Protection of the Public Interest in Private-Public Arbitration in the Baltic States

The chapter analyses and contrasts the approaches to private-public arbitration in Estonia, Latvia, and Lithuania. While having shared common experiences during Soviet times, the three Baltic States adopted starkly differing rules on domestic private-public arbitration. In respect of arbitrability, Estonia and Lithuania permit the arbitrability of private-public arbitration, while Latvia limits it considerably. In respect of the judicial review of arbitral awards, the three Baltic States also differ, with Estonia and Lithuania permitting such review for compliance with public policy, and Latvia being in the unique situation of excluding set-aside proceedings altogether. At the same time, the notion of public policy is not well-developed in the Baltics, making it impossible to draw clear conclusions on whether it protects public interests effectively in private-public arbitration. The chapter concludes that while arbitration is a useful tool, constitutional and public interest concerns must be better integrated into the arbitration frameworks in the Baltics.