International arbitration law and rules in Lithuania

The Republic of Lithuania has a legal framework that supports arbitration and case law that generally favours this approach. Over the past ten years, arbitration has significantly grown in prominence, emerging as a viable alternative to traditional court litigation. Although Lithuania's law on arbitration is founded on the UNCITRAL Model Law, it incorporates unique provisions, distinguishing it from other jurisdictions. Key distinctions include a strong focus on confidentiality and the requirement for public entities to obtain the relevant ministry’s approval for valid arbitration agreements which affect arbitrability.

1.1 Arbitration was practically non-existent in Lithuania before its independence in 1990. However, the field has subsequently made significant advancements. In 1992, Lithuania ratified the Convention on the Settlement of Investment Disputes between States and Nationals of Other States and in 1995 it ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

1.2  In 1996, Lithuania enacted a key piece of legislation, the Lithuanian Law on Commercial Arbitration 1  (LCA). Modelled on the UNCITRAL Model Law on International Commercial Arbitration, the LCA governs domestic and international arbitration proceedings and the recognition and enforcement of awards.

1.3 In addition to the LCA, the Code of Civil Procedure (CCP) governs areas such as the recognition and enforcement of foreign arbitral awards, the enforcement of arbitral awards, and the role of state courts in matters related to arbitration. 2

1.4 The Vilnius Court of Commercial Arbitration  (VCCA) is the preeminent arbitral institution in Lithuania. On 27 September 2003, it was officially established as a permanent arbitration institution.

1.5 The VCCA has established its own arbitration procedure rules. 3

2.1.1 The LCA applies to all arbitration proceedings taking place in the Republic of Lithuania irrespective of the nationality or citizenship of the disputing parties, of whether the disputing parties are natural or legal persons, and regardless of whether the arbitration proceedings are conducted by an arbitration institution or arranged on an ad hoc basis. 4

2.2.1 Unless it concerns the choice of law that applies to resolving a dispute, the LCA grants parties the right to exercise their discretion in deciding on matters relating to the proceedings. The parties are free to determine such matters themselves or authorise a third party or institution to make that determination. 5

2.2.2 The LCA’s interpretation and definitions should align with the 1985 UNCITRAL Model Law on International Commercial Arbitration as last amended. 6  If the LCA does not cover a particular issue, it must be resolved based on the principles of justice, reasonableness, good faith, and other general principles of law. 7

2.2.3 To ensure maximum compliance with the principles of arbitration, the LCA must be interpreted in a way that arbitration proceedings under it are in line with those principles. 8

2.2.4 In addition to the above, the following general principles apply to arbitral proceedings:

1. Independence must be maintained by the arbitral tribunal, arbitration institution, and its chair when dealing with issues governed by the LCA;
2. The Courts may not interfere with the activities of the arbitral tribunal, arbitral institution, and its chair, except in situations specified in the LCA;
3. Confidentiality must be maintained during the arbitral proceedings;
4. Both parties to the arbitration should enjoy equal procedural rights;
5. The parties involved in the arbitration have the freedom to dispose of their rights; and
6. The principles of autonomy of the parties, competition, cost-efficiency, cooperation, and promptness must be followed during the arbitral proceedings. 9

3.1.1 An “arbitration agreement” is defined as “an agreement between two parties or more to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not, and which may be subject to arbitral proceedings. The state, a municipality or other public legal persons may also enter into an arbitration agreement”. 10

3.2.1  An arbitration agreement must be in writing. It will be considered valid if any of the following apply:

1. It is created as a joint document signed by the parties;
2. It is established through an exchange of letters between the parties, which may be sent via electronic communication (provided that the integrity and authenticity of the transmitted information is ensured) or through other documents that confirm the agreement’s existence;
3. It is formed using electronic communication, provided that the integrity and authenticity of the transmitted information and the transmission’s content is available for future reference;
4. They submit to each other a claim and a statement of defence, where the existence of the arbitration agreement is asserted by one party and not denied by the other parties; or
5. There is other written evidence that verifies the establishment or acknowledgment of the arbitration agreement by all parties. 11

