon the procedure of appointing arbitrators, the arbitrators shall be appointed in accordance with the Rules, taking into consideration the equality of the parties.
(3) The parties may entrust appointment of the arbitrators to any individual or legal entity with the capacity to act.
(4) If the party appointed an arbitrator and the other party was notified thereof, this party may not dismiss this arbitrator without consent of the other party.
30. Procedure for Establishment and Approval of Composition of Arbitration Court
(1) Arbitrators may be appointed from the list of arbitrators of the arbitration court approved by the Chairperson.
(2) If the parties agreed that a dispute is to be settled by one arbitrator but did not agree upon a particular arbitrator or the procedure for the appointment of an arbitrator, an arbitrator shall be appointed by the Chairperson from the list of arbitrators of the arbitration court.
(3) If a dispute is settled by three arbitrators, the plaintiff shall indicate the preferred arbitrator when submitting the claim. When sending a notification referred to in Section 21 of the Rules regarding receipt of the claim, the Chairperson shall inform the defendant thereof and will offer to choose their arbitrator from the list of arbitrators of the arbitration court.
(4) If either of the parties does not indicate the preferred arbitrator when submitting the claim or response, the arbitrator shall be appointed by the Chairperson from the list of arbitrators of the arbitration court.
(5) The arbitrators selected by the parties shall agree on appointment of the third arbitrator from the list of arbitrators of the arbitration court; that arbitrator shall be the chairperson of the arbitration court.
(6) If the arbitrators selected by the parties cannot agree upon the chairperson of the arbitration court within 5 days, that arbitrator shall be appointed by the Chairperson from the list of arbitrators of the arbitration court.
(7) If the parties agreed upon another number (odd) of arbitrators, each of the parties shall select the same number of arbitrators in accordance with the procedure above; these arbitrators, in turn, shall agree on appointing the chairperson from the list of arbitrators of the arbitration court.
(8) If the claim has been pursued by several plaintiffs or if the claim has been pursed against several defendants, they shall agree upon the candidate for an arbitrator from their side.
(9) The Chairperson shall approve the established arbitration court by the notifying the parties thereof. When approving the arbitration court, the Chairperson shall check whether the agreement of the parties and requirements of the Law on Arbitration Courts and these Rules have been complied with when establishing the arbitral tribunal.
31. Grounds and Procedure for Removal of Arbitrator
(1) A party to the case may remove an arbitrator if:
1) restrictions of part one of Section 16 of the Law on Arbitration Courts regarding participation of the arbitrator in adjudication of the case applied to them and they did not remove themselves;
2) they do not meet requirements of the Law of Arbitration Courts;
3) they do not meet requirements agreed upon by the parties;
4) other circumstances cause reasonable doubts regarding their objectiveness and independence.
(2) The person from whom consent is requested to be appointed as an arbitrator must disclose to the parties any circumstances that might cause reasonable doubts regarding their objectiveness and independence. If such circumstances occurred or became known after the arbitration started but prior to completion of the arbitration, the arbitrator must immediately disclose tem to the parties.
(3) A party may remove an arbitrator whom it appointed or in whose appointment it participated only where the grounds for removal have become known after appointment of the arbitrator.
(4) If such circumstances have become known to the arbitrator before completion of the arbitration, they should disclose them to the parties immediately.
(5) The parties may agree upon the procedure of removing an arbitrator.
(6) If the parties did not agree upon the procedures of removing an arbitrator, a party may apply for removal of an arbitrator within five days after the party learned about appointment of the arbitrator or about any of the circumstances listed in part one of this Section by submitting a written notification thereof to the arbitration court indicating the arbitrator to be removed and the grounds for removal.
(7) If the arbitrator to whom the removal has been declared does not withdraw from performing their duties, the decision regarding removal shall be made by the Chairperson within five days after receiving the notification.
(8) If removal of the arbitrator is approved, a new arbitrator shall be appointed in accordance with the procedure set forth in the Rules.
