Rules of Riga International Arbitration Court

§5. Dispute resolution.

40. article.

Taking into consideration the Arbitration Agreement concluded by the parties, the Arbitral Tribunal resolves the civil dispute within verbal or written process.
Within the verbal process, the Arbitral Tribunal organizes sessions of the Arbitration Court to hear explanations and objections of the parties, as well as to review evidence.
Within the written process, the Arbitral Tribunal settles the dispute only on the basis of written evidence and materials.

The Arbitral Tribunal shall review the civil dispute in a verbal process if the parties have not agreed upon the process type in the Arbitration Agreement or if they have agreed upon a written process, but any of the parties has required the verbal process before issuance of the award. The party that wishes to organize a verbal process should notify the Arbitration Court in writing before the time of the review of the dispute.

Subject to provisions of the Arbitration Rules and the agreement of the parties, the Arbitral Tribunal may conduct the arbitration proceeding as how it deems appropriate so that the dispute is decided without unnecessary delay, and equal possibilities are provided to the parties to exercise the rights granted to them for the protection of their interests.

41. article.

After the Response to the Request and the answer has been received from the Respondent, or the term given to the Respondent for submitting of the Response and answer has expired, and the composition of the Arbitral Tribunal has been approved, the Arbitral Tribunal shall schedule the time of hearing of the case at the Arbitral Tribunal.
The notice of the first session of the Arbitral Tribunal shall be sent to the parties by registered mail at the latest fifteen days before unless the parties have not agreed on shorter term.

42. Consequences if the Party does not Participate in Arbitration.

If the Respondent does not submit the Response to the Request for Arbitration to the Arbitration Court, the Arbitral Tribunal shall continue the proceeding, without assumption that the claim is admitted and resolves the dispute on the basis of evidence at its disposal, unless it is stipulated otherwise in the Arbitration Agreement.

If the party or its representative is absent at the session of the Arbitral Tribunal, without notifying on the reasons of absence, or if the Arbitral Tribunal considers the reason of absence specified by the party unjustified, including the circumstances that the party has not attached any supporting documents to the notice of absence which would confirm the justified reasons of absence, the Arbitral Tribunal shall continue the arbitration proceedings and shall review the dispute on the basis of evidence that is at its disposal.

If the party has not submitted written or other type of evidence in due time or refuses to give statements to the Arbitral Tribunal, the Arbitral Tribunal shall continue the arbitration proceedings and shall settle the dispute on the basis of evidence that is at its disposal.

43. article.

The Arbitral Tribunal shall introduce to the parties statements, documents and other information, which had been received by it, as well as with the experts’ opinions and other evidence.

44. article.

During the arbitration proceeding, the parties enjoy equal procedural rights. Each party shall have equal rights to state its opinion, to defend its rights and to present evidence. The Arbitral Tribunal shall ensure that the parties have equal opportunities to exercise the rights granted to them to protect their interests.

The parties shall exercise their procedural rights at the arbitration proceeding by way of adversarial proceedings. Adversarial proceedings shall take place through the parties exercising their rights to submit evidence, provide explanations and applications addressed to the Arbitral Tribunal, by participating in the examination and assessment of evidence as well as by performing other procedural actions.

45. Evidence.

Evidence is information on the basis of which the Arbitral Tribunal determines the existence or non-existence of such facts that are significant in the resolution of the civil dispute.

Statements of the parties, written evidence (written documents, audio recordings, video cassette recorder tapes, electronic media, digital video discs, etc.), physical evidence and experts’ opinions may be used as evidence in the arbitration.

Evidence shall be provided by the parties. Each party shall prove those circumstances on which it bases its claims or objections.

Documents shall be submitted by way of original, or true copy, copy or extract certified in accordance with the specified procedures. If a party submits a document by way of true copy, copy or extract, the Arbitral Tribunal at its own discretion or at the request of the other party may require the original document to be submitted. The original document, at the request of the person, which has provided this document, shall be returned by the Arbitral Tribunal to the submitter, while adjoining a true copy, copy or extract certified in accordance with the specified procedures to the records of proceeding.

