When parties are drafting terms of a contract, they normally do not envisage that this deal in future may create a conflict. However, the consideration of such possibility is very important for a foresight businessman. At this moment the parties are in good relations and are keen to cooperate with each other. This is the perfect time to discuss together a possibility to supplement the contract with an arbitration clause.

Unfortunately, performance of contracts is frequently accompanied by various breaches thereof. If the contract consists an arbitration clause identifying the Lithuanian Court of Arbitration as an institution of dispute settling, the claim (corresponding to the minimum requirements, fixed in the Rules of Arbitration Procedure of the Lithuanian Court of Arbitration) should be filed to the address: Ukmergės g. 223, 07156 Vilnius, Lithuania or (in case it is signed by certified electronic signature) send to the email address: [email protected] The registration and administration fees must be paid before the submission of the claim or on the morrow of it. It is also recommended not to forget to identify the candidate for a position of arbitrator in your claim.

The received claim is registered and if it corresponds to the requirements of the Rules of Arbitration Procedure of the Lithuanian Court of Arbitration, the chairperson or another authorized employee thereof forwards the arbitration notice and the ruling of the chairperson of the Lithuanian Court of Arbitration on the initiation of the arbitration procedure to the respondent. This ruling specifies the term for the respondent to notify the Lithuanian Court of Arbitration about the acceptability of the claimant’s proposed candidate to arbitrator (where the parties have agreed in advance that the case should be examined by a sole arbitrator) or to propose a candidate to arbitrator (arbitrators) (where the parties have agreed in advance that the case should be examined by three and more arbitrators). When parties agree with nominated candidate (candidates)‚ the arbitrator (arbitrators) will be appointed by the ruling of the chairperson of the Lithuanian Court of Arbitration and the arbitration file will be transferred to the arbitrator (arbitrators). If parties do not reach agreement on the issue of arbitrators within the limits of time indicated in the Rules of Arbitration Procedure of Lithuanian Court of Arbitration, the chairperson of the Lithuanian Court of Arbitration follows the principle of expedition and appoints the arbitrator from the list of suggested arbitrators.

The beginning of arbitration proceeding is considered the day on which the Lithuanian Court of Arbitration passed the case file to the appointed arbitrator (arbitrators) (hereinafter – Arbitral Tribunal). After the commencement of the arbitral examination, Arbitral Tribunal will determine the term for the respondent to submit its statement of defence indicating the circumstances and evidences justifying his objection to the claim. If respondent fails to admit a defence until the term expires, the case can be heard ahead, investigating the other documents, which are presented. As an ordinary court, arbitrators investigate case, evidences and, if necessary, hear witnesses.

After the full investigation of documents and other evidences, the Arbitral Tribunal will issue a final award. It should be noticed that the arbitration award cannot be appealed. However, there are possibilities to fill a complaint to the Lithuanian Appeal Court, in case certain procedural unconformities or violation of public order were noticed according to the article 50 of the Law on Commercial Arbitration of the Republic of Lithuania.

If the decision of the Arbitral Tribunal, which is located in the Republic of Lithuania, is not enforced, the District Court of the Arbitral Tribunal issues a writ of execution at the request of a party in accordance with the procedure established by the Code of Civil Procedure of the Republic of Lithuania. It should be noted, that awards of Arbitral Tribunal can be enforced in all states, which are the parties to the New York Convention (1958 m.).