Rules of Riga International Arbitration Court

§3. Preparation of the arbitration.

9. Jurisdiction of the Arbitral Tribunal.

The dispute shall be within the jurisdiction of the Arbitration Court if it is subject to the Arbitration Agreement and if, according to the Arbitration Law and Article 3 of the Arbitration Rules, it is not within the exclusive jurisdiction of state courts.

If the parties have agreed to settle the disputes arising out or in connection with the particular agreement, by the Arbitration Court, it shall be presumed that the parties have agreed to settle any dispute arising out of or in connection with such agreement, which concerns it or infringement, termination or invalidity of it, in the Arbitration Court.

The issue of jurisdiction over the dispute shall be decided by the Arbitral Tribunal, including the question of the validity of the Arbitration Agreement.

The issue of jurisdiction of the Arbitration Court may be decided by the Arbitral Tribunal at any stage of arbitration. Usually the Arbitral Tribunal decides that first of all, however the Arbitral Tribunal shall have the right to begin or to continue the arbitration proceeding and to decide on this question when adopting its final resolution in the dispute.

The relevant party may file the plea that the civil dispute or its part is not within the jurisdiction of the Arbitration Court until the deadline to submit the Response.
If the party has objections that any part of the dispute is not within the jurisdiction of the Arbitration Court in connection with amendments or modifications of the claim, counterclaim or its amendments or modifications, the said objections should be expressed immediately as soon as Arbitration Court has began consideration of such claims.
If the party has not filed the plea to the Arbitration Court that the dispute or its part is not within the jurisdiction of the Arbitration Court within the stated time, the party shall not have the right to state such objections in the future and it is considered that the right to file such objections has been waived, including when the court decides the question of execution of the Arbitral Award.

If the Arbitration Court recognizes that the dispute or its part is not within the jurisdiction of the Arbitration Court, the Arbitration Court shall make a decision to terminate the arbitration proceeding fully or in part.

If there are disputes between the parties about existence or validity of the Arbitration Agreement, but the court has recognized that the dispute is within the jurisdiction of the Arbitration Court, it is competent to decide the dispute as it is within its jurisdiction.

10. Interim and Conservatory Measures.

The Claimant has the right to request the court of general instance to provide security for the amount in dispute before commencement of proceedings in accordance with the rules of Civil Procedure Law. Such a request of the Claimant shall not be considered as non-compliance with the Arbitration Agreement and shall not prevent hearing of the civil dispute by the Arbitration Court.

11. Terms.

The procedural time periods are determined by the Arbitral Tribunal while observing law and provisions of these Rules.

Until the approval of the Arbitral Tribunal the procedural time periods are determined by the Presidium of the Arbitration Court in accordance with Rules.

In certain cases, if the Arbitration Court (the Arbitral Tribunal or the Arbitration Court Presidium) considers it necessary, it may prolong the determined deadlines on its own initiative or at the request of any of the parties.
At the request of the interested party the Arbitration Court (the Arbitral Tribunal or the Arbitration Court Presidium), if it considers it appropriate and founds the reasons for default justified, may adopt a decision to renew the determined terms in the event of delay.

An application of the interested party regarding renewal of the procedural term shall be accompanied by documents required for the carrying out of the procedural action, and the grounds for renewal of the term.

12. Correspondence.

The Arbitration Court shall send the prepared documents (awards, decisions, notices, etc.) by mail or electronic communication.
The mentioned documents are sent to a natural person by registered mail to its declared place of residence, but if an additional address is specified in the declaration – to the additional address, unless the natural person has provided other address for communication with the Arbitration Court,  but to a legal person – to its legal address.
The Arbitration Court sends the mentioned documents by electronic communication if a party has notified the Arbitration Court that it agrees to use electronic mail for communication with the Arbitration Court. In that case the Arbitration Court sends the documents to the electronic mail address specified by the party. If the Arbitration Court recognizes technical obstacles to send the documents by electronic mail, they are sent by registered mail.
The mentioned documents are considered to be received at the day of delivery, if they are delivered and handed over to the addressee in person. If they are sent by mail, it is to be considered that they are delivered at the seventh day after the day the mail has been dispatched, but if they are sent by electronic mail, it is to be considered that they are received two business days after the dispatch date.

Regarding the documents prepared and submitted by a party (Request for Arbitration, Response to the Request, etc.), the Arbitration Court notifies other case participants about their receipt in the Arbitration Court and opportunities to get acquainted with them.

13. Confidentiality.

The arbitration proceedings shall be confidential, unless the parties have agreed otherwise.

Sessions of the Arbitral Tribunal shall be closed to the public. The persons who are not participants of the arbitration proceeding may participate at the session of the Arbitral Tribunal with the consent of the parties.

The information concerning the arbitration proceeding is not given to other persons and shall not be published.
The obligation to observe the confidentiality shall be applicable both to the Arbitral Tribunal, to the Presidium of the Arbitration Court and to technical employees of the Arbitration Court.

14. Procedure of the Arbitration.

The parties shall have the right to determine the procedure of arbitration themselves within the limits provided by law.

The arbitration proceeding shall be conducted according to the terms of the Arbitration Agreement, the Arbitration Rules, legislative acts, and general principles of law.