The Arbitral Tribunal itself shall determine admissibility and relevance of the evidence.

No evidence shall have a predetermined effect as would be binding upon the Arbitral Tribunal.

The Arbitral Tribunal on the basis of a reasoned application by the party is entitled to require that the other party dispenses the written evidence available to it. The party, which requests the Arbitral Tribunal to require written evidence, shall describe such evidence and provide their reasons for presuming that the evidence is in the possession of the opposite party.

If a party refuses to submit the written evidence required by the Arbitral Tribunal within the time period indicated, without denying that the party possesses such evidence, the Arbitral Tribunal may find as proved the facts which the opposite party sought to prove by referring to such written evidence.

The Arbitral Tribunal may require that any party provides copies of documents to each arbitrator and other participants of the process, as well as, within the term prescribed by the Arbitral Tribunal, submits to each arbitrator and the other party a summary of the documents and other evidence which the party submits to support its claims or objections.

46. Alteration of the Claim.

Unless the parties have agreed otherwise, the party is entitled to modify and supplement its claim, counterclaim or objections during the arbitration until the resolution of the dispute on the merits is commenced.

If the basis of the claim is altered or amended, the Respondent is entitled to submit a written Response. Submitting the Response is subject to the Article 23 of the Arbitration Rules.

If the amount of claim is increased when modifying or supplementing the claim or counterclaim, the party should in addition pay the appropriate arbitration expenses.

The claim or counterclaim may not be altered in such a manner that it exceeds the limits of the Arbitration Agreement.

47. Minutes.

Minutes of the arbitral proceedings are taken only if any of the parties requests that.

If any of the parties wishes that the session of the Arbitral Tribunal is recorded, it should before the day of the session of the Arbitral Tribunal submit a written request and attach proof of payment of the fee for services of the secretary as indicated by Supplement No.2 to the Arbitration Rules.

The minutes of session of the Arbitral Tribunal shall be recorded by the secretary chosen by the Arbitration Court. The minutes of the session of the Arbitral Tribunal shall be signed by all arbitrators and the secretary. The minutes of the session of the Arbitral Tribunal shall be signed no later than the third day after the conclusion of the session of the Arbitral Tribunal. The parties shall have the right to review the minutes and submit written remarks and objections regarding the minutes within five days after they have been signed, by way of indicating the shortcomings recognized in the minutes. The Arbitral Tribunal shall decide on propriety of the objections.

48. Examination.

Unless otherwise provided in the Arbitration Agreement, the Arbitral Tribunal at the request of the party may assign an expert-examination, to invite one or more experts. The party that requests that the expert opinion is received or that experts are engaged, should before the making of award submit a written request motivating and specifying questions to the expert to which it is necessary to issue an opinion or to invite the experts, and attach to the request the proof of payment of fees for services of the expert or a warrant to pay for services of the expert.
If the Arbitral Tribunal considers the request of the party reasonable, the Arbitral Tribunal shall make a decision concerning receipt of the expert’s opinion or inviting of the experts. The examination shall take place only if the party has made payment for the services of the expert in advance.

49. article.

At the request of the Arbitral Tribunal the parties shall submit to the experts the necessary information, shall transfer documents and declare goods or other objects.

After preparation of the expert’s opinion and receipt of it by the Arbitration Court, the parties shall have the right to review it.

At the request of a party the Arbitral Tribunal invites the expert to the session of the Arbitral Tribunal and the parties are entitled to ask the expert questions concerning the opinion.

50. Remedial Consequences of Retirement of the Party.

The fact per se that a natural person who is one of the parties has deceased or a legal entity which is one of the parties has stopped existing does not terminate the Arbitration Agreement, unless the parties have agreed otherwise, and if the contested legal relationships permit legal succession.
In that case the Arbitral Tribunal suspends the process before the legal successor is determined.
Assignment of claim shall be the cause to terminate the arbitration proceeding unless the parties have not agreed again about the resolution of the civil dispute in the Arbitration Court.

