APPROVED

at the General Meeting

of Association

Riga International Arbitration Court

on 7 April 2005,

protocol No.5/2005;

REGISTERED

with the arbitration registrar

on 15 April 2005

Rules of Riga International Arbitration Court

I. GENERAL PROVISIONS

1.

The Riga International Arbitration Court (hereinafter referred to as the “Arbitration Court”) is a permanent court of arbitration established by an association “The Riga International Arbitration Court” and which acts on the basis of Part D “Arbitration” of the Law On Civil Procedure of the Republic of Latvia, its Charter, these rules and agreement of the parties.

Name of the Arbitration Court in Latvian – Rigas Starptautiska skirejtiesa,

Name of the Arbitration Court in German – Rigaer Internationales Schiedsgeright,

Name of the Arbitration Court in Russian – Рижский Mеждународний третейский суд.

2.

The activity of the Arbitration Court shall be managed by the Presidium of the Arbitration Court, which performs the functions determined in the arbitration rules in order to organize the arbitral proceedings, to supervise and secure formation and activity of the Arbitral Tribunal. The Presidium of the Arbitration Court shall not itself resolve any disputes.

3.

The Arbitration Court settles civil disputes provided that the parties have concluded an agreement to settle disputes at the Arbitration Court (the “Arbitration Agreement”), except for a dispute:

1) whose adjudication may concern the rights or interests 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 award of the Arbitration Court may concern rights of the state or municipal institution;

3) which is related to amendments to 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 regarding real estate, if there is a person among the participants of a dispute which according to the law has limited eligibility to acquire real estate in ownership, possession or use;
6)  regarding ejection of individuals out of the dwelling premises;

7) by and between employee and employer if the dispute occurred due to conclusion, modification or termination of the employment agreement as well as due to application or interpretation of the provisions of the laws, collective agreement, or working procedure regulations (individual employment dispute);
5)  regarding rights and obligations of the persons which have been declared insolvent until adoption of the award of the Arbitration Court.

4.

When settling the dispute, the Arbitration Court shall act in accordance with laws and business practice, which may be applied pursuant to the parties' agreement, insofar as such agreement of the parties does not contradict with provisions of Articles 19, 24 and 25 of the Civil Law of Latvia.
If the parties have not agreed on the basis of which laws or business practices their mutual relationship should be settled, or the Arbitration Court has considered it void, the law applicable to the legal relationship between the parties shall be determined according to the preamble of the Civil Law of Latvia.

II. THE ARBITRATION AGREEMENT

5.

The Arbitration Agreement is an agreement to settle a dispute which has already arisen or may arise in the future, by arbitration. The Arbitration Agreement may be concluded by a capable natural person irrespective of his citizenship or residence as well as a legal person registered in Latvia or abroad, or any other private law entity. The Arbitration Agreement shall be concluded in writing. The consent of the parties to settle the dispute by arbitration (the “Arbitration Agreement”) may be expressed:

1)  as a separate agreement;
2)  as a special provision in the agreement of the parties (the “Arbitration Clause”);
3)  by means of exchange of letters between the parties, by facsimile or telegram or by usage of other telecommunication means that ensure that the intent of the parties to settle the dispute or a potential dispute by arbitration is recorded.

If the parties have agreed to settle the dispute by arbitration, but the specific place of arbitration has not been stipulated, and the Claimant has submitted its Request for Arbitration to the Riga International Arbitration Court, and another party has agreed to it, the dispute is within the jurisdiction of this Arbitration Court.

6.

By concluding of the Arbitration Agreement, the parties may in addition agree upon the number of arbitrators, the procedure of arbitration, to choose verbal or written process, the place of arbitration, the language of arbitration, the applicable law as well as on other issues according to the law.

7.

The persons who have concluded an agreement on settlement of their dispute by arbitration may not rescind it, provided that the Arbitration Agreement was not altered or cancelled in the manner determined in the law or by agreement. The Arbitration Agreement shall be valid until the legal relationship, in connection with which it was concluded, is terminated. If the agreement to settle the dispute by arbitration is included as a separate provision in the agreement concluded between the parties, this arrangement shall be considered as an independent agreement. If the term of agreement has expired or the agreement is rendered ineffective, the arrangement to settle the dispute by arbitration remains in force.

8.

The parties may agree, on the basis of laws of which country the validity of the Arbitration Agreement should be considered. If the parties have not agreed, the applicable law shall be determined in accordance with Articles 19 and 25 of the Civil Law of Latvia.

III. PREPARATION OF THE ARBITRATION

Jurisdiction of the Arbitral Tribunal

9.