If the parties have not agreed upon the different procedure of arbitration, it shall be considered that the parties have agreed upon review of the dispute under the Arbitration Rules.
If the parties have only agreed upon a few terms of arbitration, the Arbitral Tribunal observes the agreement of the parties but otherwise it shall be guided by the Arbitration Rules.

15. Place of the Arbitration.

The parties may agree themselves upon the place of the arbitration.

If the parties have not agreed upon the place of arbitration, the place of arbitration shall be the location of the Arbitration Court, however, the Arbitration Court has a right to choose freely other place of arbitration, taking into account efficiency considerations.

In order to study the facts, to which the parties refer, including inspection of goods or other property or documents, or checking them, the Arbitral Tribunal may hold hearings at any place, which it considers appropriate, by informing the parties which have the right to participate in the review.

If the parties have agreed upon the place of arbitration that is not the location of the Arbitration Court, the parties bear responsibility to make the place available for the arbitration proceeding. If place of the arbitration proceeding agreed by the parties is outside of Riga, the parties shall pay for transport and accommodation cost of the arbitrators.

16. Language of the Arbitration.

The parties may agree upon the language of arbitration.

If the parties have not agreed upon the language of arbitration, the language of arbitration shall be Latvian, but the Arbitral Tribunal has rights to choose different language as the language of the arbitration proceeding.

If the parties have agreed upon a language of process in which the Arbitral Tribunal or some of the arbitrators or some of the participants of the arbitration are not fluent or do not master well enough, an interpreter may be involved.

If an interpreter is involved by the Arbitration Court, the procedure for remuneration of the interpreter’s service is determined by the Arbitration Court, considering conditions of Supplement No. 2 to the Arbitration Rules.

The Arbitral Tribunal may require from the parties translation into the language of arbitration of any written evidence.

17. Representation.

An individual shall participate in his case at the Arbitration Court in person or through his authorized representative.

A legal entity shall be represented at the Arbitration Court either through director who acts within the framework of authority granted by law, charter or statute, or by otherwise authorized representative of such legal person.

Any individual may serve as an authorized representative, except a person:

1. who has not attained the age of majority;
2. for whom trusteeship has been established;
3. who has been deprived from the rights to conduct the matters of different persons by judgement of court;
4. who is in kinship relation of at most the third degree or in affinity relation of at most the second degree with an arbitrator;
5. who has provided legal assistance to the other party of the civil dispute in question or other case related to it;
6. who has participated in mediation in the case in question or other case related to it.

Upon establishment of the aforementioned obstacles, the Arbitral Tribunal does not admit such a person to the resolution of the civil dispute.
A person who is or who has been listed as an arbitrator of the Arbitration Court within the period of the last five years, shall not serve as an authorized representative to any party and shall not be invited to provide legal assistance.

The parties may involve sworn attorneys to receive legal assistance during the arbitration.

18. Costs of the Arbitration.

The arbitration expenses shall include the expenses related to the review of the civil dispute and the arbitrators’ fee, which are specified in Supplement No. 2 to the Arbitration Rules.

The expenses related to the review of the civil dispute shall include charge for the arbitration proceedings as well as payment for services of the interpreter and secretary, the charge for the performance of examination and involvement of the expert in the arbitration proceeding, travel and accommodation costs of the arbitrator as well as other possible expenses related to the resolution of civil dispute, which are to be paid as determined by the Arbitration Court in compliance with the Arbitration Rules.

When submitting the Request for Arbitration to the Arbitration Court, the Claimant must deposit the charge for the arbitration proceedings and the arbitrators’ fee to the bank account as specified in Supplement No 2 to the Arbitration Rules.

The amount of expenses of the arbitration, which is specified in Supplement No. 2 to the Arbitration Rules, may be changed by decision of the Presidium, considering the amount of claim, the complexity of the civil dispute, the terms of Arbitration agreement, the time required for resolution of the dispute as well as other circumstances connected with resolution of the dispute. During the arbitration proceeding, the Arbitration Court is entitled to request payment of additional expenses of the arbitration proceeding.

The payment for services of the interpreter and secretary, the charge for the performance of examination and involvement of the expert in the arbitration proceeding as well as other expenses of the arbitration proceeding are to be covered by the party which has submitted a request for the participation of the interpreter, secretary and expert as well as the performance of examination within the arbitration proceeding. If such a request has been submitted by both parties, each shall pay the half of the amount of the expenses.

The secretary, interpreter or expert shall be involved to participate during the arbitration and examination shall be ordered only after the relevant party has paid the remuneration set forth by the Arbitration Court for the services of these persons or has guaranteed the remuneration of these expenses to the providers of the services and the guarantee has been accepted.

If the Request for Arbitration is not reviewed or the Claimant has withdrawn the claim before appointment of the Arbitral Tribunal, the Presidium of the Arbitration Court takes a decision to return the paid-in arbitrator’s fee.

The parties may agree among themselves upon the distribution of costs for the arbitration.

19. Commencement of the Arbitration.

Arbitration commences as of the moment of submission of the Request for Arbitration.

