Rules of Court

1. Name of the Court of Arbitration - Riga District Arbitration Court /hereinafter referred to as the "Court of Arbitration"/. The Court of Arbitration is a standing court of arbitration established for settlement of civil legal disputes subject to the jurisdiction of the court of arbitration. The Court of Arbitration is registered in the Register of Courts of Arbitration with the Register of Enterprises of the Republic of Latvia under No. 40003760582.

2. Name of the Court of Arbitration in Russian: Рижский окружной третейский суд. Name of the Court of Arbitration in English: Riga District Arbitration Court.

3. Founder of the Court of Arbitration: Association "RDAC", reg. No. 40008232684.

4. Website of the Court of Arbitration: www.rigasast.lv

1. The Court of Arbitration settles any civil legal disputes, provided that the parties have voluntarily agreed and concluded an agreement to refer the dispute for resolution by the Court of Arbitration (the "Arbitration Agreement"), except for the disputes:

1) which adjudication may concern the rights protected by the law of such a person, who is not a party to the Arbitration Agreement;

2) in which one of the parties is a state or municipal institution or in which the Arbitration Court award may concern rights of the state or municipal institution;

3) which is related to records in the register of civilian acts;

4) regarding the rights and obligations or statutory protected interests of individuals under guardianship or trusteeship;

5) concerning establishment, modification or termination of proprietary rights to real estate, if a participant of a dispute according to the law has limited eligibility to acquire real estate in ownership, possession or use;

6) regarding ejection of an individual out of the dwelling premises;

7) by and between employee and employer, if the dispute occurred due to conclusion, modification, termination or fulfillment of the employment agreement, as well as due to application or interpretation of the provisions of the law, collective agreement, or working procedure regulations (individual employment dispute);

8) regarding rights and obligations of the persons, for whom an insolvency case has been initiated.

2. The Court of Arbitration does not settle any disputes related to the issues to be adjudicated according to special forms of procedure.

1. If the parties agree in writing that a dispute related to a specific agreement will be referred for resolution by Riga District Arbitration Court (Arbitration Agreement), the dispute will be resolved pursuant to Part D Court of Arbitration of the Civil Procedure Law, the Arbitration Law of the Republic of Latvia, these Rules of Court and an agreement between the parties.

2. Resolving a dispute, the Court of Arbitration shall first find out whether the parties have agreed on the laws and business concepts, according to which their mutual relationship shall be discussed. This agreement is valid insofar as it does not conflict with the provisions of Section 19, 24, 25 of the Civil Law.

3. Unless the parties have agreed on the laws and business concepts, according to which their mutual relationship shall be discussed, or the Court of Arbitration has recognized it as invalid, the law applicable to legal relationship between the parties shall be determined in accordance with the provisions of the Introduction to the Civil Law of Latvia and Regulation No. 593/2008 of the European Parliament and of the Council.

The activities of the Court of Arbitration are directed by the Chairman of the Court of Arbitration, who performs the functions set out in the Rules of the Court of Arbitration.

1. An arbitration agreement is an agreement entered into between the parties in order to refer a dispute, which has already arisen or may arise in the future for resolution by a court of arbitration.

2. An arbitration agreement may be entered into by any natural person with the capacity to act regardless of their citizenship and place of residence, or a legal person registered in Latvia or abroad, or any other person governed by the private law.

3. An arbitration agreement shall be entered into in written form, and the agreement signed between the parties on referring a dispute for resolution by the Court of Arbitration (Arbitration Agreement) may be made in the form of:

1) a separate mutual agreement;

2) a separate provision (arbitration clause), which may be included in any agreement;

3) an agreement, which has been entered into by exchange of items sent via post or by means of electronic communication by the parties and ensuring that the intent of both parties to refer an existing or possible civil legal dispute for resolution to a court of arbitration is confirmed with a safe electronic signature, shall also be considered as an agreement in writing.

4. Entering into an arbitration agreement, the parties may additionally agree on the number of arbitrators, the order of arbitration proceedings, oral or written proceedings, place of arbitration proceedings, language of arbitration proceedings, the procedures for covering arbitration costs, applicable law and other issues as provided for by law.

5. If the parties have agreed that a dispute is referred for settlement by a court of arbitration, and have not decided on a specific court of arbitration, and the plaintiff has submitted a claim to Riga District Arbitration Court, then, if the other party agrees thereto, the dispute shall be subject to Riga District Arbitration Court. Such approval is presumed to be received, if the other party did not raise objections within 20 days after sending the relevant notice of Riga District Arbitration Court.

1. Persons, who have entered into an agreement to refer a dispute for resolution by the Court of Arbitration, are not entitled to withdraw from such agreement, unless the arbitration agreement is modified or revoked in accordance with the procedures laid down in the law or by the agreement.

2. An arbitration agreement shall be valid as long as the legal relationship, due to which it has been entered into, has not been terminated.

