RAC is a member of these organizations

Latvijas Tirdzniecības un rūpniecības kamera

Mediācija un ADR

Latvijas Tirgotāju Asociācija

Rīgas Biznesa kamera

Rules of court
Rules of court

Rules of court

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I. GENERAL CONDITIONS

 

Article 1. Riga Arbitration Court
 

(1)
Riga Arbitration Court (hereinafter: the court of arbitration) is a standing court of arbitration established for settlement of disputes subject to the jurisdiction of the court of arbitration. Founder of the Riga Arbitration Court is a company "Association of Alternative Dispute Resolution", registration number 40008023425.
 
(2)

Arbitration court functions in accordance with the part D "Arbitration Court" of the Civil Procedure Law, the Law on Arbitration courts, other laws currently being in force in the Republic of Latvia, international agreements and conventions related to the activities of arbitration court, arbitration court internal regulations and these Rules of Court.

Article 2. Rules Governing the Proceedings

(1)

Formal legal norms determined by the part D of the Civil Process Law shall be binding for the parties as well as any other formal legal norms determined by the other laws being in force in the Republic of Latvia, international agreements and conventions where the Republic of Latvia is participating, arbitration court internal regulations, these Rules of Court and agreements between the parties.

(2)

Arbitral proceedings shall be regulated by the formal legal procedural norms being in force during the time when the dispute is settled, separate procedural actions are performed or arbitration court rulings are executed.


Article 3. Applicable Rules of Law
 
(1)

In the course of the dispute settlement, the arbitration court shall act in accordance with the legal norms and business practice agreed by the parties, where the above mentioned agreement between the parties is not in contradiction with articles 19, 24 and 25 of the Civil law of the Republic of Latvia.

(2)

Where the parties have not agreed about the law or business practice applicable during the discussions concerning their mutual relationship or the arbitration court has recognized this agreement as invalid, legal relationship between the parties shall be governed by the legal norms determined in accordance with the conditions of the Introduction to the Civil law of the Republic of Latvia.


Article 4. Disputes Settled by Arbitration Court
 
(1)

Arbitration court shall have the right to settle any legal civil dispute where the parties have agreed that this dispute is to be referred for settlement to the arbitration court and the dispute does not fall within the jurisdiction of exclusive courts.


Article 5. Working Arrangements of Arbitration Court

(1)

Activities of the arbitration court shall be supervised by the Presidium of the Arbitration Court, the Chairman of the Arbitration Court and the Chief of the Arbitration Court Chancellery and Presidium which perform the functions determined in these Rules of Court and arbitration court internal regulations in order to monitor and to support the performance of the arbitration court activities, appointment of the arbitral tribunal and the activities of the arbitral tribunal.


 

II. ARBITRATION COURT AGREEMENT

 

 

Article 6. Concept of Arbitration Court Agreement, Parties and Agreement Form
 

(1)

Arbitration court agreement is the agreement stating that a dispute that has already appeared or appears in the future shall be referred for settlement to the arbitration court.

(2)

Arbitration agreement can be signed by a legally competent physical individual irrespective of citizenship and residence, a legal entity registered in Latvia or abroad, or any other subject of the private laws.

(3)

Arbitration court agreement shall be concluded in written form. The consent of the parties to refer the dispute for settlement to the arbitration court (arbitration court agreement) shall be expressed:

1) In the form of a separate agreement;
 
2) In the form of a special clause in the agreement between the parties (arbitration court clause);
 
3) by exchanging of mail or by using electronic means and ensuring that the parties will put already incurred or potential civil settlement of disputes by arbitration is fixed with a secure electronic signature.

 

(4)

Where the parties have agreed that the dispute shall be referred to the arbitration court without naming any specific arbitration court, where the plaintiff has submitted the claim to the Riga Arbitration Court and the other party does not object, the dispute shall fall within the jurisdiction of Riga arbitration court.

(5)

In the arbitration court agreement the parties shall be allowed to agree about the number of arbitrators, dispute settlement procedure, settlement of dispute based on documents or verbal hearings, place of the dispute settlement, language of the arbitral proceedings, applicable law and other issues as provided by law.

(6)

Where the parties have agreed that the dispute resulting from the specific agreement is referred for settlement to arbitration court, it shall be presumed that the parties have agreed that any dispute, resulting from this agreement and concerning its infringement, termination or invalidity, shall be settled by the arbitration court.

(7)

Parties may agree on the legislation of a specific state to be applied for the examination of the arbitration agreement validity. Where the parties have not agreed about the issue mentioned above, the applicable law shall be defined in accordance with the Civil Law of the Republic of Latvia, articles 19 and 25.


Article 7. Validity of Arbitration Court Agreement
 
(1)

Where persons have agreed that the dispute is to be referred for settlement to the arbitration court, they shall not have the right to renounce from this agreement, except for the cases when the arbitration court agreement is changed or cancelled as provided by law or by this agreement.

(2)

Arbitration court agreement shall remain valid until the expiry of the legal relationship constituting the basis of this agreement.

(3)

Where the consent to refer the dispute for settlement to the arbitration court is included as a separate clause into the agreement concluded between the parties, this consent shall be regarded as a separate agreement. Where the agreement term has expired or the agreement is recognized as invalid, the consent to refer the dispute for the settlement to arbitration court shall remain in force.


III. ARBITRATORS

Article 8. Arbitrators

 

(1)
Arbitrator shall be a physical person appointed to settle the dispute in accordance with the arbitration court agreement and the conditions of these Rules of Court.
 
1) Any adult person who is not under guardianship, regardless of their nationality or place of residence may be appointed as arbitrator, if that person has given written consent to become an arbitrator and has an impeccable reputation, received higher or academic education (except for vocational training of the first level), and qualification of a lawyer, which has at least three years of work experience – at the post of the academic staff of Legal Sciences at the university or other post of legal profession.
2) Compliance of arbitrators with paragraph 8 of Part 1 of these regulations and the requirements of paragraph 479 of the Civil Procedure Law is certified by the Presidium of the Arbitration Court.
(2)

Arbitrator shall not be the representative of the party that has appointed him. The arbitrator shall perform his duties in good faith, without being subject to any influence, must be independent and impartial.


Article 9. Arbitral Tribunal
 
(1)

The arbitral tribunal settling the dispute shall consist of three arbitrators, where the parties have not agreed about a different number of the arbitrators.

(2)

The number of the arbitrators shall be odd.

(3)

Where according to law, these Rules of Court and the agreement between the parties, the dispute is to be settled by one or three arbitrators, the interested party shall have the right to request for the dispute to be settled by the expanded number of the arbitrators. The expanded arbitral tribunal shall not include more than five arbitrators.

(4)

The arbitral tribunal shall be expanded only when the interested party in written form informs accordingly the arbitration court and when the other party raises the claim or submits counterclaim within specified term. The notice mentioned above shall indicate the number of arbitrators in the expanded arbitral tribunal and the candidates appointed on behalf of the party concerned. The notice shall include the confirmation of payment of the additional dispute settlement expenses. In case of disagreement the arbitration court shall determine the amount of these expenses.


