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EXPENCES OF ARBITRATION

Lithuanian Arbitration Association (LAA)


          Approved
                                                                by Decision No 9 of the General Meeting of 
                                                                  Members (GMM) of the Lithuanian Arbitration
                                                           Association (LAA) of November 19, 2005.
                                                               Amendments and supplements approved by
                                                      Decision No 8 of the GMM of the LAA 
                     of  June 9, 2007. 

 

REGULATIONS OF ARBITRATION FEES AND COSTS

Translation from the authentic Lithuanian text published in the official gazette of the Republic of Lithuania “Valstybës þinios”, No 99-4051, 2007

(Applicable in proceedings of the public institution Vilnius International and National Commercial Arbitration)

Effective from 1 January 2006

 

 

1. Interpretation of definitions
1. Arbitration fees shall mean the funds paid to the bank settlement account of Vilnius International and National Commercial Arbitration (hereinafter referred to “Vilnius Arbitration”) in order to cover the expenses of organisation, administration of arbitral proceedings and arbitration costs. They shall consist of the claim registration fee, arbitration and administration fee and the fee for compensation (covering) of the expenses provided for in subparagraph 4 of this paragraph.
2. Claim registration fee shall mean the amount of funds paid when submitting a statement of claim to the Secretariat of Vilnius Arbitration and designated to cover the expenses of organisation of arbitral proceedings.
3. Arbitration and administration fee shall mean the amount of funds allocated to pay arbitrators’ honoraria and to cover expenses of administration of the cases being heard and expenses of activities of the arbitral institution.
4. Compensation fee shall mean the amount of funds allocated at the initiative of parties to a dispute or the arbitral tribunal (subject to consent of the parties to the dispute) to compensate for the business trip (travel, rental of accommodation, etc.) expenses of the invited arbitrators, witnesses, experts residing at a place other than the place of a hearing of the tribunal, pay for the services of experts and interpreters, also to cover expenses of the hearings of the arbitral tribunal organised outside the permanent office of Vilnius Arbitration.
5. Litigation costs shall mean any expenses incurred by parties to a dispute as a result of their participation in arbitral proceedings.

2. Claim registration fee
When submitting to the Secretariat of Vilnius Arbitration a statement of claim:
1. for the settlement of an international commercial (or tortious) dispute, the claimant shall pay to the bank settlement account of Vilnius Arbitration indicated in paragraph 9 of this Schedule a non-refundable claim registration fee in the amount of EUR 400 (or an equivalent amount in litas or US dollars);
2. when submitting a statement of claim for the settlement of a domestic commercial (or tortious) dispute – a non-refundable claim registration fee in the amount of EUR 200 (or an equivalent amount in litas) shall be paid;
3. when submitting a statement of claim for the issuance of an order of the arbitral tribunal (for the hearing of a case in simplified arbitral proceedings) – a non-refundable claim registration fee in the amount of EUR 100 (or an equivalent amount in litas) shall be paid.

3. Arbitration and administration fee
1. Each claim (the original claim or filing of a counterclaim) for the settlement of an international or domestic commercial dispute, also a petition of a third party filing an independent claim regarding the subject-matter of the dispute shall be charged with the arbitration and administration fee payable in euros (or another payment currency) to the bank settlement account of Vilnius Arbitration until the commencement of the hearing of a case on merits. The amount thereof shall be calculated according to the data presented below in the table:


Amount of the claim in EUR              Arbitration and administration fee in EUR 
                                                                (when a case is heard by a one-member arbitral tribunal)

up to 10 000  1000
from 10 001 up to 50 000                  1000  + 4% of the amount of the claim exceeding 10 000
from 50 001 up to 100 000                1500  + 3% of the amount of the claim exceeding 50 000
from 100 001 up to 300 000              3 000  + 2% of the amount of the claim exceeding 100 000
from 300 001 up to 500 000              7 000  + 1% of the amount of the claim exceeding 300 000
from 500 001 up to 1 000 000           9 000  + 0,5 % of the amount of the claim exceeding 500 000
from 1 000 000                                    12 000  + 0,1 % of the amount of the claim exceeding 1 000 000

 

