Arbitration Law of Sweden Practice and Procedure

Acknowledgments

Abbreviations

Chapter 1   Introduction

1.1   General characteristics of arbitral procedure

1.2   The formal and practical scope of the Swedish Arbitration Act

1.3   Different kinds of arbitral procedure

1.4   Factors of importance when parties contemplate agreeing on some form of arbitral procedure

1.4.1   Speed

1.4.2   The right to appoint arbitrators

1.4.3   Costs

1.4.4   The confidentiality of arbitral procedure

1.4.5   Obstruction

1.4.6   Lack of procedural safeguards

1.4.7   Absence of consolidation opportunities

1.4.8   No coercive measures

1.5   The interpretation and application of the Act and its legal sources

1.6   Entry into force of the Act

Chapter 2   The Arbitration Agreement

2.1   Introduction

2.2   Non-arbitral forms of dispute settlement

2.3   Formation of the arbitration agreement

2.3.1   Standard contracts containing an arbitration clause

2.3.2   Formation of an arbitration agreement by passiveness under section 6(2) of the Contracts Act

2.3.3   Reference in a contract to another individually framed contract with an arbitration clause

2.3.4   Arbitration agreements entered into in the presence of arbitrators

2.4   The doctrine of separability

2.5   The scope of arbitration agreements

2.5.1   Restrictive or extensive interpretation

2.5.2   The theory of causality and the doctrine of assertion

2.5.3   Interpretation of arbitration agreements in the light of the substantive contract

2.5.4   Related contentious issues which are only partly covered by a clearly applicable arbitration clause

2.6   Interpretation of special provisions in arbitration clauses

2.7   The binding effect of arbitration agreements on third parties

2.7.1   Introduction

2.7.2   Dispute as to whether a legal subject is a contracting party

2.7.3   Universal succession

2.7.4   Bankruptcy

2.7.5   Singular succession

2.7.6   Guarantee and other joint and several liability for payment

2.7.7   The statutory joint and several liability of a third party for a contracting party's obligation

2.8   Invalidity of arbitration agreements

2.8.1   General remarks on section 36 of the Contracts Act

2.8.2   Invalidity as a result of special provisions in the arbitration clause

2.8.3   Rules of invalidity other than those of section 36 of the Contracts Act

2.9   Termination of the arbitration agreement

2.10   One party' s loss of the right to assert an arbitration agreement

2.11   Special provisions in arbitration clauses

2.12   Arbitrability

2.13   Civil law effects of competition law

2.14   Filling gaps

2.15   Competence of arbitrators to establish matters of fact and to make legal characterisations

2.16   Provisions on arbitral procedure in articles of association and testatory dispositions

Chapter 3   The Arbitration Agreement as a Bar to Judicial Proceedings

3.1   Introduction

3.2   Duty to plead alternative grounds for dismissal and for the invalidity of the arbitration agreement

3.3   When shall a party raise an objection of bar to judicial proceedings?

3.4   Res judicata effects of the court's ruling on a question of bar to judicial proceedings

3.5   Court examination of the issue of bar to judicial proceedings does not preclude arbitration

3.6   Motion for partial dismissal

3.7   An arbitration agreement partially covering a dispute

3.8   Set-off

3.9   The arbitration agreement is not a bar to summary proceedings

Chapter 4   Multi-party Arbitration

4.1   Introduction

4.2   How is an arbitral tribunal formed?

4.3   How is a suitable joinder of different disputes to be achieved?

4.4   Arbitral tribunals in several proceedings that consist partly or entirely of the same person

4.5   Costs

4.6   The right of a court to consolidate related contractual and non-contractual disputes and to stay some disputes

Chapter 5   The Arbitrators

5.1   Introduction

5.2   The need for urgent action

5.3   Appointment of arbitrators

5.3.1   Freedom of contract

5.3.2   The number of arbitrators and the manner of their appointment