51. Rights and Objections.

If any of the provisions of the arbitration proceeding, which are determined in the Arbitration Law, the Arbitration Rules or the Arbitration Agreement of the parties, have been violated or have not been respected, a party is entitled to submit in writing objections to the Arbitral Tribunal and the other party as soon as the respective infringement has become known or should become known.

The justification of such objections shall be decided by the Arbitral Tribunal. If the Arbitral Tribunal considers that the objections were reasonable, its obligation is to remedy the infringement of the arbitration procedure before continuation of the process.

If the party does not submit objections, it shall be considered that it has waived the right to raise objections, including when decision by court on the execution of the Arbitral Tribunal’s award is adopted, except the case when the party has not submitted objections due to reasons independent of it.

52. Making of the Award.

All resolutions (decisions and awards) of the Arbitral Tribunal, if it consists of three or more arbitrators shall be made by majority vote.

The resolution of the Arbitral Tribunal shall become effective as of the date when it is made. It may not be appealed.

The final resolution of the Arbitral Tribunal in the dispute shall be made in writing and signed by the arbitrators. If the Arbitral Tribunal consists of several arbitrators, the award shall be signed by all arbitrators. If someone of the arbitrators does not sign the award, it is necessary to state the reason why this person’s signature is absent in the award of the Arbitral Tribunal.

The signatures of the arbitrators on the award shall be certified by the seal of the Arbitral Tribunal.
The Chairman of the Arbitral Tribunal may independently decide on the procedural issues provided that the parties or other arbitrators have given proper authorization.

53. Postponement of the Settlement of the Dispute.

Provided the Arbitral Tribunal recognizes it is impossible to resolve the dispute within the particular session of the Arbitral Tribunal, including that the party (its representative) has failed to attend the session of the Arbitral Tribunal for the reasons which the Arbitral Court finds justified, and the party (its representative) has submitted a request not to review the dispute without the presence of the party (its representative), or at the request of the participants of the case in order to enable submission of the additional evidence, as well as in other circumstances, the Arbitral Tribunal may take a decision to postpone the settlement of the dispute.

Provided the Arbitral Tribunal has heard out the statements of the parties, the Arbitral Tribunal while postponing the settlement of the dispute, on its own discretion may determine other date of the session of the Arbitral Tribunal in order to hear repeatedly the statements of the parties or their representatives, or to proceed the arbitration of the dispute without recurrent hearing of the parties or their representatives.

Provided that the settlement of the dispute is postponed and the Arbitral Tribunal sets time and date for the next session of the Arbitral Tribunal, it announces that in person during the session of the Arbitral Tribunal or sends a notice or a copy of the decision by registered mail or by electronic mail, if the party has agreed to use electronic mail for communication with the Arbitration Court. If the parties are advised about the next session of the Arbitral Tribunal by postal communication, it shall be dispatched at least 10 (ten) days before, unless the parties have not agreed on a shorter period.

54. Suspension of the Arbitral Proceedings.

The Arbitral Tribunal may take a decision to suspend the arbitral proceedings:

1. provided the natural person which is one of the parties has died or the legal person that is one of the parties has ceased to exist and the rights of the legal relations are capable of being assumed and the parties have not agreed upon termination of the arbitral proceedings in such case;
2. provided the settlement of the dispute is not eventual prior to another case which is required to be solved in civil, criminal or administrative proceedings;
3. if the Arbitral Tribunal assigns the expert-examination;
4. in other conditions when the Arbitral Tribunal recognizes that review of the dispute is not possible due to certain objective consideration.

At the request of the party or on its own initiative the Arbitral Tribunal may take a decision on the suspension of arbitral proceedings indicating in the decision the conditions until the coming into effect or expiring of which the arbitral proceedings have been suspended, or the time period for which the arbitral proceedings have been suspended.

The arbitral proceedings shall be renewed by the Arbitral Tribunal pursuant to a decision on its own initiative or on the bases of the application of the parties.

55. article.

