Ordering of Interim Measures when Resolving Disputes in Lithuanian Commercial Arbitration Courts

Abstract

This article deals with the ordering of interim measures in the arbitration process. Under the Lithuanian law, only one interim measure can be applied by commercial arbitration courts. It involves granting an order to pay the established amount as a deposit. This measure cannot be enforced unless the party acts in good faith and agrees to pay the deposit. However, if a party ignores the decision of the arbitration court, a third party court may apply to the state court with a request to order interim measures provided for in the Lithuanian Code of Civil Procedure. Under the existing Lithuanian legislation, state courts have the exclusive right to order enforceable interim measures.
The present situation is not satisfactory and should be changed. The legislator is now considering a new draft law on the Lithuanian commercial arbitration. The draft law provides for changes in ordering interim measures. The proposed regulation is in compliance with the goals of Article 17 of UNICITRAL Model Law on Commercial Arbitration. However, compliance with the rules of UNCITRAL is not the main goal of the proposed regulation. With the new regulation, the legislator aims for more efficient commercial arbitration with more extensive scope that will allow the commercial arbitration court to order interim measures independently. By allowing the commercial arbitration court to order interim measures independently, the legislator extends credibility of arbitration and makes it more inviting for the parties.
Under the draft law on the Lithuanian commercial arbitration, state courts and commercial arbitration courts as discretionary institutions shall be entitled to order interim measures. On the other hand, a decision or a ruling of the commercial arbitration court shall be enforced if an execution order is issued by the state court. In this case, the state court shall be entitled to review whether the content of the decision or ruling of the commercial arbitration court complies with the imperative rules of law or public order.
According to the proposed draft law on the Lithuanian commercial arbitration, both state and commercial arbitration courts shall have an independent right of discretion to order interim measures. However, some differences exist. In cases heard by commercial arbitration courts interim measures shall be ordered, whereas state courts acting under applications for interim measures filed by the parties or commercial arbitration courts, irrespective of the location of the arbitration process, shall be entitled to order interim measures.