The dispute shall be within the jurisdiction of the Arbitration Court if it is subject to the Arbitration Agreement and if, according to the Law On Civil Procedure of the Republic of Latvia and Article 3 of the Rules, it is not within the exclusive jurisdiction of state courts.
If the parties have agreed to settle the disputes arising out or in connection with the particular agreement, by the Arbitration Court, it shall be presumed that the parties have agreed to settle any dispute arising out of or in connection with such agreement, which concerns it or infringement, termination or invalidity of it, in the Arbitration Court.
The issue of jurisdiction over the dispute shall be decided by the Arbitral Court also in the cases, when any of the parties disputes the existence or validity of the Arbitration Agreement.
The issue of jurisdiction of the Arbitration Court may be decided by the Arbitral Tribunal at any stage of arbitration. Usually the Arbitral Tribunal decides that first of all, however the Arbitral Tribunal shall have the right to begin or to continue the arbitration proceeding and to decide on this question when issuing its award. The Presidium of the Arbitration Court shall have the right to resolve that the dispute is not subject to arbitration and to return the Request for Arbitration back to the Claimant without review if the Claimant has not produced evidence that there is an Arbitration Agreement between the parties, or in case that the parties have agreed on settlement of their dispute by another arbitration center.
The relevant party may file the plea that the dispute or its part is not within the jurisdiction of the Arbitration Court, not later than within the term which is determined for submission of the Response.

If the party has objections that any part of the dispute is not within the jurisdiction of the Arbitration Court in connection with amendments or modifications of the claim, counterclaim or its amendments or modifications, the said objections should be expressed immediately as soon as Arbitration Court has began consideration of such claims.
If the party has not filed the plea to the Arbitration Court that the dispute or its part is not within the jurisdiction of the Arbitration Court within the stated time, the party shall not have the right to state such objections in the future and it is considered that the right to file such objections has been waived, including when the court decides the question of execution of the Arbitral Award.
If the Arbitration Court recognizes that the dispute or its part is not within the jurisdiction of the Arbitration Court, it shall terminate the proceeding concerning the dispute or its part and make a decision concerning cancellation of the arbitration.
If there are disputes between the parties about existence or validity of the Arbitration Agreement, but the court has recognized that the dispute is within the jurisdiction of the Arbitration Court, it is competent to decide the dispute as it is within its jurisdiction.

Interim and Conservatory Measures

10.

The Claimant has the right to request the Arbitration Court to provide security for the amount in dispute before commencement of proceedings. Such a request of the Claimant shall not be considered as non-compliance with the Arbitration Agreement and shall not prevent hearing of the dispute by the Arbitration Court.

Terms

11.

During the arbitration proceeding, the Arbitration Court may itself at its own discretion determine the schedule of proceedings while observing provisions of these Rules.
In certain cases, if the Arbitration Court considers it necessary, it may prolong the deadlines determined by the Rules on its own initiative or at the request of any of the parties.
At the request of the interested party the Arbitration Court, if it considers it appropriate and founds the reasons for default justified, may adopt a decision to renew the determined terms in the event of delay.

An application of the interested party regarding renewal of the procedural term shall be accompanied by documents required for the carrying out of the procedural action, and the grounds for renewal of the term.

Correspondence

12.

During the Arbitration all notices, pleas and correspondence of other kind should be sent by registered mail or by other means which allow to record the time of dispatch or by delivering or issuing to the addressee personally against signature.
The correspondence is considered received if it is delivered to the addressee personally either to the mailing address specified by the addressee or to the location (registered address) of the legal person or to the residence address of an individual (declared address of the residence), but if it is impossible to observe the address, then to the last known address.

Confidentiality

13.

The arbitration proceedings are confidential. Sessions of the Arbitral Tribunal shall be closed to the public. The persons who are not participants of the process may only be present at the session of the Arbitral Tribunal with the consent of both parties.
The information concerning the arbitration proceeding is not given to third parties and shall not be published.
The obligation to observe the confidentiality shall be applicable both to the Arbitral Tribunal and to employees of the Arbitration Court.

Procedure of the Arbitration

14.

The parties shall have the right to determine the procedure of arbitration themselves.

If the parties have not agreed upon the procedure of arbitration, it shall be considered that the parties have agreed upon review of the dispute under the Arbitration Rules.
If the parties have only agreed upon a few terms of arbitration, the Arbitral Tribunal observes the agreement of the parties but otherwise it shall be guided by the Arbitration Rules.

Place of the Arbitration

15.

The parties may agree themselves upon the place of the arbitration.
If the parties have not agreed upon the place of arbitration, it shall be determined by the Arbitration Court.