The Request for Arbitration should be submitted in writing to the Presidium of the Arbitration Court to the address of the Arbitration Court.

20. The Request for Arbitration.

The Request for Arbitration shall contain the following information:

1. the Claimant’s first name, surname, personal code, declared place of residence, but if such does not exist – place of residence; for the legal person – its name, registration number and registered address; the Claimant may provide his telephone number or electronic mail address, if he agrees to use telephone number or electronic mail address for communication with the Arbitration Court;
2. the Respondent’s name, surname, personal code, 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 registered address. The Respondent’s personal code or registration number is to provided if it is known;
3. if the Request for Arbitration is submitted by a representative – the Claimant’s representative’s name, surname, personal code and address for communication with the Arbitration Court; for the legal person – its name, registration number and registered address;
4. in the claims for recovery of monetary amount – name of the credit institution and account number to which payment is to be made, if such an account exists;
5. the subject of claim, the amount as well as calculation of the amount of claim;
6. the cause of claim and evidence which confirms it;
7. the Claimant’s request;
8. a list of attached documents;
9. the arbitrator selected on its part, if the dispute is to be settled by Arbitral Tribunal of three or more arbitrators;
10. other information, if it is necessary for the adjudication of the case.

The following documents shall be attached to the Request for Arbitration:

1. the Arbitration Agreement, unless it is included in the contract in respect of which the dispute has arisen;
2. the agreement in respect of which the dispute has arisen;
3. the documents, to which the Claimant refers to in the Request for Arbitration;
4. the copies of the Request of Arbitration for other participants of the arbitration proceeding;
5. the document which confirms payment of the arbitration expenses, i.e., payment of the costs related to the review of the dispute and the arbitrators’ fee.

21. The Notice of the Initiation of the Arbitration Proceeding.

If the Request for Arbitration and the documents attached to it conform to requirements of the Arbitration Rules, the Presidium of the Arbitration Court immediately sends to the Respondent a notice of the initiation of the arbitration proceeding and a copy of the Request for Arbitration, offering the Respondent in accordance with the provisions of Article 23 of the Arbitration Rules to give a response to the Request, as well as to specify the arbitrator selected on its part, if the dispute is to be reviewed by an Arbitral Tribunal of three or more arbitrators, or to agree between parties upon an arbitrator in a dispute provided the dispute is to be reviewed by a sole arbitrator unless the parties have not agreed upon other procedure of appointment of the arbitrators.

22. article.

If the Request for Arbitration and the documents attached to it do not conform to requirements of the Arbitration Rules, the Presidium of the Arbitration Court shall inform the person submitting such documents and give time to remedy deficiencies. During this time the Request for Arbitration remains without review. If during the term set by the Presidium of the Arbitration Court the deficiencies are eliminated, the Request for Arbitration shall be considered submitted and the arbitration proceeding is started. If during the term prescribed by the Presidium of the Arbitration Court, the deficiencies are not eliminated, the Request for Arbitration shall be returned to the bearer without any consideration.

The Presidium of the Arbitration Court is entitled return to the Claimant the Request for Arbitration without review, if the Claimant has not submitted the evidence that the Arbitration Agreement has been concluded between the parties or the parties have agreed to submit the dispute for resolution to another arbitration court.

23. The Response.

If the parties have not agreed on the term to submit the Response, the Respondent shall be given at least 15 (fifteen) days from the day of delivering the Request for Arbitration to submit a Response and statements. Considering the location of the Respondent, complexity of the dispute, number of Respondents, the Presidium of the Arbitration Court may at its own discretion determine a longer time period for submitting of the Response, however it may not be longer then it is objectively necessary and exceed 30 (thirty) days from the day of the delivery of the Request for Arbitration.

The Respondent in its Response states the following:

1. whether it admits the claim fully or in a part thereof;
2. its objections against the claim;
3. the facts the Respondent uses to substantiate its objections and evidence that confirm them;
4. other facts which it considers significant in the adjudication of the case;
5. its telephone number or electronic mail address, if it agrees to use telephone or electronic mail for communication with the Arbitration Court.

The Respondent shall attach to the Response the documents, to which the Respondent is referring in its Response.
The Response shall be adjoined with copies for the other participants of the arbitration proceeding.

24. The Counterclaim.

The Respondent may submit a counterclaim, which may be considered by the Arbitral Tribunal together with the principal claim, if the subject of counterclaim is within the Arbitration Agreement.

The counterclaim shall be filed in writing with copies for the other participants of the arbitration proceeding. The counterclaim shall be submitted in compliance with general rules to submit a request for arbitration.

The parties may agree upon different procedure to submit a counterclaim. If the parties have not agreed about other procedure to submit a counterclaim, the counterclaim may be submitted within the time period, which is set forth for submitting the Response.

If the Respondent has exceeded the established deadline for justifiable reasons, the Respondent under Article 11 of the Arbitration Rules may request the Arbitration Court to renew the overdue term.

If the Arbitration Court deems the delay justifiable and renews the term for submitting of the counterclaim, the counterclaim shall be reviewed by the Arbitration Court.

If the Arbitration Court does not justify the delay, the Arbitration Court shall not consider the counterclaim.