32. Termination of Authorisation of Arbitrator
(1) Authorisation of an arbitrator is terminated:
1) if removal of the arbitrator is accepted;
2) f the arbitrator has withdrawn themselves from settling the civil dispute;
3) if the parties agree upon the removal of the arbitrator;
4) if restrictions of Section 15 of the Law on Arbitration Courts apply to them;
5) if the arbitrator dies;
6) if the arbitrator cannot perform the duties of an arbitrator for more than one month (due to absence, sickness or other reasons).
(2) If the parties have not agreed upon the procedure of termination of the authorisation of an arbitrator, the Chairperson shall decide on termination of authorisation of the arbitrator upon the request of a party or at their own incentive.
(3) If the Chairperson decides on termination of authorisation of an arbitrator, a new arbitrator shall be appointed in accordance with the procedure set forth in the Rules.
33. Consequences of Appointment of New Arbitrator
(1) If an arbitrator is changed when a dispute is examined by one arbitrator or if the chairperson of the arbitration court is changed, adjudication of the matter shall start from the beginning.
(2) If any of the arbitrators of the arbitration court is replaced, the arbitration court shall decide regarding adjudication of the dispute from the beginning or continuation of the adjudication of the dispute.
V. SETTLEMENT OF DISPUTE
34. Determining Time and Place of Arbitral Proceedings
(1) After the arbitration court is approved, the arbitration court shall set the time and place of the arbitration. The time of the first sitting of the arbitration court shall be set not later than 15 (fifteen) days prior to the sitting.
(2) The arbitration court shall inform the parties about the time and place of the arbitration court hearing by registered mail. If the parties did not agree upon written proceedings, the parties or their representatives shall be invited to the arbitration court hearing to give explanations.
35. Procedural Terms
(1) Procedural actions shall be carried out within the terms set forth in these Rules. If these Rules do not prescribe the procedural terms, they shall be determined by the arbitration court.
(2) The arbitration court may extend the document submission terms if it considers that appropriate; however, the document submission term set by the arbitration court may not exceed 45 (forty-five) days.
(3) To calculate terms in accordance with the Rules, the running of the term shall begin on the following day after receipt of correspondence if it was delivered to the addressee personally or on the eights day after sending the correspondence when it was sent to the postal address specified by the addressee (declared place of residence) or to the office of a legal entity (individual entrepreneur).
(4) If the last day of the term coincides with a holiday or weekend day at the place of residence of the addressee or the location of the legal entity (individual entrepreneur), the term shall be prolonged until the next business day.
36. Consequences of Violation of Procedural Terms; Suspension, Renewal and Extension Thereof
(1) The right to perform procedural actions shall lapse after expiry of the term determined by the Rules or by the arbitration court.
(2) If the arbitration is suspended, the term shall also be suspended. The term is suspended from the time when a circumstance has occurred that gives ground to suspending the proceedings. The procedural term shall be continued from the day when the arbitration is renewed.
(3) Upon an application of a party, the arbitration court may renew the violated procedural terms if the reasons for violation are found justified. In renewing a term, regarding which there has been default, the arbitration court shall at the same time allow the delayed procedural action to be carried out.
(4) The terms determined by the arbitration court may be prolonged upon a justified application of a party.
(5) If the application regarding extension of the term or renewal of a violated term is submitted prior to appointment of the arbitration court, it shall be decided by the Chairperson.
37. Procedure of Arbitration
(1) In the arbitration court, all disputes shall only be settled on the basis of submitted written evidence and materials, expert opinions and explanations (viva voce proceedings) or only on the basis of submitted written materials (written proceedings).
(2) The arbitration court shall adjudicate a dispute in viva voce proceedings if the parties did not agree on the proceedings type in the arbitration agreement or if they agreed on written proceedings but one of the parties requested viva voce proceedings before adoption of the judgment.
(3) When settling a dispute, the arbitration court shall comply with the equality and competition principles.
