A Practical Guide: From Selecting a Representative to Writing a Power of Attorney
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You want your lawyer or employee to represent you in arbitration – do you know what is required and what can go wrong?
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Did you know that any competent person can act as a representative in an arbitration court—and that a lawyer is not required?
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What powers must be expressly stated in a power of attorney, and which powers cannot a representative have under any circumstances?
The company sent its chief accountant to the arbitration court with a notarized power of attorney. The accountant had the right to “represent interests in court.” During the trial, the defendant offered a settlement on favorable terms. The accountant wanted to agree, but it turned out the power of attorney did not authorize the settlement. The hearing had to be postponed and management contacted. The deal almost fell through.
Who can be a representative in an arbitration court?
In Latvian civil proceedings, there are restrictions on representation—a lawyer is required for a cassation appeal. In arbitration, the restrictions are significantly fewer.
A representative in an arbitration court may be: a company’s in-house lawyer, the company’s director or employee, a lawyer, or any capable individual over 18 years of age who has been issued a power of attorney.
The only condition is the presence of a proper power of attorney if the representative acts on behalf of a legal entity but is not its sole executive body.
Three types of powers of attorney
General power of attorney: the right to perform any actions on behalf of the principal. It provides a broad scope of authority. In litigation, it’s not the most reliable choice precisely because of its broad scope: there’s a risk of abuse or contested actions.
A special power of attorney for a specific case: the right to represent someone in a specific case in a specific court. This is the most common and most secure option.
One-time power of attorney: the right to perform one specific action—for example, to sign a settlement agreement or receive a copy of a decision.
What must be included in a power of attorney?
Principal’s details: name of the legal entity, registration number, legal address, signatory’s details (name, position, basis of authority).
Representative details: first name, last name, personal identification number.
Name of the court and case number (if known) or “for representation in the Riga Arbitration Court in cases related to [description]”.
A specific list of powers—this is where most people make mistakes. It’s important to clearly state every right the representative requires.
List of powers: what to include
The right to file claims, responses, and petitions
The right to review case materials
Right to participate in meetings
The right to present evidence and make motions
The right to receive decisions and other court documents
The right to enter into settlement agreements (if necessary, indicate this explicitly)
The right to admit the claim in whole or in part (if necessary)
The right to withdraw a claim (if necessary)
The right to re-delegation (if necessary so that the representative can involve another)
Each of the last four powers—recognition, renunciation, settlement, and sub-delegation—is “special” and must be expressly stated. Without express permission, the representative is not authorized to perform these actions.
Notarization: Is it mandatory or not?
As a general rule, notarization of a power of attorney for participation in arbitration proceedings is not required. A power of attorney signed by the company’s director and bearing its seal is sufficient.
Notarization is recommended in the following cases: if the representative will perform significant actions (a settlement agreement for a large sum), if there is a risk that the authority will be challenged by the other party, if the power of attorney will be used abroad.
Validity period
Specify a term of validity in the power of attorney—either “until the case is completed” or a specific date. An indefinite power of attorney is valid until revoked. Any revocation of the power of attorney must be notified to the court immediately to avoid procedural complications.
A good power of attorney takes five minutes to prepare. A bad one means a meeting is disrupted at the most inopportune moment.
This article is for informational purposes only and does not constitute legal advice.