Latvian Constitutional Court initiates proceedings regarding the impossibility to challenge and annul arbitral awards

Following a constitutional complaint prepared by COBALT team of experts the Constitutional Court has initiated proceedings regarding constitutionality of the provisions of the Civil Procedure Law that fail to provide ordinary jurisdiction courts with the right to set aside (annul) arbitral awards

Although the possibility to set aside (annul) arbitral awards before the courts at the seat of arbitration is a widely recognized mechanism that inter alia aims to protect arbitrating parties’ fundamental rights, no such possibility exists under Latvian law. The Civil Procedure Law provides courts with the right to refuse recognition and enforcement of arbitral awards, but not to annul them.

The Constitutional Court will assess whether the applicant has been denied the right of access to a court granted under Article 92(1) of the Latvian Constitution due to the fact that under Latvian law ordinary jurisdiction courts do not have the right to annul arbitral awards.

COBALT team of experts include Senior Associate Maija Tipaine and Associate Dr. Toms Krūmiņš.