(4) Each party has equal right to express its opinion, defend its rights and submit evidence.
(5) In compliance with the provisions of the Rules and the agreement of the parties, the arbitration court may conduct the arbitration in a way it considers it more appropriate, provided that the dispute is settled without unnecessary delay and that the parties are given equal opportunities to express their opinions and submit documents.
(6) The arbitration court shall familiarise the parties with any submissions, documents and other information it has obtained, as well as with expert opinions and other evidence.
(7) Upon necessity, if the arbitration court admits that it is impossible to settle the dispute in a particular arbitration court hearing, the arbitration court may defer the settlement of the dispute without adjudicating the matter to the merits.
(8) If, after hearing the explanations of the parties, the arbitration court decides to defer settlement of the dispute, the arbitration court, at its own discretion, may set another day of the arbitration court hearing to repeatedly hear explanations of the parties or their representatives, or to continue settlement of the dispute without repeatedly hearing explanations of the parties or their representatives.
(9) Upon necessity, the arbitration court may decide on suspension of arbitration.
38. Postponing Adjudication of Matter
(1) The arbitration court is obliged to postpone adjudication of the dispute if any participant to the case is absent from the arbitration court hearing and they have not been notified of the time and place of the arbitration court hearing.
(2) The arbitration court is entitled to postpone adjudication of a matter:
1) if the arbitration court finds that adjudication of the matter is impossible because of the failure of a participant, secretary, expert or interpreter in the matter to attend the hearing;
2) upon request of a participant to the case to give them the opportunity to submit additional evidence;
3) by instigation of the arbitration court to settle procedural issues.
(3) The arbitration court shall inform the participants to the case about the date and time of the next arbitration court hearing in writing in compliance with provisions of Section 34 of the Rules.
39. Suspension of Arbitral Proceedings
(1) The arbitration court is obliged to suspend the arbitral proceedings, if:
1) an individual or a legal entity, which is a party to the dispute has died or ceased to exist and if the disputed legal relations allow succession of liabilities and rights;
2) a party has lost the capacity to act;
3) a written agreement of the parties regarding suspension of the arbitral proceedings is submitted to the arbitration court.
(2) The arbitration court, pursuant to the incentive of a participant to the case, or on its own incentive, may suspend the arbitral proceedings if:
1) a party is unable to participate in the adjudication of the dispute, due to illness or other justified reasons;
2) the arbitration court orders an expert examination.
40. Consequences, if Parties Do Not Participate in Arbitral Proceedings
(1) If the defendant does not submit a response to the claim to the arbitration court, the arbitration court shall continue the procedure without considering such failure to submit a recognition of the claim, unless provided otherwise in the arbitration agreement.
(2) If a party or its representative fails to attend a viva voce hearing without notification of the reasons for non-attendance or if the arbitration court does not find the party’s reasons for non-attendance justifiable, including if the party fails to enclose documents confirming justifiable reasons of non-attendance to the notification of non-attendance, the arbitration court shall settle the dispute on the basis of the evidence at its disposal.
(3) If a party fails to submit written or other evidence in due time or refuses to give explanations in the arbitration court, the arbitration court shall settle the dispute on the basis of the evidence at its disposal.
41. Evidence and Evidentiary Tools
(1) Evidence is data on the basis of which the arbitration court shall determine existence or absence of facts that are important to adjudication of the dispute.
(2) Evidence shall be submitted by the parties. Each party shall evidence the facts to which they refer as the basis for their claims and objections.
(3) Evidentiary tools in the arbitration court may be explanations of the parties, written evidence (written documents, audio records, video recordings, electronic data carriers, digital video disks, etc.), material evidence, and expert opinions.
(4) Original documents of written evidence or copies thereof executed pursuant to legal acts shall be submitted. If a party submits a copy or extract of a document, the arbitration court itself or, upon request of the other party, may require the party to submit the original document. Upon request of the person who has submitted the document, the arbitration court shall return the original document to the submitter adding a certified copy thereof to the materials of the proceedings.
