Article 1. General provisions
- The Business Arbitration (hereinafter – the ‘Arbitration’) is a permanent arbitration, which shall act on the basis of the Arbitration Law of the Republic of Latvia, its Charter, these Rules and parties’ agreement.
Name of the Business Arbitration in Latvian – Biznesa šķīrējtiesa,
Name of the Business Arbitration in Russian – Третейский суд бизнеса,
Name of the Business Arbitration in German – Busine Schiedsgericht.
- The Business Arbitration was established by a Joint Stock Company ‘Biznesa drošība’ on January 31, 2000 (registered in the Register of Enterprises of the Republic of Latvia on March 31, 1993, registration No. 0003122994, re-registered in the Commercial Register of the Register of Enterprises of the Republic of Latvia to a Limited Liability Company ‘Biznesa drošība’ on March 31, 2005, unified registration No. 40003122994). Since July 9, 2015 rights of the founder have been transferred to an Association ‘BŠ’, registration No. 40008239911.
- The Arbitration shall act on the basis of the Arbitration Law and other applicable laws of the Republic of Latvia, international treaties and conventions related to the activity, statute and rules of procedure of an arbitration.
- The Arbitration shall adjudicate any civil dispute, if the parties have voluntarily agreed by and entered into the Arbitration Agreement, except for the dispute:
- whose adjudication may concern the rights protected by the law of such a person who is not a party to the Arbitration Agreement;
- in which one of the parties is a state or municipal institution or in which an Arbitration Award may concern the rights of the state or municipal institution;
- which is related to records in the Register of Civilian Acts;
- regarding the rights and obligations or statutory protected interests of individuals under guardianship or trusteeship;
- concerning establishment, modification or termination of proprietary rights regarding real estate, if a participant of a dispute according to the law has limited eligibility to acquire real estate in ownership, possession or use;
- regarding ejection of an individual out of the dwelling premises;
- by and between employee and employer if the dispute occurred due to conclusion, modification, termination or performance of the employment agreement, as well as due to application or interpretation of the provisions of the law, collective agreement, or working procedure regulations (individual employment dispute);
- regarding rights and obligations of the persons for which an insolvency case has been initiated.
Article 2. Procedural Rules Applicable in Adjudication of Dispute
- When adjudicating the dispute, the Arbitration shall be guided by the law and business practice for the application of which the parties have agreed to the extent the parties’ Agreement is not contrary with Articles 19, 24 and 25 of the Civil Law of Latvia. If the parties have not agreed on the basis of which laws or business practices their mutual relationship should be adjudicated, or the Arbitration has considered it void, the law applicable to the legal relationship between the parties shall be determined according to the Preamble of the Civil Law of Latvia.
- The arbitral proceeding shall be governed by the procedural rules in force at the time of the adjudication of the dispute, execution of certain procedural activity or an arbitration award.
Article 3. Substantive provisions applicable in dispute settlement
- When adjudicating the dispute, the Arbitration shall be guided by the law and business practice for the application of which the parties have agreed to the extent the parties’ Agreement is not contrary with Articles 19, 24 and 25 of the Civil Law of Latvia.
- If the parties have not agreed on the basis of which laws or business practices their mutual relationship should be adjudicated, or the Arbitration has considered it void, the law applicable to the legal relationship between the parties shall be determined according to the Preamble of the Civil Law of Latvia.
Article 4. Arbitration work organisation
The Arbitration is chaired by the Arbitration President, who shall perform the functions set out in the Arbitration Rules and Regulations to monitor and ensure the operation of the Arbitration, as well as the establishment of the arbitral tribunals and those operation.
- Arbitration Agreement
Article 5. Concept of Arbitration Agreement, its Parties and Form
- The Arbitration Agreement is an agreement of the parties concluded on a civil dispute, which has arisen or may arise in the future, for adjudication by arbitration.
- The Arbitration Agreement may be concluded by a capable individual, legal person, or public legal person in the field of private law.
- The Arbitration Agreement shall be concluded in writing. An agreement of the parties to adjudicate the dispute by arbitration (Arbitration Agreement) can be expressed:
- as a separate agreement;
- as a special provision in the agreement of the parties (the Arbitration Clause);
- by means of exchange of mail or by use of electronic means of communication among the parties by ensuring that the intent of the parties to adjudicate the arisen or potential civil dispute by arbitration is recorded by secure electronic signature.
- If the parties have agreed to adjudicate the dispute by arbitration, but the specific place of arbitration has not been stipulated, and the Claimant has submitted its application to the Business Arbitration, the dispute shall be within the jurisdiction of the Arbitration.
- When adjudicating the dispute, the Arbitration shall be guided by the Arbitration Rules and its annexes in force at the time of adjudication of the dispute.
- The Arbitration Agreement shall be valid until the legal relationships, in connection with which it had been concluded, have been terminated. The Arbitration Agreement shall remain in force even if the agreement in which it had been included, has been terminated or declared void.
III. Arbitrators
Article 6. Arbitrators
- The arbitrator is a person, which complies with the Arbitration Law and has been appointed to adjudication of the civil dispute in accordance with the Arbitration Agreement, Rules of Procedure and law.
- The arbitrator shall not be a representative of the party, by which he was appointed. The arbitrator must be independent and impartial and fair in adjudicating of civil disputes.
