FAQ

General information

Flexibility: the parties may choose the number of arbitrators, the place, the language and other conditions of arbitration proceedings, which are not in conflict with the mandatory rules of the Law on Commercial Arbitration of the Republic of Lithuania and the Rules Arbitration Procedure of Lithuanian Court of Arbitration.

Lower time costs: if parties are willing to cooperate, the dispute in the simplified arbitration procedure can be examined and the decision is made faster than in 1 month, in other cases in less than 2 months.

Lower financial costs: Arbitrage fees paid to the Lithuanian Court of Arbitration are not only lower than the costs of litigation, but are also among the most affordable in comparison with other institutions of this kind.

Lower finansial costs are due to:

  • The possibility for the parties to settle the dispute themselves, without using representatives’ services;
  • A flexible differentiation of the amount of the claim and, consequently, the administration fee. See more: Price list.
  • The opportunity to settle a dispute by simplified arbitration process by paying a fixed fee, independent of the claim amount. See more: Price list.

Confidentiality which involves not only the closure of the hearings, but also the non-disclosure of all information relating to the actual or ongoing examination of a particular dispute (for example, data on the dispute parties, the nature of the dispute and the fact of the dispute itself).

In order to ensure the confidentiality of the proceedings, any information about the proceedings is submitted in person only to the parties of the dispute or their authorized persons. Information may also be submitted to the court or other law enforcement authorities in accordance with the procedure established by law. However, even in such cases, the request for information must specify exactly what information is needed.

High arbitrator qualification: the list of recommended arbitrators involves recognized dispute resolution specialists. The arbitrator is elected by the parties themselves. This determines the possibility of assign the examination of your dispute to the best professionals in the field.

A simple procedure for the recognition and enforcement of decisions in Lithuania and abroad: in Lithuania, the procedure for executing arbitral award and is the same as in case of court’s ruling. Abroad, arbitration awards are recognized and enforced in accordance with the 1958 New York Convention on Recognition and Enforcement of Foreign Arbitral Awards.

Institutional and ad hoc are two different types of arbitration. In the case of institutional arbitration, the arbitration proceedings are administered and organized by a permanent arbitral institution. Its functions are mainly related to the appointment of arbitrators, the consideration of their challenge issues, the forwarding of documents, the provision of premises for meetings, the consultation on enforcement issues etc. In case of ad hoc arbitration, dispute parties communicate directly with the arbitrators, negotiate their remuneration, process, deadlines, take care of the place suitable for the meetings etc.

Both types of arbitration have their strengths and weaknesses. As a rule, institutional arbitration is more expensive, but on the other hand, parties are provided with dispute settlement services and administration services, which saves time for both parties and arbitrators.

The Lithuanian Court of Arbitration was established in 2010. Its primary function is to organize and serve the resolution of international commercial disputes and other disputes, which may be resolved by arbitration

The Lithuanian Court of Arbitration proposes services of a new quality dispute settlement via arbitration, which are characterized by professionalism, efficiency, and economy, application of the latest technologies and reflection of the best practices of foreign countries. See more: General information.

Arbitrage fees paid to the Lithuanian Court of Arbitration are both lower than the costs of litigation, and also the most affordable in comparison with other institutions of this kind.

It is important to note that the Lithuanian Court of Arbitration provides the opportunity to settle the dispute through a simplified arbitration process, the fee for which does not depend on the amount of the claim. A flexible differentiation of claims’ amount is also applied. See more: Price list.

Arbitration clause

The explicit naming of a permanent arbitration institution in an arbitration clause allows one to avoid additional questions about the competence of that institution to settle a dispute and thus allows more efficient and often more cost-effective resolution of the dispute.

