Swedish Arbitration Act... 2019
Swedish Arbitration Act... 2019
Swedish Arbitration Act... 2019
Unofficial translation prepared by Joel Dahlquist Cullborg on behalf of the Arbitration Institute of
the Stockholm Chamber of Commerce.
Section 2
The arbitrators may rule on their own jurisdiction to decide the dispute.
If the arbitrators have rendered a decision finding that they have jurisdiction to
adjudicate the dispute, any party that disagrees with the decision may request
the Court of Appeal to review the decision. Such a request shall be brought
within thirty days from when the party was notified of the decision. The
arbitrators may continue the arbitration pending the court’s determination.
The provisions of Sections 34 and 36 apply in an action to challenge an
arbitration award that includes a decision on jurisdiction.
Section 3
Section 4
A court may not, over an objection of a party, rule on an issue which, pursuant
to an arbitration agreement, shall be decided by arbitrators.
A party must invoke an arbitration agreement on the first occasion the party
pleads its case on the merits in court. Invoking an arbitration agreement on a
2(18)
later occasion shall have no effect unless the party had a legal excuse and
invoked the arbitration agreement as soon as the excuse ceased to exist. The
invocation of an arbitration agreement shall be considered notwithstanding that
the party who invoked the agreement has allowed an issue which is covered by
the arbitration agreement to be determined by the Swedish Enforcement
Authority in a case concerning expedited collection procedures.
During the pendency of a dispute before arbitrators or prior thereto, a court
may, irrespective of the arbitration agreement, issue such decisions in respect
of security measures as the court has jurisdiction to issue.
Section 4 a
A court may not, over the objections of a party, try the issue of the arbitrators’
jurisdiction in a certain arbitration in a way other than as provided for in Section
2, if the request is brought after the commencement of the arbitration.
The first paragraph shall not apply to a dispute between a consumer and a
business entity, if the consumer maintains that an arbitration agreement is
invoked against him or her contrary to Section 6.
Section 5
A party shall forfeit its right to invoke the arbitration agreement as a bar to court
proceedings if the party:
1. has opposed a request for arbitration;
2. fails to appoint an arbitrator in due time; or
3. fails, within due time, to provide its share of the requested security for
compensation to the arbitrators.
Section 6
The Arbitrators
Section 7
Any person who possesses full legal capacity in regard to his or her actions and
property may act as an arbitrator.
Section 8
Section 9
Section 10
Section 11
The parties may agree that a challenge as referred to in Section 10, first
paragraph, shall be conclusively determined by an arbitration institution.
Section 12
The parties may determine the number of arbitrators and the manner in which
they shall be appointed.
Sections 13–16 shall apply unless the parties have agreed otherwise.
If the parties have so agreed, and any of the parties so requests, the District
Court shall appoint arbitrators also in situations other than those stated in
Sections 14–17.
Section 13
There shall be three arbitrators. Each party appoints one arbitrator, and the
arbitrators so appointed appoint the third.
Section 14
If each party is required to appoint an arbitrator and one party has notified the
opposing party of its choice of arbitrator in a request for arbitration pursuant to
Section 19, the opposing party must, within thirty days of receipt of the notice,
notify the first party in writing of its choice of arbitrator. A party who has notified
the opposing party of its choice of arbitrator in this manner may not revoke the
choice without the consent of the opposing party.
If the opposing party fails to appoint an arbitrator within the specified time, the
District Court shall appoint an arbitrator upon the request of the first party.
If arbitration has been requested against several parties and these parties are
unable to jointly appoint an arbitrator, the District Court shall, upon the request
of a respondent party within the time specified in the first paragraph, appoint
arbitrators on behalf of all parties, and simultaneously also release any
arbitrator already appointed.
5(18)
Section 15
Section 16
Section 17
If an arbitrator has delayed the proceedings, the District Court shall, upon the
request of a party, release the arbitrator and appoint another arbitrator. The
parties may decide that such a request shall, instead, be conclusively
determined by an arbitration institution.
