I. GENERAL PROVISIONS
Article 1. Zemgales Arbitration Court
(1) Zemgales Arbitration Court (hereinafter in the text –Arbitration Court) is an International Court of Arbitration acting individually and that is established in order to ensure the settlement of disputes referred to the Court of Arbitration.
(2) Court of Arbitration is acting under the Rules of the Court of Arbitration, international agreements and conventions applicable to activities of the Court of Arbitration.
(3) Court of Arbitration founder is the association „ZST”, registration number 40008159279, (hereinafter in the text - association „ZST”).
(4) The name of the Arbitration court in English shall be - Zemgales arbitration court, in Russian - Земгальский третейский суд, in Lithuanian - Zemgalės Trečiųjų teismas.
Article 2. Procedural norms applicable in Dispute Resolution
(1) Rules and procedural norms agreed between the parties shall be binding to the Arbitration court.
(2) The procedure of Arbitration court is governed by the rules and procedural norms that are valid and effective during the time period of dispute settlement, enforcement of separate procedural acts or execution of Award of Arbitration court.
Article 3. Material rights applicable in Dispute Resolution
(1) Under resolution of dispute, Arbitration court is guiding upon its rules and regulations as well as business customs the application of which parties have agreed upon.
(2) In case if Parties have not agreed upon the laws or business customs that shall be applicable to their mutual relations, or the Arbitration court has adjudged such an agreement as invalid, the panel of arbitrators shall define the law or rules and regulations applicable to the legal relations of the parties.
Article 4. Disputes subject to resolution of the Arbitration court
Arbitration court shall be entitled to resolve any kind of civil dispute, providing that the parties have agreed upon submitting of dispute to the Arbitration court and save the dispute is not subject to exclusive court jurisdiction.
Article 5. Organization of work of the Arbitration court
(1) Work of Arbitration court is managed by the Chairman of Arbitration court and its Vice-chairmen performing functions set forth in the Rules of Arbitration Court, in order to supervise and ensure the activities of the Arbitration court, as well as to establish the composition of arbitrators and ensure their activity.
(2) The Chairman of Arbitration court is appointed by the Associate Members meeting of association „ZST”. Members meeting of association „ZST” is entitled to remove the Chairman of the Arbitration court.
(3) Chairman of the Arbitration court shall be entitled to appoint his Vice-chairmen at its own discretion.
(4) Vice-chairmen of the Chairman of Arbitration court may be removed solely by the Chairman of the Arbitration court or Members Meeting of association „ZST”.
(5) Vice-chairmen, while performing the duties of the Chairman of Arbitration court, shall act with the powers and rights of the Chairman of the Arbitration court.
(6) Chairman of Arbitration court and vice-chairmen, while performing their obligations and functions, shall be independent and subjected to the law and Rules of Arbitration court.
II. ARBITRATION AGREEMENT
Article 6. Concept, Parties and Form of Arbitration Agreement
(1) Arbitration Agreement is an agreement regarding the submission of dispute arising or that could arise in future for resolution in Arbitration court.
(2) Arbitration Agreement can be concluded by a capacitated natural person without respect to its citizenship or place of residence, a legal entity incorporated in Latvia or in a foreign country and any other entity subjected to the Private law.
(3) Arbitration agreement shall be concluded in a written form. The agreement of parties regarding the submission of dispute for settlement in the Arbitration court (Arbitration agreement) may be expressed:
1) as a separate agreement;
2) as a special covenant in the agreement between parties (arbitration clause);
3) upon exchange of letters, faxograms, telegrams or by using other means of communication between parties, ensuring that the will of the parties to refer the dispute or prospective dispute for settlement in the Arbitration court.
(4) If the parties have agreed to refer the dispute, arising out of the particular agreement, for settlement in the Arbitration court, it shall be presumed, that the parties have agreed upon settlement of any dispute, arising out of this agreement or concerning the violation, termination or invalidity of the agreement in the Arbitration court.
Article 7. Effect of the Arbitration Agreement
(1) Where the persons have concluded the agreement regarding the submission to arbitration, they shall not be entitled to waive, unless the Arbitration agreement has not been amended or annuled according to the procedure of the law or presribed by the agreement.
(2) Arbitration agreement shall be effective up to the moment of termination of the legal relations in accordance with which it has been concluded.
(3) In case the agreement on submission to arbitraton has been included in the agreement concluded between the parties as a separate provision, this agreement shall be considered as an independent agreement. If the term of the agreement has expired or the agreement has been adjudged as null or void, the agreement regarding the submission of dispute to the Arbitration court shall remain valid.
III. ARBITRATORS
Article 8. Arbitrators
(1) Arbitrator is a natural entity that has been appointed for the settlement of dispute according to provisions of Arbitration agreement and these Rules.
(2) Arbitrator shall not be a representative of the party which has appointed the arbitrator. Arbitrator shall fulfil its duties in a good faith, without succumbing to any influence, arbitrator shall be independent and objective.
Article 9. Panel of Arbitrators
(1) Arbitration court resolves disputes in a composition of three arbitrators, unless agreed otherwise by the parties.
(2) Number of Arbitrators shall be uneven number.
Article 10. Appointing of Arbitrators
(1) Parties may establish the procedure of appointing of arbitrators. If parties have not agreed on procedure of appointing of arbitrators, arbitrators are designated by the Chairman of the Arbitration court.
(2) Chairman of the Arbitration court shall be entitled to assign the appointing of arbitrators to any capacitated natural or legal entity.
Article 11. Removal of an Arbitrator
(1) If the Party has appointed an arbitrator and has notified thereupon the other party, it cannot remove this arbitrator without the approval of the other party.
