Arbitration is one of the most effective methods of resolving commercial and investment disputes. At the SCC Arbitration Institute, we provide a trusted, neutral, and efficient forum where parties can settle disagreements outside the courts. For over a century, the SCC has been at the forefront of international arbitration, chosen by businesses, states, and investors across the globe.
What is arbitration?
Arbitration is a private and legally binding method of dispute resolution in which the parties submit their case to one or more independent arbitrators. Unlike court litigation, arbitration allows parties to tailor the process to their needs, select arbitrators with the right expertise, and ensure confidentiality of sensitive matters.
An arbitral award is final and enforceable in more than 170 jurisdictions worldwide under the New York Convention. This global enforceability makes arbitration a cornerstone of international commerce and investment.
Why choose SCC arbitration?
The SCC Arbitration Institute is consistently ranked among the leading arbitration institutions worldwide. Each year, parties from more than 40 countries select the SCC to resolve their disputes. Our reputation rests on neutrality, efficiency, and a proven track record of administering complex, cross-border cases.
Court proceedings are a slower option and they are not confidential – unlike arbitration, where both the hearing and the award are kept confidential. Arbitration also gives the parties a great opportunity to participate and influence the process.
Confidentiality
All SCC proceedings are conducted in private. This protects sensitive business information, preserves commercial relationships, and ensures discretion for parties and arbitrators alike.
Expertise and neutrality
Parties benefit from impartial case administration by the SCC Secretariat and from the appointment of arbitrators with proven expertise in international law and commerce. Sweden’s long-standing tradition of neutrality enhances the credibility of SCC arbitration as a reliable forum for parties from diverse jurisdictions.
Enforceability of awards
Awards rendered under the SCC Rules are final and legally binding. They are enforceable in over 170 countries, giving businesses and investors certainty and security in global trade and investment.
Flexibility and efficiency
The SCC offers both regular and expedited procedures, enabling parties to resolve disputes quickly and proportionately. On average, cases are concluded within 12–18 months, while expedited arbitrations may be completed in as little as six months.
Cost-effective dispute resolution
SCC arbitration is designed to be efficient, reducing the time and resources required to reach a resolution. Our transparent schedule of fees ensures predictability, while the SCC’s streamlined procedures help contain overall legal costs.
Stockholm: Neutral and trusted seat for arbitrations
Arbitrations administered under the SCC Rules may be seated anywhere in the world.
However, many arbitrations administered at the SCC are seated in Stockholm. Why?
Stockholm provides an ideal arbitration seat with numerous advantages:
Neutral jurisdiction, a blend of civil law and common law
Modern arbitration law supporting arbitral autonomy and minimal court intervention
Excellent infrastructure with state-of-the-art hearing facilities
Convenient location, easily accessible for parties from Sweden, Europe and other continents
Strong rule of law and experienced judiciary supporting arbitration
Sweden’s arbitration-friendly legal environment ensures that arbitral proceedings receive appropriate judicial support when needed whilst maintaining arbitral independence.
The SCC arbitration process: How it works
The SCC Rules of Arbitration provide a modern and flexible framework for resolving disputes:
1. Arbitration agreement and initiation
The arbitration process begins with a valid arbitration agreement, typically included in the underlying commercial contract. When disputes arise, any party may initiate proceedings by:
Filing a request for arbitration with the SCC
Paying the required registration fee
Serving the request on the opposing party
Providing relevant documentation and evidence
The SCC reviews the request to confirm jurisdiction and procedural compliance before formally commencing the arbitration.
2. Arbitral tribunal constitution
Arbitrator selection is crucial for effective dispute resolution:
Sole arbitrator for smaller or less complex disputes
Three-member tribunal for larger or more complex matters
Party appointment of arbitrators with relevant expertise
SCC supports the appointment of arbitrators
The SCC maintains a large and diverse registry of arbitrators and can support parties’ appointments with lists of candidates.
3. Case management and procedure
Once constituted, the arbitral tribunal manages the proceedings:
Procedural orders establishing timetables and rules
Written submissions including statements of case and evidence
Document disclosure as appropriate to the dispute
Witness and expert evidence presented through written statements and oral testimony
The tribunal ensures fair and efficient proceedings whilst maintaining procedural flexibility.
4. Hearings and deliberations
Oral hearings can provide opportunities for:
Opening statements outlining each party’s case
Witness examination including cross-examination
Expert testimony on technical or specialised matters
Closing arguments summarising positions and evidence
Following hearing, the tribunal deliberates privately before issuing its decision.