3. If an agreement on referring a dispute for resolution by the Court of Arbitration has been included in another agreement between the parties as a separate provision, this agreement shall be considered as an independent agreement. The arbitration agreement shall remain in effect, if the agreement, in which it is included, has expired or is declared null and void.

4. If a claim is assigned, the right of claim shall pass to the assignee apart from the arbitration clause regarding the resolution of a civil legal dispute in the Court of Arbitration as included in the agreement. Assignment of a claim is the basis for the termination of arbitration proceedings, unless the parties have agreed anew on the resolution of the civil legal dispute in the Court of Arbitration.

1. The documents prepared by the Court of Arbitration (awards, decisions, notifications, etc.) shall be sent by mail or by electronic mail. Any documents (statements of claim, responses to a claim, etc.) prepared and submitted to the Court of Arbitration by a party, shall be delivered to the other party by the Court of Arbitration by mail or by electronic mail, or the other party shall be informed regarding their receipt by the Court of Arbitration and the possibilities to acquaint itself with them.

2. The documents referred to in Paragraph 1 of this Article shall be sent to a natural person by registered mail to the declared place of residence of the person, but in cases where an additional address is indicated in the declaration — to the additional address, unless the natural person has indicated another address to be used for correspondence with the Court of Arbitration; to a legal person, documents shall be delivered to its legal address.

3. The documents referred to in Paragraph 1 of this Article shall be delivered by electronic mail, provided that the party has notified the Court of Arbitration that he or she agrees to use electronic mail for correspondence with the Court of Arbitration. In this case, the Court of Arbitration shall send the documents to the electronic mail address indicated by the party. If the Court of Arbitration experiences technical obstacles relating to the delivery of documents by electronic mail, they shall be sent by registered mail.

4. Notification of the first sitting of the Court of Arbitration shall be sent to the parties as registered mail not later than 15 days in advance, unless the parties have agreed on a shorter time period.

5. The documents referred to in Paragraph 1 of this Article shall be considered as received on the date of issue, provided that they are delivered and issued to the addressee personally. If they are sent by mail, they shall be considered as received on the seventh day after sending, but if they are sent by electronic mail, they shall be considered as received within two working days after sending.

1. The Arbitral Tribunal shall decide on the arbitration jurisdiction over a dispute.

2. If the parties have agreed to refer a dispute for resolution by the Court of Arbitration, it shall be presumed that the parties have agreed that any dispute, disagreement or claim, arising from a specific agreement, which concerns it or its violation, termination or validity, will be settled in the Court of Arbitration.

3. An application regarding the fact that a dispute or part thereof is not subject to the Court of Arbitration may be submitted by a party until the term for submission of a reference expires.

4. The Court of Arbitration decides on a matter concerning the jurisdiction over a dispute, initiating arbitration proceedings. Nonetheless, the Court of Arbitration may commence arbitration proceedings and decide this matter at any stage of arbitration proceedings.

5. If the Court of Arbitration recognizes that a dispute or part thereof is not subject to the jurisdiction of the Court of Arbitration, the Court of Arbitration terminates legal proceedings in respect of the dispute or part thereof, making a decision on the termination of arbitration proceedings fully or partly.

The Arbitral Tribunal has the right to freely determine the location of arbitration proceedings, taking into account efficiency considerations, if it has not been agreed upon by the parties.

1. The parties have the right to freely determine the procedures for arbitration proceedings.

2. Arbitration proceedings shall be conducted in accordance with the Rules of the Court of Arbitration, unless the parties have agreed in the arbitration agreement on the other order of arbitration proceedings insofar as it is allowed by the Rules of the Court of Arbitration.

1. The parties have the right to agree on the language of arbitration proceedings. If the parties have not agreed thereon, the language of arbitration proceedings shall be determined by the Arbitral Tribunal.

2. If any of the participants in legal proceedings has no manage of the language of legal proceedings, the Court of Arbitration invites an interpreter. The procedure for payment for the interpreter’s services shall be determined by the Court of Arbitration.

3. The Court of Arbitration may require from parties a translation of any documentary evidence or a notarized translation into the language, in which the arbitration proceedings are conducted.

1. The Arbitral Tribunal shall determine the procedural deadlines as laid down in the requirements of the law and the Rules of the Court. Until the Arbitral Tribunal is approved, the procedural deadlines shall be established by the Chairman of the Court of Arbitration.

2. In some cases, if so required, the Court of Arbitration may extend the procedural deadlines on its own initiative or as requested by any of the parties.

3. As requested by the party concerned, the Court of Arbitration (the Arbitral Tribunal or the Chairman of the Court of Arbitration) may decide on the renewal of delayed deadlines, believing that such renewal is reasonable and recognizing that the reason for delay is grounded. A request for the renewal of procedural deadlines submitted by the party concerned shall be accompanied by the documents required for the execution of procedural actions and substantiation for the renewal of deadlines.

