Commercial Arbitration

Lithuania

Ramūnas Audzevičius, Rimantas Daujotas and Beata Kozubovska

Motieka & Audzevicius

    Infrastructure

  1. 1.The New York Convention
    Is your state a party to the New York Convention? Are there any noteworthy declarations or reservations?

    Lithuania is a contracting state to the New York Convention, which entered into force in Lithuania on 12 June 1995. Lithuania has made use of the reciprocity reservation of article 1(3) of the New York Convention; the Lithuanian courts will enforce awards made in a state which is also party to the New York Convention.

  2. 2.Other treaties
    Is your state a party to any other bilateral or multilateral treaties regarding the recognition and enforcement of arbitral awards?

    Lithuania is a party to the 1965 Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), which came into force in Lithuania on 5 August 1992.

  3. 3.National law
    Is there an arbitration act or equivalent and, if so, is it based on the UNCITRAL Model Law? Does it apply to all arbitral proceedings with their seat in your jurisdiction?

    The Law on Commercial Arbitration, which came into force on 2 May 1996, is based on the UNCITRAL Model Law. The Law on Commercial Arbitration applies to domestic as well as foreign arbitration proceedings if carried out in Lithuania.

    The Law on Commercial Arbitration mirrors article 1(3) of the 1985 UNCITRAL Model Law (the Model Law) in defining foreign arbitration. An additional criterion (article 4, part 1(6) of the Law on Commercial Arbitration) is that an arbitration is considered foreign when both parties are Lithuanian entities in which foreign capital has been invested.

  4. 4.Arbitration bodies in your jurisdiction
    What arbitration bodies relevant to international arbitration are based within your jurisdiction? Do such bodies also act as appointing authorities?

    The most prominent arbitral institution in Lithuania is the Vilnius Court of Commercial Arbitration (the VCCA). It may act as an appointing authority.

  5. 5.Foreign institutions
    Can foreign arbitral providers operate in your jurisdiction?

    Foreign arbitral institutions may freely operate in Lithuania.

  6. 6.Courts
    Is there a specialist arbitration court? Is the judiciary in your jurisdiction generally familiar with the law and practice of international arbitration?

    There are no specialist arbitration courts in Lithuania. Applications in respect of arbitrations will be heard at by the Court of Appeals (with a right of appeal to the Supreme Court on a point of law). The judiciary is generally familiar with and supportive of in international arbitration matters.

    7. Agreement to arbitrate

  7. 7.Formalities
    What, if any, requirements must be met if an arbitration agreement is to be valid and enforceable under the law of your jurisdiction? Can an arbitration agreement cover future disputes?

    Pursuant to article 9(2) of the Law on Commercial Arbitration the arbitration agreement shall be concluded in writing and shall be considered to be concluded if executed as a joint document signed by the parties; or concluded in an exchange of letters, telefax, telegrams or other documents which provide a record of the agreement; or concluded in an exchange of statements of claim and defence in which the existence of an arbitration agreement is alleged by one party and not denied by another; or there is other written evidence confirming that the parties have concluded an arbitration agreement or recognise it. The reference in a contract concluded by the parties to a document containing an arbitral clause shall constitute an arbitration agreement provided that the contract is in writing and reference is such as to make that clause part of the contract.

    The Law on Commercial Arbitration does not prohibit arbitration agreements to concern disputes that have not yet arisen.

  8. 8.Arbitrability
    Are any types of dispute non-arbitrable? If so, which?

    The Law on Commercial Arbitration sets out a list of non-arbitrable disputes. Therefore, disputes arising from constitutional, employment, family, administrative legal relations, as well as disputes connected with competition, patents, trademarks and service marks, bankruptcy and disputes arising from consumption agreement may not be submitted to arbitration. It is noteworthy that there are also limitations to the arbitrability of disputes where one of the parties is a state or municipal company (except the Bank of Lithuania). The prior consent of the state or the body that established such party is required.

    Proposed amendments of April 2010 to the Law on Commercial Arbitration have extended the list of arbitrable disputes.

  9. 9.Third parties
    Can a third party be bound by an arbitration clause and, if so, in what circumstances? Can third parties participate in the arbitration process through joinder or a third-party notice?