The Arbitration Court may determine its seat as the place of arbitration or set any other place, which it considers acceptable as the place of arbitration, considering the circumstances of such arbitration.
In order to study the facts, to which the parties refer, including inspection of goods or other property or checking of documents, the Arbitral Tribunal may hold hearings at any place, which it considers appropriate, by informing the parties which have the right to participate in the review.
If the parties have agreed upon the place of arbitration outside of Riga, the parties shall pay for transport and accommodation cost of the arbitrators.

Language of the Arbitration

16.

The language of arbitration shall be Latvian, unless the parties have agreed upon another language of arbitration.
If the parties have agreed upon a different language of process in which the Arbitral Tribunal or some of the arbitrators or some of the participants of the arbitration are not fluent or do not master well enough, the Arbitration Court may involve a translator.
The procedure for remuneration of the translator’s service is determined by the Arbitration Court, considering conditions of Supplement No. 2 to the Rules.
The Arbitral Tribunal may require from the parties’ translation or notarized translation into the language of arbitration of any written evidence.

Representation

17.

Individuals shall participate in their case at the Arbitration Court in person or through their authorized representatives.
Legal entities shall be represented at the Arbitration Court either through directors who act within the framework of authority granted by law, charter or statute, or by otherwise authorized representatives of such legal persons.
The parties may involve sworn attorneys to receive legal assistance during the arbitration.

Costs of the Arbitration

18.

The arbitration expenses shall include a charge for the arbitration proceedings and the arbitrator’s fee, which are specified in Supplement No. 2 to the Arbitration Rules and which amounts should be paid before filing of the Request for Arbitration to the Arbitration Court.
The amount of expenses of the arbitration, which is specified in Supplement No. 2 to the Arbitration Rules, may be changed by decision of the Presidium, considering complexity of the dispute, the time required for resolution of the dispute as well as any other circumstances connected with resolution of the dispute. Additionally, the arbitration expenses may include payment for services of the translator, secretary and expert, as well as travel and accommodation costs of the arbitrator, and other possible expenses connected with consideration of the dispute, the procedure of payment of which is determined by the Arbitral Tribunal, considering provisions of the Rules. Additional payment of the costs of the arbitration may be required during the arbitration proceeding.
The secretary, translator or expert shall be involved to participate during the arbitration only after the relevant party has paid the remuneration set forth by the Arbitration Court for the services of these persons. If in order to settle the dispute, it is necessary to involve a translator, to organize inspection or to invite an expert, but the party which has ordered this has not paid the amount of remuneration in full within the term determined by the Arbitral Tribunal, the reimbursement for services of the translator or expert may be paid in by the other party.
If the party has paid the remuneration for services of the secretary, translator or expert, but these services were not provided, the already transferred sum is returned to the party, which has paid it.
Following the resolution of the dispute, the Arbitral Tribunal shall adopt a decision on division of expenses of the arbitration, as well as on distribution of expenses connected with providing of legal assistance in respect of the case (from LVL 25,- up to 5% of the satisfied or specified sum of the Request for Arbitration, if the Arbitral Tribunal recognizes such a total sum of expenses reasonable) between the parties.
If the Request for Arbitration is not reviewed or the Claimant has withdrawn the claim before appointment of the Arbitral Tribunal, the Presidium of the Arbitration Court may take a decision to return the paid-in arbitrator’s fee.
The parties may agree among themselves upon the distribution of costs for the arbitration.

Commencement of the Arbitration

19.

Arbitration commences as of the moment of submission of the Request for Arbitration.
The Request for Arbitration should be submitted in writing to the Presidium of the Arbitration Court to the address of the Arbitration Court. The Claimant should ensure simultaneous dispatch of a copy of the Request for Arbitration (with supplements unless they are in disposal of the other party) to the Respondent.

The Request for Arbitration

20.

The Request for Arbitration shall contain the following information:

1)  information about the parties:
   for legal entities: the name and seat (registered address) and, if it is known to the Claimant, registration number and telephone number;
   for natural persons: the name, surname and address and, if it is known to the Claimant, also the identity and telephone number;
2)  the subject of claim, the amount as well as calculation of the amount of claim;
3)  the cause of claim and evidence which confirms it;
4)  the Claimant’s request;
5)  a list of attached documents;
6)  the arbitrator selected on its part, if the dispute is to be settled by three or more arbitrators.

The following documents shall be attached to the Request for Arbitration:

1)  the Arbitration Agreement of the parties, unless this agreement is included in the contract in respect of which the dispute has arisen;
2)  the agreement in respect of which the dispute has arisen;
3)  the documents, to which the Claimant refers to in the Request for Arbitration;
4)  the proof of dispatch of the claim to the Respondent;
5)  the document which confirms payment of the arbitration expenses, i.e., payment of the costs related to review of the dispute and the arbitrators’ fee.