Article 10. Appointment of Arbitrators
 
(1)

Procedure for assignment of an arbitrator shall be determined by the Parties. If the Parties failed to agree on assignment of an arbitrator, arbitrators are assigned in accordance with the arbitration court regulations from the number of permanent arbitrators (appendix No. 1 to the regulations), observing equality of the Parties.

(2)

The parties may entrust the appointment of arbitrators to any capable physical or juridical person.

(3)

Excluded by the decision of the founder from 18 December 2014.


Article 11. Appointment of Arbitral Tribunal

(1)

Where the dispute is to be settled by a sole arbitrator, he shall be appointed by the consent of the both parties from the list of permanent arbitrators. Where within the term determined for submission of the respondent's reply agreement is not reached, the arbitrator shall be appointed by the chairman of the arbitration court.

(2)

Where the dispute is to be settled by three arbitrators, each of the parties shall appoint one arbitrator and they within 10 (ten) days from the expiry of the term set to submit the respondent's reply shall appoint from the list of permanent arbitrators and by mutual consent the third arbitrator acting as the chairman of this arbitral tribunal. Where any of the parties within the term set to submit the respondent's reply has failed to appoint the arbitrator or the arbitrators within the time set have failed to reach consent about the Chairman of the Arbitral Tribunal, arbitrators shall be appointed by the Chairman of the Arbitration Court from the list of permanent arbitrators.

(3)

Where the dispute is to be settled by more than three arbitrators, each of the parties shall appoint equal number of arbitrators and they within 10 (ten) days from the expiry of the term set to submit the respondent's reply, from permanent list of arbitrators and by mutual agreement shall appoint one more arbitrator acting as the Chairman of this Arbitral Tribunal. Where any of the parties within the term set to submit the respondent's reply has failed to appoint the arbitrator or the arbitrators within the set term have failed to reach the agreement about the chairman of the arbitral tribunal, arbitrators shall be appointed by the Chairman of the Arbitration Court from the list of the permanent arbitrators.

(4)

Where the claim is raised by several plaintiffs or against several respondents, these plaintiffs or respondents within the term set to submit the respondent's reply shall agree about the candidate of arbitrator to be appointed on their behalf.

(5)

Where the parties, arbitrators appointed by these parties, several plaintiffs or respondents within the term set by this Article have failed to provide arbitration court with their written consent about appointment of the arbitrator or the chairman of the Arbitral Tribunal, it shall be considered that the appropriate consent is not reached.


Article 12. Challenge of Arbitrator
 
(1)

Where the party has appointed the arbitrator and has informed accordingly the other party, the appointing party cannot challenge the arbitrator without the consent of the other party.

(2)

The chairman of the arbitration court when receiving request from the party shall be allowed to challenge the arbitrator during any stage of the arbitral proceedings, in case the arbitrator within the term extending 14 days does not perform his duties due to his absence, illness or for other reasons.


Article 13. Grounds for Challenge of Arbitrator
 
(1)

The person who has agreed to act as an arbitrator shall notify the parties about any circumstances likely to give rise to justifiable doubts regarding his impartiality and independence. Where the arbitrator becomes aware of these circumstances before the termination of the arbitral proceedings, he shall immediately inform the parties about them.

(2) Arbitrator may be challenged because:
    1)There are circumstances giving rise to justifiable doubts regarding his impartiality and independence;

    2) Qualification of the arbitrator is not in compliance with the requirements agreed by the parties;

    3) Is referable to any of the restrictions mentioned in the Article 497 part 4 of the Civil Procedure Law.
(3)

The party shall be allowed to challenge the arbitrator it has appointed or in appointment of which it has participated, only where the party becomes aware of the reasons for challenge after the appointment has taken place.


Article 14. Procedure for Challenge of Arbitrator
 
(1)

The parties shall be allowed to agree between themselves about the procedure of challenge of arbitrator. Where parties have not reached an agreement about the above mentioned procedure, they shall be allowed to challenge the arbitrator within 5 (five) days from the day when the party has become aware of the arbitrator's appointment or the party has become aware of the reasons of challenge. Challenge shall be submitted in written form to the arbitration court and shall indicate the challenged arbitrator and the appropriate reasons.

(2)

The arbitral tribunal shall decide on the submitted challenge, including the cases when a sole arbitrator settles dispute. All the members of the arbitral tribunal shall decide on the matter of the submitted challenge.

(3)

Where the chairman of the arbitration court becomes aware of the circumstances mentioned in paragraph 2 of Article 13 of these Rules of Court, he shall inform about them both parties without delay and shall give the explanation about their rights to challenge the appropriate arbitrator.


Article 15. Termination of Arbitrator's Powers
 
(1)

Arbitrator shall have the right to refuse from the dispute settlement by submitting a written statement to the Chief of the Arbitration Court Chancellery.

(2)

The parties shall have the right to agree about the termination of the arbitrator's powers by submitting a written statement to the arbitration court.

(3)

The powers of the arbitrator shall be terminated:

 

1) Where arbitrator's challenge is accepted;
 
2) Where arbitrator has refused to settle the dispute;
 
3) Where the parties have agreed about termination of the arbitrator's powers;
 
4) Where arbitrator's challenge is sustained;
 
5) In case of death of the arbitrator.
(4)

Where the powers of the arbitrator are terminated, the new arbitrator shall be appointed as provided by these Rules of Court.

Article 16. Consequences of Appointing New Arbitrator

(1)

Where new arbitrator is appointed, where dispute is settled by a sole arbitrator and where new arbitral tribunal chairman is appointed, the dispute settlement proceedings shall be started from the beginning.

(2)

Where new arbitral tribunal arbitrator is appointed, arbitral tribunal shall have the right to start from the beginning the dispute settlement proceedings.


IV. PREPARATION OF ARBITRAL PROCEEDINGS

Article 17. Jurisdiction of Dispute

 
(1)

The arbitration court shall decide on the dispute jurisdiction, including the case when one of the parties contests the existence of the arbitration agreement or the validity of this agreement.

(2)

The party may submit the statement about the dispute not falling within the jurisdiction of the arbitration court before the expiry date of the period set for the submission of the statement of claim.

(3)

The arbitration court may decide on the matter of the dispute jurisdiction at any stage of the arbitral proceedings. Where the dispute jurisdiction matter is contested before the appointment of the arbitral tribunal, the above mentioned the Chairman of the Arbitration Court shall decide the matter mentioned above. However, where the jurisdiction is contested after the appointment of the arbitral tribunal, the arbitral tribunal shall decide the matter.

(4)

Where the party objects on the grounds that the part of the dispute does not fall within the jurisdiction of the arbitration court, and this objection has appeared in connection with the additions and changes in the claim or the additions and changes in the counterclaim, the above mentioned objections shall be declared without delay and arbitration court shall start considering this issue.

(5)

Where the arbitration court recognizes that the dispute or its part does not fall within the arbitration court jurisdiction, it shall terminate the arbitral proceedings or their part as provided by these Rules of Court.


Article 18. Interim Measures before Action
 
(1)

The plaintiff shall have the right to request the court to provide the security for the claim before the claim is raised at the arbitration court. This request on behalf of the plaintiff shall not be regarded as the infringement of the arbitration court agreement and shall not be an obstacle for the dispute settlement in the arbitration court.


