Legal framework of arbitration in Lithuania
This section explains the legal basis of arbitration, the significance of the seat of arbitration and the general logic of recognition of awards.
Legal basis
Arbitration in Lithuania is governed by the applicable law of the Republic of Lithuania on commercial arbitration, international arbitration standards and party autonomy.
Arbitration agreement
A dispute is referred to arbitration on the basis of an arbitration agreement or an arbitration clause.
Party autonomy
The parties may agree on the seat of arbitration, language, number of arbitrators and applicable rules.
Seat of arbitration
The seat determines the procedural connection between the proceedings and a particular jurisdiction.
International enforceability
Arbitral awards may be recognised and enforced through applicable national and international mechanisms.
What the seat of arbitration means
The seat of arbitration is not always the physical location of hearings. Hearings may take place online or elsewhere, while the procedural link remains with the selected jurisdiction.
Court supervision
The legal system of the seat determines key issues of court support and setting aside.
Predictability
Fixing the seat helps avoid uncertainty in international contracts.
Enforcement
The seat of arbitration matters for challenge, court control and further work with the award.
Arbitrability
Not every dispute may be referred to arbitration. Commercial and property disputes are generally suitable, while some categories require legal review.
Suitable disputes
Supply, services, corporate agreements, construction, IT, IP, finance, property and cross-border contracts.
Legal review required
Disputes with public-law elements, consumer or employment matters and some corporate situations may require review.
Role of counsel
Before filing, it is important to check the validity of the arbitration clause and the jurisdiction of the tribunal.