- As an arbitrator may be appointed any person of legal age, which is not under guardianship, regardless of nationality or place of residence, if this person has in writing agreed to act as an arbitrator, has an excellent reputation, has gained a higher professional or academic education (except the first level of professional education) and a lawyer qualification, with at least three years of practical working experience as university’s legal science specialty’s academic or another legal specialty’s staff, and which does not fall under restrictions mentioned in the Paragraph 4.
- As an arbitrator may not be appointed a person:
- which does not meet the requirements of Article 14, Paragraph 2 of the Arbitration Law;
- which has been recognised as a suspect or accused in criminal proceedings for an intentional criminal offense;
- against whom criminal proceedings for an intentional criminal offense have been terminated on a non-vindicatory basis;
- which has been punished for an intentional criminal offense – regardless of whether or not the conviction is extinguished or removed;
- which has previously committed a criminal offense, but has been released from serving the sentence due to limitation, amnesty or clemency;
- which has been declared insolvent as an individual within last five years.
Article 61. Procedures to Verify and Prove Arbitrator’s Compliance for the Post
- Starting the activity, an arbitrator shall submit to the founder of a permanent arbitration documents, proving its compliance with the requirements of Article 14, Paragraph 2 and Article 15 of the Arbitration Law.
Article 7. Arbitral Tribunal
- The number of arbitrators should be odd. The Arbitral Tribunal may also consist of a sole arbitrator, if the parties have agreed upon that. If the parties have not agreed upon the number of arbitrators, the Arbitral Tribunal shall consist of three arbitrators.
- The parties may determine the procedure of appointment of the arbitrators. If the parties have not agreed upon the procedure of appointment of arbitrators, the Arbitration President (Vice-President) shall appoint the arbitrators.
- If the dispute shall be adjudicated by a sole arbitrator, but the party has not chosen a particular arbitrator from the list, the Arbitration President (Vice-President) shall appoint the arbitrator.
- If the dispute shall be adjudicated by three arbitrators, each party shall appoint one arbitrator. The two arbitrators shall appoint a third arbitrator by mutual agreement. If the two arbitrators cannot agree on a third arbitrator, the Arbitration President (Vice-President) shall appoint the arbitrator.
- If the party has not indicated its selected arbitrator, the Arbitration President (Vice-President) shall appoint the arbitrator.
- If a party has appointed the arbitrator and has notified the other party of that, it may not remove the arbitrator without the consent of the other party.
- The arbitrator may be challenged, if there are circumstances, which give rise to justified doubts as to its impartiality and independence, as well as if it does not meet the requirements in respect of which the parties have agreed. The party may challenge the arbitrator it has appointed or in whose appointment it has participated, only if the ground for challenge has been discovered by it after appointment of the arbitrator had been made.
- A party may file its objection to the arbitrator within five (5) days as from the day it has been notified on appointment of the arbitrator, or it got known any condition, listed in the Article 17, Paragraph 1 of the Arbitration Law, by submitting a written notice to the Arbitration and specifying the arbitrator to be challenged and the grounds for the challenge in it.
- Termination of authority of the arbitrator:
- The arbitrator shall have the right to withdraw from adjudication of the dispute by written notification to the Arbitration President.
- The parties shall have the right to agree on removal of the arbitrator by presenting the agreement in writing and submitting it to the Arbitration.
- Authority of the arbitrator shall be terminated:
- if the challenge of the arbitrator has been accepted;
- if the arbitrator has withdrawn himself from adjudication of the civil dispute;
- if the parties have agreed on removal of the arbitrator;
- with death of the arbitrator.
- If authority of the arbitrator has been terminated, a new arbitrator shall be appointed in the manner determined by the Arbitration Rules.
- The Arbitration President may remove the arbitrator at any stage of the arbitral proceedings at the request of one of the parties, if the arbitrator has not been fulfilling its duties for more than 14 days due to absence, sickness or other reasons.
- Preparation of Arbitration
Article 8. Jurisdiction over the Dispute
- Jurisdiction over the civil dispute shall be decided by the Arbitral Tribunal, including when any party has challenged existence of the Arbitration Agreement or its validity. Jurisdiction over the dispute may be decided by the Arbitral Tribunal at any stage of the arbitration.
- A party may file a plea that the civil dispute shall not be within arbitral jurisdiction until the deadline to submit a response.
- If arbitral jurisdiction over the dispute has been challenged before appointment of the Arbitral Tribunal, the matter may be decided by the Arbitration President, but if jurisdiction has been challenged after appointment of the Arbitral Tribunal, the matter shall be decided by the Arbitral Tribunal.
- If a party have objections that part of the dispute shall not be within arbitral jurisdiction in connection with additions or amendments of the claim, counterclaim or its additions or amendments, the said objections should be expressed immediately as soon as the Arbitration Tribunal has begun examination of those claims.
- If the Arbitration recognizes that the dispute or its part shall not be within arbitral jurisdiction, it shall terminate the arbitral proceedings or its part by the procedure specified in the Rules.
Article 9. Procedural Terms
- Procedural activity shall be executed within terms set out by the Rules. If procedural terms have not been set out by these Rules, they shall be determined by the Arbitral Tribunal.
- Precise date or deadline by a specific date, or period (in years, months, days or hours) shall be determined for the execution of procedural activity. If a procedural activity shall not be executed by a certain date, it may be executed throughout a given period.
