The weight of words and the power of evidence: why statements are not the only thing that matters in arbitration

Dear subscribers!

In today’s business world, speed and efficiency in decision-making are crucial. This is why arbitration courts, such as the Riga Arbitration Court, are becoming the preferred mechanism for dispute resolution. However, despite the simplified procedure and confidentiality, one thing remains constant: winning a dispute depends on the evidence.

We often encounter situations where parties, confident in their case, believe that their unsubstantiated statement will suffice. Unfortunately, this is one of the most common misconceptions. An arbitral tribunal, like any other judicial body, makes decisions based solely on the facts and evidence presented by the parties.

Any statement made during arbitration proceedings must be substantiated. It is not enough to simply say, “That’s not true” or “I didn’t do that.” You must present documents, witness testimony, expert opinions, or other materials that support your position.

Case Study: When a Signature is Worth a Million

To illustrate the importance of actively working with evidence, we will give a real example from our practice.

A claim for debt collection under a loan agreement was filed with the Riga Arbitration Court. The defendant, in disputing the claims, made a key statement: the signature on the loan agreement is not his.

At first glance, this statement seems weighty enough to call into question the legitimacy of the entire document. However, what did the defendant do next? He limited himself to making this statement, without taking any further procedural steps.

In accordance with the principles of arbitration, the burden of proof lies with the parties. If a party disputes the authenticity of a document, it must initiate the verification process.

The court cannot and will not order an expert examination on its own initiative.

In order for the court to order a handwriting examination, the party disputing the signature is required to:

  1. Submit a corresponding written request for the appointment of an expert examination.

  2. Pay the costs of the examination within the time period established by the court.

Despite its bold claims, the defendant failed to file a motion or make payment. As a result, the court was forced to consider the case based on the available evidence. Since the document (contract) was attached by the plaintiff, and its authenticity had not been challenged through due process, the court found no grounds to invalidate the contract.

Result: The defendant lost the case, and the court ordered him to pay the entire debt. The cost of inaction and ignorance of the procedure proved too high.

The Role of a Professional Lawyer: Planning for the Aftermath

This case clearly demonstrates why engaging qualified lawyers is not just a good idea, but a critical step.

Professional lawyer specializing in arbitration:

Plans for the consequences: He will not only voice your statement, but also develop a strategy for proving it, anticipating the necessary procedural steps (for example, filing a petition for an expert examination).

Knows the procedure: A lawyer knows exactly when, in what form, and with what financial obligations a particular petition must be submitted in order for it to be accepted by the court.

Ensures credibility: It will help you gather a complete package of evidence that will turn your claim into an indisputable fact for the court.

There’s no room for emotion in arbitration—there’s only law and evidence. If you claim the signature isn’t yours, be prepared to back it up with a corresponding motion and payment for an expert opinion. Only then will your word be legally binding.

The Riga Arbitration Court urges its participants: don’t rely on luck. Rely on the facts, procedure, and professionalism of your representatives. This is your surest path to a fair and successful dispute resolution.


Sincerely,

Riga Arbitration Court Team