3.3 Special tests and requirements of the jurisdiction

3.3.1 Arbitration cannot be used to settle the following:

1. disputes subject to administrative procedures;
2. disputes falling under the jurisdiction of the Constitutional Court of the Republic of Lithuania;
3. disputes related to family law;
4. disputes relating to patent, trademark, and design registration; and
5. employment and consumer contract disputes except where the Arbitration Agreement is reached after the dispute arises. 12

3.3.2 If a dispute involves a party that is a state or municipal enterprise, institution, or organisation, arbitration is generally not allowed unless the “founder” (usually the appropriate ministry overseeing the operation of the state-owned entity) grants prior consent.  The exception is the Bank of Lithuania. 13  The Government of the Republic of Lithuania or an authorised state institution can enter into an arbitration agreement for disputes arising from commercial contracts in accordance with regular procedures. 14

3.4.1 The LCA follows the doctrine of separability. It provides that an arbitration clause contained in a contract should be considered a separate agreement independent from the other provisions of the contract. Therefore, nullifying, revoking, or terminating the main contract does not affect the validity of the arbitration agreement. 15

3.4.2 The Court of Appeal and Supreme Court of Lithuania have made several judgments in support of the doctrine of separability.

3.5.1 Where there is a valid and binding arbitration agreement between parties in dispute, neither side can request a national court to unilaterally resolve the matter. Instead the parties can mutually terminate the arbitration agreement and revert to the jurisdiction of the courts.

4.1.1  Parties can choose the number of arbitrators, so long as it is an odd number. However, if an arbitral tribunal has an even number of arbitrators, the arbitral award will not be considered invalid for this reason alone. In cases where the parties do not specify the number of arbitrators, a panel of three arbitrators will be appointed. 16

4.1.2  Any legally capable natural person may be appointed as an arbitrator unless the parties agree otherwise. The person must provide written consent for their appointment as an arbitrator. 17

4.1.3 Parties are free to agree on a procedure for appointing arbitrators. 18  Unless agreed otherwise, in cases with two opposing parties the following rules apply: 19

1. Where there is a sole arbitrator, if the parties cannot agree on the arbitrator, one of the parties may request the chair of a permanent arbitral institution to make the appointment.
2. In a three-arbitrator tribunal:
   1. Each party shall appoint one arbitrator, and those two arbitrators shall appoint a third arbitrator as the tribunal chair.
   2. If the claimant fails to appoint an arbitrator within 20 days of filing the claim, the chair of an arbitral institution shall appoint one within 20 days of the deadline for the claimant to appoint the arbitrator.
   3. If the respondent fails to appoint an arbitrator within 20 days of receiving the claim, the chair of an arbitral institution shall appoint one within 20 days of the deadline for the respondent to appoint the arbitrator.
   4. If the party-appointed arbitrators cannot agree on the third arbitrator within 20 days of their appointment, the chair of an arbitral institution shall appoint one within 20 days of the deadline for the arbitrators to appoint the third arbitrator.
   5. If the parties fail to appoint an arbitrator in an ad hoc arbitration, the Vilnius Regional Court shall appoint an arbitrator. If the party-appointed arbitrators cannot agree on the tribunal chair within 20 days of their appointment, the tribunal chair shall be appointed by the Vilnius Regional Court within 20 days of the deadline for the arbitrators to appoint the tribunal chair.

4.1.4  In cases with multiple claimants and/or respondents:

1. The co-claimants must submit a written agreement on a common arbitrator’s appointment when filing the claim. If they fail to do so, the chair of an arbitral institution or, in ad hoc arbitrations, the Vilnius Regional Court, shall appoint the arbitrator within 20 days of the deadline for the co-claimants to appoint an arbitrator. 20
2. The co-respondents must submit a written agreement on a common arbitrator’s appointment within 20 days of the receipt of the application of the claimant or co-claimants for the appointment of the arbitrator. If they fail to do so, the chair of a permanent arbitral institution or, in ad hoc arbitrations, the Vilnius Regional Court, shall appoint the arbitrator within 20 days of the deadline for the co-respondents to appoint an arbitrator. 21