1. An arbitrator is a person included in the list of arbitrators of the Court of Arbitration and in accordance with the requirements of an arbitration agreement and the Rules of Court designated for the settlement of a dispute. The list of arbitrators is submitted to the Register of Enterprises and published on the website of the Court of Arbitration.

2. An arbitrator may be designated from a list of arbitrators. Arbitrators included in the list of arbitrators shall meet the requirements of Article 14, 15 of the Arbitration Law and agree in writing to be included in the list of arbitrators.

3. An arbitrator shall perform his duties in good faith, without being subject to any influence, must be independent and impartial. An arbitrator may not participate in the adjudication of a matter in the cases listed in Article 16 of the Arbitration Law.

4. The Arbitral Tribunal may be composed of one arbitrator, if so agreed between the parties.

5. The number of arbitrators shall be odd. Unless the parties have agreed on the number of arbitrators, the Arbitral Tribunal consists of three arbitrators.

1. The procedure for appointing arbitrators shall be determined by the parties. Unless the parties have agreed on the procedure for appointing arbitrators, arbitrators shall be appointed in accordance with the Rules of the Court of Arbitration, observing the principle of equality of the parties.

2. If the parties have agreed to appoint one arbitrator without agreeing on a specific arbitrator, the Court of Arbitration offers to the defendant to agree with the plaintiff on a specific arbitrator, sending to the defendant a notice on the receipt of a claim. If the parties fail to agree on a specific arbitrator within the time period established by the Court of Arbitration, the arbitrator shall be appointed by the Chairman of the Court of Arbitration.

3. Unless the parties have agreed on the procedure for appointment of arbitrators, arbitrators shall be appointed as follows:

1) submitting a claim to the Court of Arbitration, the plaintiff specifies a candidate for arbitrator from a list of arbitrators;

2) within 15 days from the date of sending a statement of claim, the defendant submits to the Court of Arbitration and the plaintiff an application on a candidate for the second arbitrator from a list of arbitrators;

3) two arbitrators selected by the parties immediately select the third arbitrator from a list of arbitrators, who is the chairman of the Arbitral Tribunall;

4) if two arbitrators selected by the parties fail to agree on the third arbitrator within 3 days, he shall be appointed by the Chairman of the Court of Arbitration;

5) unless a defendant submits to the Court of Arbitration an application for the appointment of an arbitrator, the second arbitrator shall be appointed by the Chairman of the Court of Arbitration, and the third arbitrator - in accordance with the above procedure.

4. If a claim is raised by several plaintiffs or against several defendants, these plaintiffs or defendants within the term set to submit a response to the statement of claim shall agree on the candidate for arbitrator to be appointed on their behalf. If no agreement is reached, the arbitrator is appointed by the Chairman of the Court of Arbitration.

If one party has appointed an arbitrator and has informed accordingly the other party, the appointing party may not challenge the arbitrator without the consent of the other party.

1. The person, who is requested to give consent to act as an arbitrator, shall notify the parties of any circumstances likely to give rise to justifiable doubts regarding his impartiality and independence. Where the arbitrator becomes aware of these circumstances after the commencement of arbitration proceedings, but before the termination of arbitration proceedings, the arbitrator shall notify the parties thereof immediately.

2. An arbitrator may be challenged, if:

1) the restrictions referred to in the first part of Section 16 of the Arbitration Law regarding participation of an arbitrator in the adjudication of a case apply to him or her and the arbitrator has not recused himself or herself;

2) the arbitrator does not conform to the requirements of the Arbitration Law or the requirements agreed upon by the parties;

3) there are other circumstances that cause reasonable doubt as to the objectivity and independence of the arbitrator.

3. A party may remove the arbitrator, whom it has appointed, or in whose appointment it has participated, only where the grounds for refusal have become known to such party after appointment of the arbitrator.

4. Parties may agree on the procedures for the removal of an arbitrator in an agreement.

5. Unless the parties have agreed on the procedure for the removal of an arbitrator, a party may apply for the removal of the arbitrator within 5 (five) days from the day, on which the party has become informed regarding the appointment of the arbitrator, or has become informed regarding the reason for removal, sending a notice to the Court of Arbitration, specifying the arbitrator that the party wishes to remove and the grounds for the removal.

6. If the arbitrator, to whom removal has been declared, does not withdraw from performing his or her duties, the Arbitral Tribunal or the arbitrator himself or herself shall decide on the removal within 5 (five) days after receipt of the notice.

1. The term of office of an arbitrator shall be terminated:

1) if the refusal of the arbitrator has been accepted;

2) if the arbitrator has recused himself or herself from resolving a civil legal dispute;

3) if the parties have agreed on the dismissal of the arbitrator;

4) if the arbitrator is subject to the restrictions specified in Section 15 of the Arbitration Law;

5) with his or her death;

6) the arbitrator cannot perform his or her duties of an arbitrator for more than one month (absence, illness or other reasons).