    In several cases an arbitration agreement may be extended to third parties or non-signatories. Therefore, an arbitration agreement shall be mandatory for: a party that has entered into a legal relationship to which the arbitration agreement is applicable by virtue of assignment of claim or transfer of debt; the principal in the case of an arbitration agreement concluded by the principal’s agent; and for legal successors to a company reorganised by a merger or acquisition.

    The Law on Commercial Arbitration is silent on the questions of the participation of a third party through joinder or a third-party notice.

    In contrast, VCCA rules (article 14(3)) contain a provision that, in the event of there being several claimants or respondents, such group of claimants or respondents shall agree on the appointment of one arbitrator for that group, who will then decide on the appointment of the third arbitrator. This provision makes the participation of several claimants and respondents in the arbitration possible. However, if a manufacturer is not brought into an arbitration by the end-user (the claimant), the manufacturer should only be brought into arbitration with its consent, having regard to the contractual spirit of the arbitration agreement.

  10. 10.Consolidation
    Would an arbitral tribunal with its seat in your jurisdiction be able to consolidate separate arbitral proceedings under one or more contracts and, if so, in what circumstances?

    The Law on Commercial Arbitration does not contain any consolidation provisions. It appears that consolidation of the related disputes between the same parties being based on different arbitration agreements may occur if all parties involved agree to it.

  11. 11.Groups of companies
    Is the “group of companies doctrine” (or any other method of piercing the corporate veil) recognised in your jurisdiction?

    There is no reported case law on the group of companies doctrine in Lithuania.

  12. 12.Separability
    Are arbitration clauses considered separable from the main contract?

    The separability of the arbitration clause is acknowledged in article 19(1) of the Law on Commercial Arbitration, which states that invalidity of the underlying contract is not in itself sufficient for invalidity of the arbitration agreement.

  13. 13.Competence-competence
    Is the principle of competence-competence recognised in your jurisdiction? Can a party to an arbitration ask the courts to determine an issue relating to the tribunal’s jurisdiction and competence?

    Article 19(1) of the Law on Commercial Arbitration affirms the competence-competence principle by providing as a rule that the arbitral tribunal may rule on its own jurisdiction. It is noteworthy that article 6 of the Law on Commercial Arbitration provides that if a party is aware that any provision of the law from which the party may derogate or any provision of the arbitration agreement is not followed properly and still participates in the proceedings without objecting immediately, without any justifiable excuse, it is considered that the party has waived the right to make such objection. Pursuant to article 19 of the Law on Commercial Arbitration an objection to the jurisdiction of the tribunal must be raised no later than the statement of defence. The tribunal then decides on its jurisdiction in one of the two ways – it either decides on it in the award, or it decides on it in an interim award. In the latter case the parties may bring further objections with regard to jurisdiction to the head of the permanent arbitral institution within 30 days from the receipt of the tribunal’s resolution. Such decision is final. Moreover, the tribunal exceeds its competence in the arbitration proceedings, the respective objection shall be brought by the parties immediately when the issue falling outside the tribunal’s competence is raised. If such objection is presented later, the tribunal has discretion to allow it if the reasons for such delay are reasonable.

    It is noteworthy that pursuant to article 10 of the Law on Commercial Arbitration if the court receives a claim of the party regarding an issue that is covered by an arbitration agreement, it will refuse to accept the claim if at least one of the parties to the arbitration agreement demands so. Furthermore, arbitration agreement may be recognised null and void at the request of a party, on the general grounds for recognising transactions null and void, as well as upon the violation of articles 9 (definition and form of an arbitration agreement) and 11 (disputes which may not be submitted to arbitration) of the Law on Commercial Arbitration.

  14. 14.Drafting
    Are there particular issues to note when drafting an arbitration clause where your jurisdiction will be the seat of arbitration or the place where enforcement of an award will be sought?

    There are no specific requirements when it comes to drafting an arbitration clause. The clause should provide for consent to arbitration and a clearly worded arbitration clause is obviously preferable. It is recommended to provide for the seat, the applicable law, the language of the arbitration and the number of arbitrators.