21.

If the Request for Arbitration and the documents attached to it conform to requirements of the Rules, the Presidium of the Arbitration Court sends to the Respondent a notice of receipt of the Request for Arbitration without delay, offering the Respondent in accordance with the provisions of Article 23 of the Rules to give a response to the Request, to declare its objections, if any, and to attach the relevant documents, as well as to specify the arbitrator selected on its part, if the dispute is to be reviewed by three or more arbitrators, or to agree between parties upon an arbitrator in a dispute provided the dispute is to be reviewed by a sole arbitrator unless the parties have not agreed upon other procedure of appointment of the arbitrators.

22.

If the Request for Arbitration and the documents attached to it do not conform to requirements of the Rules, the Presidium of the Arbitration Court shall inform the person submitting such documents and give time to remedy deficiencies. During this time the Request for Arbitration remains without further review. If during the term set by the Presidium of the Arbitration Court the deficiencies are eliminated, the Request for Arbitration shall be considered submitted and the arbitration proceeding is started. If during the term prescribed by the Presidium of the Arbitration Court, the deficiencies are not eliminated, the Request for Arbitration shall be returned to the bearer without any consideration.

The Response

23.

The Respondent shall be given at least 15 (fifteen) days from the day of delivering the Request for Arbitration to submit a Response and statements. Considering the location of the Respondent, complexity of the dispute, number of Respondents, the Presidium of the Arbitration Court may at its own discretion determine a longer time period for submitting of the Response, however it may not be longer then it is objectively necessary and exceed 30 (thirty) days from the day of delivering the Arbitration Court’s notice.
The Respondent in the Response should state the following:

1)       whether it admits the claim fully or in a part thereof;

2)       its objections against the claim and arguments thereof;

3)       evidence that justify objections against the claim and its arguments as well as the law whereupon they are based;

4)       petitions regarding acceptance of evidence or requiring thereof;

5)       other facts which it considers significant in the adjudicating of the case.

The Respondent shall attach to the Response the documents, on which the objections are based.

The Respondent shall provide that a copy of the Response (with attachments, if any, and if they are not in the other party's possession) is simultaneously sent to the Claimant and other Respondents. Evidence regarding dispatch of the Response to the other participants of the case shall be appended to the Response when submitting it to the Arbitration Court.

The Counterclaim

24.

The Respondent may submit a counterclaim, which may be considered by the Arbitral Tribunal together with the principal claim, if the subject of counterclaim is within the Arbitration Agreement.

The counterclaim shall be filed in writing. The same provisions of the Rules shall apply to the counterclaim as to the Request for Arbitration.
The counterclaim may be submitted within the time period, which is set forth for submitting the Response.

If the Respondent has exceeded the established deadline for justifiable reasons, the Respondent under Article 11 of the Rules may request the Arbitration Court to renew the overdue term.
If the Arbitration Court deems the delay justifiable and renews the term for submitting of the counterclaim, the counterclaim shall be reviewed by the Arbitration Court.
If the Arbitration Court does not justify the delay, the Arbitration Court shall not consider the counterclaim.

IV. THE ARBITRATORS

25.

The arbitrator is a person who according to provisions of the Arbitration Agreement and the Arbitration Rules is appointed for resolution of the dispute.
The arbitrator is not a representative of the party by which the arbitrator is appointed. The arbitrator should perform his duties in good faith, without subordinating to any influence, the arbitrator shall be independent and objective.

Number of the Arbitrators

26.

The number of arbitrators should be odd.
If the parties have not agreed upon the number of arbitrators, the Arbitral Tribunal shall consist of three arbitrators.
The Arbitral Tribunal may also consist of a sole arbitrator if the parties have agreed upon that. The parties may also agree upon other (odd) number of arbitrators.

Appointment of the Arbitrators

27.

The parties may determine the procedure of appointment of the arbitrators. If the parties have not agreed upon the procedure of appointment of the arbitrators, the arbitrators shall be appointed in accordance with the Arbitration Rules from the list of arbitrators (Supplement No.1 to the Rules) considering the equality of the parties.
The parties may delegate the right to appoint the arbitrator to any other capable natural or legal person.

28.