2. The parties may freely agree on the procedures for terminating the term of office of an arbitrator. If the parties have not agreed thereon, the Chairman of the Court of Arbitration shall decide on terminating the term of office of an arbitrator or appointing a new arbitrator as requested by the party or on their own initiative.

1. If an arbitrator’s term of office is terminated, a new arbitrator shall be appointed in accordance with the procedures laid down in Article 14 of these Rules of Court.

2. In case of change of an arbitrator, where a dispute is settled by a sole arbitrator, or where a new chairman is appointed, the dispute settlement proceedings shall be restarted. If one of the arbitrators of the Arbitral Tribunal is replaced, the Arbitral Tribunal shall decide whether to start from the beginning or to continue the dispute settlement proceedings.

1. The parties to the arbitration proceedings shall have equal procedural rights. The Arbitral Tribunal shall ensure that the parties have equal opportunity to exercise their rights for the protection of their interests.

2. In the course of reviewing a civil legal dispute, the parties shall exercise their procedural rights in the form of adversary proceedings. In adversary proceedings, the parties may submit evidence, provide explanations and applications addressed to the Arbitral Tribunal, participate in the examination and assessment of evidence, and take other procedural actions.

1. Natural persons shall conduct their cases in the Court of Arbitration themselves or through an authorised representative. Cases of legal persons shall be conducted in the Court of Arbitration by their official, acting within the scope of his or her authorisation provided for in the law, articles of association or statutes, or by an authorised representative of the legal person.

2. Any natural person may act as an authorised representative, except for the persons who:

1) have not attained legal age;

2) are under trusteeship;

3) a person who, according to the judgment of a court, has been deprived of the right to conduct the cases of other persons;

4) are in a relationship of kinship up to the third degree, or in a relationship of affinity up to the second degree, with an arbitrator resolving the civil legal dispute;

5) have rendered legal assistance to the other party to the civil legal dispute in this case or in another case related thereto;

6) have participated in mediation in this case or in another case related thereto;

7) are or for the last five years have been on the list of arbitrators of the Court of Arbitration, may not be a representative of the party and may not be involved to render legal assistance in arbitration proceedings.

3. Finding out the circumstances referred to in Paragraph 2 of this Article, the Arbitral Tribunal does not allow to involve such persons in the settlement of a civil legal dispute.

4. An authorized person of a party shall present to the Court of Arbitration a duly issued power of attorney or an authorization contract.

5. Parties may invite sworn advocates to render legal assistance during arbitration proceedings.

1. Arbitration proceedings shall be confidential, unless the parties have agreed otherwise. Sittings of the Court of Arbitration shall be closed, and the Arbitral Tribunal shall not disclose to any third parties or publish the information concerning arbitration proceedings, unless the parties have agreed otherwise. Persons, who are not parties to arbitration proceedings, may only be present at the sitting of the Court of Arbitration with the consent of the parties.

2. Information regarding arbitration proceedings shall be provided to persons, who are entitled to receive such information for the performance of functions laid down in the law.

1. Accepting a dispute for resolution, the Court of Arbitration determines the amount of costs related to arbitration proceedings, which comprise:

1) arbitration expenses;

2) arbitrator’s fee;

3) travelling and other expenses of arbitrators;

4) sums to be paid to experts, interpreters and other persons;

5) other expenses in the amount acceptable by the Court of Arbitration;

6) expenses related to legal representation of the party in whose favour a judgment is rendered, provided that it was informed of such expenses in the course of arbitration proceedings and the Court of Arbitration recognized them as reasonable.

2. Arbitration costs and arbitrator's fee shall depend on the amount of a claim, complicacy of a dispute and the number of arbitrators involved in the dispute settlement proceedings and shall be determined by Annex 1 to these Rules of Court. Submitting a statement of claim to the Court of Arbitration, a plaintiff shall pay arbitration costs and arbitrator's fee into the bank account specified in Annex 1 to the Rules of Court.

3. Sums to be paid to interpreter and secretary, costs of expert-examination and expert’s participation in arbitration proceedings, as well as other expenses related to arbitration proceedings shall be paid by the party, who has submitted the relevant request. If the above services are requested by both parties, they shall pay for the services in equal parts. Secretary, interpreter or experts shall be invited to participate in arbitration proceedings only after the party pays remuneration for the services of these persons as determined by the Court of Arbitration.

4. The Chairman of the Court of Arbitration has the right to reduce the amount of arbitration costs and arbitrator’s fee upon a motivated request from the party.

5. Dispute settlement expenses shall be reimbursed fully or partially in the following cases:

1) where the amount of dispute settlement expenses paid exceeds the amount determined by these Rules of Court or the Court of Arbitration;

2) where the party has paid remuneration for the services of secretary, interpreter or expert, but these services or advance payment sums are not used to the full extent, the sums paid or unutilized amounts shall be returned to the party, who has paid them;

3) where a statement of claim is left without hearing or a plaintiff withdraws his or her claim before the Arbitral Tribunal is formed, the arbitrator's fee shall be returned to the party.