4.1.5 When appointing arbitrators, the chair of an arbitral institution or the Vilnius Regional Court must consider the nature of the dispute, the parties’ agreement on arbitrator requirements, and other circumstances to ensure the arbitrator’s independence and impartiality. 22  Decisions made by the chair of an arbitral institution and orders of the Vilnius Regional Court regarding arbitrator appointments in this respect are final and not subject to appeal. 23

4.1.6 When an individual is being considered for the role of an arbitrator, before accepting the appointment, they must disclose in writing any situations or factors that may reasonably cast doubt upon their ability to act independently and impartially. From the moment of their appointment and throughout the entire arbitration process, the arbitrator must continue to disclose any such circumstances that they become aware of or occur after their appointment or during the proceedings. 24

4.2.1 An arbitrator’s appointment may be challenged only if there are legitimate concerns about their independence or impartiality or if they lack the requisite qualifications agreed to by the parties. 25

4.2.2  Where a party has either directly appointed an arbitrator or has been involved in the appointment process, that party can only challenge the arbitrator solely based on reasons that were not known to them at the time of appointment. 26

4.2.3 Parties may agree the procedure for any  challenge of an arbitrator or appeal against a decision concerning the challenge or other issues related to the challenge. In situations where parties fail to agree on a procedure for challenging an arbitrator, specific guidelines must be followed. 27

4.2.4 When a party wishes to challenge an arbitrator and there is no pre-agreed procedure for such a challenge, it must submit to the arbitral tribunal a written statement detailing the reasons for the challenge within 15 days of becoming aware of (i) the arbitral tribunal’s constitution, or (ii) the circumstances that give rise to the challenge. If the challenged arbitrator does not voluntarily step down and the opposing party does not consent to the challenge, the remaining arbitrators in the tribunal are tasked with deciding the outcome of the challenge. Where the tribunal consists of a sole arbitrator or all arbitrators are challenged, the decision regarding the challenge falls upon the arbitrator(s) themselves. 28

4.2.5 Should the challenge be dismissed following the aforementioned procedure, the challenging party can, within 20 days of receiving notice of the decision, seek an order from the Vilnius Regional Court regarding the challenge. The Court’s decision on this matter will be final and is not open to appeal. It is important to note that while the Vilnius Regional Court is reviewing a party’s request for challenging an arbitrator, the arbitral tribunal, including the challenged arbitrator, retains the authority to proceed with the arbitration process and deliver an arbitral award. 29

4.2.6  In instances where an arbitrator’s mandate ends, the arbitrator voluntarily steps down from their position, or their mandate is terminated on other grounds, the parties must appoint a substitute arbitrator. This appointment should follow the same procedure that was initially employed for the selection of the arbitrator whose mandate has been terminated. 30  Once a substitute arbitrator has been appointed, the examination process will begin anew. However, the parties involved in the arbitration may agree to proceed otherwise. 31  This ensures that the integrity of the arbitration process is maintained and that the substitute arbitrator has a comprehensive understanding of the case, allowing them to make well-informed decisions.

4.3.1 While the LCA does not explicitly address this issue, arbitrators are generally protected from civil liability for acts or omissions committed in good faith. However, this immunity is not absolute and arbitrators may be held liable for bad faith, gross negligence, or breaches of confidentiality. 32

5.1.1 The jurisdiction of an arbitral tribunal, including instances where questions arise concerning the existence or validity of an arbitration agreement, may be determined by the tribunal itself. It is essential to recognise an arbitration clause embedded within a contract as an autonomous agreement, separate from the contract's other provisions. Therefore, a decision by the arbitral tribunal deeming the contract null and void does not automatically render the arbitration clause invalid. 33

5.1.2 When contesting the jurisdiction of an arbitral tribunal, a party must raise their objection no later than the submission of their statement of defence. Participation in the appointment of an arbitrator does not preclude a party from challenging the jurisdiction of the arbitral tribunal. Furthermore, if a party believes that the arbitral tribunal is acting beyond its authority, they must voice their objection as soon as the issue in question is raised within the arbitration proceedings. The arbitral tribunal retains the discretion to accept a later plea if the delay is deemed justifiable. 34  An arbitral tribunal holds the authority to issue a partial decision pertaining to the challenge or address the matter in its final arbitral award. 35

5.2.1 In arbitral proceedings, unless the involved parties reach a mutual agreement, the arbitral tribunal holds the authority to grant interim measures of protection upon the request of any party. 36  This is done by providing notice to all other parties, with the aim of securing the settlement of the requesting party’s claims and preserving crucial evidence.