Section 18
If a party has requested that the District Court appoint an arbitrator pursuant to
Section 12, third paragraph, or Sections 14–17, the Court may reject the
request only if it is manifestly obvious that the arbitration is not legally
permissible.
6(18)
The Proceedings
Section 19
Unless otherwise agreed by the parties, the arbitral proceedings are initiated
when a party receives a request for arbitration in accordance with the second
paragraph hereof.
A request for arbitration must be in writing and include:
1. an express and unconditional request for arbitration;
2. a statement of the issue which is covered by the arbitration agreement and
which is to be resolved by the arbitrators; and
3. a statement of the party’s choice of arbitrator if the party is required to
appoint an arbitrator.
Section 20
If there is more than one arbitrator, one of them shall be appointed chairman.
Unless the parties or the arbitrators have decided otherwise, the chairman shall
be the arbitrator appointed by the other arbitrators or by the District Court.
Section 21
The arbitrators shall handle the dispute in an impartial, practical, and speedy
manner. They shall act in accordance with the decisions of the parties, unless
they are impeded from doing so.
Section 22
The parties determine which location in Sweden shall be the seat of arbitration.
If the parties have not done so, the arbitrators shall determine the seat of
arbitration.
The arbitrators may hold hearings and other meetings elsewhere in Sweden or
abroad, unless otherwise agreed by the parties.
Section 23
Within the period of time determined by the arbitrators, the claimant shall state
its claims in respect of the issue stated in the request for arbitration, as well as
the circumstances invoked by the claimant in support thereof. Thereafter, within
the period of time determined by the arbitrators, the respondent shall state its
position in relation to the claims, and the circumstances invoked by the
respondent in support thereof.
The claimant may submit new claims, and the respondent may submit its own
claims, provided that the claims fall within the scope of the arbitration
7(18)
agreement and, taking into consideration the time at which they are submitted
or other circumstances, the arbitrators do not consider it inappropriate to
adjudicate such claims. Subject to the same conditions, during the proceedings,
each party may amend or supplement previously presented claims and may
invoke new circumstances in support of its case.
The first and second paragraphs hereof shall not apply if the parties have
decided otherwise.
Section 23 a
Section 24
The arbitrators shall afford the parties, to the extent necessary, an opportunity
to present their respective cases in writing or orally. If a party so requests, and
provided that the parties have not otherwise agreed, an oral hearing shall be
held prior to the determination of an issue referred to the arbitrators for
resolution.
A party shall be given an opportunity to review all documents and all other
materials pertaining to the dispute which are supplied to the arbitrators by the
opposing party or another person.
If one of the parties, without valid cause, fails to appear at a hearing or
otherwise fails to comply with an order of the arbitrators, such failure shall not
prevent a continuation of the proceedings and a resolution of the dispute on the
basis of the existing materials.
Section 25
The parties shall supply the evidence. However, the arbitrators may appoint
experts, unless both parties are opposed thereto.
The arbitrators may refuse to admit evidence presented if it is manifestly
irrelevant to the dispute or if such refusal is justified having regard to the time at
which the evidence is invoked.
The arbitrators may not administer oaths or truth affirmations. Nor may they
impose conditional fines or otherwise use compulsory measures in order to
obtain requested evidence.
Unless the parties have agreed otherwise, the arbitrators may, at the request of
a party, decide that, during the proceedings, the opposing party must undertake
a certain interim measure to secure the claim which is to be adjudicated by the
arbitrators. The arbitrators may prescribe that the party requesting the interim
8(18)
measure must provide reasonable security for the damage which may be
incurred by the opposing party as a result of the interim measure.
Section 26
The Award
Section 27
Section 27 a
The dispute shall be determined with application of the law or rules agreed to by
the parties. Unless otherwise agreed by the parties, a reference to the
application of a certain state’s law shall be deemed to include that state’s
substantive law and not its rules of private international law.