Article 19. Terms of procedural actions
 
(1)

Procedural actions shall be performed within the terms set by these rules. Where the terms for the procedural actions are not set by these Rules, the arbitration court shall determine them.

(2)

Procedural actions shall be performed on the precise date or within the term lasting till the set date or within a set time period (in years, months, days or hours). Where the procedural action is not to be performed on the precise date, it shall be performed at any time during the set term.

(3)

Term of the procedural actions calculated in years, months or days shall start on the next day after the date or the event that determines its start.

(4)

Term of the procedural actions calculated in hours, shall start on the next hour after the event that determines its start.

(5)

Term calculated in years shall expire on the appropriate date and month of the final year. Term calculated in months shall expire on the appropriate date of the final month. Where the term calculated in months expires within a month with no date set, it shall expire on the final date of this month. Term with an end set for a concrete date shall expire on the previous date.

(6)

Where the final day of the term is Saturday, Sunday or legal holiday, next working day shall be set as the final day of the term.

(7)

Where the term of the procedural action is expiring, this action can be performed within the final day of the term until 24.00.

(8)

Where the procedural action is performed at the arbitration court, the term shall be regarded as expired on the hour when the arbitration court finishes its work in accordance with its internal working regulations. However, where the statement of claim or other correspondence is delivered to the receiving institution on the final date of the term till 24.00, they shall be regarded as delivered on time.


Article 20. The Consequences of Delaying the Procedural Actions. Suspension, Re-opening and Prolongation of Procedural Actions
 
(1)

The rights to perform the procedural actions shall cease to exist simultaneously with the expiry of the term set by these Rules of Court or by the arbitration court.

(2)

Where the arbitral proceedings are stayed, so shall be the term. The term shall be suspended from the moment when circumstances provoking the suspension of the arbitral proceedings have appeared. The procedural term shall be renewed starting with the day of re-opening of the arbitral proceedings.

(3)

The arbitration court upon the request from the party shall be allowed to renew procedural terms in case the court recognizes the reasons for delay as justified. Where the delayed term is renewed, the arbitration court simultaneously shall allow performing the delayed procedural action.

(4)

The terms set by the arbitration court may be prolonged where the party has presented a well-justified request.

(5)

Where the request to prolong the term or to renew the delayed term is submitted before the appointment of the arbitral tribunal, the chairman of the arbitration court shall decide on the request. Where the request is submitted after the appointment of the arbitral tribunal, the arbitral tribunal shall decide on it.


Article 21. Correspondence
 
(1)

All the documents prepared by the arbitration court (judgments, decisions, declarations, etc.) shall be sent by the postal or electronic mail. Arbitration court shall send all the documents which are prepared and submitted to arbitration by the party (application review requirements, etc.) to the other party by mail or electronic mail, or to notify it about the possibility of the receipt of these documents at the arbitration court and becoming acquainted with them.

(2) The documents mentioned in the first paragraph of this Article shall be sent to a natural person by registered mail to the address of the declared place of residence, but if the declaration specified additional address - to an additional address, even if the individual communicating with the arbitration court has not indicated an additional address, if a legal person - to its registered office.
(3) The documents mentioned in the first paragraph of this Article shall be sent to a natural by electronic mails when a party has notified the arbitral court of its agreement to use of electronic mail to communicate with the arbitration court. In this case, the arbitration court shall send the documents to the e-mail address specified by the party. If the arbitration court finds technical barriers to the transmission of electronic documents by mail, it shall send the registered mail.

(4)

The documents mentioned in the first paragraph of this Article are considered received on the date of issue if they are delivered and granted to the addressee personally. If they are sent by mail, it is considered that they were received on the seventh day after the mailing date of dispatch, but if they were sent by electronic mail, it is considered that they are received within two working days after the date of dispatch.

Article 22. Confidentiality of Arbitral Proceedings

(1)

Arbitral proceedings shall be confidential. The arbitration court sessions shall be closed sessions. Persons not participating in the arbitral proceedings shall be allowed to be present at the arbitration session only with the consent of the parties.

(2)

Arbitration court shall not disclose the information about the arbitral proceeding to the third parties and shall not make this information available to public.


Article 23. Equality and Controversy of Parties 
 
(1)

During the dispute settlement arbitration court shall observe the principle of equality and controversy. Each party shall have equal rights to explain its viewpoint and to defend its rights.


Article 24. Order of Arbitral Proceedings  
 
(1)

The parties shall have the right to determine freely the order of arbitral proceedings.

(2)

Where the parties have not agreed about the order of the arbitral proceedings, the arbitration court shall decide the dispute in accordance with these Rules of Court.

(3)

Where the parties agree only about individual conditions of the arbitral proceedings, the arbitration court shall observe this agreement and shall be guided by these Rules of Court for all the remaining issues.


Article 25. Language of Arbitration 
 
(1)

The state language of the Republic of Latvia shall be used for the arbitral proceedings or language mutually agreed by the parties.

(2)

Where Arbitral Tribunal or one of the arbitrators or participants of the proceedings does not have a command of the arbitration language, the arbitration court shall invite an interpreter. The arbitration court shall define the payment order for the services of the interpreter.

(3)

The arbitration court may request from the parties to provide any kind of a written proof translation or notary certified translation into the language of arbitration or into the state language.


Article 26. Representation of Parties 
 
(1)

Physical persons shall lead their cases in the arbitration court by themselves or by authorized representatives. The representation rights of physical persons shall be confirmed by the power of attorney certified by the notary.

(2)

The cases of the juridical persons in the arbitration court shall be lead by their officials acting according to powers assigned to them by law, statutes or appropriate internal regulations. Other authorized representatives of juridical persons also shall be allowed to lead the cases. The representation rights of the juridical persons shall be confirmed by a written power of attorney or documents confirming the right of the official to represent the juridical person without any other special authorization.

(3)
An authorized representative may be any natural person, other than a person:
 
1) who has not reached the age of majority;
 
2) which is under guardianship;
 
3) which with a court judgment was deprived of the right to conduct affairs of another person;
 
4) which has family relationships to the third degree or affinity relationships to the second degree with an arbitrator, who settles civil disputes;
 
5) which provided legal assistance in civil dispute to the other party in this or related another case;
 
6) who participated in mediation or related to another case.
(4)

Parties during the arbitral proceedings shall be allowed to invite attorneys to provide legal assistance.

(5) Taking into consideration the circumstances mentioned under the third paragraph of this Article, the composition of the arbitral tribunal does not allow such persons in civil disputes.
(6) A person who is, or in the last five years has been on the list of the arbitrators of the arbitration court may not be representative of the parties and can not be invited to provide legal assistance that settled in arbitration proceedings.

Article 27. Place of Arbitration
 
(1)

The Parties shall be allowed to agree freely about the place of the dispute settlement. Where the parties have not agreed about the place of the dispute settlement, it shall be determined by the arbitration court.

(2)

To check the evidence the arbitration court shall be allowed to meet at any place, which it regards as suitable, informing about it the participants of the arbitral proceedings.