2. The arbitration and administration fee indicated in the table shall be increased by 75% when a panel of three arbitrators is formed to hear a case and shall be reduced by 25% in the event of submitting a statement of claim for the settlement of a domestic commercial (or tortious) dispute in general arbitral proceedings.
3. For the hearing of a case in simplified (accelerated) arbitral proceedings (for the issuance of an order of the arbitral tribunal), the claimant shall pay a quarter of the amount of the arbitration and administration fee specified in the table presented in subparagraph 1 of this paragraph.
4. The amount of the fees paid in a currency other than the euro shall be calculated according to the official (accounting) rate of the euro and the payment currency (as established by the Bank of Lithuania) on the day of payment of the fees.
5. The amount of the arbitration and administration fee in respect of a claim not having a specific monetary expression shall be determined according to the monetary worth of interests as declared by the claimant and calculated in compliance with the data indicated in the table presented in subparagraph 1 of this paragraph.
6. Where claims are increased during the hearing of a case, the outstanding amount of the arbitration and administration fee shall be paid additionally in proportion to the increased amount of the claim.
7. Where the claimant files a counterclaim or a claim for the setting off of a debt, he shall pay the arbitration and administration fee in the amount indicated in the table presented in subparagraph 1 of this paragraph.
8. Where the hearing of a case by the arbitral tribunal is related to considerably higher expenses (owing to a particular complexity of the case being heard, exceptionally high time costs required for the analysis of evidence or assimilation of the legal system of a foreign country selected by parties as the applicable law for the settlement of a dispute, etc.) than the fees whose amounts are specified in the arbitration and administration fee table presented in subparagraph 1 of this paragraph or relate to considerably lower expenses than the rates specified in the mentioned table, their increase or reduction shall be possible subject to agreement between the chairperson of Vilnius Arbitration and the parties to the dispute.

4. Break-down of the arbitration and administration fee
1. A part of the arbitration and administration fee in the amount of 45% shall be allocated for the payment of honoraria to the arbitrators hearing a case and shall be distributed as follows:
2. when the case is heard by a sole arbitrator, he shall be paid the entire amount of funds allocated for honoraria;
3. when the case is heard by a panel of three arbitrators, 40% of the funds allocated for honoraria shall be paid to the arbitrator who is the chairperson of the panel, and the remaining part of the funds (60%) shall be divided equally between the other two arbitrators.
4. A part of the arbitration and administration fee in the amount of 5%, which is intended for payment of the LAA associate membership fee, shall be transferred to the bank settlement account of the LAA.
5. The remaining part (50%) of the arbitration and administration fee shall be used by the institution of Vilnius Arbitration for the service needs of arbitral tribunals and to cover expenses of maintenance of the Secretariat and other administration expenses.
6. Honoraria shall be paid to arbitrators within 10 days from the return of a case whose hearing has been completed to the Secretariat of Vilnius Arbitration.

5. Repayment of the arbitration and administration fee or a part thereof
1. When a claim is withdrawn prior to formation of the arbitral tribunal, the claimant shall be repaid the entire amount of the arbitration and administration fee paid by him.
2. When a claim is withdrawn prior to the first hearing held by the arbitral tribunal or where the tribunal states that the arbitral tribunal of the current composition is not competent to settle a dispute or that the dispute falls outside the jurisdiction of Vilnius Arbitration, the claimant shall be repaid 75% of the arbitration and administration fee paid by him.
3. When a claim is withdrawn at the stage of hearing of a case on merits (prior to making of an award), the claimant shall be repaid from 20% up to 60% of the arbitration and administration fee paid by him. A specific part of the fee to be repaid shall be determined by the arbitral tribunal hearing the case.
4. Where the claimant fails to arrive at a hearing held by the arbitral tribunal and fails to request that a dispute be settled in absentia without giving a prior notice 5 days in advance or earlier to the Secretariat of Vilnius Arbitration or to the chairperson of the arbitral tribunal (a sole arbitrator) hearing a case and without showing sufficient cause for such failure, the hearing of the case may be terminated by a ruling of the arbitral tribunal, and the arbitration and administration fee already paid shall not be repaid.
5. Repayment of a partial arbitration and administration fee shall be recorded in the form of a ruling on termination of the hearing of a case. In the cases when the hearing of the case is terminated prior to formation of the arbitral tribunal or prior to its first hearing, repayment of the arbitration and administration fee shall be recorded in the form of a ruling of the chairperson of Vilnius Arbitration.