(2) Chairman of the Arbitration court may, upon the request of one of the parties, remove an arbitrator at any stage of arbitration proceeding, in case the arbitrator does not fulfil its duties for more than 14 days time period due to his absence, ilness or other circumstances.
Article 12. Grounds for challenge of Arbitrators
(1) Person, the approval for which to designation to the post of arbitrator is required, shall disclose to parties any circumstances that could produce reasonable doubts regarding the objectivity and independence of this person. Should such circumstances have arisen until the end of Arbitral proceeding, they should be promptly disclosed to the parties.
(2) Arbitrator may be challenged, if:
1) there exist circumstances giving rise to any doubts on arbitrator’s objectivity and independence;
2) his qualification does not comply with the one, that the parties have agreed upon.
(3) Party may challenge the arbitrator that it has designated itself or have taken part at designation of, only if the grounds for challenge have been established after the nomination of the arbitrator.
Article 13. Procedure of challenge of Arbitrator
(1) Parties may agree on procedure of challening of the arbitrator. In case parties have not agreed upon the procedure of challening of the arbitrator, parties may claim challenge of arbitrator in 5 (five) days time as of the date it has got to know on nomination of arbitrator or it has got to know the grounds for challenge of arbitrator, by submitting thereupon a written notification to the arbitration court where it has been specified which arbitrator is challenged and the grounds for challenge.
(2) Declared challenge of an arbitrator shall be decided by the panel of arbitrators solely in cases where the dispute is decided in an unilateral manner. All the arbitrators shall take part at adoption of decision on challenge of arbitrator.
(3) If the circumstances mentioned in the part 2 of the Article 12 of these Rules are being known to the Chairman of Arbitration court, he shall forthwith notify both parties thereupon and explain their rights to submit a challenge of the respective arbitrator.
Article 14. Expiration of the term of office of Arbitrator
(1) Arbitrator shall be entitled to refuse the settlement of dispute upon giving a written notification thereof to the Chairman of the Arbitration court.
(2) Parties shall be entitled to agree on termination of the term of office of arbitrator, by parties agreeing in written thereupon and submitting to the arbitration court.
(3) Term of office of Arbitrator shall be terminated:
1) upon admission of challenge of arbitrator;
2) upon refusal of arbitrator from review of a dispute;
3) upon agreement between the parties regarding the termination of the term of office of arbitrator;
4) upon removal of an arbitrator;
5) upon the death of an arbitrator.
(4) Upon the expiration of the term of office of arbitrator, new arbitrator shall be appointed under a procedure prescribed by these Rules.
Article 15. Consequences of nomination of a new Arbitrator
(1) Upon nomination of a new arbitrator, the dispute settlement procedure shall be recommenced, in the event the dispute is resolved unilaterally by a sole arbitrator, or a new Chairman of the Panel of Arbitrators is appointed.
(2) Panel of Arbitrators shall be entitled to resume the dispute settlement procedure in the event a new arbitrator in the panel of arbitrators is designated.
IV. PREPARATION OF ARBITRATION PROCEEDINGS
Article 16. Applicable Rules of Law
(1) Arbitral tribunal shall decide upon the rules of law to be applied to the merits of the dispute also in the events where any of the parties challenge the arbitration agreement or its validity.
(2) Party may submit an application alleging a fact that the dispute is not a subject to arbitration court as of the moment of expiration of the term for submission of Answer to the Request.
(3) Arbitration court shall be entitled to decide upon the applicable Rules of Law at any stage of arbitration proceedings. In the event where the aplicable Rules of Law are challenged until the designation of the Panel of Arbitrators, the mentioned issue may be decided by the Chairman of the Arbitration court, but in the event if the applicable Rules of Law are challenged after the designation of the Panel of Arbitrators, this issue shall be decided upon by the Panel of Arbitrators.
(4) If the objections regarding the fact that the part of the dispute is not subjected to the arbitration court occur to the party in relation to the claim supplements or amendments, counterclaim or its supplements or amendments, mentioned objections shall be reviewed without delay, as of the moment the arbitration court commences the review of these claims.
(5) Where the Arbitration court decides that the dispute or a part thereof shall not be subject to arbitration court, it shall terminate the arbitral proceeding or its part under the procedure prescribed by these Rules.
Article 17. Decisions necessary for ensuring the Arbitral proceedings
Arbitration court, on its own initiative or upon a reasonable request of one of the parties, may adopt decisions for ensuring the arbitral proceedings and other provisional decisions.
Article 18. Procedural terms
(1) Procedural activities shall be fulfilled in terms provided for these Rules. In the event in procedural terms are not defined herein, they shall be defined by the arbitration court.
(2) For execution of procedural activities there shall be defined an exact date and a defind time limit, or a particular time period (in years, months, days or hours). In the event the procedural activities are not subject to execution at a fixed date, it can be executed during all the time period of the term.
(3) Onflow of the procedural term subject to calculation in years, months or days, shall start on the forthcoming day after the date or event establishing its beginning.
(4) Onflow of the procedural term subject to calculation in hours, shall start on the next hour after the event establishing its beginning.
(5) Term subject to calculation in years shall expire on the respective month and date of the last year of the term. Term subject to calculation in months shall expire on a respective date of the last month of the term. If the term, subject to calculation in months, expires in such a month where is no such a date, the term shall expire on the last day of this month. Term that is defined until a particular date shall expire on preceding day.
(6) If the last day of the term is Saturday, Sunday or a holiday prescribed by the law, the forthcoming working day shall be considered as the last day of the term.
(7) If the last day of the term is Saturday, Sunday or a holiday prescribed by the law, the forthcoming working day shall be considered as the last day of the term.