If the arbitration clause does not specify the name of the particular permanent arbitration institution or indicates institution that does not exist and the claim is submitted to the Lithuanian Court of Arbitration, the respondent has the right to make a claim regarding the competence of Arbitral Tribunal before the expiry of the deadline set in the ruling of the Arbitral Tribunal. If the defendant expresses objections to the competence of the Lithuanian Arbitration Court to resolve a particular dispute, this issue shall be resolved by the Arbitrator (arbitrators) in accordance with the “competence-competence” doctrine, which means that the arbitral tribunal has the right to make a decision on its own competence to hear a dispute, including in cases of doubt in the existence or validity of an arbitration agreement.

Yes, by entering an arbitration clause the parties may immediately agree on the number of arbitrators, the place, language and other issues of arbitration proceedings, to the extent that it does not conflict with the mandatory rules of the Law on Commercial Arbitration of the Republic of Lithuania and the Rules of Arbitration Procedure of the Arbitration Court of Lithuania.

The text of the arbitration clause does not differ, but the dispute can not be settled by a simplified arbitration process if the arbitration clause indicates the dispute to be settled by more than one arbitrator.

An arbitration clause (arbitration agreement) is valid if it is written and signed by both parties. Such an agreement is considered as concluded not only if it has the form of a joint document signed by the parties but also when parties exchange the letters (which may be sent by electronic communications terminal equipment, provided that the integrity and authenticity of the information transmitted is guaranteed) or other documents recording the fact of such an agreement, or when there is other written evidence that the parties have concluded or recognized an arbitration agreement.

Parties can also exchange complaint and response to it, in which one of the parties approves, and the other party does not deny the existence of an arbitration agreement between them. Thus, an arbitration agreement is valid even if the contract text has been signed by only one party and the other party has conclusively confirmed that the contract containing the arbitration clause is valid and enforced.

Yes, if the parties agree on that. Their agreement is valid if it is written and both parties have signed it or exchanged letters (which may be sent via electronic communications terminals, provided that the integrity and authenticity of the information transmitted is guaranteed) or other documents that record the existence of such an agreement or otherwise express the accord to settle the dispute via arbitration.

Submission of a claim

The claim may be submitted by the claimant or the authorized representative thereof. It is important that in the arbitration process the party can be represented both by attorneys at law or their assistants and also by other persons authorized by the party (for example, a company lawyer, other person authorized by the head of the company or the head of the company himself).

Registration and administration fees must be paid before submission of a claim. The registration fee is fixed and non-refundable. In case of a simplified arbitration process these fees are fixed and do not depend on the amount of the claim. See more: Price list.

Yes, they are except when additional costs related to arbitration proceedings occur. In this case, a compensation fee is payable to cover the actual costs that ocurre because of express international delivery, travel expenses of the arbitrator, costs associated with the services of an interpreter, expert fees, costs associated with the invitation of the witness etc.

It is important to note that the compensation fee must be paid within the time limit set in the invoice but not later than before the final award is taken. There is no need to pay this fee in advance.

Registration fee is not subject to the return. Administration fee or a part thereof by the ruling of the chairperson of the Lithuanian Court of Arbitration can be returned to the party that paid it in the following order:

1) 100 percent of the amount paid where the claimant refuses the claim or withdraws it before the arbitration notice is sent to the respondent;

2) 75 percent of the amount paid where the claimant refuses the claim or withdraws it prior to the formation of the Arbitral Tribunal;

3) 20 to 40 percent of the amount paid when arbitration is cancelled on the grounds of Part 2 of Article 63 of the Rules of Arbitration Procedure of Lithuanian Court of Arbitration hereof;

4) 20 to 40 percent of the amount paid when the claim is left unexamined on the grounds of Part 4 of Article 63 of the Rules of Arbitration Procedure of the Lithuanian Court of Arbitration hereof.

Administration fee is not subject to the return in the following cases:

1) if the case has been solved according to the simplified procedure;

2) if the award of the Arbitral Tribunal has been anulled by the Court of Appeal of Lithuania or the Supreme Court of Lithuania;

3) if the ruling to leave the claim unexamined under Part 3 of Article 14 of the Rules of Arbitration Procedure of the Lithuanian Court of Arbitration, i.e. if the parties within 5 business days from the date of the direction of the chairperson of the Lithuanian Court of Arbitration have not paid the compensation fee.