1. Arbitration expenses shall be covered by the party, for whom an award rendered by the Court of Arbitration turned unfavourable, except for the cases specified in Paragraph 2 of this Article. Where the claim is satisfied partially, recovery of arbitration costs shall be adjudged to the plaintiff proportionally to the amount of claim satisfied by the Court of Arbitration, and to the defendant - proportionally to the amount of claim declined by the Court of Arbitration.

2. If arbitration proceedings are terminated due to reaching a settlement, and the parties to the settlement did not determine the procedure for division of arbitration costs and arbitrators’ fees, such expenses shall be divided between the parties as determined by the Court of Arbitration.

3. Where a claim is left without hearing or a plaintiff withdraws his or her claim prior to the appointment of the Arbitral Tribunal, the Chairman of the Court of Arbitration may decide on the reimbursement of the arbitrator’s fee.

4. If a plaintiff reduces the amount of a claim or it is withdrawn after commencing hearing of the case, the arbitration expenses paid are not reimbursed.

5. In the course of the dispute settlement procedure the parties may increase the amount of a claim, paying additional arbitration costs.

6. The parties may agree on the division of arbitration expenses between them.

1. Arbitration proceedings commence upon submission of a statement of claim to the Court of Arbitration. The statement of claim shall be submitted in writing in Latvian or in the language, in which the parties have agreed to settle their dispute.

2. If a statement of claim and documents attached thereto meet the requirements of the Rules of the Court, the Court of Arbitration shall send to the defendant a notice of initiation of arbitration proceedings and copy of the statement of claim immediately, explaining the right of the defendant to submit a written response to the claim, and shall send the original copy of the statement of claim (or shall notify of receipt of the statement of claim in the Court of Arbitration and how it is possible to study it).

3. If a statement of claim and documents attached thereto do not meet the requirements of the Rules of Court, the Chairman of the Court of Arbitration leaves the statement of claim without further action and informs the submitter thereof, determining a timeframe for correcting flaws, and:

1) If within the time period set by the Chairman of the Court of Arbitration flaws are corrected, the statement of claim shall be deemed to be submitted and arbitration proceedings shall be commenced.

2) If within the time period set by the Chairman of the Court of Arbitration flaws are not corrected, the statement of claim shall be returned to the submitter without examination.

1. A statement of claim shall include:

1) Information about the parties:

a) for a legal person: name, registered office and registration number;

b) for a natural person: given name, surname, personal identity number, declared place of residence, but if none, place of residence;

c) identity number or registration number of the defendant is specified, if it is known;

d) in the case of claims raised by a representative: for a natural person - given name, surname, identity number of the plaintiff's representative and his or her address for correspondence with the arbitration court; for a legal person  - its name, registration number and registered office;

2) the subject of a claim, the sum of a claim, calculation of the sum of a claim, in claims for the recovery of monetary means - name of the credit institution and account number, to which payment is to be made, if any;

3) grounds for a claim and evidence proving it;

4) claims raised by the plaintiff;

5) a list of documents attached;

6) a number of arbitrators, surnames of arbitrators.

2. A statement of claim shall be accompanied by:

1) an arbitration agreement between the parties, unless it is included in an agreement, in connection with which the dispute has arisen;

2) an agreement, in connection with which the dispute has arisen;

3) documents referred to by the plaintiff in the statement of claim;

4) copies of the statement of claim for other parties to arbitration proceedings;

5) documentary evidence on arbitration procedure expenses and arbitrator's fee.

1. The defendant shall submit to the plaintiff and the Court of Arbitration a response to a claim within the time period specified by the parties or by the Court of Arbitration. The time period for the submission of the response may not be less than 15 (fifteen) days, counting from the day of sending the statement of claim to the defendant. Considering location of the defendant, complicacy of a dispute, quantity of defendants, the Court of Arbitration may determine a longer term for submitting of the statement of defence.

2. In the response to a claim, the defendant shall indicate:

1) whether he or she admits the claim fully or partially;

2) his or her objections to the claim;

3) the circumstances justifying his or her objections, and evidence, which certify his or her objections;

4) other circumstances, which he or she considers to be important in the examination of the civil legal dispute;

5) his or her telephone number or electronic mail address, if he or she agrees to use telephone or electronic mail for correspondence with the Court of Arbitration.

3. Failure to submit a response to a claim is not an impediment to the adjudicating of a civil legal dispute.

4. A response to a claim shall be submitted to the Court of Arbitration, appending thereto as many true copies as there are participants in the matter.

1. The defendant has the right to submit a counterclaim, which the Court of Arbitration may examine together with the claim.

2. A counterclaim shall be submitted in written form, appending thereto as many true copies as there are participants in the case. The counterclaim shall be subject to the same conditions of these Rules of Court that apply to the statement of claim.

3. The parties may freely agree on the procedures for submitting a counterclaim. Unless the parties have agreed on the other procedure for submitting a counterclaim, the counterclaim shall be submitted within the time period determined for submitting a response to the claim.