(5) The arbitration court itself shall determine the admissibility and eligibility of evidence.
(6) Upon a motivated request of a party, the arbitration court may request the other party to issue written evidence at its disposal.
(7) The party asking the arbitration court to request written evidence must describe such evidence and motivate why it believes that such evidence is at the other party’s disposal.
(8) If a party refuses to submit the requested written evidence to the arbitration court within the specified term without denying that such evidence is at its disposal, the arbitration court may consider the facts, to prove which the opposing party referred to such written evidence, as proved.
42. Expert Examination
(1) Unless the arbitration agreement provides otherwise, any party may ask the arbitration court to order an expert examination and invite one or several experts.
(2) Pursuant to the requirement of the arbitration court, the parties shall submit necessary information or documents and present goods or other articles to the expert.
(3) The party that requests an expert examination and to invite experts, shall submit a written application to the arbitration court before the arbitration court ruling is made motivating its request and indicating the issues that require the expert examination or invitation of experts to clarify them. The parties shall select the expert by mutual agreement but if they fail to agree within the timeframe set by the arbitration court, the expert shall be selected by the arbitration court. The expert examination shall only be performed if the party has paid for the services of the expert in advance.
(4) If the arbitration court finds the request of the party justified, the arbitration court shall decide on ordering the expert examination or inviting experts.
(5) Upon request of the arbitration court, the parties shall submit to the expert the required information and any documents and present for examination any goods or other articles requested from them.
(6) After preparation of the expert’s opinion and receipt thereof at the arbitration court, the parties are entitled to familiarise themselves with it.
(7) Upon request of a party, the arbitration court shall invite the expert to participate in the hearing after giving the opinion. The parties may ask the expert questions about the opinion.
(8) The arbitration court shall determine the procedure for distribution of the expert service expenses between the parties.
43. Witnesses
(1) If witnesses are heard during the arbitration, each party shall notify the arbitration court and the other party of the names and addresses of the witnesses the party plans to invite not later than 15 (fifteen) days prior to hearing, at the same time indicating the circumstances the witness can testify to and the language in which they will testify.
(2) The arbitration court may request to expel other witnesses during testimony of witnesses. The arbitration court, at its own discretion, may determine the way of hearing witnesses.
44. Minutes
(1) Minutes of arbitration court hearings are only taken when one of the parties requests that.
(2) If any of the parties wants the minutes of the arbitration court sitting to be taken, this party shall submit a written submission before the day of the arbitration court hearing attaching evidence that the remuneration to the arbitration court secretary has been paid in accordance with the instructions provided in Annex 1 to the Rules.
(3) The minutes shall be taken by the secretary chosen by the arbitration court.
(4) The minutes shall be signed by all arbitrators and the secretary. The Minutes shall be signed not later than on the third day of completion of the arbitration.
(5) The minutes shall include the following:
1) the name of the arbitration court, case number, parties, nature of the dispute, arbitral tribunal, names, surnames and identity codes of the interpreter, expert, secretary of the hearing and other participants to the case, place and time of the arbitration court hearing, note on participation of the parties in the adjudication of the dispute;
2) information on a short description on the course of adjudication of the dispute, explanations, announcements and requests of the parties and participants to the case;
3) information on awards of the arbitration court;
4) information on the time of signing the minutes of the arbitration court hearing.
(6) The minutes of the sitting shall be signed by all the arbitrators and the secretary. The parties are entitled to familiarise themselves with the minutes and submit written objections stating the deficiencies in the minutes. The arbitration court shall decide on the validity of the objections.
45. Procedural Consequences of Withdrawal by Party
(1) The fact that an individual who is a party dies or a legal entity who is a party ceases to exist shall not terminate the arbitration agreement by itself, unless the parties agreed otherwise and the legal relation in dispute allows succession of rights.
(2) In such a case, the arbitration court shall suspend the arbitral proceedings until the successor of rights is determined.
