Investor-State Arbitration 2025

ESTONIA Law and Practice Contributed by: Maria Pihlak, Carri Ginter, Raul Kartsep and Katariina Kuum, Sorainen

4.5 Arbitrator Requirements Arbitrators must be impartial and independent, and disclose potential conflicts. These requirements derive from international conventions, arbitration rules, and Estonian judicial interpretation of public policy under the New York Convention.

Under the applicable laws, the court must appoint the arbitrator within 30 days following the reception of the corresponding petition. Additionally, when appointing the arbitrator, the court has regard to the following: • the requirements agreed by the parties concerning the arbitrator; and • the circumstances that ensure the appointment of an independent, impartial and competent arbitrator. The parties cannot appeal the order by which the state court appoints an arbitrator. 4.4 Challenge and Removal of Arbitrators Under Estonian law, an arbitrator may be recused if circumstances raise reasonable doubts about their impartiality, independence or competence, or if they fail to meet agreed qualifications. A party may chal- lenge its own appointee if the grounds for recusal became known after appointment. Arbitrator candidates must promptly disclose any cir- cumstances that could raise doubts about their impar- tiality or independence. This duty continues through- out the proceedings, and arbitrators must immediately notify the parties of any such developments. If an arbitrator cannot perform their duties within a reasonable time, their mandate ends upon self-recusal or by agreement of the parties. If the arbitrator refus- es to step down or no agreement is reached, either party may petition the court to terminate the mandate, unless otherwise agreed. The parties may agree on recusal procedures. If no such rules exist, a party may request recusal within 15 days of the tribunal’s formation or of learning of the relevant circumstances. If the arbitrator declines to step down or the other party objects, the tribunal – without the challenged arbitrator – decides the matter. If the issue cannot be resolved under the agreed or default procedures, a party may petition the court within 30 days of learning that its motion was reject- ed. The tribunal may suspend proceedings until the court’s decision.

5. Preliminary and Interim Relief 5.1 Types of Relief

Unless the parties have agreed otherwise, arbitral tri- bunals may grant interim relief on a party’s applica- tion. However, measures of interim relief that restrict personal freedoms may not be imposed. The arbitral tribunal may, in connection with interim relief, require both parties to provide reasonable security. The decision on interim relief is enforced on the basis of a state court order. The court makes the order on the petition of the party and allows the decision to be enforced only if the relevant measure of interim relief has not already been sought from the court. The court may rephrase the interim relief order if this is needed to apply the relief. In relation to the petition filed with the court, security must be provided analogously with interim relief in relation to a court claim. 5.2 Role of Domestic Courts As mentioned in 5.1 Types of Relief , under Estonian law, arbitral tribunals’ decisions on interim relief are enforced through a state court order. The court makes the order on the petition of the party and allows the decision to be enforced only if the relevant measure of interim relief has not already been sought from the court. The court may rephrase the interim relief order if this is needed to apply the relief. In relation to the petition filed with the court, security must be provided analogously with interim relief in relation to a court claim. Further, the court may, on petition, revoke or vary interim relief on the same grounds and following the same rules that apply when granting interim relief in relation to a court claim dealt with in judicial proceed- ings.

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