6. Calculation and payment of the compensation fee
1. The fee for compensation of the needs provided for in subparagraph 4 of paragraph 1 of this Schedule shall be paid in advance by a party to a dispute requesting participation in the hearing of a case of the persons listed in that paragraph or holding of a hearing of the arbitral tribunal outside the permanent office of Vilnius Arbitration. When requested by both parties to the dispute or when an expert is appointed or a witness is invited at the initiative of the arbitral tribunal (subject to consent of the parties to the dispute), the expenses of their participation shall be borne in equal parts by both parties to the dispute. A case file and other documents relating to a claim shall be posted to an arbitrator residing abroad after the party to the dispute which has appointed him (or both parties) pays in advance the fee of compensation for the expenses of his participation.
2. The amount of the fee required for compensation shall be determined by the Secretariat of Vilnius Arbitration according to the rates of hiring a vehicle and renting residential premises for the invited arbitrator, expert or witness in compliance with the resolution of the Government of the Republic of Lithuania regulating the procedure of business trips and the document of the International Chamber of Commerce (ICC) of 10 November 1990 “Revised notice to the arbitrators: Personal and Arbitral Tribunal Expenses”. Services of experts and interpreters shall be paid according to the estimates of expenses agreed with them by a party of a dispute or by the Secretariat of Vilnius Arbitration.
3. The party to a dispute (or both parties) concerned shall pay the compensation fee determined by the Secretariat of Vilnius Arbitration within 10 days from delivery of an invoice. The errors which can occur when calculating the amount of this fee in advance shall be corrected by the Secretariat of Vilnius Arbitration on the basis of the documents presented by invited persons and confirming actual expenses. The amounts overpaid shall be repaid, whereas the amounts underpaid shall be paid in additionally.
4. In the event of a failure of a party (parties) to timely pay the compensation fee to cover the expenses of an arbitrator invited from abroad, the arbitral tribunal shall consist of the local specialists entered into the List of Recommended Arbitrators adopted by the LAA. In the absence of a timely payment of the compensation fee to cover the business trip expenses of the invited witness or another person, the arbitral tribunal may set aside or continue the hearing of a case and make an award without satisfying the requests of a party (parties), unless this becomes an obstacle to the proper settlement of the dispute.

7. Payment for personal services
1. The entire expenses relating to participation of a representative (advocate), expert, witness or interpreter personally invited by any party to a dispute in the proceedings shall be borne by the party which has invited them.
2. The personal services rendered by the Secretariat of Vilnius Arbitration to parties to a dispute (copying of documents, their translation into the required language, hotel booking, etc.) shall be paid by the party which has requested them.

8. Division of litigation costs between parties to a dispute
1. A party obtaining a favourable arbitral award shall recover from the other party the entire amount of litigation costs or a certain part thereof (including the expenses established by reasonableness and regulatory acts, supported by documents and relating to drafting of claim documents, participation of an advocate in the proceedings, etc.).
2. Where a claim is satisfied in part, the claimant shall recover from the respondent a part of litigation costs which is proportionate to a part of the claims satisfied by the arbitral tribunal.
3. Where parties settle a dispute by composition (conciliation agreement), litigation costs shall be distributed in accordance with the procedure laid down in subparagraphs 1 or 2 of this paragraph, unless the parties agree otherwise.
4. At the request of a party, the arbitral tribunal may recover from the other party the entire amount or a part of the additional expenses actually incurred by it (as supported by documents) as a result of unjustified disturbance of the hearing of a case by the other party.
5. In solving the payment or compensation issues not regulated by this Schedule, the arbitral tribunal shall act in compliance with laws of the Republic of Lithuania.

9. Procedure for paying arbitration fees
1. All arbitration fees shall be paid to settlement account No LT59 7044 0600 0100 2695 of Vilnius International and National Commercial Arbitration (code – 1262 03667) opened with AB SEB  bank Vilnius Branch.
2. A charge for the personal services rendered by the Secretariat of Vilnius Arbitration to parties to a dispute may be paid to the abovementioned bank settlement account of Vilnius Arbitration or directly to the financier of this institution.