(3) Cession of a claim or assignment of a debt may be the basis for termination of arbitration only in those cases where the arbitration court agreement is cancelled in accordance with the procedures stipulated by law or by the agreement.
46. Rights to Objections
(1) If a party believes that a provision of the arbitration has been breached, the party shall submit objections in writing to the arbitration court and to the other party without delay as soon as such breach has become or should have become known.
(2) The arbitration court shall decide if the objections are justified. If the arbitration court admits that the objections are justified, it shall eliminate the breach of the arbitration prior to continuing the arbitration.
(3) If a party does not submit such written objections immediately and continues to participate in the arbitration, it shall be considered that the party has waived its right to bring such objections, including when the court decides on the execution of the judgment granted by the arbitration court.
47. Passing Arbitration Court Awards
(1) All awards (decisions and judgments) of the arbitration court, if it consists of more than one arbitrator, shall be made by the majority vote, except the case of part six of Section 3 of the Rules when the award is passed by the Chairperson of the arbitration court.
(2) An award of the arbitration court shall come into effect on the day it is passed. It is not subject to appeal.
(3) The arbitration court shall make awards in writing, except the case of part six of Section 3 of the Rules, and they shall be signed by the arbitrator. If the arbitration court consists of several arbitrators, the award shall be signed by all arbitrators; but if any of the arbitrators does not sign the award, the reason for the missing signature shall be indicated in the award.
(4) Signatures of the arbitrators on the awards shall be certified by the seal of the arbitration court.
(5) Arbitration court awards and written decisions or copies thereof, whose compliance with the original has been certified by the Chairperson’s signature and the seal of the court of arbitration, shall be issued to the parties or their representatives in person or sent by mail.
48. Settlement
(1) The arbitration court shall facilitate settlement of the dispute between the parties.
(2) Settlement is allowed in any dispute, except the case mentioned in part two of this Section.
(3) Settlement is not allowed if its provisions affect rights of another person or their interests protected by law.
(4) If the parties enter settlement during the arbitration, the arbitration court shall terminate the proceedings and, if the parties and arbitration court agree, executes settlement as an arbitration court judgment. Such judgment of the arbitration court has the same status and legal effect as any other judgment of the arbitration court where a dispute is settled in its essence.
49. Arbitration Court Judgment
(1) The arbitration court shall execute its judgment within 14 days after adjudicating a civil dispute in its essence.
(2) The arbitration court shall execute judgments in writing.
(3) If the arbitration court consists of several arbitrators, all arbitrators sign the judgment. If any of the arbitrators does not sign the award, the reason for the missing signature shall be indicated in the judgment.
(4) The following information shall be indicated in the judgement:
1) composition of the arbitration court;
2) time of executing the judgment and the place of the arbitration hearings;
3) data about the parties — name, surname, identity code, other personal identification data and declared residence address or another address used for communication of an individual, or title, registration number, other personal identification data and registered address of a legal entity;
4) subject of the dispute;
5) the reasons for the judgment, unless the parties agreed otherwise;
6) conclusion regarding complete or partial satisfaction of the claim, or complete or partial dismissal thereof, and the essence of the arbitration court judgment;
7) amount to be collected if the judgment is rendered regarding recovery of money separately specifying the principal debt and interest, time when interest is prescribed, the plaintiff’s title to the interest until execution of the judgment, and the amount of such interest;
8) specific property and its value to be collected in case of absence of property if the judgment is rendered regarding recovery of property in kind;
9) who should do what and in what timeframe if the judgment prescribes a duty to take certain actions;
10) what part of the judgment refers to each plaintiff, if the judgment is made for the benefit of more than one plaintiff, or what part of the judgment is to be fulfilled by each of the defendants, if the judgment is made against more than one defendant;
11) arbitration expenses and their distribution between the parties;
12) expenses of the parties regarding legal assistance on the case, if any, and their distribution between the parties;
13) other information that the arbitration court considers necessary.