Admission of a claim and appointment of arbitrator (arbitrators)

In order to ensure an expeditious and objective investigation of the dispute, it is necessary to indicate the candidature of the proposed arbitrator when filing a claim.

If the arbitration clause provides for the dispute to be settled by one arbitrator, the Lithuanian Court of Arbitration will coordinate the final agreement of the claimant and the respondent on the candidature of the arbitrator. If the agreement is not reached, the arbitrator shall be appointed by the chairperson of the Lithuanian Court of Arbitration from the list of recommended arbitrators.

If the arbitration clause provides for the dispute to be settled by three arbitrators, each of the parties has to indicate the arbitrator to be appointed on their behalf. The both appointed arbitrators shall elect a third arbitrator. If the arbitrators appointed by the parties fail to agree on the candidacy of the third arbitrator, the third arbitrator shall be appointed by the chairperson of the Lithuanian Court of Arbitration from the list of recommended arbitrators.

You can choose an arbitrator from the list of arbitrators recommended by the Lithuanian Court of Arbitration according to his surname, professional activity, specialization, working language. You can find the list of arbitrators here.

Before choosing an arbitrator it is recommended to explore his activities, expertise and experience. The Lithuanian Court of Arbitration may provide more detailed information about its recommended arbitrators.

It should be noted that if the parties can not agree on the candidacy of the arbitrator within the set time limit, the chairperson of the Lithuanian Court of Arbitration shall appoint the arbitrator from the list of recommended arbitrators.

Yes, it is possible. In this case, when filing a claim or informing the Lithuanian Court of Arbitration about the desired arbitrator, it is necessary to provide an additional document, ie the written consent of a free form of the proposed candidate to be an arbitrator in a particular case.

Ensuring the impartiality and independence of an arbitrator is the responsibility of both the arbitrator and the appointing authority as well as the parties, since, having chosen to settle the dispute through arbitration, the parties can both agree on the number of arbitrators procedure their appointment and once the dispute has been initiated, on particular candidatures of independent and impartial arbitrators as well.

In order to ensure the impartiality and independence of an arbitrator, the Lithuanian Court of Arbitration takes several measures. First, the person to whom the Lithuanian Court of Arbitration applies for the appointment as an arbitrator is obliged to inform the Lithuanian Court of Arbitration in writing of all circumstances that may raise reasonable doubts as to his independence or impartiality.

Upon making sure that such circumstances do not exist, the person shall, prior to appointing him as an arbitrator, sign a declaration of impartiality and independence in a particular arbitral case. Thus, he declares that he will perform the duties of arbitrator objectively, efficiently and without prejudice, in accordance with the principles of equality, autonomy, competition, economy, cooperation, impartiality and independence. He also confirms the absence of circumstances that could cast doubt on the arbitrator’s impartiality or independence.

If the reasonable doubt about the arbitrator’s independence or impartiality has arisen after the appointment of the arbitrator or during the arbitral proceedings, the arbitrator or the party having knowledge of these circumstances must immediately notify them to the Lithuanian Court of Arbitration. In this case, the issue of the challenge of the arbitrator is decided.

The arbitrator may be challenged if there is any doubt as to the independence or impartiality of the arbitrator, and if it turns out that the arbitrator does not have the qualifications agreed by the parties. In this case, if the parties have no other written agreement, the party willing to challenge the arbitrator must within 5 days of becoming aware of the formation of the Arbitral Tribunal or of circumstances which have raised doubts as to the arbitrator’s impartiality and independence or lack of qualifications, to notify the Arbitral Tribunal in writing on the motives of challenge. If the Arbitral Tribunal does not decide on the challenge of the arbitrator (s) within 5 days, the decision will be made by the Chairperson of the Lithuanian Court of Arbitration in the form of a ruling which is final and not subject to appeal.