5.3.3   Suitability criteria for the appointment of an arbitrator

5.3.4   Failure to appoint an arbitrator

5.4   Challenge

5.4.1   Grounds for challenge

5.4.2   The challenge procedure

5.5   Termination of the arbitrator’s mandate

5.6   The right to appoint a new arbitrator

5.7   The right of a party to have an arbitrator removed for delaying the proceedings

Chapter 6   Procedural Principles

6.1   Introduction

6.2   The principle of party autonomy

6.3   Mandatory rules of procedure

6.4   The principle of equal treatment of parties

6.5   The arbitrators' discretionary powers

6.6   Procedure aimed at preventing obstruction

6.7   Procedural liberties of the parties

6.8   The rule of waiver and the duty of a party to object to procedural errors

6.8.1   Functions of the waiver rule

6.8.2   At what point in time must a party state his objection to the procedure?

6.8.3   The requirement of double objections

6.8.4   Can preclusion occur when a party fails to investigate conditions constituting grounds for challenge?

6.8.5   How clear and exhaustive should a protest be?

6.8.6   Should the arbitrators inform a party of his duty to state an objection to irregularities?

6.8.7   The legal effects

6.8.8   Possibilities for a party to prevent a protesting opposing party from speculating at the party's expense

6.9   Analogous application of the rules of the Code of Judicial Procedure

6.10   Court intervention in arbitration proceedings requires statutory support

Chapter 7   Arbitral Proceedings

7.1   Commencement of the arbitral proceedings

7.1.1   Contractual Freedom

7.1.2   Functions of the request for arbitration

7.1.3   Requirement of an express and unconditional request for arbitration

7.1.4   Requirement that the request for arbitration include a statement of the issue in dispute

7.1.5   Requirement that the request for arbitration indicate who has been appointed arbitrator

7.1.6   Need for proof of service of the request for arbitration

7.1.7   Limitation, preclusion and penal interest

7.2   The respondent's choice of arbitrator and the appointment of a third arbitrator

7.3   Planning the arbitral proceedings

7.4   The statement of claim

7.4.1   Introduction

7.4.2   The claims

7.4.3   The grounds

7.4.4   Evidence

7.4.5   Legal argumentation

7.4.6   Deficient statements of claim and procedural guidance by the arbitrators

7.4.7   Tactical considerations

7.5   Provisional measures

7.5.1   Introduction

7.5.2   Competence of the courts to order provisional measures

7.5.3   The competence of the arbitrators to order provisional measures

7.6   The statement of defence

7.7   The prerequisites for examining the case on its merits

7.7.1   Introduction

7.7.2   Courses of action available to the respondent if he considers the arbitrators to lack jurisdiction

7.7.3   The arbitral tribunal's jurisdiction to rule on its own jurisdiction

7.7.4   Impermissible claims

7.7.5   Legal capacity

7.7.6   Lispendens

7.7.7   Resjudicata

7.8   Submissions, oral preparations and the active role of the arbitrators

7.8.1   Introduction

7.8.2   The active role of the arbitrators

7.8.3   Clarification of the claims, grounds and objections

7.8.4   Investigation of the facts

7.8.5   Investigation of legal issues

7.8.6   Statements of evidence

7.8.7   Oral and written preparations

7.8.8   Principles of due process

7.8.9   Time limits and notices

7.8.10   Settlement

7.9   Means of coercion

7.10   Obstruction

7.10.1   Introduction

7.10.2   Need for the claimant and the arbitrators to actively counteract obstruction

7.10.3   The risks incurred by the respondent not playing an active role in the arbitral proceedings

7.10.4   Lawful excuse

7.10.5   Time extensions

7.10.6   Preclusion

7.10.7   The arbitrators' power to draw adverse inferences from a party's passivity or failure to comply with an order

7.11   Amendments of claims and defences

7.11.1   Introduction

7.11.2   The importance that the amendment refer to an issue which has a close or remote connection to the claims and grounds originally stated by the claimant