5. Award and enforcement
The arbitration concludes with a final arbitral award that:
Resolves all disputed issues with binding effect
Cannot be appealed on substantive grounds
Is immediately enforceable in over 170 countries
Includes cost allocation between the parties
The SCC assists parties with award enforcement procedures when necessary.
Types of arbitration at the SCC
The SCC offers a range of procedures designed to meet the needs of commercial parties, investors, and states.
Commercial arbitration
Used for business disputes arising under contracts.
Expedited arbitration
A streamlined procedure with shorter time limits and reduced costs, ideal for disputes requiring swift resolution.
Many employment contracts for executive positions include arbitration clauses. The employer will then stand for reasonable arbitration costs.
Investment arbitration (ISDS)
The SCC is one of the most frequently chosen institutions for investor-state disputes under bilateral and multilateral investment treaties, including the Energy Charter Treaty.
A unique procedure for urgent disputes, providing a legally binding decision within 21 days at a fixed cost. Not an arbitration, but another way to resolve a dispute.
Arbitral awards are final and binding with very limited grounds for challenge. Unlike court judgements, awards cannot be appealed on substantive grounds such as disagreement with the arbitrators’ legal or factual conclusions.
Limited challenge grounds include:
Lack of valid arbitration agreement
Procedural irregularities affecting due process
Arbitrator misconduct or bias
Awards exceeding the scope of submission
Success rates for challenges are extremely low, typically under 5%, ensuring finality and enforceability.
How long does SCC arbitration take?
Most SCC arbitrations conclude within 6-12 months, significantly faster than court litigation. Factors affecting duration include:
Case complexity and number of issues
Amount of evidence requiring review
Number of witnesses and experts
Arbitrator and party availability for hearings
Procedural choices made by parties and tribunal
Expedited procedures can deliver awards within 3-6 months, whilst complex international disputes may require 12-18 months
How much does SCC arbitration cost?
Fees are based on the amount in dispute and can be calculated using the SCC Cost Calculator. These fees cover the arbitrators’ remuneration and the SCC’s administrative costs. The largest portion of overall expenses often arises from legal representation, but the SCC’s efficient procedures help to reduce these costs.
Is arbitration confidential?
Yes, SCC arbitration is strictly confidential.Confidentiality covers:
All proceedings including hearings and deliberations
Documentary evidence and written submissions
Arbitral awards and procedural decisions
Settlement discussions and negotiations
Exceptions to confidentiality:
Disclosure required by law in certain jurisdictions
Enforcement proceedings where award disclosure may be necessary
Regulatory reporting requirements in specific industries
Parties may agree to additional confidentiality measures or limited disclosure for specific purposes.
Can parties choose their arbitrators?
In most cases, yes. Parties may nominate their arbitrators, subject to confirmation by the SCC, ensuring both independence and impartiality.
Do I need an arbitration clause in my contract?
Yes, a valid arbitration agreement is essential for SCC jurisdiction. Best practice includes:
Pre-dispute arbitration clauses in commercial contracts specifying:
The advantages generally associated with arbitration as a method of dispute resolution are its speed and its confidentiality. The first advantage should be seen in the light of the fact that arbitration is a single instance procedure, i.e. the decision of the arbitral tribunal cannot be appealed on substantive grounds. The confidentiality of the arbitration means that the parties can decide that the proceedings and the award will not be made public. Further advantages of arbitration as a method of dispute resolution are that the parties can choose the arbitrator and that the procedure is flexible, i.e. can be adapted to the agreement of the parties.
One difference with court proceedings is that parties to an arbitration are responsible for the fees of the Arbitral Tribunal. Arbitration can therefore initially be somewhat more expensive than court proceedings. This means that arbitration as a method of dispute resolution is primarily suitable for commercial disputes of such a nature that the claims raised in the case at least exceed the cost of the Arbitral Tribunal. A guideline here is that the dispute should in any event concern a claim exceeding SEK 500,000. It should be noted, however, that court proceedings generally take longer than arbitration, so that in the long run it may be more expensive to litigate in court than to resolve a dispute through arbitration.
What are the advantages of arbitration over litigation in court?
The main advantages are the speed of the issuing of the final award and the confidentiality of the proceedings. Trade secrets are not disclosed. The parties also have the possibility to appoint arbitrators with specialist expertise. Through an international convention, an arbitral award is enforceable in more than 160 countries worldwide.
Can all disputes be resolved by arbitration?
Many disputes can be resolved through arbitration. However, there are some exceptions. Thus, not all disputes can be resolved by arbitration. In particular, a dispute must be arbitrable in order to be resolved by arbitration. The term “arbitrable” essentially means that the parties must be able to settle the matter in dispute. Therefore, the dispute must not concern mandatory law, such as marriage, paternity, adoption and liability or other penalties for criminal offences.
