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Switzerland

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In Arbitrability

Swiss Supreme Court confirms that claims against bankrupt Swiss parties do not ipso facto lose their arbitrability

by and 4 Mins Read

In a decision published on 1st March 2021, the Swiss Federal Supreme Court (“SFSC”) ruled on the arbitrability of a claim and the corresponding enforceability of an international arbitral award in the light of bankruptcy proceedings filed against the respondent in Switzerland (case no. 5A_910/2019 (in German)). Factual background The dispute at stake originated from an arbitral award of the London Court of International Arbitration (“LCIA”). Therein, the claimant (and subsequently defendant before the SFSC)…

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In Europe

Swiss Federal Supreme Court confirms that not the tribunal’s legal reasoning, but only the outcome of the award can be reason for annulment for violation of public policy

by and 3 Mins Read

In its decision published 6 January 2021, the Swiss Federal Supreme Court (“SFSC”) dismissed a challenge because in its view, the arbitrator had not violated public policy by finding in favour of a company that refused to pay commissions under an agency contract obtained through fraudulent behaviour (case no. 4A_346/2020 (in French)). Factual background The reported dispute originates from agency agreements between a principal company C and two agents, company A as well as its…

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In Europe

Swiss Supreme Court confirms principle of ‘kompetenz-kompetenz’ as a rule of chronological priority

by and 3 Mins Read

In its decision published 2 November 2020, the Swiss Federal Supreme Court (“SFSC”) upheld an arbitral award referring to the widely recognized principle in international arbitration of ‘kompetenz-kompetenz’ (case no. 4A_461/2019 (in German)). Factual background The reported dispute originates from a construction agreement between the State of Lybia and a Turkish company. The Turkish company attempted to obtain payment of the outstanding invoices by the State of Lybia. Subsequent to numerous disagreements, the parties entered…

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In Europe

Swiss Supreme Court rejects request for revision of an arbitral award as the new facts and evidence are neither new nor material to the outcome of the arbitration

by and 4 Mins Read

In its decision published 21 October 2020, the Swiss Federal Supreme Court (“SFSC”) denied the revision of an arbitral award on the basis that the allegedly new facts were neither “new” nor relevant for the outcome of the arbitral proceedings (case no. 4A_36/2020 (in French)). Factual background The reported dispute originated from a distribution agreement between a German company (“A”, claimant) and an American distribution company (“B”, respondent). The agreement contained an arbitration clause incorporating…

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