5.2.2 Interim measures may encompass various actions, such as:

1. Prohibiting a party from engaging in specific transactions or activities;
2. Mandating the preservation of assets relevant to the proceedings by providing a financial deposit or acquiring a bank or insurance guarantee; and
3. Obligating the preservation of evidence that could hold significance in the arbitration process. 37

5.2.3  When seeking interim measures falling within the first two categories above, a party must demonstrate that:

1. Their claims are likely to be well-founded (although this does not limit the arbitral tribunal’s authority to issue a differing award or order later on in the proceedings);
2. Failing to implement these measures could significantly hinder the enforcement of the arbitral award or make it unattainable; and
3. The interim measures are cost-effective and proportionate to the intended objective. 38

5.2.4 Where a party requests interim measures obligating the preservation of evidence, they must establish that:

The evidence they wish to preserve is potentially significant to the case; and

There is a genuine risk that neglecting to enforce these interim measures could lead to the destruction or damage of the requested evidence by the opposing party, rendering it unusable in the arbitration proceedings. 39

5.2.5 When granting interim measures, the arbitral tribunal may require a party to promptly inform them of any significant changes in circumstances relating to the decision for implementing interim measures. 40

5.2.6 Unless agreed otherwise, a party can approach the arbitral tribunal to request interim measures without notifying the opposing party. To do so, they must submit an application for a preliminary order, which would compel the concerned party to refrain from taking any actions that could potentially influence the application for the interim measures during the course of the application’s evaluation. 41

6.1.1 Unless the parties agree otherwise, the initiation of arbitral proceedings is considered to have taken place on the day the respondent receives either a request for arbitration or a claim.

6.1.2 A request or claim should provide the following essential information to ensure that the arbitration process is clearly defined and that all parties are aware of the expectations and issues at hand, including:

1. The identities of the parties;
2. The nature of the dispute;
3. A reference to the arbitration agreement; and
4. The nomination of an individual to serve as an arbitrator. 42

6.2.1 In arbitral proceedings, it is essential that each party is granted equal procedural rights, ensuring a fair and balanced process. Therefore, each party must be provided with an equal opportunity to present evidence in support of their respective claims or objections. 43

6.2.2 While adhering to the mandatory provisions of the applicable law, the disputing parties may agree the procedure for the arbitral tribunal to follow during the proceedings. 44  Where no such agreement exists, the arbitral tribunal is granted the authority, within the confines of the relevant legal framework, to conduct the proceedings in a manner they deem fit.  45  This flexibility enables a tailored approach to arbitration, promoting an effective and just resolution of the dispute at hand.

6.3.1 The disputing parties may agree on the location of the arbitral proceedings. In the absence of such an agreement, the arbitral tribunal will choose the appropriate venue. In making this decision, the arbitral tribunal takes into consideration the context of the case and the convenience of the location for each party. 46

6.3.2 Despite these provisions, the arbitral tribunal retains the flexibility to convene at any location it deems suitable unless the parties have explicitly agreed otherwise. This enables the tribunal to hold consultations among arbitrators, conduct hearings with witnesses, experts, or the disputing parties, or carry out inspections of relevant documents, goods, or other assets. 47

6.4.1 The language(s) used in arbitral proceedings is subject to the agreement of the parties, unless otherwise specified. In the absence of such an agreement, the arbitral tribunal is tasked with determining the appropriate language. Until this decision is made, the language of the arbitration agreement serves as the default language of the arbitration. 48

6.4.2 All written documents submitted by the parties to the arbitral tribunal or an arbitral institution, as well as arbitral proceedings, awards, decisions, orders, and other related documents, must adhere to the language of the arbitration unless the parties reach an alternative agreement, or the arbitral tribunal issues a contrary order. 49

6.4.3 At any point during the arbitral proceedings, the tribunal reserves the right to establish a new language of arbitration as long as this decision does not infringe upon the parties’ right to be heard. 50  This flexibility allows for the adjustment of language(s) used in response to the evolving needs of the proceedings and the parties involved.