- If a deadline is Saturday, Sunday or a statutory holiday, a next working day shall be counted as the deadline.
- If a procedural activity shall be executed in the Arbitration, a term shall be considered as expired at the hour when the Arbitration quits in accordance with its internal Rules of procedure. However, if a claim or other correspondence have been delivered to a post office before 24:00 on the last day of the term, they shall be considered as delivered within the term.
Article 10. Consequences of Procedural Terms Delays, its Suspension, Restoration and Extension
- Right to execute procedural activity shall be lost along with the term, set out in the Rules or determined by the Arbitration, has expired.
- By suspending arbitral proceedings, a term shall be suspended. The term shall be suspended at the moment, when a circumstance for a suspension of the arbitral proceedings has arisen. Procedural term shall continue as from the date the arbitral proceedings are restored.
- At the request of a party the Arbitration may renew missed procedural deadlines, if it finds reasons for delay as justified. By renewing the missed deadline, the Arbitration shall also permit the execution of the missed procedural activity.
- The Arbitration may extend the deadlines at the justified request of the party.
- If an application for extension or renewal of missed deadline has been submitted before appointment of the Arbitral Tribunal, then it may be decided by the Arbitration President (Vice-President), but if the application has been submitted after appointment of the Arbitral Tribunal, then it shall be decided by the Arbitral Tribunal.
Article 11. Notifications and Shipments of the Arbitration
- All the notifications, applications and other correspondence within the arbitral proceedings shall be dispatched by mail or electronic mail with reference to the fact of sending, or shall be delivered in person against signature.
- A correspondence shall be dispatched to an individual by registered mail to its declared place of residence, but if an additional address has been specified in a declaration – to the additional address, unless the individual has provided other address for communication with the Arbitration, but to a legal person – to its legal address.
- Correspondence shall be dispatched by electronic communication, if a party has notified the Arbitration that it agrees to use electronic mail for communication with the Arbitration. In that case the Arbitration shall dispatch the documents to the electronic mail address, specified by the party. If the Arbitration recognizes technical obstacles to dispatch the documents by electronic mail, they shall be dispatched by registered mail.
- Notice of the first arbitral hearing shall be dispatched to the parties by registered mail not later than 15 days in advance, unless the parties have agreed on a shorter period.
- The correspondence shall be considered to be received at the day of delivery, if it has been delivered and handed over to the addressee in person. If it has been dispatched by mail, it shall be considered to be delivered on the seventh day after the day the mail is dispatched, but if it has been dispatched by electronic mail, it shall be considered to be received within two business days after the dispatch date.
Article 12. Confidentiality of Arbitral Proceedings
- Arbitral proceedings shall be confidential, unless the parties have agreed otherwise.
- Arbitral hearings shall be closed to the public, and information concerning the arbitral proceedings shall not be provided to other persons and published by the Arbitral Tribunal, except where the parties have agreed otherwise. Persons, who are not participants of the arbitral proceedings, may participate at the arbitral hearings only with the consent of the parties.
- Information concerning arbitral proceedings shall be provided to persons, which are entitled to receive it for the statutory functions.
Article 13. Arbitration Procedure
- Arbitral proceedings shall take place in accordance with the Arbitration agreement, the Arbitration rules, laws and regulations and general principles of law.
- The parties shall be free to determine an arbitration procedure. If the parties have not agreed upon the arbitration procedure, the Arbitral Tribunal shall determine the arbitration procedure in accordance with the Rules of procedure.
- If the parties have agreed only on certain provisions of arbitration, the Arbitral Tribunal shall comply with the agreement of the parties, while the remainder shall be guided by the Arbitration rules.
Article 14. Arbitration Language
- Language of arbitral proceedings shall be an official language of the Republic of Latvia or another language, which the parties have agreed upon.
- If the Arbitral Tribunal, or any arbitrator or participant to the proceedings do not have a good command in the language of the proceedings, the Arbitral Tribunal shall invite an interpreter. Procedure for remuneration of interpreter’s service shall be determined by the Arbitration pursuant to the Rules of procedure, Annex 2.
- The Arbitral Tribunal may require the parties to provide translation or notarised translation of any written evidence into the language of arbitral proceedings or official language.
Article 15. Representation of Parties
- An individual shall bring own case to arbitration in person and/or through its authorised representative. Representation of natural persons shall be drawn up by notarised power of attorney.
- A legal person shall bring own case to arbitration either through an official, who acts within the framework of authority granted by law, charter and/or statute, or otherwise authorised representative of the legal person. Representation of legal persons shall be drawn up by written power of attorney or documents, certifying that the official is entitled to represent the legal person without special authorisation.
- Any individual may serve as an authorised representative, except a person, which:
- has not reached a legal age;
- is under guardianship;
- by a judgment has been deprived of the right to bring another person cases;
- is in kinship relations up to the third degree or affinity relations up to the second degree to the arbitrator, adjudicating the civil dispute;
- has provided legal assistance to the other party of the civil dispute or in other matter related to it;
- has participated in mediation in the matter or other matter related to it.
- A person who is or who has been listed as an arbitrator of the Arbitration within last five years, cannot serve as an authorised representative to any party and cannot be invited to provide legal assistance in the arbitral proceedings.
- Parties may invite a lawyer to receive legal assistance in arbitral proceedings.
