LATVIA Law and Practice Contributed by: Agita Sprūde, Artūrs Kazāks and Valts Nerets, Sorainen
9.2 Approach of the Courts Latvian courts adopt a pro‑arbitration approach con- sistent with the New York Convention and the UNCI- TRAL Model Law principles embedded in domestic law. Refusal of enforcement on public policy grounds is narrow and follows the New York Convention’s lim- ited grounds (eg, invalid arbitration agreement, lack of due process, public policy violation). Latvian courts have considered domestic and international public policy in rare cases. In terms of sovereign immunity, courts distinguish between sovereign acts and com- mercial assets. Enforcement against commercial assets is generally permitted. 9.3 Asset Tracing and Recovery Asset tracing and recovery follow standard civ- il‑enforcement techniques under the Civil Procedure Law (searches, seizures, attachment of assets). When State‑owned entities hold discrete commercial assets, tribunals and claimants have pursued enforcement against those commercial assets. Courts apply corpo- rate‑veil principles reluctantly and cautiously, and will pierce the veil only in minimal circumstances where abuse or sham is shown.
but many tribunals follow a “costs follow the event” approach (loser pays) with adjustments for conduct. ICSID awards commonly allocate costs and may order the losing party to pay the winning party’s costs. 8.4 Mitigation of Damages Investors have a duty to mitigate losses. Tribunals routinely assess whether claimants took reasonable steps to limit damages and may reduce awards where mitigation was lacking. This duty is a standard ele- ment of damages quantification in arbitration. Enforcement of awards in Latvia follows the New York Convention and the Civil Procedure Law. A for- eign award set aside at its seat will face significant enforcement hurdles in Latvia (courts will consider the set‑aside but apply the New York Convention frame- work and national rules). Latvian courts respect ICSID awards (enforceability under the New York Conven- tion) and will follow statutory procedures for recogni- tion and enforcement. In the face of pending set‑aside proceedings at the seat, Latvian courts may stay enforcement or assess enforceability under the ICSID Convention and domestic law. Sovereign immunity is limited with respect to commercial assets. Pure sov- ereign immunity claims may still be raised and have succeeded in narrow circumstances. 9. Enforcement of Awards 9.1 Enforcement Procedure
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