SWEDEN Law and Practice Contributed by: Andreas Eriksson, Anders Arthur, David Nykvist and Saga Hanson, TIME DANOWSKY Advokatbyrå
TIME DANOWSKY Advokatbyrå Sturegatan 32 PO Box 24089 SE-104 50 Stockholm Sweden Tel: +46 8 555 677 00
Email: info@timedanowsky.se Web: www.timedanowsky.se
1. Dispute Resolution Methods 1.1 Main Dispute Resolution Methods Commercial disputes in Sweden are typically resolved through litigation or arbitration, either ad hoc under the Arbitration Act or under the rules of an arbitration institute such as the SCC Arbitration Institute. Mediation and various forms of expert determination are other, less frequently used, methods. 1.2 Choice of Dispute Resolution Method Non-contractual disputes – such as tort claims – are typically decided by the courts. For contractual disputes, the preferred choice of dis- pute resolution method varies depending on the par- ties and matters involved. Disputes between small businesses or concerning small values are often liti- gated in court. This is also the case for consumer dis- putes. The Arbitration Act restricts the use of arbitra- tion clauses in the relationship between businesses and consumers. Public authorities and state-owned entities also typically choose to refer their disputes to the courts. However, for contractual disputes between larger businesses, arbitration is often the preferred means of dispute resolution. A large number of com- mercial contracts of any complexity or concerning higher values include arbitration clauses. Arbitration clauses are also included in many standard agree- ments, such as the prevailing standard agreements in the field of construction. Formalised mediation is seldom used. That said, most disputes are settled either before the initiation of legal
proceedings or during the course of the proceedings, often through negotiations between counsel for the parties or with the assistance of the courts. Expert determination, where the parties appoint one or several independent experts to opine on a disputed issue, is gaining in popularity. 1.3 Key Dispute Resolution Trends One noticeable trend in dispute resolution is the con- tinued increase in the use of digital tools, both for administrative matters and for research and drafting. Examples of the former include digital case manage- ment platforms implemented by arbitration institutes, such as the SCC, and the use of video conferencing for meetings and hearings, which has become more common both in arbitration and in court proceedings. The advent of AI and large language models has also started to impact how law firms process information and prepare their submissions. Another trend concerns third-party funding, which has long been uncommon in Sweden, but which has seen an increase in recent years with several funders now active in the Swedish market.
2. Litigation 2.1 Limitation Periods
The rules on limitation periods which apply to most claims for payment, are set out in the Limitation Act ( Preskriptionslagen ). The Limitation Act provides for a general limitation period of ten years (three years for claims against consumers). The limitation period
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