Article 16. Venue of Arbitral Proceedings
- The Arbitral Tribunal shall have the right to freely determine the venue of arbitral proceedings, taking into account efficiency considerations, if the parties have not agreed upon it.
- For evidence examination, the Arbitration may meet at any place it deems appropriate, by informing the participants of the arbitral proceedings.
- If the parties have agreed on the venue of arbitral proceedings, the parties shall bear the arbitrators’ travel and accommodation expenses.
Article 17. Securing of Claims Prior to Bringing the Matter to Arbitration on Disputes within Arbitral Jurisdiction
- Prior to bringing the matter to arbitration, a claimant may apply to a district (city) court by the debtor’s or its property’s location regarding securing of claims in accordance with the Civil Procedure Law. The same district (city) court shall decide on revocation or amendment of securing of claims at the request of the party or the Arbitral Tribunal.
- The application regarding securing of claims or amendment to the application regarding securing of claims shall not be considered as non-compliance with the Arbitration Agreement and shall not prevent adjudication of the dispute in the Arbitration.
Article 18. Initiation of Arbitral Proceedings
- The arbitral proceedings shall be initiated with the Application is lodged.
Article 19. Application
- The Application shall be submitted to the Arbitration in writing in Latvian or in the language determined in Arbitration Agreement of the parties, and attaching as many copies and all the annexes as there are participants in the arbitral proceedings.
The Application shall contain the following information:
- the Claimant’s name, surname, personal identification number, declared place of residence, but if such does not exist – place of residence; for the legal person – its name, registration number and legal address. The Claimant may provide its phone number or electronic mail address, if he agrees to use a phone or electronic mail for communication with the Arbitration;“
- the Defendant’s name, surname, personal identification number, declared place of residence and the additional address indicated in the declaration, but if such does not exist – place of residence; for the legal person – its name, registration number and legal address. The Defendant’s personal identification number or registration number shall be provided if it is known;
- if the Claim is brought by a representative – the Claimant’s representative’s name, surname, personal identification number and address for communication with the Arbitration; for the legal person – its name, registration number and legal address;
- for claims for recovery of monetary amount – name of the credit institution and account number to which payment is to be made, if such account exists;
- subject-matter of the proceedings, monetary amount and its calculation;
- the plea and evidence in support thereof;
- the claimant’s claims;
- a list of the attached documents;
- excluded as from February 22nd, 2016;
- other information, if necessary for adjudication of the matter.
- The following documents shall be attached to the Application:
- the Arbitration Agreement, unless it is included in the agreement in respect of which the dispute has arisen;
- the agreement, in respect of which the dispute has arisen;
- the documents, to which the Claimant refers to in the Application;
- excluded as from July 21, 2015;
- as many copies of the Application as there are defendants in the case;
- the document, which confirms payment of arbitral expenses and the arbitrator’s fee.
- excluded as from July 21, 2015.
- If the parties have not agreed otherwise, a party has the right to amend or supplement the Claim in writing, while adjudication of the dispute on the merits has not been initiated.
- If the plea is being amended or supplemented, the defendant shall be entitled to make written comments within the term determined by the Arbitral Tribunal.
Article 20. Arbitration Action after Receiving of Application
- If the Application and the documents attached conform to the Arbitration Rules, and payment of arbitral expenses and the arbitrator’s fee has been confirmed, the Arbitration President shall immediately send to the Defendant a notice of the initiation of arbitral proceedings and a copy of the Application, explaining the Defendant’s right to make written comments on the Application.
- The parties may get acquainted with the Application attachments and the file in the Arbitration within business hours.
Article 21. Rejoinder
- The Defendant shall submit the rejoinder to the Arbitration and the Claimant within 15 (fifteen) days as from the day the notice of receiving the Application is dispatched.
- Considering the Defendant’s location, the dispute’s complexity and number of defendants the Arbitration President at its discretion may determine a longer term to submit the rejoinder, but it cannot be longer than objectively necessary and exceed 30 (thirty) days.
- The Defendant shall claim the following information in the rejoinder:
- whether it admits the Claim fully or in a part thereof;
- its objections over the Claim;
- the facts the Defendant used to substantiate its objections and evidence that confirm them;
- other facts, which it considers significant in the adjudication of the civil dispute;
- its phone number or electronic mail address, if he agrees to use a phone or electronic mail for communication with the Arbitration.
- Failure to submit the Rejoinder is not an obstacle to adjudication of the civil dispute.
- The Rejoinder shall be submitted to the Arbitration, attaching as many copies as there are participants in the proceedings.
- After the Rejoinder is received the Arbitration President shall immediately inform the Claimant.
Article 22. Counterclaim
- The Defendant may retaliate.
- A counterclaim shall be submitted according to general rules of application.
- A counterclaim may be submitted within the term, which has been determined for submission of the Rejoinder.
- The Arbitration shall accept the Counterclaim, if subject of the Counterclaim is covered by the Arbitration Agreement, and:
- offsetting is possible between the initial Claim and the Counterclaim;
- allowing the Counterclaim in part or in full excludes allowing of the initial Claim;
- the Counterclaim and the initial Claim are interconnected, and their joint adjudication will contribute to faster and more accurate adjudication of the matter.
(5) Decision about Counterclaim acceptation takes Arbitration President.
(6) Accepted Counterclaim consider with an Application.