4. The Court of Arbitration shall accept a counterclaim where the subject of the counterclaim is covered by an arbitration agreement and:

1) an offset is possible between the original claim and the counterclaim;

2) satisfaction of the counterclaim partially or fully excludes satisfaction of the original claim;

3) the counterclaim and the original claim are interrelated and their examination in the aggregate will lead to a faster and more accurate adjudication of the case.

5. A decision on accepting a counterclaim is taken by the Chairman of the Court of Arbitration.

6. A counterclaim accepted by the Court of Arbitration is examined together with the original claim.

1. A party has the right to amend or supplement his or her claim, counterclaim or response to a claim during arbitration proceedings until resolution of the subject-matter of the dispute has commenced.

2. If the basis of a claim is amended or supplemented, the defendant has the right to submit a written response within the time period specified by the Arbitral Tribunal. The provisions of Article 26 of the Rules of Court are applicable to the submission of the response.

1. After receiving a response to the claim from the defendant, or a time period for submitting a response to the claim as laid down in the Rules of Court has expired, and the Arbitral Tribunal is formed, the Court of Arbitration determines the day, time and place of the sitting of the Court of Arbitration.

2. Taking into account an arbitration agreement concluded between the parties, the Court of Arbitration shall either hold sittings to hear explanations and objections of the parties and to examine evidence (oral proceedings), or shall resolve a dispute on the basis of documentary evidence and materials submitted only (written proceedings). The Court of Arbitration shall hold oral proceedings also where the parties have previously agreed on a written procedure, but where one of the parties, until the making of an award, requests oral proceedings. In this case the Court of Arbitration decides on the date of oral proceedings and informs the parties thereof.

3. The Court of Arbitration shall timely inform the parties of the sitting of the Court of Arbitration and the Arbitral Tribunal. Notification on the first sitting of the Court of Arbitration shall be sent to the parties to the case within 15 (fifteen) days prior to the sitting, unless the parties have agreed on a shorter period of time. Notification on the current (second and next) sitting of the Court of Arbitration shall be handed in to the parties against signature or sent by registered mail at least 5 (five) days prior to the sitting.

4. The arbitration panel shall acquaint the parties with submissions, documents and other information, which it has obtained, as well as with expert opinions and other evidence.

1. If the Court of Arbitration finds that a dispute may not be settled at a specific sitting, the dispute settlement proceedings may be adjourned.

2. Where appropriate, the Court of Arbitration may take a decision to suspend arbitration proceedings.

3. The Court of Arbitration shall leave a claim undecided, if:

1) the statement of claim was submitted by an incapable person or a person for whom trusteeship was established pursuant to the provisions of Section 365 of the Civil Law;

2) the claim was raised on behalf of the plaintiff by a person not authorized to do so as laid down in the law;

3) in the case specified in Paragraph 3 of Article 24 of the Rules of Court.

4. The Court of Arbitration may dismiss a claim:

1) if so requested by the plaintiff;

2) if the plaintiff repeatedly fails to attend a court sitting without asking to settle the dispute in his or her absence.

5. The Court of Arbitration shall decide on a dismissed claim, issuing a separate procedural document.

6. If a claim is dismissed, the plaintiff has the right to re-submit the statement of claim in the Court of Arbitration, observing the procedure laid down in the law and the Rules of Court.

1. If any of the parties or their representatives, who are duly informed in accordance with the Rules of the Court, fail to attend oral arbitration proceedings, without notifying of the reasons for absence, or if the Court of Arbitration does not recognize the reasons for absence of the party as justified, including also if the party fails to attach documents, confirming justified reasons for failure to attend the arbitration sitting, to the notification, the Court of Arbitration settles the dispute on the basis of the evidence available with the Court of Arbitration.

2. If any of the parties, who was duly offered to provide written or other evidence, which shall be provided in accordance with the Rules of the Court or at the request of the Court of Arbitration, fails to provide it in due course, or refuses to provide evidence to the Court of Arbitration, the Court of Arbitration continues arbitration proceedings and resolves the dispute on the basis of the evidence at its disposal.

3. If the defendant does not submit a response to the claim in the Court of Arbitration, the Court of Arbitration continues arbitration proceedings and resolves the civil legal dispute on the basis of the evidence at its disposal.

1. Evidentiary means in the Court of Arbitration may consist of explanations of the parties, documentary evidence, real evidence and expert opinions.

2. Evidence shall be submitted by the parties. Each party shall prove the circumstances used by it to justify its claims and objections.

3. The Arbitral Tribunal is entitled to request, upon substantiated request from a party, that documentary evidence in the possession of the other party be submitted. The party asking the Arbitral Tribunal to request documentary evidence shall describe such evidence and provide reasons for presuming why the evidence is in the possession of the other party. If a party refuses to submit the documentary evidence requested by the Arbitral Tribunal within the time period set by it, without denying that the party possesses such evidence, the Arbitral Tribunal may admit as proven the facts, which the opposite party sought to prove by referring to such documentary evidence.

