SWEDEN Law and Practice Contributed by: Björn Tude, Daniel Waerme, Caroline Gulliksson Dock and Sandra Aljassani, Gernandt & Danielsson
arbitrators are expected to sign, even if they dissent from the majority decision. The SAA does not require the tribunal to provide rea - sons for its decision. However, reasoned awards are normally given in practice. The award must contain an operative part setting out the tribunal’s conclusions, which may include: • declaratory relief; • orders for payment; • interest; or • specific performance (Section 27 of the SAA). The SAA does not impose a statutory time limit for rendering the award. The parties may, however, agree upon a deadline, which will then be binding upon the tribunal. Arbitrators are under a general duty to con - duct proceedings without undue delay (Section 21 of the SAA). Under the SCC Rules, the final award must be ren - dered within six months from the date the case is referred to the tribunal. The SCC Board may grant extensions, normally of short duration and only upon a reasoned request. 10.2 Types of Remedies Arbitral tribunals may generally award the same types of remedies as Swedish courts, including: • declaratory relief; • orders for payment; • interest; and • specific performance (in appropriate cases). However, arbitral tribunals may not grant remedies that contravene mandatory provisions of Swedish law. An award ordering a party to perform an unlawful act, or otherwise conflicting with fundamental principles of Swedish law, would be invalid under Section 33 of the SAA. Punitive damages are not available under Swedish law. The prevailing view is that such damages would be contrary to Swedish public policy, which adheres to compensatory rather than punitive principles. While there is no direct precedent regarding enforcement of
punitive damages awarded in foreign arbitrations, it is widely recognised that enforcement would be refused in Sweden on public policy grounds. 10.3 Recovering Interest and Legal Costs Arbitral tribunals may award interest, but the basis for such an award is determined by the substantive law governing the contract. If Swedish law applies, this will typically be under the Swedish Interest Act, whereas if another law governs, the rules of that sys - tem will apply. With respect to costs, Section 42 of the SAA provides that, upon request of a party, the arbitral tribunal shall determine the allocation of the costs of the arbitration. The general rule is that costs follow the event, mean - ing that the losing party is ordered to compensate the prevailing party. Recoverable costs include: • arbitrators’ fees and expenses; • legal counsel fees; • costs for the party’s own work; and • costs relating to evidence, such as experts. The tribunal must, however, assess the reasonable - ness of the costs claimed. The parties may agree on a different allocation of costs but, in the absence of such agreement, the prevailing practice is that the losing party bears the full costs of the arbitration, including the winning party’s costs. Arbitral awards are final and cannot be appealed on the merits. The SAA does not provide for a general right of appeal. Parties do, however, have recourse through challenge proceedings. Under Section 33 of the SAA, an award is invalid if the matter is not arbitrable under Swed - ish law or if the award is contrary to Swedish public policy. In addition, under Section 34 of the SAA, an award may be set aside if: • there was no valid arbitration agreement; 11. Review of an Award 11.1 Grounds for Appeal
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