Article 23. Arbitral Hearing
- After the Defendant’s Rejoinder is received or the deadline to submit the Rejoinder has expired, and following the Arbitral Tribunal is appointed, the Arbitral Tribunal shall fix the date and time of an arbitral hearing. The date of the arbitral hearing shall be fixed not later than twenty (20) days as from the date the Arbitral Tribunal is appointed.
- After the arbitral hearing is fixed, the Arbitration President shall immediately notify the parties about the date and time of the arbitral hearing, and about composition of the Arbitral Tribunal.
- A notice about the first arbitral hearing prescribed in Paragraph 2 of the Article shall be dispatched to the parties not later than fifteen (15) days prior to the arbitral hearing, if the parties have not agreed on a shorter term.
- Adjudication of Dispute
Article 24. Adjudication of Dispute
- The Arbitral Tribunal shall adjudicate the civil dispute in oral or written procedure, having regard of the Arbitration Agreement entered into by the parties.
- The Arbitral Tribunal shall adjudicate the dispute in oral arbitral hearing to listen to arguments and objections of the parties, as well as to examine evidence.
- The Arbitral Tribunal shall adjudicate the dispute in written procedure based only on the submitted written evidence and case-file.
- The Arbitral Tribunal shall also adjudicate the civil dispute in oral procedure, if the parties have not agreed on the type of procedure in the Arbitration Agreement, or if they have agreed on written procedure, but one of the parties prior to the decision-making has required oral procedure, or the Arbitral Tribunal has concluded that the submitted evidence and case-file are not sufficient to adjudicate the dispute.
- Having regard of the Rules and agreement of the parties, the Arbitration may proceed adjudication of the dispute in the way it deems appropriate, on condition that the dispute is being adjudicated without undue delay, and equal possibilities are provided to the parties to present their views and defend their rights. Procedure of adjudication of the dispute shall be led by the Chairman of the Arbitral Tribunal.
- Adjudication of the dispute in oral procedure shall start with a moment, when the Chairman of the Arbitral Tribunal opens the arbitral hearing and notifies on the initiation of adjudication of the dispute on the fixed day and time.
- Adjudication of the dispute in written procedure shall start with a moment, when the Arbitral Tribunal meets for adjudication of the dispute.
- excluded as from February 22nd, 2016;
Article 25. Consequences if a Party Fails to Appear in Arbitral Proceedings
- If a party fails to appear at the oral arbitral hearing without justifiable reason or fails to submit written or other evidence, the Arbitral Tribunal shall continue arbitral proceedings and adjudicate the civil dispute based on the evidence at its disposal.
Article 26. Minutes
- The Arbitral Hearing shall be recorded only if one of the parties has requested that, and paid to the Arbitration a fee for services of the secretary. A request to record the hearing shall be submitted and the fee for services of the secretary shall be paid not later than 2 days prior to the arbitral hearing.
- A Secretary appointed by the Arbitration shall draw up the Minutes. The Minutes of the arbitral Hearing shall be signed by all the Arbitrators and the Secretary. The Minutes of the Arbitral Hearing shall be signed within 3 (three) days after the Arbitral Hearing is concluded.
- The parties shall have the right to get acquainted with the Minutes and submit written remarks or objections, indicating the shortcomings recognised in the Minutes within five days after the Minutes are signed. The validity of the objections shall be decided by the Arbitral Tribunal.
Article 27. Evidence and Means of Proof
- Arguments of the parties, written evidence, physical evidence and expert opinions may serve as means of proof in the arbitration.
- Evidence shall be submitted by the parties. Each party shall prove the facts, on which its claims or objections are based on. The Arbitral Tribunal may offer the parties to submit additional documents or other evidence.
- Documents shall be submitted as the original or the duly certified copy, true copy or extract. If the document is submitted as the duly certified copy, true copy or extract the Arbitral Tribunal itself or by the request of the other party may request to submit the original. Following the request of the person, which has submitted the original, the Arbitral Tribunal shall return it back to the submitter, adding to the arbitral file the duly certified copy, true copy or extract.
- The Arbitral Tribunal shall determine admissibility, relevance and validity of the evidence.
Article 28. Expert-Examination
- The Arbitral Tribunal may designate an expert-examination at the motivated written request of a party, unless otherwise is determined in the Arbitration Agreement. The expert-examination shall be designated if special knowledge in science, technology, art or another field is required to ascertain a significant fact in the dispute.
- If the Arbitral Tribunal finds the request of a party to be reasonable, it shall make a decision to designate an expert-examination or invite an expert. The expert-examination shall be designated if only a party has paid a fee for service of the expert in advance within the term determined by the Arbitration.
- The party shall indicate the issues on which, in its opinion, an expert shall give its opinion in the request to designate an expert-examination. The other party shall have the right to submit to the Arbitration the issues on which an expert shall give its opinion. The Arbitral Tribunal shall determine the issues, which require an expert opinion. The Arbitral Tribunal shall motivate the rejection of the issues put by the parties.
- The Arbitral Tribunal in its decision to designate an expert-examination shall determine the issues, which require an expert opinion and the expert tasked to execute an expert-examination.
- The experts of the expert-examination institutions or other experts shall execute an expert-examination. The parties shall designate the expert by mutual agreement, but if this has not been achieved within the term determined by the Arbitral Tribunal, the Arbitral Tribunal shall designate the expert. The Arbitral Tribunal shall designate several experts, if necessary.