(3)

Where the parties have agreed that the place of the dispute settlement is outside of Riga, the parties shall cover the travel and living expenses of the arbitrators.

(4)

Where Riga is determined as the place of the dispute settlement, but one of the parties has appointed the arbitrator with practice location outside of Riga, the travel and living expenses of this arbitrator during the arbitral proceedings shall be covered by the party that has appointed the arbitrator.


Article 28. Commencement of Arbitral Proceedings
 
(1)

The arbitral proceedings shall start at the moment of submitting the statement of claim.

(2)

The statement of claim shall be submitted to the arbitration court in written form at the location place of the arbitration court chancellery.


Article 29. Statement of Claim 
 
(1)

The statement of claim shall include:

 

1) Information about the parties:

a) Juridical persons: name and official address, registration number, phone and fax number, if known to the plaintiff.
b) Physical persons: name, surname, declared residence place, if absent – residence place and personal code, as well as phone number, if known to the plaintiff.
c) In the case of claims by a representative: name of the applicant's representative, personal identity number and address for communication with the arbitration court; for legal person  - its name, registration number and registered office.
 
2) Summary of the dispute, claim amount, calculation of the claim amount;
 
3) Ground for action and confirming evidence;
 
4) Applicable law;
 
5) Essence of the plaintiff's claim;
 
6) List of the enclosed documents. 
 
(2)
The statement of claim shall be accompanied by:
 
1) The arbitration agreement, if it is not included in the contract from which the dispute resulted;
 
2) Agreement from which the dispute results;
 
3) Documents referred to by plaintiff in the statement of claim;
 
4) As many copies of the statement as there are respondents for the case;
 
5) Evidence on arbitration procedure expenses and arbitrator's fee;
 
6) Excluded by the decision of the founder from 18 December 2014.
 
(3)

The statement of claim shall be signed and submitted by the plaintiff or his representative. Where a representative raises the claim on behalf of the plaintiff, the statement of claim shall be enclosed by the power of attorney or other document confirming the authority of the representative to raise the claim.


Article 30. Arbitration Court Actions after Receiving Statement of Claim
 
(1)

Where the statement of claim and the enclosed documents are in compliance with the requirements of these Rules of Court, the Chief of the Arbitration Court Chancellery without delay shall send to the respondent notification about receipt of the statement of claim and copy of the statement of claim. Notification shall offer to the respondent to submit the reply to the claim, to indicate the objections, if there are any, and to enclose the documents justifying the objections.

(2)

The Parties may get acquainted with the appendices to the statement of the claim and other case files during working hours of the Arbitration Court Chancellery by prior appointment.


Article 31. Arbitration Court Actions where Statement of Claim is not in compliance with the Rules of Court 
 
(1)

Where the statement of claim and the documents enclosed to it are not in compliance with these Rules of the Court, the Chairman of the Arbitration Court shall leave the statement of claim without further actions and shall notify accordingly the person which has submitted the claim, providing the time to rectify the claim.

(2)

Where the claim is rectified within the term determined by the Chairman of the Arbitration Court, the statement of claim shall be considered as filed and the arbitral proceedings shall commence.

(3)

Where the claim is not rectified within the term determined by the Chairman of the Arbitration Court, the statement of claim shall be returned to the person, which has submitted it, without instituting further proceedings.


Article 32. Respondent's Reply 
 
(1)

Defendant submits statement of defence to the court of arbitration within 15 (fifteen) days from the day of dispatch of notification on receipt of the statement of claim. 

(2)

Considering location of the defendant, complicacy of dispute, quantity of defendants, administrative office head of the arbitration court may, at own discretion, establish a longer term for submit of statement of defence, but is shall not be longer than objectively necessary and exceed 30 (thirty) days.

(3)
Defendant shall specify in the statement of defence:
 
1) whether he acknowledges the claim on whole or any part thereof;
 
2) his objections to the claim and validity thereof;
 
3) proofs supporting his objections to the claim and their validity as well as the law, the objections are based on;
 
4) applications to accept or request proofs;
 
5) other circumstances, he considers important in consideration of the case;
 
6) phone number or e-mail address, if accepted to communicate with the arbitration court by using the phone or e-mail.
(4)

Defendant shall subjoin proofs to the statement of defence, which serve the basis of his objections. The statement of defence shall be in a quantity equal to the quantity of participants of the case.

(5)

After receipt of the statement of defence, the administrative office head of the arbitration court immediately informs the claimant about it.

   

Article 33. Counterclaim
 
(1)

The respondent shall be allowed submit a counterclaim.

(2)

The counterclaim shall be submitted in written form. The counterclaim shall be governed by the same conditions of these Rules of Court that refer to the statement of claim.

(3)

The counterclaim shall be submitted within the same term that is determined for the submission of claim.

(4)
The arbitration court shall accept the counterclaim where the subject of the counterclaim is covered by the arbitration court agreement and:
 
1) Clearing is possible between the initial claim and counterclaim;
 
2) Satisfaction of the counterclaim partially or fully excludes the satisfaction of the initial claim;
 
3) Counterclaim and initial claim are connected and joint procedure leads to a more correct and fast settlement of the dispute. 
(5)

The decision about accepting the counterclaim shall be taken by the Chairman of the Arbitration Court.

(6)

Counterclaim accepted by the arbitration court shall be disposed together with the initial claim.


Article 34. Setting of Hearing Date of Arbitration Court
 
(1)

After the statement of defence is received from the defendant, or the term for submit of the statement of defence established for the defendant has expired, and judges of the court of arbitration are assigned, these judges appoint the day and time of sitting of the court of arbitration. The day of sitting of the court of arbitration shall be appointed not later than 30 (thirty) days after assignment of judges.

(2)

After announcement of the Arbitration Court sitting, Head of the Arbitration Court Chancellery shall immediately notify the case participants of the day, time of the sitting and formation of the arbitrators, if applicable, with the remark that a video conference shall be implemented.

(3)

Notice on the first sitting of the court of arbitration, referred to in para. 2 herein, is served to the parties against signature, or sent in a registered letter 15 days before the sitting at the latest, unless the parties agreed on an earlier term. Notice on the ordinary (second or next) sitting of the court of arbitration is served to the parties against signature, or sent in a registered letter at least 5 days before the sitting of the court of arbitration.


V. SETTLEMENT OF DISPUTE

Article 35. Types of Dispute Resolution and Proceedings

 
(1)

Taking into account the arbitration agreement concluded between the parties, arbitration court shall either arrange the hearings to listen to the explanations and objections from the parties and to check the evidence (oral hearing) or shall settle the dispute only using submitted written evidence and files (written procedure). Arbitration court shall arrange oral hearings also where the parties have previously agreed on the written procedure but either one of the parties before termination of the arbitral proceedings as provided by internal regulations asks for oral hearings or the Arbitral Tribunal concludes that submitted evidence and files are not sufficient to settle the dispute.

(2)

Where provided by these Rules of Court and agreement between the parties, the arbitration court shall be allowed to convene the dispute settlement proceedings in a way it regards useful on condition that the dispute is settled without unnecessary delays and parties are given equal rights to present their viewpoint and defend their rights. The Chairman of the Arbitral Tribunal shall convene dispute settlement proceedings.

