On 3 July, the Latvian Chamber of Commerce and Industry (LCCI), in cooperation with the Ministry of Justice, held a discussion on “Current Challenges and Improvements in the Functioning of Arbitration Institutions”, which assessed the development of arbitral courts, discussed on the necessary improvements, including need for legislative changes. In attendance was also KLOTIŅI SERĢIS Managing Partner Ivo Klotiņš.
Panel discussion was opened by Minister of Justice Jānis Bordāns who noted, that it is of essence to comprehend the current situation in order for arbitral courts to become a supportive tool for a business growth and attract investors. Minister of Justice J. Bordāns: “Decision made five years ago to reform arbitral institutions has justified itself, however, analysis of the performance of these institutions shows that there are still a large number of acting arbitral courts that in reality do not meet the legal requirements needed and set by the state. Ministry of Justice is ready to join forces with experts from LCCI in order to implement additional amendments to the Arbitration Law so the quality of the arbitral courts complies with the international standards”.
Attendees agreed that work on present arbitration regulation should be continued as it does not currently provide possibility to merge with another arbitral court. Experts believe it is essential to completely switch to the United Nations Commission on International Trade Law (UNCITRAL) regulation to ensure that international dispute resolution is promoted in Latvia.
The information provided by the Ministry of Justice shows that currently there are 719 registered persons who can act as arbitrators. Majority of cases (app. 58%) are disputes regarding sum up to 7000 EUR. On average, the duration of once case does not exceed three months.