- The parties at the request of the Arbitral Tribunal shall provide the expert with the necessary information or documents, present goods or other items.
- The Arbitral Tribunal shall invite the expert to participate in the arbitral hearing to provide explanations and answer the questions of the parties concerning the opinion.
Article 29. Procedural Consequences of Withdrawal by the Party
- The fact that an individual, who is one of the parties is dead or a legal entity which is one of the parties ceased to exist, per se shall not terminate the Arbitration Agreement, unless the parties have agreed otherwise, and if the disputed legal relationships permit legal succession. The Arbitral Tribunal shall suspend arbitral proceedings in this case until the legal successor of the party is determined.
- Assignment of the Claim shall be the reason to terminate arbitral proceedings, unless the parties have agreed on new adjudication of the civil dispute in the Arbitration.
Article 30. Right to Object
- A party shall have the right to object, if the Arbitration Law, Arbitration Rules of procedure or agreement of the parties have been violated or not respected. A party shall object in writing to the Arbitral Tribunal and to the other party, as soon as it has become aware or should become aware about the infringement.
- The Arbitral Tribunal shall decide on validity of the objections.
- If a party fails to object, it shall be considered that it has waived its right to object.
Article 31. Decision Making
- If the Arbitral Tribunal consists of three or more arbitrators, all the Arbitration awards (decisions and judgements) shall be made by a simple majority. The Arbitrator may not refrain from voting.
- The Arbitral Tribunal at his own choice shall render awards either in the courtroom or consultation room.
- The Arbitration award shall be rendered in writing and signed by all the arbitrators, but if any arbitrator has not signed the award, the reason for absence of its signature shall be indicated in it.
- Signatures of the arbitrators on the awards shall be certified by the seal of the Arbitration.
- The Arbitration award shall enter into force on the day it is made. It shall not be subject to appeal and make protest.
Article 32. Settlement
- The Arbitration shall encourage to adjudicate the dispute of the parties by a settlement.
- The settlement shall be allowed at any stage of arbitral proceedings and in any civil dispute, if the settlement and its provisions do not violate another person’s rights or interests protected by law.
- The settlement shall be made in writing and it shall contain the following information: for legal persons – name, registration number and legal address, for individuals – name, surname, personal identification number and declared place of residence, but if such does not exist – place of residence, as well as subject matter of the dispute and obligations of each party, which they willingly undertake to fulfil.
- If the parties agree on the settlement in arbitral proceedings, the Arbitral Tribunal shall terminate arbitral proceedings, and at the request of the parties and if the Arbitral Tribunal agrees, record the settlement in the form of an arbitration judgement by including the provisions, which agreement has been reached on. Such an arbitration judgement shall have the same status and legal value as any other arbitration judgement, by which the civil dispute has been adjudicated on merits.
Article 33. Judgement
- The Arbitral Tribunal shall make a judgement within 14 days after the civil dispute has been adjudicated on merits. The Arbitral Tribunal shall make the judgement in writing.
- If the Arbitral Tribunal consists of several arbitrators, the judgement shall be signed by all the arbitrators. If any arbitrator has not signed the judgement, the reason for absence of its signature shall be indicated in the Arbitration judgement.
- After the judgement is made, the operative part of the judgement shall be communicated to the parties.
- The Arbitration judgement shall contain the following information:
- case number;
- composition of the Arbitration Tribunal;
- date and place of rendering of the Judgement;
- information on the parties;
- subject matter of the dispute;
- reasons for the judgement, unless the parties have agreed otherwise;
- conclusions regarding total or partial allowing of the claim, or total or partial rejection of that, and substance of the Arbitration judgement;
- amount to be recovered, if the judgement has been rendered on recovery of money;
- the particular property and its value, what is to be recovered in the absence of the property, if the judgement has been rendered on recovery of the property in specie;
- who, what activity and in what term shall execute, if the judgement imposes an obligation to execute the certain activity;
- what part of the Judgement applies to each claimant, if the judgement has been rendered in favor of several claimants, or what part of the judgement shall be enforced by each defendant, if the judgement has been rendered against several defendants;
- costs of the arbitral proceedings, as well as allocation of those costs and expenses for legal assistance among the parties;
- expenses of the parties for legal assistance in the case, if any, and its allocation among the parties.
- Rendering the judgement on recovery of amount of money, the Arbitral Tribunal shall indicate the form of order sought and amount to be recovered in its operative part, separately indicating a principal debt and interest, a period for which interest has been imposed, as well as the claimant’s right to receive interest up to the date the judgement is enforced (an auction date), stating also an amount thereof.
- Rendering the judgement on recovery of the property in specie, the Arbitral Tribunal shall indicate the particular property in its operative part, as well as determine that if the property is absent, its value shall be recovered from the defendant, stating the particular amount.
- In the judgement, which imposes an obligation to execute the certain activity the Arbitral Tribunal shall specifically determine who, what activity and in what term shall execute.
- Rendering the judgement, which imposes an obligation on a defendant to execute the certain activities that are not related to transfer of the property or amount of money, the Arbitral Tribunal may indicate in the judgement that if the defendant fails to comply with the judgment within the determined term, the claimant shall have the right to execute this activity at the Defendant’s expense, then recovering the necessary expenses from it.