(3)

Oral hearing for the dispute settlement shall start from the moment when on the set date and time Chairman of the Arbitral Tribunal opens arbitral hearings and announces the start of the dispute settlement.

(4)

Dispute settlement based on written evidence shall start from the moment when arbitral tribunal meets for dispute settlement.

(5) Upon request of any of the parties or arbitrators, the Arbitration Court may conduct the sitting of the Arbitration Court as a verbal proceding with the use of a video conference. Preparing for the hearing of the case, Chairman of the Arbitration Court shall consider requests of the case participants or arbitrators with regard to participation of the persons in the case considerationwith the use of the video conferencei.
   

Article 35.1 Procedure of dispute resolution using video conference

 

(1) The parties or their authorized representatives may participate in the arbitration court sitting with the use of the video conference. Video conference of the Arbitration Court is arranged pursuant to the application of the parties or their authorized representative submitted to the Chancellery of the Riga Arbitration Court at least 5 (five) working days prior to the specified sitting of the court.
(2)

The application must contain the following information about the parties:

1) for legal persons: name, legal address and registration number, telephone number and e-mail address;

2) for natural persons: name, surname, personal number, declared place of residence, if the latter is inapplicableplace of residence and, if known to the parties, telephone number and e-mail address;

3) if the application is submitted by a representative: name, surname, personal number, address, telephone number and e-mail address of the representative for communication with the Arbitration Court; for legal person – its name, registration number and legal address, telephone number and e-mail address for communication with the Arbitration Court;

4) desired location of the video conference  - country, city, time.
(3) Within 3 working days of the application receipt, Chairman of the Riga Arbitration Court adopts the decision about arranging of the video conference of the Arbitration Court indicating in the decision the place, where the party of the application must appear, the time, Head of the sitting, representative of the Arbitration Court.
(4)

Starting the sitting of the Arbitration Court with the use of the video conference, Head of the sitting shall specify the year, date, month, location of the court sitting and case number, name and surname of the arbitrators that will consider the case, name and surname of the Head of the sitting, name and surname of the specified representative of the Arbitration Court, the parties that will participate in the case.

(5) The arbitrator shall verify the identity of the attending persons and the powers of attorney of the representatives. Specified representative of the Arbitration Court shall verify the identity of the persons participating in the sitting of the Arbitration Court with the use of the video conference.
(6) The sitting of the Arbitration Court that takes place with the use of a video conference shall be recorded in the minutes in line with clause 39 of the Regulations of the Riga Arbitration Court.
(7) Video conference of the Riga Arbitration Court sitting shall only take place if each of the parties whose attendance is requested in the video conference has paid remuneration for the services of arranging the video conference.
   

Article 36. Familiarization of Parties with Received Files and Evidence  

(1)

The arbitration court shall familiarize the parties with any received applications, documents and other information as well as with the experts' findings and other evidence.

Article 37. Consequences if Party Fails to Appear 

(1)

Where the respondent within the term determined by these Rules of Court fails to submit the reply to the statement of claim, the arbitration court shall continue the proceedings without concluding that the respondent admits the claim, unless otherwise provided in the arbitration court agreement.

(2)

Where the parties without sufficient cause fail to appear during oral hearings or fail to present written or other type of evidence, the arbitration court shall continue proceedings and settle the dispute on the basis of the available evidence.


Article 38. Modifications and Additions to Claim 
 
(1)

A party shall be allowed to modify the claim or make additions to the claim before commencement of the dispute settlement. The following cases shall not be regarded as modification or addition:

 

1) More precise definition of the claim;

 

2) Correction of obvious mistakes in the claim;

 

3) Adding of percents and increased amounts to the claim;

 

4) Request to compensate the value of the property in connection with the alienation of claimed property, its loss or changes in its content;

 

5) Changes of the sums constituting the total claim amount where total amount remains without change;

 

6) Substitution of the claim requesting recognition of rights by another claim requesting resoration of rights which are affected in the course of proceedings because of the changed circumstances;

 

7) Increase of the claim amount because the market prices have increased during the time when arbitral proceedings are convened. 

(2)

Where according to paragraph 1 of this Article the claim amount is increased, the party additionally shall compensate to the arbitration court the appropriate arbitration expenses.

(3)

Where the claim exceeds the limits of the arbitration court agreement, no modifications shall be performed.

 

 


Article 39. Record of Proceedings 
 
(1)

The Arbitration Court sitting shall be recorded:

1) if any of the parties requests and pays remuneration for secretarial services to the Riga Arbitration Court. Application with regard to recording of the sitting must be submitted and remuneration for secretarial services must be paid not later than 2 days prior to the sitting of the Arbitration Court;

2) if the parties of the Arbitration proceeding or its authorized representatives take part in the sitting of the Riga Arbitration Court with the use of a video conference.

(2)

The secretary chosen by the arbitration court shall keep records. All arbitrators and the secretary shall sign records of hearings. The record of the arbitration hearing shall be signed within 3 (three) days after hearing takes place.

(3)
The following items shall be included into the records:
 
1) Name of arbitration court;
 
2) Case number;
 
3) Place and date of hearing;
 
4) Parties;
 
5) Notes concerning participation of the parties in the dispute settlement;
 
6) Names and surnames of arbitrators, secretary, experts, interpreters and other case participants;
 
7) Short description of the arbitral proceedings;
 
8) Requests and other important information from the parties;
 
9) Reasons to adjourn or terminate the arbitral proceedings;
 
10) whether the sitting of the Arbitration Court took place with the use of the video conference.
(4)

Parties have the right to get acquanted with the minutes and express objections or remarks. The Arbitration Court shall decide on the validity of objections or conformity of the remarks to the developments of the sitting. The Party may receive copy of the Minutes upon request.


Article 40. Evidence  
 
(1)

The following means shall be considered as evidence in the arbitration court: explanations by the parties, written evidence, material evidence and findings of experts.

(2)

The parties shall submit the evidence. Each of the parties shall prove the circumstances to which they refer and which justify claim or objection. Arbitration court shall be allowed to invite the parties to submit additional documentation or other evidence.

(3)

Written evidence shall be submitted in the form of document original or certified copy. Where the parties submit certified documentation copies, arbitration court shall be allowed upon the request from the other party to ask to submit the original documentation. Upon request the original document shall be returned to the party that has submitted it and appropriate certified copy shall be left in the case file.

(4)

The court of arbitration determines admissibility and relevancy of the proofs.


Article 41. Expertise 
 
(1)

Where the party submits a motivated written request, the arbitration court shall be allowed to order an expertise. Expertise shall be ordered in cases when special findings are required to elucidate important dispute facts connected to science, technical science, art or other sphere.

(2)

Where arbitration court admits that request form the party is valid, it shall decide on ordering an expertise or inviting experts. Expertise shall be ordered only where the party within the term determined by the arbitration court performs advance payment for expert services. The arbitration court shall determine advance payment amount.

(3)

In the agreement about the expertise procedure the party shall indicate the issues requiring findings of expert. Arbitration court shall decide on the issues requiring findings of expert. Where issues determined by the parties are declined, arbitration court shall explain the motivation.

