SCC Spotlight Talk: Mathias Steinø
What is the current state of play in the Danish arbitration scene? In this SCC Spotlight Talk, member of the SCC Arbitrators’ Council, Mathias Steinø, Hafnia Law Firm, shares insights on the Danish trends and the role of the SCC in facilitating dispute resolution in our Southern neighbour.
Published
What are the most significant trends you have observed in commercial dispute resolution in Denmark over the past ten years?
Denmark has witnessed a notable increase in the use of arbitration. This reflects a broader global trend towards arbitration as an alternative to the courts but in Denmark it also reflects the international profile of the business community.
Despite its small size, Denmark boasts a highly globalized business community with a notable international presence in pharmaceuticals, shipping and renewable energy. The country is also home to renowned consumer brands. The international aspect of the Danish business community has cultivated a high number of competent lawyers capable of navigating cross-country disputes. Denmark has experienced a very significant move away from idiosyncratic domestic arbitration practices to become a modern internationally capable dispute arena attentive to prevailing international trends.
How does arbitration compare to litigation in Denmark when it comes to commercial disputes, and what factors drive parties to choose one over the other?
Let me start out by saying that the Danish courts are great and offer efficient and predictable litigation. But the courts simply lack the ability to offer some of the key features that attract businesses to arbitration. The courts cannot offer confidentiality. The courts cannot offer the same degree of efficiency as arbitration. The courts are also forced to use Danish language in pleadings and court hearings. Just to take a few examples.
Decision makers care about speed and efficiency and institutions like the SCC are dedicated to deliver just that. The courts cannot deliver the momentum that businesses want. Obviously, the ability to obtain a decision which can be enforced internationally is also a very important component in the move from the courts to the arbitration arena. The importance of international enforcement has been accelerated by the general globalization which makes arbitration a compelling choice for businesses operating across multiple legal systems.
What unique aspects of Danish arbitration or dispute resolution culture do you think international parties should be aware of when engaging in commercial disputes in Denmark or with Danish counsel?
Danish dispute resolution culture is characterized by a strong emphasis on pragmatism, efficiency, and consensus-building. Danish legal professionals and arbitrators are known for their commercial-minded approach, prioritizing resolution over protracted legal battles. Furthermore, the Danish legal framework supports party autonomy, allowing international parties to structure arbitration proceedings according to their needs while benefiting from a stable and arbitration-friendly jurisdiction.
Which role does the SCC play for Danish businesses?
SCC is the most recognized international dispute settlement forum in Northern Europe and enjoys profound recognition as a neutral, efficient and non-confrontational venue. I could easily add further adjectives. Most companies prefer to resolve disputes in their own country, but international counterparts often resist settling conflicts on the opposing party’s home ground. In that sense, SCC arbitration seated in Sweden is a perfect alternative for Danish companies (and indeed other Scandi and Northern European companies) since SCC represents a well-tested and neutral forum that hardly any company in any part of the world would have any reasonable objections against.
According to the latest figures I have seen, almost a hundred Danish companies have been involved in disputes adjudicated under the auspices of the SCC across the last decade. I suppose no other non-Danish forum comes close to that number and it is testament to the fact that Danish companies consider SCC to be a reliable and attractive venue.