LATVIA Law and Practice Contributed by: Agita Sprūde, Artūrs Kazāks and Valts Nerets, Sorainen
de facto dispossession following regulatory change); (ii) breaches of FET and legitimate expectations; (iii) breach of contract by state entities or improper inter- ference with concession/lease arrangements; (iv) fail- ure to ensure full protection and security (in narrower physical-security contexts); and (v) denial of justice or procedural irregularities. The relative importance of each depends on the sector and the factual matrix. Historically, in Latvia, regulatory decisions affecting energy/utilities and municipal concessions have been a frequent source of claims. Latvian law permits broad party autonomy in selecting arbitrators. The Arbitration Law (and generally appli- cable rules) uphold party‑choice principles. There are statutory safeguards as to the number of arbitrators (an odd number defaults for three‑member tribunals) and specific professional requirements in domestic contexts. Still, no broad restriction prevents parties from choosing appropriately qualified arbitrators from outside Latvia for international disputes. 4.2 Default Procedures 4. The Arbitral Tribunal 4.1 Limits on Selection The Arbitration Law and the rules of permanent courts of arbitration (for example, the Latvian Chamber of Commerce and Industry Court of Arbitration) provide default procedures for selecting arbitrators. These specify appointment defaults where parties fail to appoint and contain mechanisms for ad hoc panels (each party appoints one arbitrator; the two co‑arbi- trators appoint the presiding arbitrator; failing agree- ment, appointment by an institution or court). Multi- party situations are governed by the applicable arbitral rules or, failing that, by the law providing institutional or court appointment mechanisms. 4.3 Court Intervention Latvian courts can intervene in arbitrator appoint- ments in limited circumstances, mainly where the par- ties’ agreed appointment mechanisms fail or where institutional rules call for court assistance. Such inter- vention is supportive (to preserve arbitration) rather than supervisory. Courts will avoid interfering with
substantive tribunal selection except to secure the parties’ agreement or to ensure procedural propriety. 4.4 Challenge and Removal of Arbitrators The Arbitration Law and institutional rules govern challenges or removals of arbitrators. Grounds mirror international practice: justifiable doubts as to inde- pendence or impartiality, failure to disclose circum- stances giving rise to conflicts, incapacity, or serious misconduct. Procedural rules provide for challenge procedures and replacement mechanisms. 4.5 Arbitrator Requirements The Arbitration Law requires disclosure of potential conflicts and upholds standards of independence and impartiality. Institutional rules (eg, ICC, ICSID, UNCI- TRAL practice for international seats) require arbitra- tors to disclose relevant relationships and potential conflicts at the outset. The Arbitration Law provides that national courts can assist arbitration by granting interim and provisional measures to preserve assets, evidence or the status quo upon the parties’ request. An arbitral tribunal seated in Latvia and subject to the Arbitration Law does not have the right to award preliminary relief. Possible preliminary relief entails seizing property or funds, registering attachments in public registers (such as the Land Register) or prohibiting specific actions by the defendant (such as enforcing a bank guarantee). 5.2 Role of Domestic Courts Domestic courts play a supportive but essential role in interim relief. They can grant interim measures in aid of arbitration where necessary. Courts generally act to facilitate arbitral measures to the extent that the finality of the enforceable decision can be substanti- ated. However, purely interim, provisional or protective (non-final) measures granted by a tribunal are unlikely to be recognised and enforced by Latvian courts. 5. Preliminary and Interim Relief 5.1 Types of Relief
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