(8) Shall the procedural activity be executed in Arbitration court, the term shall be deemed expired at the hour where the Arbitration court ends its working hours in accordance with its internal rules. Nevertheless, if the claim or other shipments are delivered to the post department or shipment services provider on the last day of the term until 12.00 PM, they shall be deemed delivered in term.
Article 19. Consequences entailed by delay, suspension, resumption and prolongation of Procedural terms
(1) Right to execute the procedural activities shall terminate as of the moment of expiration of these Rules or term defined by the Arbitration court.
(2) Upon suspension of Arbitration proceeding, the onflow of the term is suspended as well. Onflow of term stops at the moment where a circumstance occurs being grounds for suspension of the arbitration proceeding. Onflow of the procedural term shall continue as of the date of resumption of the arbitration proceeding.
(3) Upon the request of the party, delayed procedural terms may be resumed by the arbitration court, if the latter recognizes the reasons of delay as justifying. Together with the resumption of the delayed term, arbitration court authorizes the execution of procedural activity.
(4) Terms fixed by the arbitration court may be prolonged upon a reasonable request of a party.
(5) In the event if the request for prolongation of the term or resumption of the delayed term is submitted until the designation of the panel of arbitratiors, then the Chairman of Arbitration court shall be entitled to decide this issue, but the request being submitted after the designation of the panel of arbitrators, then it shall be decided on by the panel of arbitrators.
Article 20. Correspondence
(1) All the notifications, applications, requests and other kind of correspondence during the Arbitration procedings shall be sent in a registered mail or otherwise, by fixing the fact of shipment or shall be delivered personally against signature of receipt.
(2) Correspondence shall be considered as received if being delivered personally to the beneficiarry to the address produced by the addressee or to the registered office (legal address) of the legal entity, or to the place of residence of the natural entity, but in the event if the address cannot be clarified,- to the last known address.
Article 21. Confidentiality of Arbitration proceedings
(1) Arbitration proceedings are of a confidential nature. Arbitration hearings are closed hearings. Entities that are not participants of the proceeding may be present at the arbitration hearing solely upon the receipt of permission of the parties.
(2) Arbitration court neither provides information on arbitration proceedings to any third parties, nor publishes this information.
Article 22. Equality of rights and competition between Parties
Arbitration court, by resolving the dispute, shall comply with the principle of equality and competition of parties. Every party shall have equal rights to standpoint and protection of their rights.
Article 23. Procedure of Arbitration proceedings
(1) Parties shall have equal rights to establish the procedure of arbitration proceedings.
(2) In the absence of an agreement between the parties regarding the procedure of arbitration proceeding, the dispute shall be resolved in compliance with these Rules of Arbitration.
(3) In the event where the parties have agreed solely on separate provisions of the arbitration proceedings, arbitration court shall take into account the agreement between the parties, but in the rest part of provision, it shall guide upon the Rules of Arbitration.
Article 24. Language of the Arbitration
(1) The hearing in the arbitration court shall be held in the language agreed by the parties. In the absence of an agreement between the parties regarding the dispute settlement language, it shall be designated by the arbitration court.
(2) Arbitration court shall be entitled to request the parties to submit a translation or a notary certified translation of any written proof translated in a language the proceedings is held at.
(3) In the event where the Panel of Arbitrators or any of the arbitrators does not master the language the proceeding is held at, Arbitration court shall invite an interpreter. The procedure of remuneration of the services of interpreter shall be defined by the arbitration court.
Article 25. Representation of Parties
(1) Natural entities shall themselves administer their files in the arbitration court or via mediation of authorized representatives. Representation of physical entities shall be arranged through a written Power of Attorney.
(2) Legal entities’ files in the arbitration court shall be administered by their officials acting within the framework of powers assigned by the Law, Articles of Association or regulations, or any other authorized representatives of legal entities. Representation of legal entities shall be executed as a written Power of Attorney or documents testifying the rights of an official to represent the legal entity with no specific authorization.
(3) Any natural or legal person shall be entitled to represent the party.
(4) Parties shall be entitled to involve lawyers for provision of legal assistance
Article 26. Place of the Arbitration
(1) Parties may freely agree upon the place of arbitration. In the absence of an agreement between the parties regarding the place of settlement of dispute, it may be defined by the arbitration court.
(2) For verification of proofs, Arbitration Tribunal may convene at any place that it deems appropriate, upon informing thereupon the participants of the arbitration proceeding.
(3) If the parties have agreed upon the place of arbitration, then the travel and accomodation expenses of the arbitrators shall be covered by the parties.Ja puses ir vienojušās par šķīrējtiesas procesa vietu, tad pusēs sedz šķīrējtiesnešu ceļa un uzturēšanās izdevumus.
Article 27. Commencing the Arbitration
(1) Arbitration shall be commenced as of the moment of submission of Request for Arbitration.
(2) The Request for Arbitration shall be submitted in a written form in the Arbitration court.
Article 28. Request for Arbitration
(1) The Request shall, inter alia, containg the following information:
1) information on the parties:
For legal entities: the title and registered address, registration number, as well as the phone and fax number if such being known to the claimant.
For physical entities: the name in full, place of residence and personal Identity number, as well as the phone and fax number if such being known to the claimant.
2) a statement of the relief sought, amount, calculation of amount claimed;
3) grounds for the claim and evidences testifying it;
4) applicable Rules of Law;
5) Relief sought by the claimant;
6) a list of documents enclosed.
(2) Request for Arbitration shall enclose:
1) parties agreement on Arbitration, unless this Agreement is included in the contract giving rise to the dispute;
2) agreement giving rise to the dispute;
3) documents the claimant refer to in its Request for Arbitration;
4) as many copies of the Request as there are defendants in the dispute;
5) proofs testifying the payment for arbitral proceedings and arbitrator’s fee;
6) evidences testifying the shipment of Request for Arbitration to the defendant.