(4)

Arbitration court decision about expertise shall include questions requiring findings of expert and executive assigned to perform the expertise.

(5)

Expertise shall be performed by the experts from the appropriate institutions or by other specialists. The parties shall choose the expert based of their mutual agreement. Where agreement cannot be reached, arbitration court shall choose the expert on its own within the set term. Where necessary arbitration court shall appoint several experts.

(6)

Where several experts are appointed, they shall have the right to convene discussion between them. Where experts reach a joint conclusion, all experts shall sign the evidence. Where experts are not of the same opinion, each of them shall present separate evidence.

(7)

Where the arbitration court requests, the parties shall supply the expert with the necessary information and documents or demonstrate the goods and other objects.

(8)

Where the party requests, after receiving the findings the arbitration court shall invite expert to participate in the hearings in order to give the explanations or to answer the questions of the parties regarding the above mentioned findings.

Article 42. Challenge of Expert, Interpreter or Secretary

(1)

Where the party requests, expert, interpreter or secretary shall be allowed to be challenged in the cases determined by Article 13 of these Rules of Court. Challenge shall be submitted without delay after the party becomes aware of the circumstances constituting grounds for challenge. The arbitral tribunal shall decide on the issue of challenge.


43. punkts. Prasības nodrošināšana
 
(1)

Withdrawn (in accordance with the amendments to the Civil Procedure Law promulgated on 9 March 2005).

 
Article 44. Consequences where Party Quits Proceedings 
 
(1)

Where the participating physical person is dead or the participating juridical person ceases to exist the arbitration agreement shall not be terminated, if not otherwise agreed between the parties and where the legal relationship under the dispute allows the transfer of rights. In the last case the arbitration court shall suspend the arbitral proceedings until the establishment of successor.

(2)

Ceding of the claim or debt transfer shall constitute the basis for termination of the arbitral proceedings unless the parties have agreed on a new civil dispute settlement at the arbitration court.

Article 45. Rights to Object 

(1)

Where one of the arbitration conditions is infringed or is not observed, the party participating in the arbitral proceedings, when becoming aware of the infringement or when it is to become aware of the infringement, without delay shall submit written objections to the arbitration court and the other party.

(2)

The arbitration court shall decide on the validity of the objection.

(3)

Where the party fails to submit objections, it shall be deemed that it has waived its rights to raise these objections, except where the party failed to submit objections because of the reasons beyond its control.


Article 46. Storing of Documents after Termination of Arbitral Proceedings
 
(1)

After termination of the arbitral proceedings the appropriate documents shall remain deposited in the arbitration court. Arbitration court shall perform storing as provided by law on archive depositaries.


Article 47. Rulings
 
(1)

All rulings (awards and decisions) of the arbitral tribunal, consisting of more than one arbitrator, shall be made by simple majority of votes. Arbitrator cannot refuse from voting.

(2)

The arbitral tribunal in accordance with its decision shall make the ruling either in the hall where the arbitral proceeding are convened or in the discussion room.

(3)

The ruling shall be in written form and shall be signed by all arbitrators. Where rulings are not signed by one of the arbitrators, it shall be necessary to indicate in the rulings the grounds for the absence of the arbitrator's signature.

(4)

Signatures of the arbitrators on the ruling shall be certified by stamp of the arbitration court.

(5)

The ruling of the arbitration court shall enter into force on the date when it is made. The ruling cannot be appealed against and no protest can be submitted.

   
Article 48. Amicable Settlement of Dispute 
 
(1)

The arbitration court shall conduce the amicable dispute settlement.

(2)

The amicable dispute settlement shall be allowed at any stage of the arbitral proceedings. Where the parties agree on the amicable settlement of the dispute, arbitration court shall terminate the arbitral proceedings.

(3)

Where the parties agree on the amicable settlement of the dispute, it shall be recorded in written form, including the following information: for juridical persons - name, registration number and location place (official address), for physical persons - name, surname, personal code and residence place as well as the subject of the dispute and the obligations voluntarily undertaken by the parties.

(4)

At the parties’ request, the court of arbitration by its decision affirms the amicable settlement agreement if its provisions do not contradict to the law. Such decision has the same legal effect as that of the resolution of the court of arbitration.

(5)

Excluded by the decision of the founder from 18 December 2014.


Article 49. Award 
 
(1)
Award of the arbitration court shall include:
 
1) Case number;
 
2) Composition of arbitral tribunal;
 
3) Date and place of rendering the award;
 
4) Information about the parties;
 
5) Subject of the dispute;
 
6) Award motivation, if the parties have not agreed otherwise;
 
7) Conclusion about full or partial satisfaction of the claim, or about its full or partial rejection and essence of the arbitration court award;
 
8) Amount to be collected where the rendered award stipulates recovery of money;
 
9) Specific property and the value to be collected in case property to be collected does not exist, where the rendered award stipulates return of specific property;
 
10) Executive, type of activities and term where the rendered award imposes obligation to perform specific actions;
 
11) Parts of the award concerning each of the plaintiffs where the award is rendered in favor of several plaintiffs, or parts of the award to be executed by each of the respondents, where the award is rendered against several respondents;
 
12) Arbitration expenses and allocation of these expenses and legal support expenses between the parties
 
(2)

After adopting of the resolution, the parties are informed of the judicial decree of the resolution. The court of arbitration composes the resolution within 14 days.

(3)

Where the rendered award stipulates recovery of money, the arbitration court in the resolution shall indicate type of the claim and the sum to be collected, with separate indications of the basic debt amount and the interest rate to be collected and the term for which the interest rate shall be applied, meaning also its amount, the rights of a plaintiff to receive the interest during specific time period before the award enforcement date and the interest amount.

(4)

Where the rendered award stipulates return of property, arbitration court in the resolution shall indicate specific property and, where the property does not exist, shall determine the specific sum to be collected from the respondent.

(5)

Where the rendered award imposes obligation to perform specific actions, arbitration court shall determine the executive, types of actions and performance term.

(6)

Where the rendered award imposes upon the respondent the obligation to carry out the specific activities not connected to money or property return, the arbitration court shall be allowed to indicate in the award that in the case the respondent during the set time does not fulfill the award conditions, the plaintiff shall have the right to carry out the above mentioned activities at the respondent's account with further collection of the relevant expenses from the respondent.

(7)

Where the award is rendered in favor of several plaintiffs, the arbitration court shall determine the allocation of award between them or shall indicate that collection rights are solidary.

(8)

Where the award is rendered against several respondents, the arbitration court shall determine the allocation of the award between them or shall indicate that their responsibility is solidary.

(9)

Copy of the arbitration court award shall be delivered to the parties. Where the party requests, the copy of the award also shall be sent to this party.

(10)

Arbitral award shall be sent to the parties within three working days from its delivery date, unless the parties have not previously received a copy of the judgment at the Chancellery.


Article 50. Correction of Mistakes. Interpretation of Award. Separate Award. 
 