6.5 Multi-party arbitration agreement

6.5.1 There are no explicit regulations that govern multi-party arbitration agreements. Instead, these agreements must adhere to the general formal requirements that apply to all arbitration agreements. This approach ensures that multi-party arbitration agreements are consistent and compliant with established standards whilst allowing the necessary flexibility to accommodate the unique circumstances that may arise in multi-party disputes.

6.6 Oral hearings and written proceedings

6.6.1 The arbitral tribunal determines the form of arbitral proceedings unless agreed by the parties. Arbitral proceedings can take various forms, including oral hearings, written procedures, or other approaches deemed appropriate. Where the parties consent to proceedings in absentia, the arbitral tribunal is obligated to transition to oral proceedings upon the request of any party involved in the dispute at any point during the arbitration process. 51

6.6.2 To ensure fairness, parties must be given sufficient advance notice of any hearing of an arbitral tribunal within a reasonably required period. 52

6.6.3 All evidence, documents, or other information submitted to the arbitral tribunal by one party will be shared with the opposing party. Additionally, any evidence, documents, or information received by the arbitral tribunal must also made available to the parties. 53

6.7.1 In the absence of a mutual agreement specifying otherwise, where a party neglects to submit a compulsory procedural document or attend a hearing without a valid justification, the arbitral tribunal retains the authority to proceed with the arbitration and render an award based on the evidence presented. 54

6.7.2  The arbitral tribunal possesses the power to issue an order dismissing a request for arbitration or a claim under certain circumstances. These circumstances may include the failure of the initiating party to pay the designated arbitration costs or the claimant's inability to submit a claim. 55

6.8.1 In arbitration, it is incumbent upon each party to substantiate the facts underpinning their claims or defences, unless an alternative arrangement has been agreed upon by the parties or mandated by the governing law of the dispute. 56 Throughout the arbitral proceedings, the arbitral tribunal may request that parties produce documents and other evidence pertinent to the case at hand. 57

6.8.2 The arbitral tribunal reserves the right to reject evidence that could have been submitted earlier in the proceedings and may cause undue delay. 58  Unless the parties have specifically agreed otherwise, no evidence is considered obligatory to the tribunal 59  and the rules of evidence applicable to the proceedings are determined by the arbitral tribunal. The provisions of the relevant legal framework govern the collection of evidence and the assignment of the burden of proof until the tribunal establishes the applicable rules of evidence. 60

6.8.3 If a party fails to produce evidence requested by the arbitral tribunal, the tribunal may issue an award based on the available evidence or, in exceptional cases, view the failure to provide evidence as detrimental to the non-compliant party. 61 The arbitral tribunal is also authorised to assess the admissibility, adequacy, and relevance of any evidence presented in relation to the case. 62

6.9.1 The responsibility of determining the time, place, and method for examining witnesses and experts falls on the arbitral tribunal. 63  In the event that witnesses are unwilling or unable to testify, the arbitral tribunal may permit the party seeking the examination of witnesses to submit a request to the Vilnius Regional Court within a specified timeframe during which the arbitral tribunal has the discretion to suspend or adjourn the arbitration proceedings. 64

6.9.2 Unless the parties have agreed otherwise, the arbitral tribunal is authorised to appoint one or more experts to provide reports on specific issues as identified by the tribunal. The arbitral tribunal may require a party to supply the expert with relevant information or grant access to evidence pertaining to the case. 65

6.9.3 In the absence of a contrary agreement between the parties, an expert may be required to participate in a hearing upon the request of a party or at the tribunal’s discretion. During the hearing, the expert must present their findings and address any questions posed by the parties or the arbitral tribunal. 66

6.9.4 Moreover, parties have the right to request that the arbitral tribunal examine their respective witnesses, ensuring a fair and balanced arbitration process. 67

6.10.1 Arbitral proceedings are characterised by a commitment to confidentiality, which means that both the disputing parties and the arbitrators are prohibited from disclosing any information related to the arbitration process to third parties. 68  However, it is important to note that confidentiality provisions of the LCA do not extend to court proceedings. Consequently, when domestic courts are involved, all associated information becomes public.

