SWEDEN Law and Practice Contributed by: Simon Arvmyren, Christopher Stridh and Mikaela Tysk, Delphi
plexity of the case, and ideally the main hearing will be held shortly thereafter. However, in more complex commercial cases it is not unusual for a trial at first instance to require two or even three years. Typically, procedural issues like document production would lengthen the timeframe considerably since certain procedural issues may be appealed to the court of appeal.
ment due to a procedural error (which is extremely rare). A settlement that has not been confirmed by a court is binding on the parties in the same way as any other agreement. Whether or not a settlement agreement can be set aside due to invalidity is a contractual issue and not subject to procedural rules. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant There are two different forms of awards or judgments in Swedish law for a successful litigant. First, there are judgments that oblige a party to per- form or refrain from performing something (see Chap- ter 13, Section 1 of the Procedural Code). Such judg- ments are enforceable by the Swedish Enforcement Authority. Second, there are declaratory judgments, which determine or establish the existence or the con- tent of a legal relationship (see Chapter 13, Section 2 of the Procedural Code). These are non-enforceable. 9.2 Rules Regarding Damages Damages may be awarded, among other things, due to breach of contract or in torts in accordance with the Swedish Tort Law Act, but also in numerous oth- er instances. Damages may only be awarded if the plaintiff can present sufficient evidence to prove the amount of the damage. However, if it is impossible to prove the damage in spite of the plaintiff having done all that could be reasonably expected to prove the damage, the court may assess the damage on the basis of reasonability (see Chapter 35, Section 5 of the Procedural Code). The statute of limitation for a claim for damages is ten years except for claims against consumers, where the statute of limitation is three years. Punitive damages are not available in Sweden.
8. Settlement 8.1 Court Approval
Court approval is not required to settle a lawsuit in Swedish civil cases. However, upon the parties’ joint motion, the court can confirm the settlement in a con- sent judgment in order to achieve enforceability and res judicata effect. 8.2 Settlement of Lawsuits and Confidentiality A settlement in a civil case could be entered into either out of court or during the court proceedings. If the set- tlement is made out of court, it will remain confidential if the parties agree to a confidentiality undertaking. However, if the parties request that the settlement is confirmed by the court in a consent judgment, there will be no confidentiality since judgments become available to the public. 8.3 Enforcement of Settlement Agreements If a settlement has been confirmed by court, it consti- tutes an enforceable judgment. This means that the parties may use the judgment to seek enforcement if the other party omits to fulfil the settlement and judg- ment. If the settlement is not confirmed by a court, it is regarded as an ordinary agreement between the par- ties and thus does not constitute an enforceable judg- ment. See, however, also the possibility to achieve enforceability through Article 6 of the Mediation Direc- tive (2008/52/EC) incorporated by Sections 7–12 of the Swedish Mediation Act. 8.4 Setting Aside Settlement Agreements A settlement that has been confirmed by a court in a judgment is final and cannot be set aside unless one of the parties successfully appeals against the judg-
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