SWEDEN Law and Practice Contributed by: Simon Arvmyren, Christopher Stridh and Mikaela Tysk, Delphi
11.3 Interest Awarded on Costs Interest, in accordance with Section 6 of the Swedish Interest Act, is awarded from the day of the judgment until full recovery of the costs is made (see Chapter 18, Section 8, paragraph 2 of the Procedural Code). 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Arbitration and mediation are two ADR mechanisms available in the Swedish legal system, although arbi- tration nowadays is seldom referred to as an ADR procedure but as a dispute resolution method in its own right. The basis for using ADR is an agreement between the parties. Mediation is less common even if it is on an upward trend. Other ADR methods such as mini-trials or dispute boards are not common to the general legal community, but dispute boards are sometimes used in relation to larger construction con- tracts. 12.2 ADR Within the Legal System In the Procedural Code, it is expressively stated that the court in both the district court and court of appeal shall endeavour to settle the dispute (see Chapter 42, Section 17, paragraph 1 and Chapter 50, Section 11, paragraph 1 of the Procedural Code). It is also possible for the court to order the parties to use mediation if the parties agree to it, or to arrange settlement hearings that are similar to a mediation, but less formal in relation to the procedure (see Chapter 42, Section 17, paragraph 2 and Chapter 50, Section 11, paragraph 2 of the Procedural Code). 12.3 ADR Institutions There are several institutions in Sweden that are well organised and offer ADR. First, the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) and the Arbitration Institute of the West Sweden Chamber of Commerce both provide mediation as part of their services. The Swedish Mediation Institute gives par- ties in labour disputes the opportunity to solve their issues through mediation. Of the above-mentioned institutions, the SCC is an internationally renowned
The court can decide the case based on the merits and either affirm, amend or reverse the appealed judg- ment, as well as remand a case to a lower court for a retrial. The appealed ruling may also be set aside if a substantial procedural error occurred during the trial in the lower court. 11. Costs 11.1 Responsibility for Paying the Costs of Litigation According to Swedish law, the general rule is that the litigation costs are to be paid by the losing party (see Chapter 18, Section 1 of the Procedural Code). The responsibility to cover the litigation costs includes all expenses such as court and attorney’s fees, cost for preparation and for participating at hearings (see Chapter 18, Section 8 of the Procedural Code). If nei- ther party can be considered to have won the case, each party will normally bear its own costs, and the court may also award a part of the costs if a party only prevails in part. If the claim of the litigation does not exceed half of the so-called price base amount (currently approxi- mately EUR2,700), each party is responsible for its own litigation costs (see Chapter 18, Section 8 a of the Procedural Code). 11.2 Factors Considered When Awarding Costs Aside from the main rule mentioned in 11.1 Respon- sibility for Paying the Costs of Litigation , there are several factors to consider when awarding costs, and the court may deviate from the main rule due to the behaviour of the prevailing party. If a party has initiated proceedings without the other party giving reason to do so, or if the prevailing party otherwise has inten- tionally or through negligence caused an unnecessary litigation, it shall reimburse the other party for its legal costs, or if the circumstances give rise to it, each party shall bear its own costs. Furthermore, in order to be awarded compensation, the requested cost must be reasonable given the amount in dispute, the complexity of the case, etc.
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