If the parties have agreed that the dispute would be considered by a sole arbitrator, but they have not agreed upon a particular arbitrator from the list of the arbitrators (Supplement No.1 to the Rules), the Presidium of the Arbitration Court, when sending the notice of receipt of the claim mentioned in Article 21 of the Rules, offers to the Respondent to reach an agreement with the Claimant upon a particular arbitrator.
Any of the parties may offer to the other party one or more candidates for the arbitrators.
If the parties have not agreed during the term determined by the Arbitration Court upon the arbitrator, the arbitrator shall be appointed by the Presidium of the Arbitration Court.

29.

If the parties have agreed to invoke three arbitrators or if the dispute is to be reviewed by three arbitrators in accordance with Article 26 of the Rules, the Claimant, when filing the claim, should specify the arbitrator elected by it based on the list of arbitrators (Supplement No. 1 to the Rules). The Presidium of the Arbitration Court, when sending the notice of receipt of the claim mentioned in Article 21 of the Rules, shall inform the Respondent of the claim and offer to appoint the arbitrator on its part.
If any of the parties has not specified the arbitrator selected on its part, the arbitrator shall be appointed by the Presidium of the Arbitration Court.
The arbitrators appointed by the parties shall appoint the third arbitrator who acts as Chairman of the Arbitral Tribunal.
If the arbitrators selected by the parties may not agree upon the Chairman of the Arbitral Tribunal within 10 (ten) days, this person shall be appointed by the Presidium of the Arbitration Court.

30.

If the parties have agreed upon other (odd) number of arbitrators, each of the parties according to the aforementioned procedure appoints the identical number of arbitrators, who shall thereafter agree to appoint the Chairman of the Arbitral Tribunal from the list of arbitrators.

31.

If the claim is submitted by several Claimants or if the claim is raised against several Respondents, they should respectively agree upon the candidate of arbitrator on their part.

32.

The composition of the Arbitral Tribunal shall be approved by the Presidium of the Arbitration Court and notified to the parties. Before approval of the composition of the Arbitral Tribunal, the Presidium of the Arbitration Court shall verify, whether the agreement of the parties, requirements of the Law On Civil Procedure of the Republic of Latvia and the Arbitration Rules were observed during formation of the Arbitral Tribunal.
If the Presidium of the Arbitration Court determines that the Arbitral Tribunal has not been selected in accordance with agreement between the parties, the Law On Civil Procedure or the Arbitration Rules, the Presidium shall not approve the Arbitral Tribunal and the new Arbitral Tribunal shall be selected in accordance with the Rules by eliminating of the observed violations.

Removal of the Arbitrator

33.

If the party has appointed the arbitrator and has notified another party of that, it may not remove this arbitrator without the consent of other party.

Grounds for Challenge of the Arbitrator

34.

The person, whose consent is requested to be appointed as the arbitrator, shall disclose any circumstances to the parties, which may give rise to any justified doubts as to impartiality and independence of this person.
If such circumstances have been discovered by the arbitrator before the end of arbitration, this person should immediately reveal them to the parties.
The arbitrator may be challenged if there are circumstances which give rise to any justified doubts as to the impartiality and independence of this person, or if this person’s qualification does not correspond to the one upon which the parties have agreed. The party may challenge the arbitrator it has appointed or in whose appointment it has participated, only if the grounds for challenge were discovered by the party after the appointment of the arbitrator has been made.

Procedure of Challenge of the Arbitrator

35.

The parties may agree upon the procedure of challenge of the arbitrator.
If the parties have not agreed upon the procedure of challenge of the arbitrator, the party may file its objection to the arbitrator within 5 (five) days from the day, when it has learned of the appointment of this arbitrator or it got to know the grounds for challenge, by submitting to the Arbitration Court a written notice, in which shall be specified the arbitrator to be challenged and the grounds for challenge.
If the arbitrator, against whom the objections are stated, does not resign from his obligations, the issue on challenge is decided by the Presidium of the Arbitration Court within 5 (five) days or of receipt of the challenging notice.

36.

The arbitrator may within 5 (five) days from the day when the arbitrator has learned of his appointment, or from the day, when the arbitrator knows about the circumstances which can give rise to any justified doubts as to the impartiality and independence of this person, reject to accept the assignment.
The acceptance of resignation shall be resolved by the Presidium of the Arbitration Court within 5 (five) days as of the date of receipt of the respective notice.

37.

If the challenge or resignation from office of the arbitrator is accepted, the new arbitrator shall be appointed in accordance with the procedure prescribed by the Rules.

Termination of Power of the Arbitrator

38.

