The arbitration court is a non-state, public entity that is an alternative to the state courts. It examines disputes submitted to the arbitration court based on the agreement of the parties. The arbitration court is not part of the national court system. It can be established both for solving one specific dispute, as well as for regular dispute processing.
In total, more than 50 different arbitration courts are registered in Latvia. Each of them has its own regulations and statutes, but all of them work according to the Arbitration Law established in the country.
Benefits of Arbitration court
If you decide to resolve the dispute in the arbitration court, you can count on the fact that the dispute will be processed twice as fast as in a court of general jurisdiction. On average, the arbitration court processes a dispute in 40 days, and another month may be required to prepare the order of procedure. In contrast, the general jurisdiction court will take at least 120 days.
Also, the costs of the arbitration court, compared to the state court fee, are lower; accordingly, the parties involved in the dispute can save not only time but also money.
The parties involved in the dispute have the opportunity to choose an arbitrator. This means that the dispute will be handled by one or more persons trusted by both parties involved in the dispute.
Arbitration Court of the Commercial Banks Association of Latvia
The Arbitration Court of the Commercial Banks Association of Latvia was established back in 1993 and still functions as a permanent, independent arbitration court. Similar to the case of other arbitration courts, this one also only examines the dispute if the parties involved in the dispute have agreed on it in accordance with the procedures prescribed by law. However, there are disputes which, in accordance with the law, may only be processed by the courts, and in such cases, the arbitration court rejects the application.
The Arbitration Court has an extensive list of experienced arbitrators, which consists of 13 professionals in different fields. If the parties do not agree otherwise, the dispute will be heard by three of these arbitrators. The entire process is detailed in the Arbitration Rules of the Commercial Banks Association of Latvia.
The costs of the Arbitration court depend on the amount of the claim and the number of arbitrators.