SWEDEN Law and Practice Contributed by: Björn Tude, Daniel Waerme, Caroline Gulliksson Dock and Sandra Aljassani, Gernandt & Danielsson
contract containing an arbitration clause is invalid, or if the contract is indeed invalid, this has no impact on the arbitration agreement (unless the invalidity directly relates to the arbitration clause as such). The rule of separability prevents parties from evading their arbi - tration obligations by claiming contractual invalidity for obstructionist purposes.
to appoint an arbitrator to ensure that the tribunal is properly constituted. 4.3 Court Intervention The selection of arbitrators is primarily governed by parties’ agreement (including any institutional rules chosen), and courts will not intervene absent specific circumstances. A district court may appoint an arbi - trator only when a party fails to make an appointment within the prescribed timeframe or when co-arbitrators cannot agree on the selection of a chair. The court’s intervention is strictly limited to ensuring the proper constitution of the tribunal and does not extend to substituting the parties’ choices except where proce - durally necessary. 4.4 Challenge and Removal of Arbitrators The SAA contains general provisions on the challenge and removal of arbitrators. An arbitrator must be both impartial and independent. Where circumstances exist that may give rise to justifiable doubts about an arbitrator’s impartiality or independence, a party may request the arbitrator’s removal. Certain situations are deemed to compromise impartiality or independence under Section 8 of the SAA. Grounds for challenge include circumstances where the arbitrator, or a per - son closely connected to the arbitrator, is a party to the dispute or may otherwise expect material benefit or detriment from its outcome. Another ground exists where the arbitrator has previously taken a position in the dispute, whether as an expert or otherwise, or has assisted a party in preparing or presenting the case. In line with international practice, Swedish courts, following guidance from the Supreme Court, also refer to the IBA Guidelines on Conflicts of Interest in International Arbitration when assessing impartiality and independence. Beyond impartiality concerns, an arbitrator may also be removed if unable to perform their duties or if causing unjustified delays in the pro - ceedings. Pursuant to Section 15 of the SAA, a challenge must be raised within 15 days from the time the party became aware of the relevant circumstances giving rise to the challenge. The tribunal decides on the chal - lenge, unless the parties agree otherwise. If the party is dissatisfied with the tribunal’s decision on the chal - lenge, the party may apply to the district court for
4. The Arbitral Tribunal 4.1 Limits on Selection
Section 12 of the SAA grants contracting parties broad autonomy in the appointment of arbitrators. The parties may decide both the number of arbitrators and the method of their appointment. In the absence of such an agreement, the arbitral tribunal shall consist of three arbitrators. In practice, arbitral tribunals in Sweden most commonly comprise three arbitrators, though a sole arbitrator is frequently used in cases of lower value or complexity. As a general rule, any person with legal capacity may serve as an arbitrator (Section 7 of the SAA). This means that an arbitrator: • must be at least 18 years of age; • may not be subject to guardianship; and • must not have been declared bankrupt. There is no requirement for Swedish nationality, resi - dence in Sweden or formal legal training. The eligibility criteria are to be observed by the arbitrators them - selves, and breach of these requirements does not automatically render the arbitral award invalid. 4.2 Default Procedures If the parties’ chosen method for selecting arbitrators fails (including any institutional rules chosen), default procedures apply. Should one of the parties fail to appoint its arbitrator within 30 days of receiving a request to do so, or if the two appointed arbitrators cannot agree on the chair, the district court shall make the appointment upon request by a party (Section 16 of the SAA). In multiparty arbitrations, where several parties on one side are unable to reach agreement on a joint appointment, the court may also intervene
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