In the event of death of the arbitrator, the authority of the arbitrator expires.
The authority of the arbitrator may also be terminated if the arbitrator cannot act as the arbitrator for a period longer than one month (owing to absence, illness or other reasons), or if the arbitrator has refused to review the dispute or if the parties have agreed upon the termination of authority of the arbitrator.
If the parties have not agreed upon the procedure of termination of the arbitrator's authority, at the request of the parties or the arbitrator, or on the arbitrator’s own initiative the Presidium of the Arbitration Court shall decide concerning the termination of authority of the arbitrator. If the Presidium of the Arbitration Court adopts a decision on termination of authority of the arbitrator, a new arbitrator shall be appointed in the manner determined by the Rules.

Consequences of Appointment of the Arbitrator

39.

If the arbitrator is replaced during review of the dispute by a sole arbitrator, or if the Chairman of the Arbitral Tribunal is replaced, the review of the dispute shall be restarted.
If one of the arbitrators of the Arbitral Tribunal is replaced, the issue on confirmation or restarting of review of the dispute anew or continuation of review of the dispute may be decided at the discretion of the Arbitral Tribunal.

V. DISPUTE RESOLUTION

40.

Taking into consideration the Arbitration Agreement concluded by the parties, the Arbitral Tribunal may organize sessions to hear explanations and objections of the parties, as well as to review evidence (the verbal process), or to settle the dispute only on the basis of written evidence and materials (the written process).

The Arbitral Tribunal shall organize a verbal process also in those cases when the parties have agreed upon a written process, but any of the parties has required the verbal process before issuance of the award. The party that wishes to organize a verbal process should notify the Arbitration Court in writing before the scheduled date of session of the Arbitral Tribunal.
Subject to provisions of the Rules and the agreement of the parties, the Arbitral Tribunal may conduct the arbitration proceeding as how it deems appropriate so that the dispute is decided without unnecessary delay, and equal possibilities are given to the parties to state their point of view and to submit the relevant documents.

 

41.

After the Response to the Request and the answer has been received from the Respondent, or the term given to the Respondent for submitting of the Response and answer has expired, and the composition of the Arbitral Tribunal has been approved, the Arbitral Tribunal shall schedule the time of hearing of the case at the Arbitral Tribunal.

The Arbitral Tribunal duly informs the parties about the time of hearing of the case at the Arbitral Tribunal. The Arbitral Tribunal shall notify of the first session of the Arbitral Tribunal to the parties at the latest 15 (fifteen) days before the session unless the parties have not agreed on shorter term. If the parties have not agreed upon the written process, the parties or their representatives shall be invited to the session of the Arbitral Tribunal to present their statements.

Consequences if the Party does not Participate in Arbitration

42.

If the Respondent does not submit to the Arbitration Court the Response to the Request for Arbitration, the Arbitral Tribunal shall continue the proceeding, without assumption that the claim is admitted, unless it is stipulated otherwise in the Arbitration Agreement.
If the party or its representative is absent at the verbal session of the Arbitral Tribunal, without notifying on the reasons of absence, or if the Arbitral Tribunal considers the reason of absence specified by the party unjustified, including the circumstances that the party has not attached any supporting documents to the notice of absence which would confirm the justified reasons of absence, the Arbitral Tribunal shall review the dispute on the basis of evidence that is at the disposal of the Arbitral Tribunal.
If the party has not submitted written or other type of evidence in due time or refuses to give statements to the Arbitral Tribunal, the Arbitral Tribunal shall settle the dispute on the basis of evidence that is at the disposal of the Arbitral Tribunal.

43.

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

44.

During the review of the dispute, the Arbitral Tribunal shall observe the principle of legal equality and contest of the parties. Each party shall have equal rights to state its opinion, to defend its rights and to present evidence.

Evidence

45.

Statements of the parties, written evidence, physical evidence and experts’ opinion may be used as evidence in the arbitration.
Evidence shall be provided by the parties. Each party shall prove those circumstances to which it refers when supporting its claims or objections.
Written evidence shall be submitted in original or by a certified copy. If the party provides a copy of the document, the Arbitral Tribunal at its own discretion or at the request of the other party may require the original document to be submitted. The original document, at the request of the person, which has provided this document, shall be returned by the Arbitral Tribunal, while maintaining a certified copy in the records of proceeding.
The Arbitral Tribunal itself shall determine admissibility and relevance of the evidence.
The Arbitral Tribunal may require that the parties provide additional documents or other evidence.
The Arbitral Tribunal may require that any party provides copies of documents to each arbitrator and other participants of the process, as well as submits to each arbitrator and the other party a summary of the documents and other evidence, within the term prescribed by the Arbitral Tribunal by which the party supports its claims or objections.

Alteration of the Claim

46.