4. Documents shall be submitted in the form of an original or in the form of a duly certified true copy, copy, or extract. If a party submits a true copy, copy or extract of a document, the Arbitral Tribunal may itself, or upon request of the other party, require that the original document be submitted. The Arbitral Tribunal shall return the original document to the person who submitted it, upon request of this person, adding a duly certified true copy, copy or extract of the document to the materials of the arbitration proceedings.

5. The Arbitral Tribunal shall determine the admissibility and eligibility of evidence. No evidence shall have any predetermined effect as would be binding upon the Arbitral Tribunal. The reasoning of the award shall indicate why tha Arbitral Tribunal has given preference to one body of evidence in comparison to another, and has found certain facts as proven, but other as not proven.

1. Unless an arbitration agreement provides otherwise, the arbitration panel may, upon request of a party, order an expert-examination and assign its performance to one or several experts.

2. Finding a request submitted by the party as reasonable, the Court of Arbitration shall decide on conducting an expert-examination or inviting an expert.

3. The parties shall, upon request of the Arbitral Tribunal submit the necessary information or documents, or present goods or other items, to the expert.

4. After the expert opinion is prepared and received by the Arbitral Tribunal, the parties have the right to study it.

5. Upon request of a party, the arbitration panel shall invite the expert to participate in the arbitration hearing. Parties are entitled to ask questions to the expert about the expert opinion.

1. The fact that a natural person, who is a party, dies or a legal person, who is a party has ceased to exist, shall not in itself terminate an arbitration agreement, unless otherwise agreed upon between the parties and the disputed legal relations allow for the taking over of rights.

2. In this case the Court of Arbitration shall suspend arbitration proceedings until a successor in rights of the party is determined.

3. Cession of a claim shall be the basis for termination of arbitration proceedings, unless the parties have agreed upon resolution of the civil legal dispute by the Court of Arbitration anew.

1. A party has the right to immediately submit written objections to the Court of Arbitration or to other party, if it believes that any of the rules of arbitration proceedings are down in the Civil Law, the Arbitration Law of Latvia, the Rules of the Court or the arbitration agreement between the parties are violated or not observed, insofar as the party became aware or had a duty to become aware of such violation.

2. The Court of Arbitration shall decide whether the objections are well founded. If the Court of Arbitration recognizes objections as well founded, it shall eliminate violations of arbitration proceedings prior to continuing them.

3. If a party does not submit such written objections immediately, it shall be deemed that the party has waived the right to raise such objections, except for cases where the party has not raised objections due to reasons beyond its control.

1. Minutes of the Court of Arbitration sitting shall be taken only if a party so requests and has paid fee for the secretary’s services in the Court of Arbitration.

2. Minutes shall be taken by the secretary appointed by the Court of Arbitration.

3. Minutes shall be signed by all arbitrators and the secretary. Minutes shall be signed not later than within 3 (three) days after the Court of Arbitration sitting. The parties are entitled to acquaint themselves with the minutes signed, and, within 5 (five) days after signing thereof, submit written objections, stating the faults found in the minutes. The validity of objections shall be decided upon by the arbitration panel.

1. All resolutions (decisions and awards) of the Arbitral Tribunal consisting of more than one arbitrator shall be made by a simple majority of votes.

2. The resolutions of the Court of Arbitration shall come into effect on the day it is made. An award of the Court of Arbitration may not be appealed.

3. Signatures of arbitrators on the award shall be certified by the seal of the Court of Arbitration.

1. If during arbitration proceedings the parties enter into a settlement, the Court of Arbitration shall terminate arbitration proceedings.

2. The amicable settlement shall be concludid by the parties in writing and it shall contain the following information: for a legal person - its name, registration number and legal address; for a natural person - given name, surname, identity number and declared place of residence, as well as the subject-matter of a dispute and obligations of each party, which they undertake to fulfil voluntarily.

3. If during the arbitration proceedings the parties have concluded amicable settlement, the Arbitral Tribunal terminates the arbitration proceeding and, if the parties request so and the Arbitral Tribunal approves that, the Arbitral Tribunal shall compose the amicable settlement in the form of award af 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 force as any other award of the Court of Arbitration, where the civil disput has been resolved on merits.

4. Settlement shall not be permitted, if its terms infringe on the rights and interests protected by law of another person.

1. The Arbitral Tribunal shall issue the award within 14 (fourteen) days after the subject-matter of a civil legal dispute is reviewed. The arbitration panel shall issue the award in writing. The award shall be signed by all the arbitrators and shall bear the date and place of rendering the judgment. If any of the arbitrators does not sign the award, the award of the Court of Arbitration shall specify the reasons why their signature is missing.