If the parties have not come to an agreement in accordance with the first
paragraph, the arbitrators shall determine the applicable law.
9(18)
The arbitrators may base the award on ex aequo et bono considerations only if
the parties have authorized them to do so.
Section 28
If a party withdraws a claim, the arbitrators shall dismiss that part of the dispute,
unless the opposing party requests that the arbitrators rule on the claim.
Section 29
Section 30
Section 31
An award shall be made in writing and be signed by the arbitrators. It suffices
that the award is signed by a majority of the arbitrators, provided that the reason
why all of the arbitrators have not signed the award is noted therein. The parties
may decide that the chairman of the arbitral tribunal alone shall sign the award.
The award shall state the seat of the arbitration and the date when the award is
made.
The award shall be delivered or sent to the parties immediately.
Section 32
An award is invalid:
1. if it includes determination of an issue which, in accordance with Swedish
law, may not be decided by arbitrators;
2. if the award, or the manner in which the award arose, is clearly incompatible
with the basic principles of the Swedish legal system; or
3. if the award does not fulfil the requirements with regard to the written form
and signature in accordance with Section 31, first paragraph.
The invalidity may apply to a certain part of the award.
Section 34
7. if, without fault of the party, there otherwise occurred an irregularity in the
course of the proceedings which probably influenced the outcome of the
case.
A party shall not be entitled to rely upon a circumstance which, through
participation in the proceedings without objection, or in any other manner, the
party may be deemed to have waived. A party shall not be regarded as having
accepted the arbitrators’ jurisdiction to determine the issue referred to
arbitration solely by having appointed an arbitrator. It follows from Sections 10
and 11 that a party may lose the right under sub-section 6, first paragraph, to
rely upon a circumstance as set forth in Section 8.
An action must be brought within two months from the date upon which the
party received the award or, if correction, supplementation, or interpretation has
taken place pursuant to Section 32, within a period of two months from the date
when the party received the award in its final wording. Following the expiration
of the time limit, a party may not invoke a new ground of objection in support of
its claim.
Section 35
Section 36
concerns another matter, a party who desires to challenge the award may do so
in accordance with the provisions of Section 34.
Costs of Arbitration
Section 37
The parties shall be jointly and severally liable to pay reasonable compensation
to the arbitrators for work and expenses. However, if the arbitrators have stated
in the award that they lack jurisdiction to determine the dispute, the party that
did not request arbitration shall be liable to make payment only insofar as
required due to special circumstances.
In a final award, the arbitrators may order the parties to pay compensation to
them, together with interest from the date occurring one month following the
date of the announcement of the award. The compensation shall be stated
separately for each arbitrator.
Section 38
The arbitrators may request security for the compensation. They may fix
separate security for individual claims. If a party fails to provide its share of the
requested security within the period specified by the arbitrators, the opposing
party may provide the entire security. If the requested security is not provided,
the arbitrators may terminate the proceedings, in whole or in part.
During the proceedings, the arbitrators may decide to realize security in order to
cover expenses. Following the determination of the arbitrators' compensation in
a final award and if the award in that respect has become enforceable, the
arbitrators may realize their payment from the security, in the event the parties
fail to fulfil their payment obligations in accordance with the award. The right to
security also includes income from the property.
Section 39
Section 40
The arbitrators may not withhold the award pending the payment of
compensation.
Section 41
A party or an arbitrator may file an application with the District Court concerning
amendment of the award as regards the payment of compensation to the
arbitrators. Such application must be filed within two months from the date upon
which the party received the award and, in the case of an arbitrator, within the
same period from the announcement of the award. If correction, supplementation,
or interpretation has taken place in accordance with Section 32, the application
must be filed by a party within two months from the date upon which the party
received the award in its final wording and, in the case of an arbitrator, within
the same period from the date when the award was announced in its final
wording. The award shall contain clear instructions as to what must be done by
a party who wants to challenge the award in this respect. The procedure will be
administered in accordance with the Court Matters Act (1996:242).