(3) Request for Arbitration shall be signed and submitted by the claimant or his representative. If the claim is being brought by the representative of the claimant, the Request for the Arbitration shall be attached a Power of Attorney of other document thereto, certifying the authorisation of the representative to bring an action.
Article 29. Act of Arbitration court upon the receipt of Request for Arbitration
(1) If the Request for Arbitration and the documents attached thereto comply with the provisions of these Rules, the Chairman of the Arbitration court shall forthwith send a notification to the defendant regarding the receipt of Request for Arbitration and a copy of the Request for Arbitration. The notification shall invite the defendant to submit the answer to the Request for Arbitration, by submitting objections, if such exist, and by enclosing documents justifying the objections.
(2) Parties may get acquainted with the appendixes to the Request for Arbitration and other case materials during the working hours of Arbitration court.
Article 30. Non-compliance of the Request for Arbitration with the provisions of Rules
(1) In case the Request for Arbitration and the documents annexed thereto do not comply with the requirements of these Rules of Arbitration, the Chairman of Arbitration court shall keep the Request for Arbitration without advancing it further and notify the claimant thereupon, giving a time to eliminate the deficiencies.
(2) In the event the deficiencies are eliminated in a term set by the Chairman of Arbitration court, the Request for Arbitration shall be considered as submitted and the arbitral proceeding shall be commenced.
(3) In the event if the deficiencies are not eliminated in a term set by the Chairman of Arbitration court, the Request for Arbitration shall be returned to the claimant without further review of it.
Article 31. Answer to the Request
(1) The respondent shall file in the Arbitration court an Answer to the Request for Arbitration in 15 days time as of the date of sending the notification of receipt of Request for Arbitration.
(2) Taking into account the location of the respondent, complexity of dispute, number of respondents, the Chairman of Arbitration court shall be entitled to define an extension of the term for filing an answer, at his own discretion, nevertheless it shall not exceed the one that should be necessary by objective considerations and shall not exceed 30 (thirty) days.
(3) Respondent shall indicate in his Answer, whether he or she allows the claim fully or partially or in some of its part, his/her objections agaist the caim and the grounds for objections, proofs approving his/her objections against the claim and the justifications thereof, as well as the Law, the objections are grounded upon, requests for acceptance or asking for evidences, other circumstances that he/she deems relevant in case review. Party shall ensure a simultaneous sending of a copy of an Answer (with the appendixes) to the other Party.
(4) Upon the receipt of the Answer, the Chairman of Arbitration court shall forthwith notify the claimant thereupon.
Article 32. Counterclaim
(1) Respondent shall be entitled to submit a counterclaim.
(2) Counterclaim shall be submitted in a written form. The counterclaim shall be subjected to the same provisions of the Rules of Arbitration that the Request for Arbitration is subjected to.
(3) Counterclaim shall be filed within the time limit that is defined for filing an answer to the Request for Arbitration.
(4) Arbitration court shall accept the counterclaim providing that the object of the counterclaim is covered by the Arbitration agreement and:
1) there is possible a mutual offset between the primary Request for Arbitration and the counterclaim;
2) satisfaction of the counterclaim fully or partially excluds the satisfaction of the primary Request for Arbitration;
3) counterclaim and primary Request for Arbitration shall have a mutual relation and joint review of the case shall enhance faster and more accurate hearing of the case.
(5) The decision on acceptance of the counterclaim shall be adopted by the Chairman of the Arbitration court.
(6) Counterclaim approved by the Arbitration court shall be reviewed jointly with the primary Request for Arbitration.
Article 33. Arbitration hearings
(1) As of the moment there is received an Answer from the respondent or the term for submission of an Answer has expired and there is appointed the Arbitral Tribunal, the date and time of the arbitration hearing shall be fixed by the Arbitral Tribunal.
(2) After defining of the arbitration hearing, the Chairman of Arbitration court shall forthwith announce to the participants of arbitration hearing the date and time, and Arbitral tribunal of the arbitration hearing.
(3) Noficiation regarding the first arbitration hearing shall be sent to the participants 15 days prior to the hearing, unless parties have agreed on a shorter time period.
V. SETTLEMENT OF THE DISPUTE
Article 34. Dispute settlement measures and proceeding
(1) Taking into account the arbitration agreement concluded by the parties, arbitration court shall organize hearings to listen to the explanations or objections of parties, as well as to verify the evidences (verbal proceeding), or resolve a dispute, grounding upon the filed written proofs and materials (written process). Arbitration court organizes a verbal proceeding also in a situation where the parties have agreed on a written proceeding, but any of the parties requests a verbal proceeding until the moment of making of Award or the Arbitral tribunal concludes that the filed proofs and materials are insufficient to settle the dispute.
(2) By taking into account the provisions of these Rules and Agreement, Arbitration court may hold the hearing in a manner it considers appropriate, providing that the dispute shall be settled without delay and parties are entitled to equal rights as to laying out of their standpoint and protection of their rights. The proceeding of hearing shall be conducted by the Chairman of Arbitration court.
(3) Dispute settlement at a verbal proceeding shall commence as of the moment where the the date and the time is previously defined, the Chairman of the Arbitral Tribunal opens the hearing and announces the commencement of settlement of dispute.
(4) Dispute settlement at a verbal proceeding shall commence as of the moment where the the date and the time is previously defined, the Chairman of the Arbitral Tribunal opens the hearing and announces the commencement of settlement of dispute.
Article 35. Acquaintance of the Parties with the materials and proofs received
Arbitration introduces the parties with any applications, documents and other information it has received, as well as the conclusions of experts and other evidences.