2. the award shall contine the following information:

1) the panel of the Arbitral Tribunal;

2) the date of making of the award and the place of the arbitral proceeding;

3) information of the parties - for a natural person - given name, surname, personal identity number, other personal identification information and declared place of residence, or other address, which can be used for correspondence; for a legal person - name, registration number, other personal identification information and registered office;

4) the subject-matter of a dispute;

5) reasons 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 af award of the Arbitral Tribunal;

7) the amount to be recovered, if the award is rendered regarding recovery of monetary means, indicating separately the principal debt and interest, the time period for which interest has been adjudged, the rights of the plaintiff as to the receipt of interest for the time period until the execution of the award, including also a reference to the extent thereof;

8) a specific property and value thereof, which is to be recovered in the event that the property does not exist, if the award is rendered regarding recovery of property in specie;

9) what actions, by whom, and within what time period are to be fulfilled, if the award imposes a duty to fulfil certain actions;

10) what part of the award refers to each plaintiff, if the award is made for the benefit of more than one plaintiff, or what part of the award is to be fulfilled by each defendant, if the award is made against more than one defendant;

11) expenses related to arbitration proceedings and the distribution of such expenses and expenses related to rendering legal assistance among the parties;

12) expenses related to legal assistance in the case of the parties, if any, and the distribution of such expenses among the parties;

13) other information, which the Arbitral Tribunal considers necessary.

1. The award of the Arbitral Tribunal (or its copy) shall be delivered to the parties or their representatives in person or by mail.

2. An award of the Arbitral Tribunal shall be delivered or sent to the parties within 3 (three) days from the day of making a full award.

1. The Arbitral Tribunal is entitled, on its own initiative or upon request of a party, to correct any clerical or mathematical calculation errors in the award. Such errors may be corrected without the participation of parties.

2. Unless otherwise agreed upon by the parties, a party may, by informing the other party thereof, within 30 (thirty) days after the date when a true copy of the award is sent or received, if delivered personally, request the Arbitral Tribunal to explain the award, without amending its contents. An explanation of the award shall become an integral part of the award from the moment of adoption thereof.

3. Unless otherwise agreed upon by the parties, a party may, by informing the other party thereof, within 30 (thirty) days after the date when a true copy of the award is sent or received, if delivered personally, request the Arbitral Tribunal to make a supplementary award, if any of the claims, for which evidence has been submitted, and for which the parties have provided explanations, has not been adjudged. If the Arbitral Tribunal finds the request substantiated, it shall make a supplementary award.

4. The Arbitral Tribunal shall notify the parties of the sitting of the Court of Arbitration, in which the matter of correction or explanation of the award, or making of a supplementary award is to be decided, not later than 15 (fifteen) days in advance. If the operative part of the award may change as a result of correcting the award, but the essence of the award remains unchanged, the Arbitral Tribunal shall invite the parties to express their opinions. The failure of parties to attend is not an impediment to the correction or explanation of the award or making of a supplementary award. The Arbitral Tribunal shall make a supplementary award in accordance with Article 39 of the Rules of the Court.

1. The Arbitral Tribunal shall take a decision to terminate arbitration proceedings if:

1) the plaintiff withdraws his or her claim;

2) the parties agree on a settlement;

3) an arbitration agreement has, in accordance with the procedures laid down in law or by the agreement, ceased to be in effect;

4) the arbitration panel finds that the Court of Arbitration does not have jurisdiction over the dispute;

5) a natural person, who is one of the parties, dies, or a legal person, who is one of the parties, ceases to exist, and the disputed legal relationship does not allow for the taking over of rights, or the parties have agreed that in such case the arbitration proceedings are to be terminated.

2. If the plaintiff withdraws his or her claim prior to forming the Arbitral Tribunal, a decision on the termination of arbitration proceedings shall be made by the Chairman of the Court of Arbitration.

3. If arbitration proceedings are terminated because of the reasons mentioned in paragraph 1.1 or 1.2 of this Article, and if the dispute is settled between the same parties, on the same subject and on the same grounds, the parties shall not be allowed to make repeated appeal to the Court of Arbitration or district (city) court.

4. If arbitration proceedings are terminated because of the reasons mentioned in paragraph 1.3, 1.4 or 1.5 of this Article, a statement of claim may be submitted to the district (city) court.

1. the award of the Court of Arbitration is mandatory for the parties and shall be executed voluntarily within the time period stipulated in such award. The time period provided for the voluntary execution of the award shall not be less than 10 (ten) days.

2. If the award of the Court of Arbitration is to be executed in Latvia, but is not being executed voluntarily, the interested party is entitled, in accordance with the procedures laid down in the Civil Procedure Law, to file an application with a district (city) court for the issue of a writ of execution for compulsory enforcement of the award of a permanent court of arbitration.

3. If the award of the Court of Arbitration is to be fulfilled outside Latvia, but is not being executed voluntarily, it shall be subject to compulsory execution in accordance with the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958.

1. Documents of arbitration proceedings shall be stored for 10 (ten) years after completion of arbitration proceedings in accordance with the procedures laid down in the laws and regulations regarding storage of archival documents.