Arbitration and insolvency proceedings are legal instruments governed by different objectives and different legal principles. While in arbitration the autonomy of the parties plays a major role, all insolvency proceedings are collective proceedings where autonomy of the parties is strictly limited, the majority of issues are regulated by binding legal provisions and strong controlling powers are vested into insolvency court. Therefore, in this article the authors analyse the issues of compatibility between insolvency proceedings and arbitration. The Lithuanian legal framework which (...) was in force until 30 June 2012 was ambiguous. According to the wording of Article 11 of the previous Law on Commercial Arbitration, disputes connected with bankruptcy shall not be submitted to arbitration. It was not entirely clear whether this provision was restricted to ‘core’ insolvency issues such as opening and conduct of the proceedings, appointment of the office holder, administration of the estate, liquidation etc. or it also included all other questions related with insolvency. The jurisprudence of the Lithuanian courts gave a broad meaning to the restriction expressed in the Law on Commercial Arbitration. Accordingly, such questions as verification of claims and disputes with the creditors were also excluded from arbitration after announcement of bankruptcy of the debtor. The authors argue that distinction should be drawn between cases in which an insolvent enterprise is a claimant and where it is a defendant. It is also important to draw a line between arbitration agreements entered into before announcement of bankruptcy and arbitration agreements concluded by the bankruptcy trustee with the consent of the majority of creditors. In this article, the new Law on Commercial Arbitration which has entered into force on 30 June 2012 is analysed and according to which an insolvent enterprise remains bound by arbitration agreement in both cases where it is a claimant and where it is a defendant. Several contentious issues of the new law are identified and analysed in the article, such as the position of other creditors in the proceedings, relation between arbitration and restructuring procedure, enforceability of arbitration agreement in cases where an insolvent enterprise lacks funding to pay arbitration costs etc. (shrink)

Financial services have a very significant impact on and meaning to the daily life and welfare of consumers. The spectrum of these types of services is very broad, and their regulation is also changing both at EU and national (Member State) level. In order to implement the main or the most relevant EU level goals, such as high level consumer rights protection, consumer trust in business sector, proper and effective functioning of the EU internal market it is essential to ensure (...) clear and sufficient legal regulation, establish responsibility of the services providers, consumer rights and duties as well as promote, seek for the more effective, faster and cheaper ways of solving consumer and business sector disputes. The authors of this article support the idea that the abovementioned goals can be achieved by close and more fruitful cooperation between the EU and national competent authorities, participation in various ad hoc expert working groups, committees or EUwide networks, such as FIN-NET. This article reflects general ideas about the problems arising in the financial consumer services sector, the activity of the EU and national institutions, seeking to ensure fair and transparent provision of such services to consumers, analysis of alternative dispute resolution (hereinafter – the ADR) methods and the good practice of their application in the EU Member States. This article highly supports the application of alternative, nonjudicial procedures and broader application of the means of selfregulation, such as codes of conduct. (shrink)

Consumer disputes and their nature are changing very fast every day. E-commerce is promoted by the all relevant stakeholders such as European Commission, consumers associations, competent institutions, and business sector in order to achieve the main present goal—consumer confidence in business and full functioning of the internal EU market. Here the third parties are important—trade partners from all over the word. There is no legal relation or actions between disputes and searching for the most convenient, fast, cheap and comfortable. Because (...) of that, this article sets out general views on online transactions and consumer protection in the context of e-commerce and possible online dispute resolution means. The authors of this article are chiefly concerned about legal uncertainty and the jurisdiction as well as applicable law in business-to-consumer (B2C) e-commerce. Online dispute resolution or in other words it is called the ODR is seen as a possibility to solve these barriers in dispute resolution using technology to facilitate the resolution of disputes between parties primarily involving negotiation, mediation or arbitration, or a combination of all three. In this respect it is often seen as being the online equivalent of alternative dispute resolution. However, ODR can also augment these traditional means of resolving disputes by applying innovative techniques and online technologies to the process. (shrink)

In international arbitration, timely application and enforcement of interim measures can have a substantial effect on the possibility of the enforcement of final arbitration award, especially when issues relating to the protection of assets or evidence arise before or during the course of arbitration proceedings. Though the substantive amendments to the UNCITRAL Model Law on International Commercial Arbitration concerning the application and enforcement of interim measures in international arbitration were made in 2006, the legal regulation of these matters in Lithuania (...) by the Law on Commercial Arbitration remained as previous. Hence, the purpose of this article is to provide a brief analysis of the contemporary universal legal doctrine and international practice regarding the availability, application and enforcement of interim measures in international arbitration; to examine and evaluate the Lithuanian law and court practice, their compliance with the analyzed contemporary universal legal doctrine and international practice on the application and enforcement of interim measures in international arbitration. (shrink)

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. (shrink)

This paper presents an analysis of the various dimensions of independence and impartiality. Among other things, I will argue that the two concepts, both of which are profoundly implicated in the rule of law, can be conceived as values and are perfectly distinguishable from each other. I will also propose a conception of neutrality, as a third distinct value that satisfies the requirement for non-redundancy with regard to independence and impartiality. Hence, judges and arbitrators must be independent, impartial and neutral. (...) Each of these values contributes in different ways to enabling the law to fulfil its distinctive function of facilitating social interaction in complex and plural societies. (shrink)