6.10.2 The IBA Rules on Taking Evidence in International Arbitration may be employed if the parties involved have reached an agreement to do so or if the arbitral tribunal issues an order to that effect. 69

6.11.1 The arbitral tribunal, or a party with the tribunal’s approval, may seek assistance from the Vilnius Regional Court in gathering evidence. Both arbitrators and the parties are permitted to participate in any hearings conducted by the court, as well as pose questions and provide oral or written clarifications. They may also exercise any other procedural rights essential for the collection of evidence. It is important to note that court orders pertaining to document production carry legal weight and are, therefore, binding. 70

7.1.1  When resolving disputes, an arbitral tribunal shall adhere to the legal framework chosen by the parties as relevant to the particular disagreement. When referring to applicable foreign law, this shall denote the national substantive law of the pertinent state, as opposed to the international private law of said state. 71

7.1.2 Where the parties cannot agree on the applicable law, the arbitral tribunal is tasked with applying the law that, in its judicious assessment, is most fitting for the resolution of the specific dispute, taking into consideration principles such as lex mercatoria. 72

7.1.3 The arbitral tribunal is permitted to render decisions based on ex aequo et bono, or in the capacity of an amiable compositeur, only when explicitly granted such authority by the parties involved. 73

7.2.1 The arbitral tribunal has the authority to render a conclusive decision on the merits of a case, referred to as a final arbitral award, as well as partial or additional awards. 74  Arbitral awards must be in writing, accompanied by the signature of either a sole arbitrator or a majority of arbitrators in instances where multiple arbitrators are involved. Where there are missing signatures, the tribunal must explain why those signatures are not provided. Arbitrators who dissent from the majority opinion retain the right to express their opposing views in writing, which will then be appended to the arbitral award. Under certain circumstances, parties may agree that the chair of the arbitral tribunal may sign the award based on the chair’s sole discretion. 75

7.2.2 The arbitral award must detail the reasons upon which it is based, except in cases where the parties have mutually agreed to forgo reasons or when the award is founded on agreed terms that align with a settlement agreement. 76

7.2.3 Additionally, the arbitral award must clearly note its date and the location of the arbitration proceedings. The award is deemed to have been issued on the date and at the place specified in the award. 77

7.2.4  Following the conclusion of the arbitration process, each party must receive a signed copy of the award. The delivery of the arbitral award may be contingent upon the full payment of all associated arbitration expenses. 78

7.3.1 Where parties resolve a dispute that is the subject of an arbitration and record this in a settlement agreement, the parties may request that the arbitral tribunal either endorses the settlement agreement via an arbitral award or issues a directive that terminates the arbitral proceedings. 79

7.3.2 It is essential to note that an arbitral award that endorses a settlement agreement will be deemed as a final and binding resolution of the dispute. 80

7.4.1 Arbitration costs include the following:

1. The compensation and other justifiable expenses incurred by arbitrators;
2. The legitimate costs of a permanent arbitral institution or other reasonable expenses resulting from agreements between the parties involved; and
3. The reasonable expenses borne by the parties themselves, which may encompass a wide range of costs, such as those related to legal representation, expert consultation, and witness testimony. 81

7.4.2 The fee structure of an arbitral institution, as well as the methodology for calculating, paying, and reimbursing arbitration costs, is determined by the arbitration rules and/or the agreement between the parties, provided that it aligns with the established arbitration rules. In ad hoc arbitrations, the arbitrators’ remuneration and the procedures for calculating, disbursing, and refunding arbitration costs are defined by the agreement of the parties and/or the ad hoc arbitration rules. 82

7.4.3 In the absence of a contrary agreement between the parties, the arbitral tribunal is responsible for allocating the arbitration costs among the parties through an arbitral award. In making this determination, the tribunal must take into account the specific facts of the case and the conduct of the parties. 83

7.4.4 The concept of procedural interest (which refers to the interest applied to the amount awarded from the date the statement of claim is submitted in the arbitration until the full payment under the award is made) is universally recognised and applicable to arbitration proceedings. The interest rate can be determined either by legal provisions or through an agreement between the parties based on their contractual obligations. 84  In commercial transactions, it is customary for the parties to negotiate and agree upon a delay interest, which is typically calculated from the date sums became due under the contract.

