COBALT successfully represented a foreign company in proceedings before the Latvian courts, securing the annulment of an arbitral award on the ground that the company had been unable to present its case.
The arbitration had been commenced in Latvia by the company’s business partner. Although the foreign company had initially appointed counsel to represent it in the arbitration, counsel withdrew shortly before the oral hearing. Notice of the hearing was served only on counsel and, following counsel’s withdrawal, was not provided directly to the foreign company. As a result, the company did not participate in the hearing. The arbitral tribunal proceeded in the company’s absence and rendered an award against it.
COBALT represented the foreign company in the subsequent annulment proceedings, arguing that the company had been unable to present its case and had thereby been deprived of its right to be heard.
The Latvian court set aside the arbitral award, agreeing with COBALT’s submissions and finding that in such circumstances the company had not been afforded a reasonable opportunity to present its case. The court held that the arbitral proceedings failed to ensure equality of the parties, thereby violating the company’s right to be heard and to participate in the examination of the evidence.
The foreign company was represented in the annulment proceedings before the Latvian courts by COBALT’s Head of Arbitration Practice Group, Dr. Toms Krūmiņš. COBALT’s team also included Junior Associate Elīza Madsena.
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