Any party may modify and supplement its claim, counterclaim or objections during the arbitration prior to commencement of review of the dispute.
If the amount of claim is increased when modifying or supplementing the claim or counterclaim, the party should in addition pay the appropriate arbitration expenses.
When commencing review of the dispute at the session of the Arbitral Tribunal, the Arbitral Tribunal may consider unreasonable to modify or supplement the claim, counterclaim or objections, considering the delay, or if Arbitral Tribunal acknowledges that such modification or supplement delays the arbitration or encumbers review of the dispute.
The claim or counterclaim may not be altered in such a manner that it exceeds the limits of the Arbitration Agreement.

Minutes

47.

If any of the parties wishes that the session of the Arbitral Tribunal is recorded, it should before the day of the session of the Arbitral Tribunal submit a written request and attach proof of payment of the fee for services of the secretary according to the schedule contained in Supplement No.2 to the Rules.
The session of the Arbitral Tribunal shall be recorded by the secretary chosen by the Arbitration Court. The minutes of session of the Arbitral Tribunal shall be signed by all arbitrators and the secretary. The minutes of session of the Arbitral Tribunal should be signed within 5 (five) working days following the session of the Arbitral Tribunal. The parties shall have the right to review the minutes and submit written remarks and objections regarding the minutes within five days as of it have been signed. The Arbitral Court shall decide on propriety of the objections or remarks’ compliance with the actual session.

Examination

48.

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

49.

At the request of the Arbitral Tribunal the parties shall submit to the experts the necessary information, shall transfer any documents and disclose for inspection any goods or other requested objects.

After preparation of the expert’s opinion and receipt of it by the Arbitration Court, the parties shall have the right to review it.
At the request of any party the expert may be invited to the session of the Arbitral Tribunal in order to give statements and to answer questions concerning the opinion.

Remedial Consequences of Retirement of the Party

50.

The fact per se that a natural person who is one of the parties has deceased or a legal entity which is one of the parties has stopped existing does not terminate the Arbitration Agreement, unless the parties have agreed otherwise, and the contested legal relationship permits legal succession.
In this case the Arbitral Tribunal suspends the process before the legal successor is determined.
Assignment of claim or assumption of debt may be the cause to terminate the arbitration proceeding only if the Arbitration Agreement is cancelled in accordance with the law or agreement.

Rights and Objections

51.

If the party considers that there is a violation of any provisions of the arbitration proceeding which are determined in the Law On Civil Procedure of the Republic of Latvia, the Arbitration Rules or the Arbitration Agreement of the parties, it has the right to submit its written objection immediately to the Arbitral Tribunal and the other party as soon as such infringement has become known or should become known.
The justification of such objections shall be decided by the Arbitration Court. If the Arbitration Court considers that the objections were reasonable, its obligation is to remedy the infringement of the arbitration procedure before continuation of the process.
If the party does not state such objections immediately and continues to participate in the arbitration, it shall be considered that it has waived the right to raise such objections, including when decision by court on the execution of the Arbitral Tribunal’s award is adopted.

Making of the Award

52.

All resolutions (decisions and awards) of the Arbitral Tribunal, if it consists of more than one arbitrator shall be made by a simple majority vote.
If it is impossible to make the award by a simple majority vote, the award shall be made by the Chairman of the Arbitral Tribunal.
The award of the Arbitral Tribunal shall become effective as of the date when the award is made. It may not be appealed, and no protests shall be submitted regarding the award.
The awards of the Arbitral Tribunal shall be made in writing and signed by the arbitrators. If the Arbitral Tribunal consists of several arbitrators, the award shall be signed by all arbitrators, but if someone of the arbitrators does not sign the award, it is necessary to state the reason why this person’s signature is absent in the award of the Arbitral Tribunal.
The signatures of the arbitrators on the award shall be certified by the seal of the Arbitral Tribunal.
The Chairman of the Arbitral Tribunal may independently decide on the procedural issues provided that the parties or other arbitrators have given proper authorization. Such decisions shall not be made in writing.

Postponement of the Settlement of the Dispute

53.

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

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

Suspension of the Arbitral Proceedings

54.

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

1)       provided the natural person which is one of the parties has died or the legal person that is one of the parties has ceased to exist and the rights of the legal relations are capable of being assumed or the parties have not agreed upon termination of the arbitral proceedings in such case;

2)       provided the settlement of the dispute is not eventual prior to another case which is required to be solved in civil, criminal or administrative proceedings;

3)       if the Arbitral Tribunal assigns the expert-examination;

4)       in other conditions when the Arbitral Tribunal recognizes that review of the dispute is not possible due to certain objective consideration.

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

The suspension of the arbitral proceedings shall suspend the run of the term.

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

55.