  15. 15.Institutional arbitration
    Is institutional international arbitration more or less common than ad hoc international arbitration? Are the UNCITRAL Rules commonly used in ad hoc international arbitrations in your jurisdiction?

    There is no statistics available as to whether institutional or ad hoc arbitration is more commonly practised in Lithuania. Both institutional and ad hoc arbitrations are common in Lithuania (including for the latter under the UNCITRAL Rules).

  16. 16.Multi-party agreements
    What, if any, are the particular points to note when drafting a multi-party arbitration agreement with your jurisdiction in mind? In relation to, for example, the appointment of arbitrators.

    The Law on Commercial Arbitration does not provide for a multiparty arbitration agreement. However, a multiparty arbitration agreement should nevertheless be possible if it meets general requirements for arbitration agreements (ie, it is concluded in writing; the dispute is arbitrable; the agreement meets to the requirements of validity and performance; and all parties are identified). It is crucial to ensure the equality of the parties when appointing the arbitrators.

    17. Commencing the arbitration

  17. 17.Request for arbitration
    How are arbitral proceedings commenced in your jurisdiction? Are there any key provisions under the arbitration laws of your jurisdiction relating to limitation periods of which the parties should be aware?

    Pursuant to article 24 of the Law on Commercial Arbitration unless otherwise agreed by the parties, the arbitration proceedings shall commence on the date on which a request for the dispute to be referred to arbitration is received by the respondent. There is no specific limitation period under Lithuanian law for the filing of the request for arbitration. The applicable statute of limitations is that of the law governing the merits of the case.

    18. Choice of Law

  18. 18.Choice of law
    How is the substantive law of the dispute determined? Where the substantive law is unclear, how will a tribunal determine what it should be?

    The parties are free to choose the applicable law. Article 31 of the Law on Commercial Law on Commercial Arbitration provides that in the absence of the agreement of the parties on the applicable law, in case of international commercial arbitration the tribunal shall determine the law applicable in accordance with the conflict of law rules. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the trade practices applicable to the specific transaction.

    19. Appointing the tribunal

  19. 19.Choice of arbitrators
    Does the law of your jurisdiction place any limitations in respect of a party’s choice of arbitrator?

    In accordance to article 14 of the Law on Commercial Arbitration there are only restrictions on acting as an arbitrator and being paid for such work for persons who are prohibited by Lithuanian law from performing any paid work except their current occupation (usually judges (not applicable to retired judges), members of parliament, etc). That rule is not applicable to attorneys and their assistants. Otherwise, any anyone who is of age and in other respects has full legal capacity may serve as an arbitrator in Lithuania. Moreover, there is a general requirement that an arbitrator shall be impartial, independent and competent.

  20. 20.Foreign arbitrators
    Can non-nationals act as arbitrators where the seat is in your jurisdiction or hearings are held there? Is this subject to any immigration or other requirements?

    There are no limitations to the rights of foreign nationals in serving as arbitrators, and no specific immigration requirements apply to arbitrators (other than general visa and work permit rules, when applicable).

  21. 21.Default appointment of arbitrators
    How are arbitrators appointed where no nomination is made by a party or parties or the selection mechanism fails for any reason? Do the courts have any role to play?

    Pursuant to article 14 of the Law on Commercial Arbitration if there is no prior agreement and if the arbitration consists of three arbitrators, each party selects one arbitrator, and the two of them appoint the third one. If the arbitration has a sole arbitrator, and if the parties cannot agree on the appointment, an arbitrator is appointed by the head of the permanent arbitral institution upon the request of the parties; this also applies if one party does not appoint an arbitrator (or two arbitrators do not appoint the third one) within 30 days from the receipt of the respective notice.

    VCCA rules mirror the provisions above (with minor differences). Courts are never involved in the appointment of arbitrators.

  22. 22.Immunity
    Are arbitrators afforded immunity from suit under the law of your jurisdiction and, if so, in what terms?

    Generally, an arbitrator is immune from actions in negligence if he or she is acting independently. According to article 6.252 of the Civil Code (the CC), the arbitrator could be liable for his deliberate actions or gross negligence if such actions cause damage to any of the parties to the arbitration.