The Arbitral Tribunal on the bases of the application of the Claimant may take a decision on leaving the claim unadjudicated as well as if the Claimant repeatedly has failed to attend the session of the Arbitral Tribunal provided the dispute is to be reviewed in the verbal process and has not requested the dispute to be settled in its absence.

If a claim is left unadjudicated, the Claimant is entitled to resubmit the Request of Arbitration.

The Arbitral Tribunal may take decisions regarding other procedural issues as well, provided the civil dispute is not resolved on the merits.

56. Termination of the Arbitral Proceedings.

The Arbitral Tribunal shall adopt a decision on termination of the Arbitral Proceedings if:

1. the Claimant has withdrawn its claim;
2. the parties have agreed upon the amicable settlement;
3. the Arbitration Agreement loses force in such a manner as set forth by the law or agreement;
4. it acknowledges that the civil dispute is not within the jurisdiction of the Arbitration Court;
5. the natural person who is one of the parties has deceased or the legal person which is one of the parties has stopped existing and the legal relationship does not allow legal succession, or the parties have agreed that the arbitration proceeding shall be terminated in this case;

Provided the Claimant withdraws its claim before the appointment of the composition of the Arbitral Tribunal, the decision regarding the termination of the arbitral proceedings shall be made by the Presidium of the Arbitration Court.

57. article.

Provided the arbitral proceedings are terminated for the reasons mentioned in items 1 and 2 of Article 56 of the Arbitration Rules, a repeated plea to the Arbitral Court or recourse to a district (city) court to decide the dispute between the same parties for the same subject and for the same reason is impermissible.

Provided the arbitral proceedings are terminated for the reasons mentioned in items 3, 4 or 5 of Article 56 of the Arbitration Rules, the statement of claim may be submitted to a district (city) court.

58. Reconciliation.

A settlement shall be permitted in any civil dispute, but it is not permitted if the terms of the settlement infringe on the rights of another person or on interests protected by law.

The Arbitral Tribunal shall facilitate resolution of the dispute between the parties by amicable settlement.

The amicable settlement shall be concluded by the parties in writing and it shall contain the following information: for a legal person – its name, registration number and registered address, for a natural person – the name, surname, personal code and address as well as the matter in dispute and obligations of each party which it voluntarily obliges to execute.

If during the arbitration proceeding the parties have concluded amicable settlement, the Arbitral Tribunal terminates the arbitration proceeding.

If the parties request so and the Arbitral Tribunal approves that, the Arbitral Tribunal shall compose the amicable settlement in the form of award of the Arbitral Tribunal by including into it the terms that have been agreed upon. Such an award of the Arbitral Tribunal shall have the same status and legal effect as any other award of the Arbitral Tribunal where the civil dispute has been resolved on merits.

59. The Sentence.

The Arbitral Tribunal makes award within 14 days after it has concluded the review of the civil dispute on merits.

The award shall contain the following information:

1. the panel of the Arbitral Tribunal;
2. the date of making of the award and the place of arbitral proceeding;
3. information on the parties – the natural person’s name, surname, personal code, other personal identification data and declared place of residence or other address used for communication, the legal person’s name, registration number, other data that identify the person and legal address;
4. the matter in dispute;
5. reasoning of the award unless the parties have agreed otherwise;
6. conclusion regarding complete or partial support of the claim or complete or partial rejection and the basis of award of the Arbitral Tribunal;
7. levied sum, if the award is made in respect to collection of money, indicating separately the principal debt and the interest, the time period for which the interest has been awarded, the rights of the Claimant regarding receipt of interest for the time period prior to execution of the judgment, including also the amount of that interest;
8. description of property and its value, which should be collected in the event of non-existence of any property, if the award is made in respect of transfer of goods in kind;
9. by whom what actions and within what time period should be performed, if the award imposes an obligation to perform certain actions;
10. which part of the award applies to each of the Claimants, if the award is made for the benefit of several Claimants, or whether part of the award shall be executed by each Respondent, if the award is made against several Respondents;
11. the arbitration expenses, as well as their distribution between the parties;
12. the expenses of the parties for legal assistance in the case, if any, as well as their distribution between the parties;
13. other information as deemed necessary by the Arbitral Tribunal.

