REDISCOVERING COMPETENCE - COMPETENCE IN LATVIA: INTERNATIONAL IMPACT

The 28 November 2014 judgment of the Constitutional Court of Latvia has re-defined the notion of competence competence of arbitral tribunals in Latvia and the division of jurisdiction between state and arbitration courts in disputes regarding the effect of arbitration agreement. The challenge of arbitration agreements at state courts, which until the judgment was virtually impossible, has now been given the green light. This marks an important step ahead towards internationally settled standards for the Latvian legal regulation of arbitration which has continually been criticized for lack of adherence thereto. The paper analyzes the changes in Latvian arbitration law brought about by this judgment and its consequences for courts, arbitral tribunals and parties to arbitration agreements both in domestic and international disputes, namely, the possibility to challenge arbitration agreements at state courts and to reopen closed (terminated) cases concerning the effect of arbitration agreement.