  23. 23.Securing payment of fees
    Can arbitrators secure payment of their fees in your jurisdiction? Are there fundholding services provided by relevant institutions?

    According to article 3(5) permanent arbitral institutions may refuse to execute their functions if the parties to the dispute have not paid the fees required. Pursuant to article 7 of VCCA rules the claimant shall pay a fixed registration fee upon the submission of his claim. The claim shall not be prepared for settlement by arbitration before the payment of the registration fee is made. The registration fee shall be non-refundable. Moreover, the claimant shall pay an advance administration fee for every claim filed with the court of arbitration. Until the administration fee is paid, the case shall not be transferred to the arbitral tribunal and substantive tribunal proceedings with regard to that claim shall not commence. In accordance to article 11 the chairman of the court of arbitration shall fix the arbitration fees to pay the arbitration fees in advance within a period of 30 days. The fixed amount shall be deemed to have been paid on the date it is credited to the bank account of the court of arbitration. When both parties to the dispute fail to pay the fees fixed by the chairman of the court of arbitration within a fixed period of time, the claim (counterclaim) file may be closed upon the expiration of the aforesaid term. Instead of the arbitration fees, the chairman of the court of arbitration may accept a bank guarantee from one or both parties to the dispute ensuring that these amounts shall be paid by the bank.

    The tribunal in an ad-hoc arbitration will generally request from the parties to provide advance deposits in respect of its fees and expenses.

    24. Challenges to arbitrators

  24. 24.Grounds of challenge
    On what grounds may a party challenge an arbitrator? How are challenges dealt with in the courts or (as applicable) the main arbitration institutions in your jurisdiction? Will the IBA Guidelines on Conflicts of Interest in International Arbitration generally be taken into account?

    According to article 15 of the Law on Commercial Arbitration a party may challenge an arbitrator on the following alternative grounds: justifiable doubts as to arbitrator’s impartiality or independence; lack of qualifications required by the arbitration agreement; the arbitrator is a relative of a party; the arbitrator depends on one of the parties due to his or her official position or otherwise; the arbitrator is directly or indirectly interested in the outcome of the case in favour of one of the parties; or the arbitrator has participated in the pre-arbitration mediation procedure.

    Moreover, pursuant to article 17 of the Law on Commercial Arbitration an arbitrator may be replaced when the arbitrator cannot de jure and de facto perform his or her duties as an arbitrator. This includes death and illness. Parties can agree on the arbitrator’s resignation or the arbitrator can resign sua sponte.

    Procedure for challenge or replacement – if parties fail to agree otherwise, a party must apply to the tribunal within 15 days of learning about the grounds for the challenge. If the arbitrator does not resign and the other party objects to the challenge, the tribunal, including the challenged arbitrator, decides on the issue. Such decision can be appealed within 30 days to the head of the permanent arbitral institution, whose decision is final.

    The improper appointment of arbitrators can be a ground for challenging the arbitration award, but the appointment cannot be challenged in court per se.

    Whilst the IBA Guidelines are non-binding, the tribunal may refer to them.

    25. Interim relief

  25. 25.Types of relief
    What main types of interim relief are available in respect of international arbitration and from whom (the tribunal or the courts)? Are anti-suit injunctions available where proceedings are brought elsewhere in breach of an arbitration agreement?

    According to article 145 of the Code of Civil Procedure (the CCP) a wide range of interim measures is available, including the arrest of property, funds or proprietary rights, orders to refrain from certain actions and designation of a property administrator.

    If arbitration proceedings have not been initiated, a party must apply directly to a court for interim measures. Pursuant to article 20 of the Law on Commercial Arbitration after arbitration proceedings have been initiated the parties may request the arbitral tribunal to apply to a court situated in the same district as the arbitral tribunal for the application of interim measures, unless the parties have agreed otherwise.

    Under article 26 of the VCCA rules, parties also may apply to the domestic court of any jurisdiction for the application of interim measures. Any such request by a party and any measures taken by the national court must be communicated immediately to the secretariat of the arbitration court.

  26. 26.Security for costs
    Does the law of your jurisdiction allow a court or tribunal to order a party to provide security for costs?

