SWEDEN Law and Practice Contributed by: Andreas Eriksson, Anders Arthur, David Nykvist and Saga Hanson, TIME DANOWSKY Advokatbyrå
ly, arbitral awards are internationally enforceable in accordance with the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “1958 New York Convention”), which can be essential in contracts between parties from differ- ent countries. 3.4 Disadvantages of Arbitration The main perceived disadvantage of arbitration is that the parties must pay the fees of the arbitrators and any arbitration institute. This means that the cost of arbitration can be higher than the cost of court pro- ceedings, especially in smaller cases. The additional costs also risk creating an imbalance between the parties that could ultimately lead to a financially weak- er party refraining from asserting its rights. Another often-mentioned aspect is the one-instance nature of the proceedings, which could result in incorrect deci- sions becoming binding. Lastly, since the proceedings are private and the awards generally do not become public, arbitration does not contribute to the general The SCC Arbitration Institute (formerly the Arbitration Institute of the Stockholm Chamber of Commerce) is the leading arbitration institution in Sweden, with a caseload of approximately 200 cases per year. The SCC administers both commercial arbitrations and investment arbitrations. The SCC also provides ser- vices in the field of mediation and other types of ADR. The ICC Court of Arbitration is another arbitration institution that regularly administers arbitrations seat- ed in Sweden or to which Swedish parties recurringly refer disputes. development of the law. 3.5 Arbitral Institutions Many arbitration proceedings in Sweden are conduct- ed ad hoc, without the involvement of any arbitration institution. 3.6 Length of Proceedings The length of arbitration proceedings can vary greatly depending on the type of dispute and the parties and arbitrators involved. However, arbitrators have a gen- eral duty to conduct the arbitration in an expeditious manner and arbitration proceedings are typically con- siderably faster than court proceedings.
Many arbitrations in Sweden are administered by the SCC Arbitration Institute, either under its rules for expedited arbitrations or under its ordinary rules. The statistics published by the SCC Arbitration Institute give an indication of the handling times that can be expected. According to the most recent figures from the SCC, an expedited arbitration takes on average 3.7 months and an ordinary arbitration on average 13.6 months, in both cases counted from the date on which the case was referred to the arbitral tribunal until the award was rendered. 3.7 Regulation of Arbitration The central rules on arbitration in Sweden are set out in the Arbitration Act. The Arbitration Act applies to arbitration proceedings seated in Sweden, even if the dispute has an international connection. The Arbitration Act contains rules covering most aspects of arbitration proceedings, including the validity of the arbitration agreement, the appointment of the arbitrators, how the proceedings should be conducted, the rendering of the arbitral award, and the possibility of challenging an arbitral award through an action for annulment or invalidity. The Arbitration Act also regulates the recognition and enforcement of foreign arbitral awards in Sweden. 3.8 Court Powers The courts have several powers to support arbitration. These include the power to appoint arbitrators in cer- tain circumstances, to order interim measures at the request of a party to arbitration proceedings, and to assist with the taking of evidence in arbitration, such as hearing the testimony of witnesses under oath or ordering document production. The courts can also decide questions of challenges to arbitrators or concerning the tribunal’s jurisdiction and, after an arbitral award has been rendered, they can review whether the award should be set aside or declared invalid. The courts also try matters of rec- ognition and enforcement of foreign arbitral awards in Sweden. 3.9 Court Intervention Courts in Sweden will never intervene in an arbitration on their own initiative. At the request of a party, the
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