- In the judgement in favor of several claimants, the Arbitral Tribunal shall indicate what part of the judgement applies to each of them or the fact that the right to recovery shall be joint and several.
- In the judgement against several defendants the Arbitral Tribunal shall indicate what part of the judgement shall be enforced by each Defendant or the fact that their liability shall be joint and several.
- A copy of the Arbitration judgement shall be dispatched to the parties within three working days of the date it is made.
Article 34. Judgement’s Rectification and Explanation, and Rendering of Supplementary Judgment
- The Arbitral Tribunal on its own initiative or at the request of the party may correct clerical and mathematical calculation errors in the judgment. Such errors may be corrected without the presence of the parties.
- Unless the parties have agreed otherwise, a party, by giving a notice to the other party, within 30 days after the date the copy of the judgment is dispatched or received, if it has been handed over in person, may request the Arbitral Tribunal to explain the judgment without changing its content. The explanation of the judgement shall become an integral part of the judgement as of the date of making.
- Unless the parties have agreed otherwise, a party, by giving a notice to the other party, within 30 days after the date the copy of the judgment is dispatched or received, if it has been handed over in person, may request the Arbitral Tribunal to render a supplementary judgement, if some of the submitted claims have not been adjudicated for which evidence had been submitted and on which the parties had provided explanations. If the Arbitral Tribunal considers the request to be justified, it shall render the supplementary judgement.
- The Arbitral Tribunal shall notify the parties not later than 15 days in advance about the arbitral hearing, at which a matter on the judgement’s rectification and explanation or rendering of a supplementary judgement is going to be decided. If the judgment’s rectification may lead to changes in its operative part, but the essence of the judgment remains the same, the Arbitral Tribunal shall invite the parties to express their views. Absence of the parties shall not be an obstacle to rectify and explain the judgement or to render a supplementary judgement. The supplementary judgement shall be rendered in accordance with Article 33 of the Rules of procedure.
Article 35. Postponement of Dispute Settlement
- The Arbitral Tribunal shall be obliged to postpone adjudication of the dispute, if any participant in the matter fails to appear at the arbitral hearing and it has not been notified on the time and place of the arbitral hearing.
- The Arbitral Tribunal may postpone adjudication of the dispute:
- if it considers that it shall not be possible to adjudicate the dispute because of absence of a participant in the matter, as well as a secretary, expert or interpreter;
- at the request of a participant in the matter to enable it to submit additional evidence;
- at its own initiative to resolve procedural issues.
- The Arbitral Tribunal shall notify the participants in the matter on the date and time of the next arbitral hearing against signature or invite by subpoenas.
Article 36. Suspension of Arbitral Proceedings
- The Arbitral Tribunal shall be obliged to suspense the arbitral proceedings, if:
- an individual is dead or a legal entity ceased to exist, which is a party of the dispute, and if the disputed legal relationship permits legal succession;
- a party has lost its legal capacity;
- the parties have in writing submitted to the Arbitration a mutual agreement on the suspension of the arbitral proceedings.
- The Arbitral Tribunal may suspense legal proceedings at the request of a participant in the matter or its own initiative, if:
- a party fails to participate in adjudication of the dispute due to sickness or other justified reasons;
- the Arbitral Tribunal has designated an expert-examination.
- The arbitral proceedings shall be suspended:
- in the cases provided in this Article, Subparagraph 1.1. – until a legal successor is determined or a legal representative is appointed;
- in the cases provided in this Article, Subparagraph 1.2. – until a legal representative is appointed;
- in the cases provided in this Article, Subparagraph 1.3. – until the deadline determined in the mutual agreement of the parties;
- in the cases provided in this Article, Subparagraph 2.1. and 2.2. – until the circumstances referred to therein have fallen away.
- The Arbitral Tribunal shall make a decision to suspend the arbitral proceedings by drawing up a separate procedural document. The decision shall contain information on the conditions until occurrence or termination of which the arbitral proceedings shall be suspended, or the deadline for which the arbitral proceedings shall be suspended.
- The Arbitral Tribunal shall restore the arbitral proceedings by a decision either at its own initiative, or at the request of the participants in the matter.
Article 37. Leaving Action Unadjudicated
- The Arbitral Tribunal shall be obliged to leave the action unadjudicated, if:
- an application has been submitted by an incapable person or a person under guardianship in accordance with Article 365 of the Civil Law;
- a claim has been brought on behalf of a claimant by a person who is not legitimately authorised.
- The Arbitral Tribunal may leave the action unadjudicated:
- at the request of a claimant;
- if a claimant has repeatedly failed to appear at the arbitral hearing and has not requested to adjudicate the dispute in his absence.
- The Arbitral Tribunal shall make a decision to leave the action unadjudicated by drawing up a separate procedural document.
- If the action has been left unadjudicated, a claimant shall be entitled to re-submit the application to the Arbitration in accordance with the law and the Rules of procedure.
Article 38. Termination of Arbitral Proceedings
- The Arbitral Tribunal shall make a decision on termination of the arbitral proceedings, if:
- the claimant withdraws its claim, and the defendant does not object to it;
- the parties agree on the settlement of the dispute;
- the Arbitration Agreement is null and void in accordance with law or the agreement;
- the Arbitral Tribunal has recognised that the dispute is not subject to arbitration;
- a natural person, who is a party is dead or a legal person, who is a party ceased to exist and the legal relationship does not allow legal succession or the parties have agreed that the proceedings shall be terminated in that case.