The reasoning of the award shall indicate why the Arbitral Tribunal has given preference to one body of evidence in comparison to another, and has found certain facts as proven, but others as not proven.

The expenses of the parties for legal assistance in the case shall be reimbursed in the following amounts:

1. for claims which are financial in nature and the claim sum which does not exceed 8500 Euros – in the actual amount thereof, but not exceeding 30 percent of the satisfied part of the claim;
2. for claims which are financial in nature and the claim sum which is from 8501 Euros up to 57000 Euros – in the actual amount thereof, but not exceeding 2850 Euros;
3. for claims which are financial in nature and the claim sum which exceeds 57001 Euros – in the actual amount thereof, but not exceeding 5 percent of the satisfied part of the claim;
4. for claims which are not financial in nature – in the actual amount thereof, but not exceeding 2850 Euros,

The Arbitral Tribunal may determine a lesser amount for reimbursable expenses for paying for legal assistance in conformity with the principle of justice and proportionality, as well as by assessing objective circumstances related to the case, particularly – the level of complexity and volume of the case.

60. article.

The award of the Arbitral Tribunal (or its copy) shall be sent to the parties within 3 business days as of making of the award.

If the award of the Arbitral Court is to be submitted for the compulsory execution, the Arbitral Tribunal shall issue or send an additional original of the award of the Arbitral Tribunal to the party which is entitled to apply to the court with an application for issue of a writ of execution for compulsory execution of the arbitration court award.

The conformity to the original of the copy of the award of the Arbitral Tribunal is attested by the signature of a member of the Presidium of the Arbitration Court and the seal of the Arbitration Court.

61. article.

The Arbitral Tribunal may, upon its own initiative or upon an application of a party, correct clerical and mathematical calculation errors in the award. Such errors may be corrected without the participation of the parties.

Unless the parties have not agreed otherwise, a party, by giving a notice to the other party, within 30 days from the date of dispatch or receipt of the award (its copy) may request the Arbitral Tribunal to explain the award without changing its substance. The explanation of the award shall become an integral part of the award as of the date of making.

Unless the parties have not agreed otherwise, a party, by giving a notice to the other party, within 30 days from the date of dispatch or receipt of the award (its copy) may request the Arbitral Tribunal to make an additional award, if some of the declared claims have not been resolved for which evidence has been submitted and on which the parties have provided explanations. If the Arbitral Tribunal considers the request to be reasonable, it shall make the additional award.

The Arbitral Tribunal not later than 15 days before gives notice to the parties on the session of the Arbitral Tribunal in which the question on the correction, explanation of the award or making of the additional award will be resolved. If due to the correction of the award its operative part may change, but the essence of the award does not change, the Arbitral Tribunal shall invite the parties to express their opinion. The failure of the parties to attend is not an impediment to correct, explain the award or to make the additional award. The Arbitral Tribunal shall make the additional award in accordance with Article 59 of the Arbitration Rules.

62. Execution of the Award.

The award of the Arbitral Tribunal is binding upon the parties.

The award of the Arbitral Tribunal shall be performed voluntarily within the time period set forth in it. The time period for voluntary performance of the award shall be not shorter than 10 days.

Provided the award of the Arbitral Tribunal is to be executed in Latvia, but is not executed voluntarily, the interested party is entitled to turn to a district (city) court with an application to issue a writ of execution for compulsory execution of the arbitration court award pursuant to the Law on Civil Procedure applying thereto.

Provided the award of the Arbitral Tribunal is to be executed outside Latvia, but is not executed voluntarily, it shall be prosecuted to the compulsory execution in accordance with the Convention on the Recognition and Enforcement of Foreign Arbitral Awards done in New York, on 10 June 1958.

63. Storage of Documents of the Process.

The documents of arbitral proceedings shall remain in storage in the Arbitration Court for 10 (ten) years after completion of the arbitration. The Arbitration Court shall maintain the documents according to the procedure of archival storage of documents set forth by the laws and regulations.