(1)
Each of the parties, notifying the other party, before executing the award shall be allowed to ask the arbitration court:
 
1) To correct mistakes in calculations, typographical or grammar errors, existing in the award. The arbitration court also shall be allowed to correct these mistakes upon its own initiative; Such mistakes can be corrected without the presence of the parties;
 
2) To interpret the award. The interpretation of the award shall be done in written form and from the moment it is approved shall become an indispensable part of the award.
 
3) To make a separate award within 30 days from the date of the award delivery, where any of the claims submitted before rendering the award are omitted. Where the arbitration court considers this request as justified, it shall complete a separate award.
 
(2)
The arbitration court shall decide if the parties need to be present during the settlement of the issues determined by paragraph 1 of this Article.
 

(3)

The composition of the arbitral tribunal shall, not later than 15 days in advance, shall notify the parties about the hearing, which will be decided in a matter of judgment, correction, explanation or supplementing its judgment. If the correction of the judgment would change the operative part of the judgment, but the essence remains the same, composition of the arbitral tribunal invites the parties to express their views. Parties Not attendance of the parties is not an an obstacle to correcting the judgment, explanation or supplementing the judgment. Supplement shall be rendered by the composition of the arbitral tribunal in accordance with the provisions of paragraph 49.


Article 51. Adjournment of Dispute Settlement
 
(1)

Where a participant fails to appear at hearings and is not informed about their time and place, the arbitration court shall adjourn the dispute settlement.

(2)
Arbitration court shall be allowed to adjourn the dispute settlement:
 
1) Where admitted that the dispute cannot be settled because one of the participants, secretary, expert or interpreter has failed to appear;
 
2) Where the participant has requested it in order to submit additional evidence;
 
3) Upon its own initiative in order to resolve the procedural issues. 
(3)

The participants shall be informed about the next date and place of the arbitral hearings against their signatures or they shall be summoned to the hearings by subpoenas.

(4)

 If the person cannottake part in the sitting of the Arbitration Court using video conference due to technical or other reasons independent of the Arbitration Court.


Article 52. Staying of Proceedings 
 
(1)
The arbitration court shall stay proceedings where:
 
1) The participating physical person is dead or the participating juridical person ceases to exist and the disputed legal relationship allows transfer of rights
 
2) The party loses its capability
 
3) The parties submit to the arbitration court written mutual agreement on staying of arbitral proceedings. 
(2)
Arbitration court shall be allowed to stay the proceedings upon its own initiative or initiative of the participants, where:
 
1) The party is not able to participate in dispute settlement because of illness or for any other justifying reason;
 
2) The arbitration court decides on conducting the expert's examination. 
(3)
The arbitral proceedings shall be suspended:
 
1) In the cases foreseen by part 1 of paragraph 1 of this Article - till determination of lawful successor or appointment of lawful representative;
 
2) In the cases foreseen by part 2 of paragraph 1 of this Article - till appointment of lawful representative;
 
3) In the cases foreseen by part 3 of paragraph 1 of this Article - within the term determined by the mutual agreement between the parties;
 
4) In the cases foreseen by parts 1 and 2 of paragraph 2 of this Article - till the circumstances mentioned in these subparagraphs cease to exist.
(4)

The arbitration court shall decide on staying of the arbitral proceedings in the form of a separate formal document. This decision shall determine the circumstances entering into force or termination of which shall mark the moment until which the proceedings are stayed or shall set the term for staying of the proceedings.

(5)

The arbitration court shall re-open arbitral proceedings upon its own initiative or when an application is submitted by the participants.


Article 53. Dismissed Action
 
(1)
The arbitration court shall dismiss action where:
 
1) The statement of claim is submitted by an incapable person or a person being under guardianship as provided by Article 365 of the Civil Law;
 
2) The claim on behalf of the plaintiff is raised by a person not legitimately authorized for this action;
 
3) In the case mentioned in paragraph 3 of Article 31 of these Rules of Court. 
(2)
The arbitration court shall be allowed to leave the claim without hearing:
 
1) Upon request from the plaintiff;
 
2) Where the plaintiff repeatedly does not attend the arbitral hearings and has not requested to settle the dispute in his absence. 
(3)

The arbitration court shall decide on a dismissed action in the form of a separate document as provided by law and by these Rules of Court.

(4)

In case of a dismissed action the plaintiff shall have the right to submit to the arbitration court a new statement of claim as provided by law and these Rules of Court.


Article 54. Termination of Arbitral Proceedings 
 
(1)
The arbitration court shall decide about termination of the arbitral proceedings where:
 
1) The claimant withdraws the claim;
 
2) The parties agree on the amicable dispute settlement;
 
3) The arbitration agreement loses its force as provided by law or by this agreement;
 
4) The arbitration court recognizes that the dispute does not fall within jurisdiction of the arbitration court;
 
5) The participating physical person is dead or the participating juridical person ceases to exist and the legal relationship does not allow transfer of rights or the parties agree about the relevant termination of the proceedings. 
(2)

Where the arbitral proceedings are terminated because of the reasons mentioned in parts 1 or 2 of paragraph 1 of this Article and where the dispute is settled between the same parties, on the same subject and on the same grounds, the parties shall not be allowed to make repeated appeal to the arbitration court or any other court.

(3)

Where the arbitral proceedings are terminated because of the reasons mentioned in parts 3 and 4 of paragraph 1 of this Article or where the participating physical person is dead or the participating juridical person ceases to exist, and where the parties have agreed that the arbitral proceedings are to be terminated in the cases mentioned above, the parties shall have the right to make appeal to the court.


Article 55. New Dispute Settlement because of Newly Discovered Circumstances 
 
(1)

The party shall be allowed to initiate the dispute due to the newly discovered circumstances by submitting the application requesting to cancel the award or the decision of the arbitration court.

(2)

It shall be allowed to submit the application within three months from the date when the circumstances serving as ground for the new dispute settlement are ascertained.

(3)

It shall not be allowed to submit the application where more than 10 years have passed from the moment the award or decision has entered into force.

(4)
The following circumstances shall be considered as newly discovered:
 
1) Where lawful court award for criminal case states that the award is made on basis of intentionally untrue expert' evidence, intentionally incorrect translation, false written or material evidence;
 
2) Where lawful court award for criminal case states that due to criminal action illegal or unjustified award is rendered or decision made;
 
3) Where court award or decision of other institution is cancelled and has served as the basis for rendering the award or taking the decision for settling the appropriate dispute;
 
4) Where it is recognized that the rule of law applied to settle the dispute is not in compliance with the higher formal law. 
(5)
Application shall be submitted within terms calculated as follows:
 
1) For the cases indicated in parts 1 and 2 of paragraph 4 of this Article - starting from the day when the criminal case award enters into legal force;
 
2) For the cases indicated in part 3 of paragraph 4 of this Article - starting from the day when the court ruling which cancels a civil or criminal case award enters into force or when other institution's decision is cancelled where it has served as the ground for the award which is requested to be cancelled because of the newly discovered circumstances;
 
3) For the case indicated in part 4 of paragraph 4 of this Article - starting from the day when the court award or decision by other institution enters into force and the applicable legal norm looses its force as not complying with the higher formal law. 
(6)

The application connected to the newly discovered circumstances shall be submitted in written form. The application shall be governed by the same conditions of these Rules of Court that govern the statement of claim.