Article 36. Consequences entailed by failure of the party to attend the Arbitral Proceeding
(1) In the event if the respondent does not file an answer to the Request for Arbitration at the time period defined herein, Arbitration court shall continue the proceeding, without considering such a non-filing as an admission of the claim, unless otherwise provided for the arbitration agreement.
(2) In the event if parties fail to appear before the court for the verbal hearing or to submit written or other evidences without justifying reason thereof, arbitration court shall continue the proceeding and settle the dispute, grounding upon the evidences being at its disposal.
Article 37. Amendment and supplementing of Claim
(1) Party may amend or supplement the claim up to the moment of commencment of settlement of dispute. The following shall not be deemed as amendment to or supplement of the claim:
1) specification of the claim;
2) correction of obvious mistakes in the claim;
3) enclosing of interest and accruals to the claim;
4) request for compensation of value in relation to alienation, lost or changes in its composition;
5) amendments to the parts of the total claimed amount within the scope of this amount;
6) due to the change of circumstances of the claim with which it is requested to restore the rights injured during the course of the matter;
7) increase of the claimed amount in relation to the market prices increased during the course of the matter.
(2) Shall the scope of the claim is increased provided for the part 1 of this article, Party pays extra the respective expenses of the arbitral proceeding.
(3) Upon commencement of the dispute, Arbitration court may recognize the amendment and supplement of the claim as unsuitable if thereby the arbitration proceeding is delayed or the settlement of dispute is emburdened.
(4) Claim may not be amended in a manner exceeding the limits of the Arbitration agreement.
Article 38. Minutes
(1) Proceedings of the Arbitration court shall be recorded only in case it is requested by any of the parties, provided that the requesting party compensates the Arbitration court for the secretary’s fees. The request to record the proceeding must be filed and the secretary’s fees must be paid not later than 2 days prior to the respective proceeding of the Arbitration court.
(2) Minutes shall be maintained by a secretary appointed by the Arbitration court. The minutes shall be signed by all arbitrators and the secretary. Minutes of an Arbitration court proceeding shall be signed within 3 (three) days after the proceeding.
(3) Minutes shall include:
1) the name of the Arbitration court;
2) the case number;
3) the venue and the date of the proceeding;
4) the parties;
5) information regarding the parties’ presence at the proceeding;
6) names and surnames of the arbitrators, secretary, experts, interpreters and other participants of the proceedings;
7) brief description of the progress of the proceedings;
8) the requests filed by the parties and other material announcements made by the parties;
9) reasons for suspension or termination of the proceedings.
(4) For a period of 5 days after signing the minutes, the parties have the right to consult the minutes and to file written remarks or objections with respect to the minutes. The Arbitration court shall decide regarding the validity of the objections or correspondence of the remarks with developments during the proceeding. A party, upon its request, has the right to obtain a copy of the minutes.
Article 39. Evidence
(1) The Arbitration court shall regard explanations of the parties, written evidence, material evidence and expert opinions as evidentiary means.
(2) Evidence shall be provided by the parties. Each party has the duty to provide evidence for the circumstances used as a basis for its claim or objection. The Arbitration court may suggest that the parties file additional documents or other evidence.
(3) Written evidence shall be filed in the form of original documents or certified copies of these documents. In case the parties file certified copies of documents, the Arbitration court, on its own initiative or upon request of the other party, may call for the originals to be also presented. Upon request of the filing person, the Arbitration court shall return the original document and keep the certified copy of the document in the case file.
(4) The Arbitration court itself decides on the admissibility and relevance of the evidence
Article 40. Expertise
(1) Subject to reasoned written request of a party, the Arbitration court may order expertise. Expertise shall be ordered in cases where special knowledge in science, engineering, art or any other field is required in order to clarify facts important for the dispute.
(2) In case the Arbitration court finds that the request made by the party is reasoned, the Arbitration court decides on ordering expertise or inviting experts. Expertise is ordered only, if the party has made an advance payment of the expert’s fees to the Arbitration court within the time limit set by the Arbitration court. The amount of the advance payment shall be determined by the Arbitration court.
(3) The party shall identify in its request for expertise the issues regarding which the expert’s opinion from the point of view of the party is required. The other party also has the right to present to the Arbitration court issues regarding which the expert’s opinion is required. Issues to be covered by the expert’s opinion shall be finally determined by the Arbitration court. In case of dismissing issues presented by the parties the Arbitration court must provide reasoning.
(4) Expertise shall be performed by experts of relevant expertise authorities or other specialists. An expert is appointed according to mutual agreement between the parties, however, in case of failure to reach such an agreement, the expert is appointed by the Arbitration court. If necessary, the Arbitration court appoints several experts.
(5) In case of appointing several experts, they shall have the right to consult each other. Should the experts come up with a joint opinion, it shall be signed by all experts. If the opinions of the experts differ, each expert provides a separate written opinion.
(6) The parties, upon request of the Arbitration court, provide the expert with all the necessary information or documents, present goods or other items.
(7) If so requested by any of the parties, the Arbitration court asks that the expert, after providing its opinion, attends the proceeding of the Arbitration court in order to explain the opinion and answer the parties’ questions regarding the opinion.
Article 41. Removal of an Expert, Interpreter or Secretary
An expert, interpreter or secretary, following an application by any of the parties, may be removed in accordance with the provision of Article 12 of these Rules. The request for removal shall be made immediately after the requesting party has become aware of the grounds for removal. The decision regarding the removal shall be made by the panel of the Arbitration court.
Article 42. Procedural Consequences of Withdrawal by a Party
(1) The sole fact that one of the parties, being a natural person, has died, or one of the parties, being a legal entity, has ceased to exist, does not serve as a basis for termination of arbitration agreement unless otherwise agreed between the parties, provided that the legal relationship at issue permits succession. In such case the Arbitration court suspends the proceedings until the legal successor is appointed.