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

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

The Arbitral Tribunal may take a decision regarding other issues as well, provided the case is not subjected to adjudication within point of fact.

Termination of the Arbitral Proceedings

56.

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

1)       the Claimant withdraws its claim and the Respondent does not oppose to that;

2)       the parties have agreed upon resolution of the dispute by the settlement;

3)       the Arbitration Agreement loses force in such a manner as set forth by the law or agreement;

4)       the Arbitral Tribunal acknowledges that the dispute is not within the jurisdiction of the Arbitration Court;

5)       the natural person who is one of the parties has deceased or the legal person which is one of the parties has stopped existing and the legal relationship does not allow legal succession, or the parties have agreed that the arbitration process shall be terminated in this case;

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

57.

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

Provided the arbitral proceedings are terminated for the reasons mentioned in items 3 and 4 of Article 56 of the Rules, or a natural person who is one of the parties has deceased or a legal person which is one of the parties has stopped existing and the legal relationship does not allow legal succession, or the parties have agreed that the arbitration process shall be terminated in this case, the parties have the right to apply to the court.

Reconciliation

58.

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

If during the arbitration the parties have concluded amicable settlement, the arbitration shall be terminated.

The amicable settlement shall be concluded by the parties in writing and it shall contain the following information: for legal persons – the name, registration number and seat (registered address), for natural persons – the name, surname, identity No. and address as well as the matter in dispute and obligations of each party which it voluntarily obliges to execute.
At the request of the parties the Arbitral Tribunal shall approve the amicable settlement by its award if the provisions of such settlement do not contradict with the law. Such an award shall correspond to the provisions, which apply to the award, and it shall have the same effect as award of the Arbitral Tribunal.

The Sentence

59.

The award shall contain the following information:

1)  the panel of the Arbitral Tribunal;
2)  the date and place of making of the award;
3)  information on the parties;
4)  the matter in dispute;
5)  reasoning of the award unless the parties have agreed otherwise;
6)  conclusion regarding complete or partial support of the claim or complete or partial rejection of it and the basis of award of the Arbitral Tribunal;
7)  levied sum, if the award is made in respect of collection of money;
8)  description of property and its value, which should be collected in the event of non-existence of any property, if the award is made in respect of transfer of goods in kind;
9)  by whom what actions and within what time period should be performed, if the award imposes an obligation to perform certain actions;
10)  which part of the award applies to each of the Claimants, if the award is made for the benefit of several Claimants, or which part of the award shall be executed by each of the Respondents, if the award is made against several Respondents;
11) the arbitration expenses, as well as distribution of these expenses and costs for legal assistance between the parties.

60.

A certified copy of the award of the Arbitral Tribunal, whose conformity to the original is attested by the signature of a member of the Presidium of the Arbitration Court and the seal of the Arbitration Court, shall be issued to each of the parties or its representative personally or sent by mail.
The copy of the award of the Arbitral Tribunal shall be issued or sent to the parties within 10 (ten) days as of making of the award. In the case of written process the Arbitral Court shall send the copy of the award to the parties within 3 (three) days. If the award of the Arbitral Court is to be submitted for the compulsory execution, the Arbitral Tribunal shall issue or send an additional original of the award of the Arbitral Tribunal to the party which is entitled to apply to the court with an application for issue of a writ of execution for compulsory execution of the arbitration court award.
If according to the award of the Arbitral Tribunal the parties are obliged to pay any additional arbitration expenses to the Arbitration Court, the copy of the award shall be issued or sent to the party only after receipt of the payments determined in the award.

61.

Each party shall have the right before performance of the award and by notifying another party to request the Arbitral Tribunal:

1)  to correct any mistake in calculation, a spelling or printing mistake in the award. Such mistakes may be corrected by the Arbitration Court on its own initiative as well;
2)  to explain the award. The explanation of the award shall become an integral part of the award as of the date of making;
3)  within 30 days from the date of dispatch of the award, to make an additional award if any claim submitted before making of the award is not settled in the award. If the Arbitral Tribunal considers the request to be reasonable, it shall satisfy this request by making of the additional award.

The Arbitral Tribunal shall make a decision, whether participation of the parties is necessary, when considering these requests to the Arbitral Tribunal.

Execution of the Award

62.

The award of the Arbitral Tribunal is binding upon the parties and is fully obliging them.

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

Provided the award of the Arbitral Tribunal which is to be executed in Latvia, is not executed voluntary, it shall be prosecuted to the compulsory execution in accordance with provisions of Chapter 66 (Articles 533-537) of the Law On Civil Procedure of the Republic of Latvia.

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

Storage of Documents of the Process

63.

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

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