YOU HAVEN’T ASKED US, BUT WE ANSWER
May 14, 2021
YOU HAVEN’T ASKED US, BUT WE ANSWER: yes, counter security in civil cases is now obligatory in Latvia.
In accordance with the recent amendments to the Civil Procedure Law of Latvia, provision of counter security by the plaintiff who is seeking security of his claim on merits has become obligatory.
As you might already know, at any stage of civil proceedings plaintiff may request security of his claim on merits if it is likely that enforcement of the judgment might become difficult or impossible.
As you might not know yet (but with our aid you now do😉) that as from April 20, 2021, if you ask to secure your claim by
a) seizure of movable property or cash of the defendant,
b) entry of prohibition mark in a relevant movable property register or another public register,
c) ship arrest,
d) seizure of the payments due from other persons, including funds on accounts in banks and other financial institutions,
you will be required by the judge to provide counter security in the amount of 5% of the claim amount.
Don’t panic, counter security should be paid to the sworn court bailiff’s bank account, not the defendant’s bank account.
Don’t relax, the judge has the freedom to raise the amount of the counter security payable at this discretion from 5% to 20% maximum.
Good news: the judge has a right to relieve you from payment of counter security if in accordance with the circumstances of the case counter security is not fair or is not comparable with your financial state.
This article is prepared by Jūlija Kazmina.
Marine Legal Services SIA
T. +371 67 830 870