(2) Assignment of a claim or a debt may serve as a basis for termination of arbitration proceedings only in cases when the arbitration agreement is cancelled according to the procedure provided for in the agreement or in the law.
Article 43. Right to Object
(1) In case any of the regulations governing the arbitration proceedings has been breached or has not been complied with, a party to the arbitration proceedings, immediately after it has become aware or should become aware of such breach, shall submit written objections to the Arbitration court and to the other party.
(2) The Arbitration court shall decide regarding the validity of the objections.
(3) In case of failure by the party to file an objection it shall be considered that the party has waived its right to object.
Article 44. Storage of Procedural Documents after Termination of Arbitration Proceedings
Procedural documents shall remain in the proceeding of the Arbitration court for a period of 10 years after the completion of arbitration proceedings. The Arbitration court shall store documents in accordance with the archival storage procedures provided for by law.
Article 45. Decision-Making
(1) In case the panel of the Arbitration court consists of more than one arbitrator, all decisions (rulings and awards) of the Arbitration court shall be made by a simple majority vote. An arbitrator is not entitled to refrain from voting.
(2) The panel of the Arbitration court shall take decisions in the court room or the deliberation room, as it prefers.
(3) Decisions of the Arbitration court are made in writing and signed by all arbitrators; however, in case any of the arbitrators refuses to sign a decision, the reasons for such refusal shall be stated in the decision.
(4) Arbitrators’ signatures on the decision shall be confirmed by the seal of the Arbitration court.
(5) A decision of the Arbitration court enters into force on the day it is made. It is irreversible, and no protest can be filed against such decision.
(6) In case a decision of the Arbitration court stipulates that the parties shall pay additional arbitration costs, a copy of the decision shall be presented or sent to the parties only after the payments provided for in the decision have been made.
Article 46. Settlement
(1) The Arbitration court encourages the parties to terminate the dispute by reaching settlement.
(2) Settlement is permissible at any stage of arbitration proceedings. Entering a settlement agreement by the parties, results in termination of the arbitration proceedings.
(3) A settlement agreement shall be entered in writing and shall state: for legal entities – name, registration number and place of location (legal address), for natural persons – name, surname, personal ID number and place of residence, as well as the subject matter of the dispute and the obligations of each party as they have voluntarily undertaken to perform.
(4) Pursuant to the request of the parties, the Arbitration court shall by its decision confirm the settlement provided that the provisions thereof are not contrary to law. Such a decision shall have the same legal effect as an award of the Arbitration court.
(5) The Arbitration court may confirm the settlement in absence of the parties provided that the settlement agreement is certified by a notary public and includes declaration by the parties that they are aware of the procedural consequences of a confirmed settlement.
Article 47. Award
(1) An award of the Arbitration court shall include the following:
1) the case number;
2) the composition of the Arbitration court;
3) the date and venue of rendering the award;
4) information regarding the parties;
5) subject-matter of the dispute;
6) reasoning behind the award unless otherwise agreed between the parties;
7) conclusion regarding complete or partial satisfaction of the claim or its complete or partial dismissal, and substance of the arbitral award;
8) the amount to be recovered, if the award is rendered regarding recovery of money;
9) the specific property and the value thereof, which is to be recovered, in the event the property does not exist, if the award is rendered regarding recovery of property in specie;
10) what actions, by whom and within what time period are to be fulfilled, if the award imposes a duty to perform certain actions;
11) what part of the award refers to each claimant, if the award is made for the benefit of more than one claimant or what part of the award is to be fulfilled by each of the respondents, if the award is made against more than one respondents;
12) the arbitration costs of and the allocation of such costs and the legal fees among the parties.
(2) The Arbitration court shall send a true copy of the arbitral award to the parties.
(3) In the case of written proceedings, the true copy of the arbitral award shall be sent to the parties within a period of 3 days.
(4) In case of oral proceedings the operative part of the award shall be announced to the parties after rendering the award. The award is drafted by the Arbitration court within a period of 10 days.
Article 48. Rectification of Errors in the Award. Explaining the Award. Supplementary Award.
(1) Until execution of the award each party, subject to notifying the other party, may request the Arbitration court to:
1) correct any calculation, grammatical or printing error allowed to take place in the award. The Arbitration court may also correct such errors on its own initiative;
2) explain the award. The explanation of the award shall be done in writing and shall become an integral part of the award as of the moment it is made;
3) render a supplementary award within 30 days from the day when the award is sent in case any of the claims filed until rendering of the judgment has not been adjudicated. If the Arbitration court finds the request valid, it makes its decision regarding such request by rendering a supplementary award.
(2) The arbitration court shall decide whether participation of the parties at deciding the issue mentioned in paragraph 1 of this article is necessary.
Article 49. Postponement of Dispute Resolution
(1) The Arbitration court shall postpone resolution of the dispute, if any of the participants of the proceedings does not attend the proceeding and the time and venue of the proceeding has not been announced to this participant.
(2) The Arbitration court may postpone resolution of the dispute:
1) if it finds that resolution of the dispute is not possible due to absence of a participant to the proceedings, or the secretary, expert or interpreter;
2) upon request of a participant to the proceedings in order to allow this participant to submit additional evidence;
3) on its own initiative for the purposes of solving procedural issues.
(3) The Arbitration court announces the date and time of the next proceeding to the participants of the proceedings against their signatures or by sending a written announcement.