    Unless the parties have agreed otherwise, the arbitral tribunal, upon request of any party, can order another party to pay security for costs, as well as apply for assistance from the courts in enforcing such order. Other interim measures can be obtained through the courts.

    27. Procedure

  27. 27.Procedural rules
    Are there any mandatory rules in your jurisdiction that govern the conduct of the arbitration (e.g. general duties of the tribunal and/or the parties)?

    Mandatory provisions usually mirror relevant provisions of the Model Law with some minor differences. The following provisions on procedure are considered mandatory: equality of the parties (article 21 of the Law on Commercial Arbitration); requirements for submission of statements of claim and defence (article 26 of the Law on Commercial Arbitration); basic requirements for the hearings and written procedure (article 27 of the Law on Commercial Arbitration); content of the award (article 34 of the Law on Commercial Arbitration).

  28. 28.Refusal to participate
    What is the applicable law (and prevailing practice) where a respondent fails to participate in an arbitration?

    According to article 28 of the Law on Commercial Arbitration unless otherwise agreed by the parties, if, without showing sufficient cause: the claimant fails to communicate his statement of claim the arbitral tribunal shall terminate the proceedings; the respondent fails to communicate his statement of defence, the arbitral tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegation; any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the award on the evidence before it.

    This is in line with the prevailing practice.

  29. 29.Admissible evidence
    What types of evidence are usually admitted, and how is evidence usually taken? Will the IBA Rules on the Taking of Evidence in International Commercial Arbitration generally be taken into account?

    The arbitral tribunal has a right to determine the admissibility, relevance, materiality and weight of any evidence (article 22 of the Law on Commercial Arbitration). The arbitral tribunal may order that any documentary evidence shall be translated into the language agreed upon by the parties or determined by the arbitral tribunal (article 25 of the Law on Commercial Arbitration).

    According to the VCCA rules all issues related to the admissibility and significance of evidence are decided by the tribunal, unless the parties agree otherwise. The tribunal has the right to order the parties to provide evidence to prove certain claims and can ask a domestic court to assist in the gathering of evidence. The parties can invite their experts to be heard with the tribunal’s approval. The parties must inform the tribunal 15 days prior to the hearing about witnesses they wish to call. If witnesses are not able to appear in person, written statements are accepted.

    The tribunal may seek guidance from the IBA Rules on the Taking of Evidence in International Commercial Arbitration.

  30. 30.Court assistance
    Will the courts in your jurisdiction play any role in the obtaining of evidence?

    The arbitral tribunal or a party with the approval of the arbitral tribunal may request from the district court assistance in taking evidence. The court must execute the request according to the rules of the CCP.

  31. 31.Document production
    What is the relevant law and prevailing practice relating to document production in international arbitration in your jurisdiction?

    The arbitral tribunal only has a right to seek assistance of the national court in obtaining certain documents relevant to the dispute. A party with the approval of the arbitral tribunal may request from the district court assistance in taking evidence. The court must execute the request according to the rules of the CCP.

  32. 32.Hearings
    Is it mandatory to have a final hearing on the merits?

    It is not mandatory to have a final hearing on the merits. Subject to any agreement by the parties, the arbitral tribunal shall hold oral hearings, and conduct proceedings on the basis of documents and other materials furnished by the parties. In case the parties agree that no hearings shall be held, the arbitral tribunal shall conduct oral hearings during the written proceedings if so requested by a party to the dispute.

  33. 33.Seat or place of arbitration
    If your jurisdiction is selected as the seat of arbitration, may hearings and procedural meetings be conducted elsewhere?

    Subject to any agreement by the parties, the arbitral tribunal shall decide where the hearings and procedural meetings shall be conducted.

    Hearings and procedural meetings may be conducted at any place, according to the suitability for the parties, place of witnesses, experts, documents, etc (article 23 of the Law on Commercial Arbitration).

    34. Award

  34. 34.Majority decisions
    Can the tribunal decide by majority?

    Decisions by the arbitral tribunal are made by a majority of all of its members if three or more arbitrators were appointed and the parties have not agreed otherwise. The award must be signed by the majority of arbitrators.