(7)

The parties participating in the dispute shall be informed about the arbitral hearings and shall be supplied with the copy of the application form. Where these persons do not attend hearings, it shall not be regarded as an obstacle to convene the hearings.

(8)

The arbitration court after considering the application shall decide if the circumstances indicated by the applicant shall be recognized as the newly discovered circumstances as provided by paragraph 4 of this Article.

(9)

Where the arbitration court ascertains the newly discovered circumstances, it shall cancel the disputable award or decision completely or partially and shall settle the dispute in accordance with its essence.

(10)

Where the arbitration court recognizes that the circumstances indicated in the application are not regarded as newly discovered, it shall decline the application.


Article 56. Enforcement of Arbitral Rulings
 
(1)

Decision of the court of arbitration is binding and executed voluntary within the term specified therein. For voluntary execution of the resolution, the court of arbitration assigns a term, which shall not be less than 10 (ten) days.

(2)

If resolution of the court of arbitration shall be executed in Latvia, but is not executed voluntary, the party concerned may apply to the district (city) Court on place of residence or location (legal address) of the debtor for the enforcement order of the resolution.

 

 


VI. COSTS OF ARBITRATION

Article 57. Costs of Arbitration

 
(1)

The arbitration costs shall be the dispute settlement costs and the case conduct costs.

(2)
The dispute settlement costs shall be:
 
1) Arbitration expenses and the arbitrator's fee;
 
2) Sums to be paid to experts, interpreters and secretary;
 
3) Expenses of interpreting the arbitration award;
 
4) Expenses incurred to provide security for the claim;
 
5) Traveling and living expenses of the arbitrators;
 
6) Other possible expenses connected with the dispute settlement where the payment order is determined by the arbitration court as provided by these Rules of Court. 
(3)
Case conduct costs shall be:
 
1) Legal support expenses;
 
2) Expenses connected to the collection of evidence. 
(4)

Arbitration costs and arbitrator's fee shall depend from the amount of claim, dispute complexity and number of the arbitrators involved in the dispute settlement and shall be determined by Annex 2 to these Rules of Court. Arbitration Court Presidium shall be allowed to change the amount of these expenses, taking into account the dispute complexity, time period necessary for the dispute settlement and other circumstances connected to the dispute settlement.

(5)

Secretary, interpreter or experts shall be invited to participate in the arbitral proceedings only after the party pays remuneration for the services of these persons as determined by the arbitration court. Where the party requesting to invite interpreter, secretary or expert does not pay the remuneration for their services within the term determined by the arbitration court, the other party shall be allowed to pay this remuneration.

(6)

The Arbitration Court Presidium shall have the right upon request from the party or upon its own initiative to decrease the amount of the arbitration costs.

(7)

The dispute settlement expenses shall be paid to the bank account of the Riga Arbitration Court.


Article 58. Amount of Claim
 
(1)
The sum of the claim shall be determined as:
 
1) The sum to be collected - where the claim stipulates financial recovery;
 
2) The value of property claimed - where the claim stipulates collection of property;
 
3) Total sum of payments - where the claim stipulates collection of means of subsistence;
 
4) Total sum of all payments and deliveries - where the claim stipulates collection of fixed-term payments and deliveries;
 
5) Total sum of all payments and deliveries - where the claim stipulates collection of no fixed term or lifelong payments and deliveries;
 
6) Amount by which payment or delivery is increased/decreased - where the claim stipulates increase or decrease of payment or amount of delivery;
 
7) Total sum of remaining payments or deliveries - where the claim stipulates payment or delivery termination;
 
8) Total sum of payments for the use of property during remaining agreement validity term - where the claim stipulates pre-term termination of the property rent agreement;
 
9) Real estate market value not less than cadastral value - where the claim enforces real estate property rights;
 
10) Total claimed sum - where the claim consists of several independent property claims. 
(2)

The plaintiff shall indicate amount of the claim. Where the indicated amount of the claim obviously does not correspond to market value of the claimed property, amount of the claim shall be determined by the arbitration court.


Article 59. Return of Dispute Settlement Expenses 
 
(1)
The dispute settlement expenses shall be returned partially or fully in the following cases:
 
1) Where the amount of the paid dispute settlement expenses exceeds the amount determined by these Rules of Court or the arbitration court;
 
2) Where the party has paid remuneration for the services of the secretary, interpreter or expert, but these services or advance payment sums are not used to a full extent, the paid sum or unutilized amount shall be returned to the party making the payment;
 
3) Where the statement of claim is left without hearings or the plaintiff withdraws the claim before the arbitral tribunal is appointed, the arbitrator's fee shall be returned to the party. 
(2)

The dispute settlement expenses are returned on condition that the request to return the expenses shall be submitted within a year from the day of paying the amount.


Article 60. Compensation of Arbitration Expenses
 
(1)

The parties shall be allowed to divide the arbitration expenses between them. Where the parties have not reached the agreement, compensation of the arbitration expenses shall be determined as provided by this Article.

(2)

The party, in favor of which the award is made, shall receive the compensation from the other party for all the dispute settlement expenses previously paid. Where the claim is satisfied partially, the sums determined in this part of award shall be allocated to the plaintiff proportionally to the amount of claim satisfied by the arbitration court, and to the respondent - proportionally to the amount of claim declined by the arbitration court.

(3)

Where the plaintiff withdraws the claim, he shall compensate to the respondent the expenses incurred in connection with the dispute settlement. Respondent shall not compensate in this case the dispute settlement expenses incurred by the plaintiff. However, where the plaintiff does not enter into action after submitting the claim because the respondent has satisfied it out of his free will, the arbitration court upon request from the plaintiff shall adjudge to the respondent compensation of the dispute settlement expenses paid by the plaintiff.

(4)

Where the claim is left without hearing, the arbitration court upon request from the respondent shall adjudge to the plaintiff compensation of the dispute settlement expenses paid by the respondent.

(5)

 

 

 

 

 

 

 

 

(5.1)

The case conduct expenses shall be compensated as follows:
 
1) Legal support expenses - actual amount shall be compensated, however, not more than ten percent from the satisfied part of the claim shall be paid to the attorney of the plaintiff, and not more than ten percent from the declined part of the claim shall be paid to the attorney of the respondent. Where claims are not connected to property, compensation shall not exceed the amount of the attorney's fee;
 
2) Expenses connected to the collection of evidence - actual amount of expenses shall be compensated. 

 

The arbitration court may appoint a smaller amount of compensation cost of legal support, respecting the principle of justice and proportionality, as well as taking into account the related matter of objective circumstances - namely, the volume and complexity of the case, the number of hearings during the proceedings.

(6)

The case conduct expenses shall be adjudged to be compensated by the respondent to the plaintiff where the plaintiff's claim is fully or partially satisfied or where the plaintiff does not enter into action after submission of the claim because the respondent has satisfied it out of his free will.

(7)

Where the claim is declined or the plaintiff withdraws the claim, except for the case mentioned in paragraph 3 of this Article, the case conduct expenses shall be compensated by the plaintiff to the respondent.