Article 50. Suspension of Arbitration Proceedings
(1) The Arbitration court shall suspend arbitration proceedings, if:
1) a natural person, being a party to the dispute, has died, or a legal entity, being a party to the dispute, has ceased to exist, and the legal relationship at issue permits succession;
2) a party has lost its legal capacity;
3) a written mutual agreement of the parties regarding suspension of arbitration proceedings has been filed with the Arbitration court.
(2) The Arbitration court may suspend the proceedings on its own initiative or upon initiative of a participant to the proceedings, if:
1) a party can not participate in the resolution of the dispute due to illness or other justification;
2) the Arbitration court orders expertise.
(3) Arbitration proceedings shall be suspended:
1) in cases mentioned in paragraph 1, subsection 1 of this Article – until appointment of the legal successor or a lawful representative;
2) in cases mentioned in paragraph 1, subsection 2 of this Article – until appointment of a lawful representative;
3) in cases mentioned in paragraph 1, subsection 3 of this Article – until the expiry of the time limit set in the mutual agreement of the parties;
4) in cases mentioned in paragraph 2, subsections 1 and 2 of this Article – until the mentioned circumstances have ceased to exist.
(4) The Arbitration court decides regarding suspension of the arbitration proceedings by drafting a separate procedural document. This document shall state what circumstances should emerge or cease to exist in order for the arbitration proceedings to be resumed, or a time period for which the arbitration proceedings have been suspended.
(5) The arbitration proceedings are resumed based on a decision of the Arbitration court, made on its own initiative or upon request of a participant to the proceedings
Article 51. Leaving a Claim Unadjudicated
(1) The Arbitration court has the duty to leave a claim unadjudicated, if:
1) the statement of claim has been filed by a person lacking legal capacity or a person, for whom a custodian has been appointed in accordance with the provisions of Article 365 of the Civil Law;
2) the claim on behalf of the claimant has been filed by a person lacking authorization in accordance with the procedure provided for in the law;
3) in case referred to in paragraph 2 of Article 30 of these Rules.
(2) The Arbitration court can leave the claim unadjudicated:
1) upon the claimant’s request;
2) if the claimant repeatedly fails to attend the Arbitration court proceeding, and has not requested adjudication in his absence.
(3) The Arbitration court makes a ruling regarding leaving a claim unadjudicated in a form of a separate procedural document.
(4) If a claim is left unadjudicated, the claimant has the right to file a new statement of claim with the Arbitration court in accordance with the procedure provided for in the law and in these Rules.
Article 52. Termination of Arbitration Proceedings
(1) The Arbitration court decides on termination of arbitration proceedings, if:
1) the claimant withdraws its claim and the respondent does not object against such withdrawal;
2) the parties agree to terminate the dispute by settlement;
3) the arbitration agreement has lost its effect according to the procedure provided for in the law or in the agreement;
4) the Arbitration court finds that the dispute does not fall within the jurisdiction of the Arbitration court;
5) a natural person, being one of the parties, has died, or a legal entity, being one of the parties, has ceased to exist, and the legal relationship at issue does not permit succession or the parties have agreed that under such circumstances the arbitration proceedings shall be terminated.
(2) In case the arbitration proceedings have been terminated due to reasons referred to in paragraph 1, subsections 1 and 2 of this Article, a dispute between the parties regarding the same subject-matter and on the same grounds may not be repeatedly addressed to an arbitration court or a court.
(3) In case the arbitration proceedings have been terminated due to reasons referred to in paragraph 1, subsections 3 or 4 or, if a natural person, being one of the parties, has died, or a legal entity, being one of the parties, has ceased to exist, and the parties have agreed that under such circumstances the arbitration proceedings shall be terminated, the parties have the right to address court.
Article 53. Re-adjudication in connection with Newly-Discovered Facts
(1) A party can initiate a matter in connection with newly-discovered facts by filing an application for cancelling an award or ruling of the Arbitration court.
(2) The application may be filed within three months as of the day when the facts serving as a basis for re-adjudication of the matter have been ascertained.
(3) The application may not be filed, if more than 10 years have elapsed since the award or the ruling has come into effect.
(4) The following shall be deemed to be newly-discovered facts:
1) the determination, pursuant to a court judgment which has come into lawful effect regarding a criminal matter, that there was knowingly false testimony of witnesses, expert opinions, or interpretations, or fraudulent written or material evidence, upon which the rendering of the award was based;
2) the determination, pursuant to a court judgment that has come into lawful effect regarding a criminal matter, of criminal acts due to which an unlawful or unfounded award has been rendered or a ruling made;
3) cancelling of such court judgment or such decision by another institution as was a basis for the rendering the award or taking of the decision in this matter;
4) finding that a legal provision applied in the adjudication of the matter is not in conformity with a legal provision of higher legal force.
(5) The time period for submitting an application shall be calculated:
1) in cases mentioned in paragraph 4, subsections 1 and 2 of this Article - as of the day when the judgment regarding the criminal matter has come into lawful effect;
2) in cases mentioned in paragraph 4, subsections 3 of this Article – as of the day of coming into lawful effect of an adjudication of a court by which a judgment regarding a civil matter or a criminal matter has been cancelled or as of the day of cancelling a decision of another institution, on which the award or the ruling to be cancelled due to newly-discovered facts is based;
3) in cases mentioned in paragraph 4, subsection 4 of this Article – as of the day of coming into lawful effect of an award or another decision in relation to which the legal provision applied loses effect due to nonconformity with a legal provision of higher effect.
(6) An application regarding newly discovered facts shall be submitted in writing. The application is subject to the same provisions of these Rules as the statement of claim.
(7) The proceeding of the Arbitration court shall be announced and a copy of the application shall be sent to the parties of the matter. Non attendance by these parties shall not be regarded as obstacle for examining the application.
(8) At the examination of the application the Arbitration court verifies whether the circumstances indicated by the claimant shall be regarded as newly-discovered circumstances in accordance with paragraph 4 of this Article.