  35. 35.Limitations to awards and relief
    Are there any particular types of remedies or relief that an arbitral tribunal may not grant?

    Unless the parties have agreed otherwise, the arbitral tribunal, upon the request of any party, can order another party to pay security for costs, as well as apply for assistance from the domestic courts in enforcing such order. Other interim measures can be obtained through the domestic courts.

    There is no specific list of available remedies. Under the Law on Commercial Arbitration the arbitral tribunal can make the following awards and orders:

    • final awards;

    • partial awards;

    • interim awards on procedural and jurisdiction issues;

    • settlement orders, confirming a settlement agreement; and

    • additional awards (for claims presented in the proceedings but omitted from the award).

    Punitive damages are not allowed under Lithuanian law.

  36. 36.Dissenting arbitrators
    Are dissenting opinions permitted under the law of your jurisdiction? If so, are they common in practice?

    Dissenting opinions must be attached to the award but they have no consequences on the validity of the award, if the above requirements are met (question 34) (article 34 of the Law on Commercial Arbitration, article 38 of the VCCA rules). Dissenting opinions are not very common in practice.

  37. 37.Formalities
    What, if any, are the legal and formal requirements for a valid and enforceable award?

    The award must contain the grounds of the award, unless the parties have agreed that grounds should not be provided (article 34 of the Law on Commercial Arbitration). It shall also contain a statement of whether the claim is sustained or rejected, the expenses awarded and their allocation to the parties, the place where it was awarded, the names of the arbitrators, the names of the parties and their addresses, the names of the representatives of the parties, and the grounds and procedure for appealing the award.

  38. 38.Time frames
    What time limits, if any, should parties be aware of in respect of an award? In particular, do any time limits govern the interpretation and correction of an award?

    According the VCCA rules the dispute shall be substantially resolved by rendering an award no later than six months after the dispute was forwarded to the arbitral tribunal. The final award shall be made within as short a time as possible after the main hearings are held, but no more than 20 days after the final main hearing, and immediately sent to the secretariat of the court of arbitration. In exceptional cases the chairman of the court of arbitration can extend the term for rendering an award by 20 days.

    The date of the delivery of the award is decisive for requests for correction of the award, or requests for an additional award, which are allowed within 30 days after receipt of the award (article 36 of the Law on Commercial Arbitration).

    39. Costs and interest

  39. 39.Costs
    Are parties able to recover fees paid and costs incurred? Does the “loser pays” rule generally apply in your jurisdiction?

    The Law on Commercial Arbitration does not provide any rules on the allocation of costs. The VCCA rules (article 7) provide for the following costs to be compensated:

    • registration fee;

    • administration fee;

    • compensation fee (which includes expenses for the services of experts, interpreters or translators); and

    • the expenses of the proceedings, which include attorneys’ fees and in-house fees.

    The costs shall be credited to the party that prevails in the arbitral decision at the expense of the party against which the arbitral decision is made, unless otherwise agreed by the parties.

  40. 40.Interest on the award
    Can interest be included on the principal claim and costs? Is there any mandatory or customary rate?

    The Civil Code (article 6.210) provides for a general fixed annual interest rate of 5 per cent in disputes where at least one party is not a businessman or private legal person and 6 per cent where both parties are such.

    The Law on the Prevention of Late Payment in Commercial Transactions and the Law on the Payments for the Agricultural Production provide another interest rate for specific cases. The rate is adjusted semi-annually and equals the monthly VILIBOR interest rate plus 7 per cent.

    41. Challenging awards

  41. 41.Grounds for appeal
    Are there any grounds on which an award may be appealed before the courts of your jurisdiction?

    Article 37 of the Law on Commercial Arbitration provides that an award, in whole or in part, can be challenged if any of the following grounds exist:

    • a party to the arbitration agreement was under some incapacity or the said agreement is not valid under the applicable laws;

    • the party was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings, or was unable to present its case for other valid reasons;

    • the award deals with the disputes falling outside the arbitration agreement; or

    • the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the valid agreement between the parties or imperative requirements of Law on Commercial Arbitration if no such agreement was concluded.