7.5.1 Termination of the proceedings is typically signified by either a conclusive arbitral award or an order issued by the arbitral tribunal predicated upon specific conditions. 85

7.5.2 An arbitral tribunal may exercise its authority to terminate the proceedings under any of the following circumstances:

1. The subject matter of the dispute is deemed inappropriate for arbitration;
2. A legally binding court decision has been made in connection to the dispute involving identical parties, subject matter, and grounds;
3. A prior arbitral award addressing the same parties, subject matter, and grounds have become legally enforceable;
4. The withdrawal of the claim by the claimant unless the respondent objects and the arbitral tribunal acknowledges a valid interest in obtaining a definitive resolution;
5. The attainment of a settlement agreement between the parties;
6. The demise of a natural person who is a party to the dispute when the transfer of their rights is unattainable;
7. The dissolution of a legal entity that is a party to the dispute when the transfer of their rights is similarly unattainable; and/or
8. The continuation of the proceedings becomes untenable, and the claimant is unable to pursue arbitration to resolve the same dispute in the future 86 .

7.5.3 In addition, the arbitral tribunal possesses the authority to dismiss a request for arbitration or a claim under these circumstances:

1. If the request for arbitration or claim is submitted by a natural person who lacks legal capacity;
2. If the request for arbitration or claim is submitted on behalf of the claimant by an unauthorised individual;
3. Arbitration proceedings are already in progress concerning the same parties, subject matter, and grounds, potentially leading to duplicative efforts and conflicting awards;
4. Both parties, without justifiable cause, fail to appear at the proceedings and have not requested proceedings in absentia;
5. The individual submitting the request for arbitration or the claim fails to pay the required arbitration fees;
6. The claimant files a claim that does not comply with all the applicable requirements;
7. The parties that are not subject to bankruptcy proceedings request not to consider the dispute in arbitration; 87  and
8. The arbitral tribunal determines that the continuation of arbitral proceedings is either unattainable or impractical. 88

7.5.4 The arbitral tribunal’s mandate ends once the final arbitral award has been issued, the arbitration proceedings have been closed, or any further action relating to the claim or the request for the commencement of arbitration proceedings has been resolved. 89

7.5.5 Once the arbitration proceedings are terminated, the parties are generally prohibited from repeatedly seeking arbitration concerning a dispute that involves the same participants, subject matter, and basis. 90  This prohibition serves to maintain the integrity and finality of the arbitration process and to avoid unnecessary repetition of disputes that have already been addressed. Nevertheless, there are certain circumstances in which parties are not precluded from pursuing arbitration again for the same dispute ie  where a request for arbitration or claim has been issued but no subsequent action has been taken.  In such circumstances, the parties retain the right to re-submit the dispute for arbitration. 91

7.6.1An arbitral award is immediately effective and binding on the parties once it has been rendered. 92

7.6.2 The date specified in the award serves as the official point in time when the award is considered to have been made. 93

7.6.3 It is important to recognise that, once the arbitral award is rendered, the parties relinquish their rights to initiate any legal action concerning the identical subject matter based on the same reasons as those outlined in the award. This emphasises the finality and enforceability of arbitral awards in resolving disputes between parties. 94

7.7.1 Additional arbitral awards serve to address claims that were raised but left unresolved in the initial arbitral award. Such additional awards not only resolve outstanding issues but may also provide necessary revisions or clarifications such as:

1. Rectifying clerical, typographical, or computational errors or any errors of a similar nature within the initial arbitral award;
2. Providing an interpretation of the operative components or specific aspects of the arbitral award; and
3. Settling matters pertaining to the allocation of arbitration costs. 95

7.7.2  Both the arbitral tribunal and the parties may initiate the issuance of an additional arbitral award. The arbitral tribunal may, at its discretion, issue a supplementary award within 30 days of issuing the initial award. Alternatively, a party may submit a request for an additional award within 30 days of receiving the initial decision. Upon receipt of such a request, the arbitral tribunal has a 30-day window to issue the supplemental award. 96 However, the arbitral tribunal may modify or extend the specified time limits as it deems appropriate 97 .