The question of whether a dispute is arbitrable is, in principle, relatively simple to answer. In principle, all commercial disputes can be resolved through arbitration.
Is it possible to move a dispute in court to an arbitration?
Yes, a dispute pending in a district court can be transferred to arbitration, provided the parties agree.
There are several reasons for doing this. For example, the parties may wish to:
Speed up the process if the court proceedings are lengthy.
Appoint arbitrators with specific expertise.
Ensure confidentiality, as court proceedings are usually public while arbitration proceedings are confidential.
To move the dispute to arbitration, the parties must agree to this. A template for such an agreement is available here. The claimant then withdraws the case from court and requests arbitration at the SCC.
Is arbitration more expensive than court?
Arbitration can be said to be more expensive than litigation in that the parties to arbitration – unlike the parties to litigation – pay the arbitrators’ fees. In litigation, the judges’ salaries are funded by the taxpayer. However, it should be emphasised that arbitration is generally much faster than court proceedings. And since longer proceedings tend to be much more expensive than short ones, court proceedings may in fact be more expensive than arbitration.
Can two individuals resolve a dispute in arbitration?
Yes, two private individuals can resolve a dispute in arbitration. The main limitation regarding private individuals and arbitration is that arbitration agreements cannot be concluded in advance in the case of consumer disputes, i.e. disputes where one party is a consumer in relation to the other. However, even in such a case, once a dispute has arisen, it is possible for the parties to agree that the dispute in question will be settled by arbitration.
There are more than two parties involved in a dispute – can we use arbitration?
Yes, an arbitration can involve more than two parties. It is also relatively common for an arbitration to include more than two parties, such as construction disputes. A prerequisite for an arbitration to include multiple parties is that they are bound by the same or an identical arbitration agreement.
Who pays for arbitration?
Unless the parties have agreed otherwise, the Arbitral Tribunal shall, at the request of a party, apportion the costs of the arbitration between the parties, taking into account the outcome of the case, the extent to which the parties have contributed to an efficient and expeditious procedure and any other relevant circumstances.
What happens if we agree and want to end the arbitration?
Since the parties to an arbitration control many aspects of the proceeding, they may agree to terminate the arbitration. In such a case, the Arbitral Tribunal will issue a decision declaring the case closed. If the parties then want the disputed issues to be re-examined, they may request arbitration again.
What happens after the Arbitral Tribunal has issued the award?
Once the Arbitral Tribunal has issued the award, the dispute has been settled. For example, if the dispute concerns a claim for payment, a successful claimant can demand payment from the losing party. Since an arbitral award is a writ of execution, the successful party can use the Swedish Enforcement Authority to enforce the claim in question.
I have a dispute with a party from another country. What is the language of the arbitration?
As a general rule, the arbitration shall be conducted in the language agreed by the parties. If the parties did not and cannot agree on this issue, the Arbitral Tribunal shall determine the language of the arbitration. In this assessment, the Arbitral Tribunal may consider the domicile of the parties, the language of the contract, applicable law, etc.
What is the "seat" of arbitration and why is it important?
The seat of arbitration is the legal jurisdiction chosen by the parties for their arbitration. It is a legal concept rather than a physical location, meaning hearings can take place anywhere whilst the seat remains fixed. The seat determines which national law governs the proceedings and which courts have supervisory jurisdiction. If a party wishes to challenge an award, this can only be done in the courts of the seat. For example, if the seat is Stockholm, any challenge must be brought before the Svea Court of Appeal.
What is the difference between the law of the seat of arbitration and the applicable arbitration rules?
The law of the seat of arbitration is the national law that governs the arbitration proceedings and determines which courts have supervisory jurisdiction over the arbitration. The applicable arbitration rules, on the other hand, are the procedural rules chosen by the parties when they select an arbitration institution (such as the SCC Arbitration Rules or the SCC Rules for Expedited Arbitrations). These rules set out the practical framework for conducting the arbitration, including the process for appointing arbitrators, timelines, and rendering the award. While the law of the seat provides the overarching legal framework and determines matters such as the validity of the arbitration agreement and grounds for challenging an award, the arbitration rules govern the day-to-day conduct of the proceedings.
Can my arbitral award be enforced in other jurisdictions?
Yes. The New York Convention (Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958) allows arbitral awards to be recognised and enforced across approximately 170 signatory countries. This means that an award rendered in one member state (such as Sweden) can be enforced in another without needing to relitigate the dispute. This global enforceability is one of the key advantages of arbitration over litigation, as court judgments are typically more restricted when it comes to international enforcement.