Arbitration proceedings

The confidentiality of the proceedings involves not only the closure of the hearings, but also the non-disclosure of all information relating to the actual or ongoing examination of a particular dispute (for example, data of the dispute parties, the nature of the dispute and even the accurence of the dispute).

In order to ensure the confidentiality of the proceedings, any information about the proceedings is submitted in person only to the parties of the dispute or their authorized persons. Information may also be provided to the court and other law enforcement institutions in cases provided for by law. However, even in such a case, the request for information must specify exactly what information is needed.

The application to simplified arbitration will be examined in the simplified arbitration process if the dispute concerns monetary claims, movable object or securities and if arbitration clause does not indicate more than one arbitrator to settle the dispute.

Strict procedural deadlines are set for simplified arbitration proceedings. Upon receipt of an application, an arbitrator is appointed immediately. He resolves the issue of admissibility of the application and at the same time draws up a draft award of the Arbitral Tribunal. These and other procedural documents are posted off to respondent no later than in three business days.

These peculiarities of the simplified arbitration process allow us to resolve the dispute with less time and money.

The length of the arbitration proceedings depends to a large extent on the willingness of the parties to cooperate in resolving the dispute, the amount and complexity of the file, the nature of the proceedings. If the dispute is examined in the simplified arbitration procedure and the parties tend to cooperate, the dispute may be settled and the award made less than in one month, in other cases – in less than two months.

Arbitration award and its enforcement

If the debtor fails to comply with the arbitral award, it is necessary to apply to the District Court according to the place of the Arbitral Tribunal, in this case to the Vilnius City District Court (Laisvės Ave. 79, Vilnius, LT-06144) with a request for the issuance of a writ of execution, in accordance with the procedure established by the Code of Civil Procedure of the Republic of Lithuania. This writ should be addressed to a bailiff whose place of residence is the debtor’s residence, domicile, property, or place of work.

The award of the arbitral tribunal may be appealed to the Court of Appeal of Lithuania (Vasario 16-osios str. 1, Vilnius LT-01503) within one month from the adoption of the arbitral award.

If the debtor lives in another country and does not comply with the arbitral award in good faith, the party may apply to the court of that country with a request for recognition and enforcement of the arbitral award. The application must be accompanied by (1) an original or certified copy of the arbitral award, (2) an original or a certified copy of the arbitration agreement (the agreement containing the arbitration clause). The court may also require other documents, such as a certificate on the date and the entry into force of the arbitral award, documents proving that the defendant was duly informed about the arbitration process etc. These documents can be prepared by the Lithuanian Court of Arbitration within the limits of their competence and at the request of the party in the language in which the arbitration case was examined. It is important to note that the application and the documents attached thereto must be submitted to the foreign court with the translation into the official language of that state if that language does not match the language in which the arbitration case was examined.

Simplified arbitration process

The application will be examined in the simplified arbitration process if the dispute concerns monetary claims, movable object or securities and if arbitration clause does not indicate more than one arbitrator to settle the dispute.

Strict procedural deadlines are set for simplified arbitration proceedings. Upon receipt of an application, an arbitrator is appointed immediately. He resolves the issue of admissibility of the application and at the same time draws up a draft award of the Arbitral Tribunal. These and other procedural documents are posted off to a respondent no later than within three business days.

These peculiarities of the simplified arbitration process allow us to resolve the dispute with less time and money.

Cost-effectiveness: lower registration and administration fees. The administration fee is independent of the amount of a claim.
Promptness: If parties are willing to cooperate, the dispute may be settled and the award issued in less than 1 month.

Upon receipt of the notice of the Arbitral Tribunal regarding the envisaged adoption of the arbitral award and its annexes, you may either pay the amounts claimed by the claimant within the time limit specified in the notice and inform the Lithuanian Court of Arbitration or to submit a statement of defence. Only in the absence of any of these actions will the Arbitral Tribunal make a final award, which will come into force from the day it is adopted, and will have to be enforced immediately.