(9) In case the Arbitration court establishes new facts, it shall fully or partially cancel the disputed award or ruling, and adjudicate the matter on the merits.
(10) In case the Arbitration court finds that the circumstances mentioned in the application shall not be regarded as newly-discovered, the application shall be dismissed.
Article 54. Execution of Arbitration Court Decision
A decision of the Arbitration court shall be binding upon the parties and shall be executed voluntarily, within the time-limit provided for in this decision. The time-limit for voluntary execution of the award shall not be shorter than 5 days.
VI. ARBITRATION COSTS
Article 55. Costs of the Arbitration
(1) Arbitration costs include adjudication costs and costs related to conducting the matter.
(2) Adjudication costs include:
1) Arbitration court fees for examination of the case and the arbitrator’s fees;
2) Amounts payable to experts, interpreters and the secretary, including their travelling expenses and other expenses, if any;
3) Costs related to explanation of the Arbitration court award;
4) Travelling and accommodation expenses of the arbitrators;
5) Postal expenses;
6) Agency fees in relation to appointment of an arbitrator;
7) Other potential expenses related to examination of the case for which the procedure for payment is established by the Arbitration court in accordance with the Rules.
(3) Costs related to conducting the case include:
1) Legal fees;
2) Expenses related to collection of evidence.
(4) Adjudication costs of the Arbitration court and the arbitrator’s fees depend upon the amount of the claim, complexity of the case and the number of the arbitrators adjudicating the matter. Amount of the costs may be amended according to a ruling by the Chairman of the Arbitration court, taken into account the complexity of the case, the time necessary for adjudication as well as any other circumstances related to adjudication.
(5) A secretary, interpreter or expert shall be involved only after payment by the party of their fees in the amount determined by the Arbitration court. In case the party requesting involvement of the interpreter, secretary or expert has not paid their fees within the time limit determined by the Arbitration court, such fees can be paid by the other party.
(6) The Chairman of the Arbitration court is entitled to reduce the amount of the adjudication costs, upon request of the party or by own initiative.
(7) Adjudication costs shall be transferred to the bank account of Zemgales Arbitration Court.
Article 56. Amount of the Claim
(1) The amount of the claim shall be:
1) in regard to claims regarding recovery of money – the amount to be recovered;
2) in regard to claims regarding recovery of property – the value of the property to be recovered;
3) in regard to claims regarding collection of maintenance allowances – the total amount of the maintenance allowance;
4) in regard to claims regarding term payments and remittances – the total amount of all payments and remittances;
5) in regard to claims regarding payments and remittances without term or for life – the total amount of all payments and remittances;
6) in regard to claims regarding reduction or increase of payments or remittances – the amount by which the payments or remittances are reduced or increased;
7) in regard to claims regarding termination of payments or remittances – the total amount of the remaining payments or remittances;
8) in regard to claims regarding early termination of lease and rental agreements – the total amount of payments for the remaining period of the agreement;
9) in regard to claims regarding property rights with respect to immovable property – the value, but not less than the cadastral value;
10) in claims consisting of several independent monetary claims – the total amount of all the claims.
(2) The amount of the claim shall be established by the claimant. In case the amount of the claim evidently does not correspond to the market value of the property to be recovered, the amount of the claim is established by the Arbitration court.
Article 57. Repayment of Adjudication Fees
(1) Adjudication fees shall be fully or partially repaid in the following cases:
1) if the amount of the adjudication costs paid is greater than provided by these Rules or by the Arbitration court;
2) if the party has paid the secretary’s, interpreter’s or expert’s fees and the mentioned services were not used or the advance payments were not disposed in their entirety, the amount paid or the indisposed amount shall be returned to the party that made the payment;
3) if the claim is left unadjudicated until appointment of the panel of the Arbitration court, or, if the claimant withdraws its claim, the arbitrator’s fees shall be returned to the party.
(2) Adjudication fees shall be repaid, provided that the request for repayment is filed within one year as of making the payment.
Article 58. Repayment of Arbitration Costs
(1) The parties may agree to share the arbitration costs. In case such agreement between the parties exists, repayment of the arbitration costs is performed in accordance with this Article.
(2) The Arbitration court shall order that the other party compensates to the winning party all adjudication costs paid by this party. In case the claim is satisfied partially, the amount of the adjudication costs payable by the respondent to the claimant shall be proportional to the amount of the satisfied claims, and the adjudication costs payable by the claimant to the respondent – proportional to the amount of the dismissed claims.
(3) In case the claimant withdraws its claim, it shall compensate for the adjudication costs incurred by the respondent. In such case the respondent does not have the duty to compensate the adjudication costs paid by the claimant. However, in case the claimant withdraws its claim due to the fact that the claim has been voluntarily discharged by the respondent after filing the statement of claim, the Arbitration court, upon the claimant’s request, orders the respondent to compensate adjudication costs paid by the claimant.
(4) In case the claim is dismissed, the Arbitration court, upon the respondent’s request, shall order that the claimant compensates the adjudication costs paid by the respondent.
(5) Expenses related to conducting the matter shall be compensated in the following amounts:
1) legal fees – the actual amount of the legal fees;
2) expenses related to collection of evidence – the actual amount of the expenses.
(6) In case the claim has been fully or partially satisfied as well as in case the claimant waives its claim due to voluntary discharge of the claim by the respondent, it shall be ordered that the respondent compensates the claimant for the expenses related to conducting the matter.
(7) In case the claim is dismissed, or in case the claimant withdraws the claim, it shall be ordered that the claimant compensates the respondent for the expenses related to conducting the matter, except in case referred to in paragraph 3 of this Article.
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