7.7.3 The additional award is considered an integral part of the initial decision and must adhere to the same formal and content requirements. 98

7.7.4 A supplementary arbitral award is not intended to alter the substance of the initial award; its purpose is to provide further clarification, explanation, or the resolution of outstanding issues that arose during the arbitration. 99

8.1 The Courts are only authorised to carry out actions in relation to arbitration proceedings within limits defined by law. 100  In short, state courts are authorised or obliged to:

8.1.1 Appoint an arbitrator; 101

8.1.2 Decide on the recusal of an arbitrator’; 102

8.1.3 Decide on the termination of an arbitrator’s mandate; 103

8.1.4 Issue, set aside, or amend a writ of execution for application of interim measures; 104

8.1.5 Assist in performing evidentiary operations and other judicial operations; 105

8.1.6 Set aside an award; 106  and/or

8.1.7 Recognise and declare an award enforceable. 107

9.1An appeal may be filed with the Lithuanian Court of Appeal to challenge an arbitral award on the grounds outlined below. The Lithuanian Court of Appeal can invalidate an arbitral award if the appealing party demonstrates any of the following:

9.1.1 A party in the arbitration agreement was legally incapable under relevant laws, the arbitration agreement is invalid according to the laws chosen by the parties, or, if no such agreement exists, the laws of the country where the award was issued;

9.1.2 The party against whom the award is sought to be enforced was not properly informed about the appointment of an arbitrator or the arbitration proceedings or was not given the opportunity to present their case;

9.1.3  The award addresses a dispute or portion of a dispute not submitted to arbitration. If a separable part of the dispute was indeed submitted to arbitration, the award's portion addressing those issues might still be recognised and enforced;

9.1.4 The composition of the arbitral tribunal or the arbitration process does not adhere to the parties’ agreement and/or the mandatory provisions of the relevant law;

9.1.5 The dispute is not subject to arbitration under Lithuanian law; or

9.1.6 The arbitral award contradicts the public policy of the Republic of Lithuania.

9.2 In certain exceptional circumstances, when an appeal against an arbitral award is filed, the Lithuanian Court of Appeal has the authority to suspend the enforcement of the award upon the request of a party. 108  Furthermore, upon receiving an appeal against an arbitral award, the Lithuanian Court of Appeal may issue a reasoned order, as requested by a disputing party, to temporarily halt proceedings concerning the annulment of the arbitral award. This provides the arbitration tribunal with the opportunity to resume proceedings or take other measures deemed appropriate by the Court of Appeal to rectify the basis for potentially setting aside the award. 109

9.3 Decisions made by the Lithuanian Court of Appeal, including those related to the suspension of proceedings or the annulment or refusal to annul an arbitral award, can be appealed to the Supreme Court of Lithuania. The appeal process is conducted following the guidelines set forth by the CCP. 110

10.1.1 Arbitral awards made in any country that is a party to the  New York Convention are subject to recognition and enforcement in the Republic of Lithuania in accordance with the provisions of the convention and relevant Lithuanian laws. 111

10.1.2 When seeking recognition or both recognition and enforcement of a foreign arbitral award, a party must submit an application to the Lithuanian Court of Appeal, accompanied by the original arbitral award and arbitration agreement or duly certified copies of these documents. If the award or agreement is not in an official language of the state, the applicant must provide a properly certified translation. 112

10.1.3 The Lithuanian Court of Appeal will issue an order regarding the application for recognition or both recognition and enforcement of the foreign arbitral award, which becomes effective on the date of issuance. This order may be appealed to the Supreme Court of Lithuania within 30 days from the date of issuance. 113

10.1.4  Once the order for recognition or both recognition and enforcement of a foreign arbitral award takes effect, the award becomes enforceable and is enforced following the procedures outlined in the CCP. 114

10.2.1 In the context of an arbitration seated in the Republic of Lithuania, an arbitral award is enforceable from the moment it becomes effective. Unlike foreign arbitral awards, there is no requirement for the recognition of domestic arbitral awards, streamlining the enforcement process within the jurisdiction.