(5) The arbitration court judgment is sent to the parties within three business days after execution thereof.
50. Mandatory Nature of Arbitration Court Award
(1) An award and judgment of the arbitration court shall be mandatory and binding on the parties. The period for voluntary fulfilment of the award shall not be shorter than 10 days.
(2) If the award of the arbitration court does not indicate the period for voluntary fulfilment thereof, the award (except judgment) of the arbitration court shall be fulfilled immediately.
51. Judgment Correction, Explanation and Rendering of Supplementary Judgment
(1) Upon its own incentive or request of a party, the arbitration court may correct typing and mathematical errors in the judgment. Such errors may be corrected without participation of the parties. The arbitration court shall decide whether participation of the parties is needed.
(2) Unless the parties agreed otherwise, one party, with notice to the other party, may ask the arbitration court to explain the judgment without amending its content within 30 days after the day when the judgment was sent, or the day when a copy was received if issued in person. Explanation of the judgment becomes an integral part thereof as of its adoption day.
(3) Unless the parties agreed otherwise, one party, with notice to the other party, may ask the arbitration court to pass a supplementary judgment if any of the submitted claims regarding which evidence had been presented and the parties had provided their explanations was not decided within 30 days after the day when the judgment was sent, or the day when a copy was received if issued in person. If the arbitration court considers the request reasonable, it shall pass an supplementary judgment.
(4) The arbitration court notifies the parties of the arbitration court hearing where correction, explanation, or supplementary judgment would be decided not later than 15 days in advance. If the resolution part of the judgment may change to amendments to the judgment but the essence of the judgment remains unchanged, the arbitration court invites the parties to express their opinion. Failure of the parties to attend shall not obstruct execution of corrections, explanation, or supplementary judgment. The arbitration court shall execute the additional judgment pursuant to Section 49 of the Rules.
52. Termination of Arbitration Proceedings
(1) The arbitration court shall decide to terminate an arbitration if:
1) the plaintiff withdraws their claim;
2) the parties agree on settlement;
3) the arbitration agreement has ceased to be in effect pursuant to provisions of the law or the agreement;
4) the arbitration court finds that the arbitration court does not have jurisdiction over the dispute;
5) an individual who is one of the parties dies or a legal entity who is one of the parties ceases to exist, and the legal relations do not allow succession of rights or the parties agreed that, in such a case, the proceedings are to be terminated.
(2) If the plaintiff withdraws their claim before appointment of the arbitration court, the Chairperson shall decide on termination of the proceedings.
53. Consequences of Termination of Arbitration Proceedings
(1) If the arbitral proceedings are terminated due to the reasons referred to clause 1 and 2 of part one of Section 52 of the Rules, repeated arbitration or regional (city) court regarding the dispute, by the same parties, regarding the same subject and on the same basis, shall not be permitted.
(2) If the arbitral proceedings are terminated due to the reasons referred to in clauses 3, 4 or 5 of part one of Section 52 of the Rules, the parties are entitled to turn to the regional (city) court.
54. Fulfilment of Arbitration Award
(1) The award of the arbitration court shall be mandatory for the parties and shall be executed voluntarily within the term stipulated in the award.
(2) The arbitration court shall determine a term for voluntary execution of the judgment of at least ten days.
(3) If the arbitration award to be executed in Latvia but is not executed voluntarily, the interested party may, pursuant to provisions of the Civil Proceedings Law, turn to the regional (city) court with an application to issue an enforcement order for enforced execution of the arbitration award.
55. Storage of Proceedings Documents
ŠķīrējtThe proceedings documents shall be stored at the arbitration court for 10 years after completion of arbitration. The arbitration court shall store the documents in accordance with the archival storage procedures provided for by legal acts.
Transitional Provisions
1. If arbitration proceedings start pursuant to the Riga United Arbitration Court Rules approved on 23 July 2014, the Riga United Arbitration Court Rules approved on 23 July 2014 shall apply until completion of such arbitral proceedings.
