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Switzerland

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In Europe

Baker McKenzie International Arbitration Yearbook 2022-2023 – Switzerland

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A. LEGISLATION AND RULES A.1 Legislation On 1 January 2023, the revised Swiss Code of Obligations (CO) entered into force. The revised act includes a new article 697n, which expressly allows Swiss corporations (and by reference also limited partnerships and limited liability companies) to include a statutory arbitration clause in their articles of association. The newly introduced article 697n CO applies to stock corporations or limited liability companies with seat in Switzerland, which provide or…

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In Europe

Swiss Supreme Court denies enforceability of arbitral award because of lack of debtor’s joint liability

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In a decision published on the 19th July 2022, the Swiss Federal Supreme Court (“SFSC”) denied the enforceability of an arbitral award that ordered the two claimants to pay the respondent a party compensation, but did not provide for a joint and several liability of the two debtors (case no. 5A_335/2021[1]). The SFSC clarified that it is not the duty of the enforcement court to interpret the award submitted as an enforcement title. Rather, it…

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In COVID-19

Swiss Supreme Court confirms that an arbitral tribunal may under certain circumstances refuse to reschedule a hearing without violating one party’s right to be heard

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In a decision published on 15th June 2021, the Swiss Federal Supreme Court (“SFSC”) dismissed a challenge to set aside an arbitral award because in its view, the request to reschedule the hearing was merely intended to delay the arbitral proceedings, an intention which is not protected by the right to be heard (case no. 4A_530/2020 (in French)). Factual background In the case at stake, a dispute had arisen between the main shareholders of an…

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In Arbitration Procedure

Swiss Supreme Court confirms that arbitral proceedings conducted prior to the replacement of a biased arbitrator do not necessarily have to be repeated in full

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In a recent decision published 1st April 2021, the Swiss Federal Supreme Court (“SFSC”) dismissed a challenge to set aside an arbitral award because in its view, a newly composed arbitral tribunal must not necessarily repeat all procedural steps that happened prior to its new constitution (case. no. 4A_332/2020 (in German), intended for official publication). Factual background In the case at stake, a dispute had arisen between two parties about the validity of the termination…

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