    The arbitration award will be set aside if the subject matter of the dispute could not have been resolved by arbitration or the arbitration award is contrary to public policy.

  42. 42.Other grounds for challenge
    Are there any other bases on which an award may be challenged, and if so what?

    The Supreme Court of Lithuania has stated that the challenge of the arbitration award is possible only on the grounds defined in article 37 of the Law on Commercial Arbitration and public policy.

  43. 43.Modifying an award
    Is it open to the parties to exclude by agreement any right of appeal or other recourse that the law of your jurisdiction may provide?

    The parties are not allowed to exclude any basis of appeal which is provided in law.

    44. Enforcement in your jurisdiction

  44. 44.Enforcement of set-aside awards
    Will an award that has been set aside by the courts in the seat of arbitration be enforced in your jurisdiction?

    Article V, part 1(e) of the New York Convention is reiterated in the Law on Commercial Arbitration. According to the Supreme Court, domestic courts should ensure uniform application of the stated articles.

    Because there is not enough case law dealing with those provisions, Lithuanian courts must take into consideration the application of the above-mentioned articles in foreign case law. This presupposes that the enforcement of foreign awards set aside by the courts at the place of arbitration should follow general international practice.

  45. 45.Trends
    What trends, if any, are suggested by recent enforcement decisions? What is the prevailing approach of the courts in this regard?

    Arbitration awards delivered in any jurisdiction can be denied recognition in Lithuania on the grounds defined in article V of the New York Convention. Unless those grounds are applicable, Lithuanian courts tend to look favourably upon enforcing arbitration awards.

  46. 46.State immunity
    To what extent might a state or state entity successfully raise a defence of state or sovereign immunity at the enforcement stage?

    The Supreme Court has stated that the defence of state immunity should be allowed only in disputes governed by public law, while in disputes governed by the private law such defence should not be allowed.

    The Supreme Court has relied on the case-law of the ECHR specifically finding that state immunity is not extended to employment relations with the staff of embassy.

    47. Further considerations

  47. 47.Confidentiality
    To what extent are arbitral proceedings in your jurisdiction confidential?

    The Law on Commercial Arbitration does not contain any provisions on confidentiality. However, article 6 of the VCCA rules provides that arbitral tribunals must follow the principle of confidentiality in all proceedings. The award may not be published without the consent of both parties to the dispute.

    All proceedings in domestic courts are public with certain exceptions therefore all information communicated to the domestic courts might be exposed to the public if the assistance of a domestic court is requested.

  48. 48.Evidence and pleadings
    What is the position relating to evidence produced and pleadings filed in the arbitration? Are these confidential? Is there any way that they might be relied on in other proceedings (whether arbitral or court proceedings)?

    There are no provisions forbidding the party to rely on information disclosed in previous arbitral proceedings.

  49. 49.Ethical codes
    What ethical codes and other professional standards, if any, apply to counsel and arbitrators conducting proceedings in your jurisdiction?

    As it was mentioned, any neutral and competent person can act as an arbitrator and any person can be chosen to represent the parties in the arbitration proceedings, therefore, no common professional or ethical rules are applicable. However, attorneys-at-law and their assistants representing the parties must be admitted to Lithuanian Bar Association and follow its professional ethics rules.

  50. 50.Procedural expectations
    Are there any particular procedural expectations or assumptions of which counsel or arbitrators participating in an international arbitration with its seat in your jurisdiction should be aware?

    Arbitration is still a new means of dispute resolution in Lithuania. Disputes related to sale of goods, shares, services, construction, as well as shareholders’ disputes are among the most arbitrated ones in Lithuania.

    Entities with international trading experience tend to refer contractual disputes to specialized arbitration institutions such as GAFTA or FOSFA. In certain cases even pure domestic disputes are referred to such arbitration institutions to ensure highest level of expertise and specialized knowledge.

    Generally, there is no need for the counsel or the arbitrator to obtain a work permit if they stay in Lithuania no longer than three months in one year. Visas to enter Lithuania are not required for citizens of 65 countries – all EEA and EU member states, the US, Canada, Japan, Australia, Singapore, New Zealand and others (a full list is available at www.migracija.lt).

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