- If the arbitral proceedings have been terminated because of the reasons prescribed in Subparagraph 1.1 or 1.2 of the Article, re-referral to the Arbitration or referral to the district (city) court on a dispute among the same parties, on the same subject-matter and on the same grounds shall not be allowed.
- If the arbitral proceedings have been terminated because of the reasons prescribed in Subparagraph 1.3, 1.4 or 1.5 of the Article, the application may be submitted to the district (city) court.
Article 39. Execution of Judgement
- The arbitration judgment shall be mandatory to the parties and shall be executed voluntarily within the determined term. The determined term for voluntarily execution of the judgement shall not be shorter than ten (10) days.
- If the arbitration judgement is to be executed in Latvia and is not being executed voluntarily, the party concerned shall be entitled to referral to a district (city) court on issuing a writ of execution of the permanent arbitration judgement enforcement according to the Civil Law.
- Costs of Arbitral Proceedings
Article 40. Costs of Arbitral Proceedings
- Costs of arbitral proceedings shall be the costs related to adjudication of the dispute and the proceedings.
- Costs related to adjudication of the dispute are:
- costs of arbitral proceedings and arbitrator’s fee set out in the Rules of procedure, Appendix 2, and which shall be paid by submitting a claim to the Arbitration;
- amounts to be paid to experts, interpreters and the secretary;
- costs related to explanation of the Arbitration judgement;
- costs related to securing of claims;
- arbitrators’ travel and accommodation expenses;
- other possible expenses related to adjudication of the dispute, which payment shall be determined by the Arbitral Tribunal pursuant to the Rules of procedure.
- Costs related to the proceedings:
- expenses for legal assistance:
- Expenses for legal assistance, if the claims are financial in nature and the claim amount is less than € 8500, – the actual amount thereof, but not exceeding 30% of that part of the claim, which has been allowed.
- Expenses for legal assistance, if the claims are financial in nature and the claim amount is from € 8500 up to € 57 000, – the actual amount thereof, but not exceeding € 2850.
- Expenses for legal assistance, if the claims are financial in nature and claim’s amount is exceeding € 57 001, – the actual amount thereof, but not exceeding 5% of that part of the claim, which has been allowed.
- Expenses for legal assistance if the claims are not financial in nature, – the actual amount thereof, but not exceeding € 2850.
- Expenses for legal assistance if the claims are not financial in nature, and if the Arbitral Tribunal recognizes the complexity of the case, – the actual amount thereof, but not exceeding € 4275.
- Expenses related to collection of the writtenevidence – the actual amount.
- Costs of arbitral proceedings and arbitrator’s fee shall depend on the claim’s amount, complexity of the dispute and number of arbitrators to adjudicate the dispute, and shall be set out in the Rules of procedure, Appendix 2. Fees may be amended by a decision of the Arbitration President, taking into account complexity of the dispute, time required for adjudication of the dispute, as well as any other circumstances related to adjudication of the dispute.
- A secretary, interpreter or expert shall be invited to the arbitral proceedings only after a party has paid fees for their service, determined by the Arbitration. If the party, which requested to invite an interpreter, secretary or expert has not paid fees for their service by the deadline determined by the Arbitration, the other party may pay the determined fees.
- The Arbitration President shall be entitled at the request of a party or its own initiative to reduce fees for arbitral proceedings.
- Costs related to adjudication of the dispute shall be paid to Association’s ‘BŠ’ bank account.
Article 41. Reimbursement of Costs of Arbitral Proceedings
- The parties may agree on allocation of costs of the arbitral proceedings among themselves. If the parties have not agreed on that, reimbursement of costs of the arbitral proceedings shall be determined according to this Article.
- The Arbitration shall adjudge all the paid expenses related to adjudication of the dispute to the party, in which favour the judgement has been made, of the other party. If the claim has been satisfied in part, the amounts determined in this part shall be adjudged to the claimant in proportion to the claim that has been satisfied by the Arbitration, and to the defendant – in proportion to the part of the claim that the claim has been rejected.
- If the claimant has waived the claim, it shall reimburse to the defendant the incurred expenses related to adjudication of the dispute. In this case the defendant shall not reimburse expenses related to adjudication of the dispute paid by the claimant. However, if the claimant does not maintain its claims because the defendant has voluntarily satisfied those after the application was lodged, the Arbitration at the claimant’s request shall adjudge of the defendant the expenses related to adjudication of the dispute paid by the claimant.
- If the action has been left unadjudicated, the Arbitration at the request of the defendant shall adjudge of the claimant the expenses related to adjudication of the dispute paid by the defendant.
- Costs related to the proceedings shall be adjudged of the defendant in favour of the claimant, if its claim has been satisfied fully or in part, as well as if the claimant does not maintain its claims because the defendant has voluntarily satisfied those after the application was lodged.
- If the claim has been rejected or the claimant has waived the claim with the exception of the case given in Paragraph 3 of the Article, costs related to the proceedings shall be adjudged of the claimant in favour of the defendant.
Article 42. Storage of Case-File of Arbitral Proceedings
- The case-file of arbitral proceedings shall remain stored in the Arbitration 10 years after the arbitral proceedings are completed. The Arbitration shall store the file in accordance with archival procedure prescribed by the law.
August 3, 2016
August 3, 2016
August 3, 2016
