SWEDEN Law and Practice Contributed by: Björn Tude, Daniel Waerme, Caroline Gulliksson Dock and Sandra Aljassani, Gernandt & Danielsson
dence is correct. This reflects the high threshold for overturning jurisdictional determinations in Sweden. Swedish law does not clearly distinguish between admissibility and jurisdiction. The prevailing under - standing is that admissibility questions – such as procedural preconditions or the timeliness of claims – fall within the discretion of the arbitral tribunal. The courts are generally reluctant to interfere unless the issue directly impacts the validity or enforceability of the final award. 5.5 Breach of Arbitration Agreement Where litigation is commenced in contravention of a valid arbitration agreement, Swedish courts will dis - miss the proceedings upon the request of an object - ing party. The objection must be raised at the earliest opportunity: failure to do so results in a waiver of the right to rely upon the arbitration agreement. Under Swedish law, parties to an arbitration agreement are also considered to be under a general contractual duty of loyalty to the purpose of the arbitration agreement. This duty requires the parties to refrain from actions that risk harming the other party’s contractual interest. When proceedings are commenced abroad in relation to a dispute subject to arbitration in Sweden, Swed - ish courts cannot issue anti-suit injunctions to restrain the foreign litigation. The courts’ powers are confined to giving effect to the parties’ arbitration agreement within Sweden. 5.6 Jurisdiction Over Third Parties As a general rule, only parties who have agreed to arbitrate, typically by executing an arbitration agree - ment, are bound by it. Accordingly, arbitral tribunals do not possess general authority to extend jurisdiction to non-signatories or third parties. There are, however, exceptions under which non-sig - natories may become bound by an arbitration agree - ment. Such agreements will ordinarily follow the trans - fer of contractual rights; thus, an assignee is generally bound in the same manner as the original party. The same principle applies in situations of universal suc - cession, where rights and obligations pass by opera - tion of law, such as through merger or inheritance. Furthermore, arbitration clauses between a debtor and
a creditor are typically enforceable against guarantors or other parties jointly liable for the debt. In cases where a third party, non-signatory, tacitly has entered into the main contract (eg, by performing under the main contract), that party is generally considered to have become bound also by the arbitration agreement in the main contract. These principles apply equally to Swedish and for - eign parties. Nevertheless, the threshold for extending jurisdiction over third parties remains high, reflecting the strong emphasis placed upon consent and party autonomy. Pursuant to Section 25 (4) of the SAA, arbitral tribu - nals in Sweden possess the authority to order interim measures at the request of a party. Such measures may include: • instructions aimed at preserving the status quo until the dispute is resolved; • preventing actions that could undermine or preju - dice the arbitral proceedings; • securing assets from which an eventual award could be satisfied; or • safeguarding evidence relevant to the proceedings. Applications for interim relief are assessed according to internationally recognised standards. The request - ing party must typically demonstrate the following. • A reasonable possibility of success on the merits – the applicant must demonstrate at least a prima facie case. • Irreparable harm – the applicant must demonstrate that it will suffer irreparable harm without an interim decision. • Urgency – the applicant must demonstrate that the matter is so urgent that it cannot await the arbitral tribunal’s final award. 6. Preliminary and Interim Relief 6.1 Types of Relief • Proportionality – the applicant’s request for relief must be proportionate to the consequences to be averted.
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