7.11.3   The respondent's own claims and set-off defences

7.11.4   Factors significant to the arbitrators' discretionary assessment

7.11.4.1    Challenge issues

7.12   Withdrawal and limitations of claims

7.13   The evidence

7.13.1   The responsibility of the parties with respect to the production of evidence

7.13.2   Admissibility of the evidence

7.13.3   The parties, their representatives and the witnesses

7.13.3.1   Introduction

7.13.3.2   Examination of the witnesses

7.13.4   Expert witnesses

7.13.4.1   The expert appointed by the arbitrators

7.13.4.2   The party-appointed experts

7.13.5   The written evidence

7.13.5.1   Introduction

7.13.5.2   Examination before the tribunal to determine document production

7.13.5.3   Disclosure orders by the arbitrators

7.13.5.4   Confidential information

7.13.5.5   The presentation of the written evidence

7.13.6   Computerised information

7.13.7   Site inspection

7.13.8   Court assistance in taking evidence

7.13.8.1   Introduction

7.13.8.2   Consent by the arbitrators

7.13.8.3   The court proceedings

7.13.9   The evaluation of the evidence

7.13.10   Burden of proof

7.14    The final hearing

7.14.1   Notices and extensions

7.14.2   The hearing

Chapter 8   The Award

8.1   Introduction

8.2   Duty to apply the law

8.3   Deliberations

8.3.1   Introduction

8.3.2   The confidential nature of the deliberations

8.3.3   The stipulation that all arbitrators be allowed to take part in the deliberations

8.3.4   Limitations of time

8.3.5   The principle of equal treatment

8.3.6   Void and challengeable awards

8.3.7   Failure to take part in the deliberations

8.3.8   The right of the arbitrators to obtain advice

8.4   Voting

8.5   Rationale

8.6   Dissenting opinions

8.7   The requirements of writing and signing

8.8   Certificate that an arbitrator has failed to sign the award

8.9   Time limit for rendering and serving the award

8.10   Statement in the award concerning the place of the proceedings

8.11   Statements commonly occurring in an arbitration award

8.11.1   Introductory statements

8.11.2   The recital

8.11.3   The rationale

8.11.4   The ultimate order

8.11.5   Instructions for appeal

8.12   Time limits for the delivery of awards

8.13   Different types of arbitration award

8.13.1   General remarks on awards

8.13.2   Awards writing off requests or declaring no jurisdiction

8.13.3   Decisions

8.13.4   Separate award

8.13.4.1   Partial award

8.13.4.2   Interlocutory award

8.13.5   Award on agreed terms

8.14   Legal effects of the award

8.15   Correction, supplementation and interpretation

8.15.1   Introduction

8.15.2   Correction of arbitration awards

8.15.3   Supplementations of awards

8.15.4   Interpretation of arbitration awards

Chapter 9   Costs

9.1   Introduction

9.2   The arbitrators' fees and expenses

9.2.1   The amount of fees

9.2.2   Expenses

9.2.3   Interest

9.2.4   The joint and several liability of the parties

9.2.5   Freedom of contract

9.2.6   Security for the arbitrators' remuneration

9.2.7   Enforceability and right to appeal

9.3   Duty of a party to reimburse the opposing party for his costs

Chapter 10   Invalidity of Awards and the Setting Aside of Awards

10.1   Introduction

10.2   The mandatory nature of the rules of challenge and the principle of in dubio pro validitate

10.3   The burden of proof

10.4   Does the award have legal force after it has been attacked in avoidance or challenge proceedings?

10.5   Irregularities committed by bodies other than the arbitral tribunal

10.6   Avoidance proceedings

10.6.1   Introduction

10.6.2   Lack of arbitrability

10.6.3   Public policy

10.6.3.1   Procedural public policy

10.6.3.2   Substantive public policy

10.6.4   The requirement that the award shall be in writing and signed

10.7   Challenge proceedings

10.7.1   The dispute is not covered by a valid arbitration agreement between the parties

10.7.2   Going beyond submission

10.7.2.1   Introduction

10.7.2.2   The functions of the challenge rule

10.7.2.3   The causal requirement

10.7.2.4   Irregularities and excesses of mandates caused by the challenging party's negligence during the arbitration

10.7.2.5   The mandate concept

10.7.2.6   The borderline between misjudgments on the merits and exceeding the mandate

10.7.2.7   Award delivered after the expiry of the respite allowed for it

10.7.3   The arbitral proceedings took place in Sweden, contrary to section 47

10.7.4   An arbitrator has been appointed contrary to the agreement between the parties or the Swedish Arbitration Act

10.7.5   Arbitrators who lack legal capacity or are disqualified

10.7.6   The general clause

10.7.6.1   Introduction

10.7.6.2   The requirement that the irregularity probably affected the outcome

10.7.6.3   The requirement that the challenging party did not negligently cause the irregularity

10.7.6.4   The requirement that a procedural irregularity was committed

10.7.7   Preclusion

10.7.8   Respite for filing a challenge action

10.7.9   Court procedure in challenge cases

10.8   Remission

10.9   Actions against awards whereby the proceedings have been terminated without any ruling on the merits

Chapter 11   Enforcement of Swedish Awards

11.1   Introduction

11.2   The right of a party to obtain enforcement of the award against the opposing party

11.2.1   Objections to enforcement which relate to the grounds for challenge

11.2.2   Impediments to enforcement relating to the requirements that the award shall be in writing, shall be signed and shall not lack legal effect

11.2.3   Impediments to enforcement relating to grounds for invalidity concerning arbitrability and public policy

11.2.4   Impediments to enforcement which can be asserted before the Enforcement Authority

11.3   An arbitrator's right to have the award enforced against the parties insofar as they have been ordered to pay compensation to the arbitrator

Chapter 12   International Matters

12.1   Introduction

12.2   The applicability of the Swedish Arbitration Act to international disputes

12.3   Swedish jurisdiction and the right of the arbitrators to conduct arbitral proceedings in Sweden

12.4   Applicable law

12.4.1   Law applicable to the substantive issues and the choice-of-law rules

12.4.2   Law applicable to the arbitration agreement

12.4.3   Law applicable to the question of whether the dispute is arbitrable

12.5   International arbitration agreements as a bar to judicial proceedings

12.6   Interim measures

12.7   Lis pendens

12.8   The place of arbitration

12.9   Exclusion agreements

12.10   Enforcement of foreign awards

12.10.1   General outline

12.10.2   The scope of the New York Convention

12.10.3   The losing party's possibilities of opposing enforcement by filing challenge proceedings in the country where the award was made

12.10.4   The losing party's possibilities of resisting enforcement in the enforcement proceedings

12.10.4.1   Invalid arbitration agreement

12.10.4.2   Due process

12.10.4.3   Excess of terms of submission

12.10.4.4   The composition of the arbitral tribunal or the procedure was contrary to the agreement of the parties or the law of the country where the arbitration took place

12.10.4.5   Arbitrability and public policy

12.10.5   The procedure for enforcing foreign awards

12.10.6   Execution proceedings before the Enforcement Authority The Swedish Arbitration Act SCC Rules

Table of Cases

Bibliography

Index