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…

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…

In its decision dated 24 September 2019, the Swiss Federal Supreme Court (“SFSC”) held that a State is only bound by an arbitration clause signed by its State-owned company if the State constantly and repeatedly interferes in the negotiations and/or performance of the relevant contract (Case No. 4A_636/2018 (in German)). Factual background The reported dispute stems from a contract between a Turkish joint venture, as contractor, and a Libyan State-owned, but legally independent, entity for the…