A decision pursuant to which the compensation to an arbitrator is reduced shall
also apply to the party who did not bring the action.
Section 42
Unless otherwise agreed by the parties, the arbitrators may, upon the request of
a party, order the opposing party to pay compensation for the party's costs and
determine the manner in which the compensation to the arbitrators shall be
finally allocated between the parties. The arbitrators' order may also include
interest, if a party has so requested.
Section 44
Section 45
Section 45 a
In cases brought under Section 2, second paragraph, or 33, 34 or 36, the Court
of Appeal may, upon the request of a party, accept oral evidence in English
without interpretation into Swedish.
The first paragraph applies also to the procedure in the Supreme Court.
15(18)
International Matters
Section 46
This Act shall apply to arbitral proceedings seated in Sweden even if the dispute
has an international connection.
Section 47
Section 48
Section 49
Section 50
Section 51
If none of the parties is domiciled or has its place of business in Sweden, such
parties may in a commercial relationship through an express written agreement
exclude or limit the application of the grounds for setting aside an award as are
set forth in Section 34.
An award which is subject to such an agreement shall be recognized and
enforced in Sweden in accordance with the rules applicable to a foreign award.
Section 53
Section 54
A foreign award shall not be recognized and enforced in Sweden if the party
against whom the award is invoked proves:
1. that the parties to the arbitration agreement, pursuant to the law applicable to
them, lacked capacity to enter into the agreement or were not properly
represented, or that the arbitration agreement was not valid under the law to
which the parties have subjected it or, failing any indication thereon, under
the law of the country where the award was made;
2. that the party against whom the award is invoked was not given proper notice
of the appointment of the arbitrator or of the arbitration proceedings, or was
otherwise unable to present its case;
3. that the award deals with a dispute not contemplated by, or not falling within,
the terms of the submission to arbitration, or contains decisions on matters
17(18)
which are beyond the scope of the arbitration agreement, provided that, if the
decision on a matter which falls within the mandate can be separated from
those which fall outside the mandate, that part of the award which contains
decisions on matters falling within the mandate may be recognized and
enforced;
4. that the composition of the arbitral tribunal, or the arbitral procedure, was not
in accordance with the agreement of the parties or, failing such agreement,
was not in accordance with the law of the country where the arbitration was
seated; or
5. that the award has not yet become binding on the parties, or has been set
aside or suspended by a competent authority of the country in which, or
under the law of which, the award was made.
Section 55
Section 56
An application for the enforcement of a foreign award shall be lodged with the
Svea Court of Appeal.
The original award or a certified copy of the award must be appended to the
application. Unless the Court of Appeal decides otherwise, a certified translation
into the Swedish language of the entire award must also be submitted.
Section 57
An application for enforcement shall not be granted unless the opposing party
has been afforded an opportunity to express its opinion upon the application.
Section 58
If the opposing party objects that an arbitration agreement was not entered into,
the applicant must submit the arbitration agreement in an original or a certified
copy and, unless otherwise decided by the Court of Appeal, must submit a
certified translation into the Swedish language, or in some other manner prove
that an arbitration agreement was entered into.
If the opposing party objects that a petition has been lodged to set aside the
award or a motion for a stay of execution has been submitted to the competent
18(18)
Section 59
If the Court of Appeal grants the application, the award shall be enforced as a
final judgment of a Swedish court, unless otherwise determined by the Supreme
Court following an appeal of the Court of Appeal's decision.
Section 60
Provisional Regulations
2018:1954
1. This Act shall enter into force on 1 March 2019.
(a) the applicable procedural order in Section 41 and the possibility to allow for
oral evidence in English in Section 45 a in procedures initiated after the
entry into force, and
(b) the requirement of leave to appeal in Section 43, second paragraph, for
appeals of Court of Appeal determinations that are rendered after the entry
into force.