The Civil Procedure Law has been subject to several substantial amendments in the second half of 2006. Namely, several changes relating to granting of protective measures and enforcement of foreign judgments were introduced to the Civil Procedure Law by the amendments dated 7 September 2006 (effective as from 11 October 2006), while the amendments dated 26 October 2006 (effective as from 1 January 2007) introduced a change in the split of competences between the regional and district courts.
By the amendments dated 7 September 2006, the Civil Procedure Law was amended to ensure compliance with Regulation (EC) No. 805/2004 of the European Parliament and of the Council of 21 April 2004 creating a European Enforcement Order for uncontested claims and other international treaties regarding enforcement and recognition of foreign judgments. According to the amendments, decisions of the Latvian courts will have absolute priority over the decisions of foreign courts. The Latvian courts will be allowed to enforce only those decisions of foreign courts that are subject to enforcement in the country of origin.
Furthermore, several provisions were amended and new provisions were inserted to ensure compliance with Council Regulation (EC) No 2201/2003 of 27 November 2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No 1347/2000 and several international treaties that concern the protection of rights of children. According to the amendments in cases regarding the interests of children, inquisitorial procedure shall be used instead of adversarial procedure.
Finally, provisions regulating protective measures were revised to remove inconsistent terminology and to clarify several enforcement issues which have in the past been unresolved or controversial. Thus, according to the amendments, the courts may now require that as a condition for the grant of any protective measures the claimant must provide security for the losses which the defendant may suffer irrespective of the stage of process during which the relevant measures are applied. Earlier the courts did have this right only if the protective measures were requested before the claim was filed.
Another new right introduced by the amendments to protect the defendants was the right to substitute the protective measure imposed on the defendant by cash collateral. Thus, if a defendant to a pecuniary claim wants the protective measure imposed upon him or her to be cancelled, he or she may now deposit a certain amount of money in the account of a court bailiff. Prior to the amendments this right was available to the defendants only at the discretion of the court and was subject to a separate court hearing.
By the amendments dated 26 October 2006, the jurisdiction of regional courts (rajona tiesa) was increased to hear contract disputes and tort claims. The amendments provide that the lower (regional) courts will now have jurisdiction over all contract and tort claims of monetary value not exceeding LVL 150,000 (approximately EUR 213,000). Prior to the amendments, the lower courts’ jurisdiction was limited to claims of less than LVL 30,000 (approximately EUR 42,500). Contract and tort claims exceeding the threshold of LVL 150,000 fall under the jurisdiction of the second level courts – the district courts (apgabaltiesa).
The regional courts represent the first level of the Latvian three-level court system. In general, they have jurisdiction over all private law claims except those reserved for the district courts. The second level courts, i.e. the district courts, have jurisdiction over e.g. disputes in respect of title to real estate, patent and trade mark claims, credit institution insolvency and liquidation cases, and contract and tort claims which exceed the relevant threshold. The district courts also hear appeals of lower court judgments.
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