What are the different types of (court) procedure in case of a commercial dispute?
In Lithuania, commercial disputes can be resolved through:
-
Ordinary civil litigation in courts of general jurisdiction;
-
Arbitration, if the parties have agreed in advance (either ad hoc or via institutional rules);
-
Mediation, which is voluntary and confidential; it can be used prior to or during court/arbitration proceedings;
-
Small claims procedure, applicable to disputes below EUR 5,000.
What is the working language of the different (court) procedures?
-
The official language for court proceedings in Lithuania is Lithuanian;
-
In arbitration, parties can choose any language (e.g., English, German, French), subject to agreement.
When is the relevant body competent to take cognisance of the dispute?
Jurisdiction depends on:
-
Subject matter of the dispute.
-
Territorial competence (usually the defendant’s place of residence or registered office).
-
Monetary value (e.g., higher value claims may go to regional courts).
Arbitration tribunals are competent only if a valid arbitration agreement exists between the parties.
Which law is applicable to the different (court) procedures?
-
Procedural law is always Lithuanian law.
-
For substantive law, parties may choose foreign law in international commercial contracts (under Rome I Regulation).
-
In the absence of choice, Lithuanian conflict-of-law rules apply.
Does the judge have specific knowledge of the market?
-
Commercial disputes are usually handled by civil division judges, who may have some experience with commercial law but are not industry-specific experts.
-
In arbitration, parties can appoint arbitrators with specialized market knowledge.
Are the procedures and the rulings confidential?
-
Court procedures are generally public, but may be closed to protect trade secrets or sensitive information.
-
Arbitration and mediation are confidential by default, including rulings and the proceedings.
What are the costs of the different (court) procedures?
-
Court litigation costs include:
-
State fees (proportional to the claim value, usually 3% with a cap).
-
Legal fees, expert and translation costs.
-
-
Arbitration costs include tribunal fees and administrative costs, often higher than in court.
-
Mediation is typically less expensive and faster, especially for low-complexity cases.
Can the losing party be ordered to pay the costs of the proceedings?
Yes. The losing party is usually obliged to cover:
-
The state fee paid by the winning party.
-
Reasonable legal representation expenses, subject to court assessment.
-
In arbitration, the tribunal can decide cost allocation based on rules or party agreement.
What is the average lead time of the different (court) proceedings?
-
Court proceedings:
-
First instance: 6–12 months
-
Appeal: 6–9 months
-
Cassation (Supreme Court): up to 1 year
-
-
Arbitration: 6–12 months on average
-
Small claims: often resolved in 3–6 months
Is the judgment consigned in other EU member states and can it be enforced there? And outside the EU?
-
EU judgments (from Lithuanian courts) are enforceable throughout the EU under the Brussels I Recast Regulation No 1215/2012 without need for exequatur.
-
Outside the EU, enforceability depends on:
-
Bilateral treaties or
-
Hague conventions or
-
The New York Convention (for arbitral awards).
-
