FAQ

Arbitration is a recognised way of resolving commercial disputes out of court, both in Sweden and abroad. A prerequisite for arbitration to take place is that the parties agree to it in writing or orally. By agreeing to arbitration, two or more parties choose to resolve disputes between them – for example regarding breach of contract or damages – through arbitration instead of court proceedings. An arbitration agreement usually consists of an arbitration clause that is part of a larger main agreement. The arbitration clause is usually found at the end of the main contract. Read more about our different dispute resolution services here.

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. 

On this point, reference is made to the answer to question 2 above. In summary, 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.

Read more here.

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.

In essence, the actual procedure in an arbitration does not differ from that in a court proceeding, except that the arbitration is faster, and the parties have greater influence over the process in an arbitration. Arbitration proceedings are also conducted in such a way that one party initiates the proceedings by sending a request to, for example, the SCC Arbitration Institute requesting arbitration. The other party is then notified and given the opportunity to comment on the request for arbitration. And then there are usually a few more rounds of correspondence between the parties. This is normally followed by an oral hearing of the case, where the parties have the opportunity to argue orally on the issues under consideration. An arbitration is concluded by the Arbitral Tribunal issuing its decision in the case. Usually this is done by issuing an award, but it can also be a decision.

Read more about arbitration step by step here.

As mentioned under question 2 above, arbitration is a single instance procedure. This means that, as a general rule, an arbitral award cannot be appealed. There is, however, a limited possibility to pursue a case for the annulment of the award on procedural grounds. However, the possibilities for such an annulment are very limited and it is only formal errors that can lead to an award being annulled or set aside. Thus, errors in the assessment of the substantive issues in the case cannot lead to the annulment of the award.

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.

As mentioned under question 2 above, the parties largely control the arbitration proceedings. This also applies to the rules governing the proceedings. Normally, the parties agree that the proceedings will be governed by the rules of an arbitration institution, such as the Arbitration Rules of the SCC Arbitration Institute. Then the said rules will govern the arbitration, e.g. as regards time limits of various kinds. However, the parties may agree that something else should apply in the individual case.  

In addition to the institutional rules mentioned above, different countries also have arbitration laws. In Sweden, the Swedish Arbitration Act applies. This Act regulates, inter alia, the conditions under which an arbitral award may be set aside, as discussed under question 6 above. Even in the case of the Swedish Arbitration Act, however, it is possible for the parties to agree that something else will apply in the individual case.  

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.

Yes, it is possible to add an arbitration clause afterwards. It should be noted that in Sweden there is no formal requirement for arbitration, which means that Swedish parties can agree orally that a dispute will be settled by arbitration. However, for reasons of evidence, parties should incorporate a written arbitration clause in their contracts.  

If the parties agree, they may agree that a dispute should be resolved by expedited arbitration, even though the arbitration clause in question refers to the arbitration rules. Again, the parties are in the driver’s seat and can control the procedure in various respects.  

An emergency arbitrator is an arbitrator who is called upon when time is of the essence. The procedure is the same as in a traditional arbitration, but much faster. The requesting party submits the application and pays a registration fee to the SCC Arbitration Institute. Once the application is received, the SCC Arbitration Institute sends a copy to the counterparty and appoints an emergency arbitrator within 24 hours (from the time of receipt of a complete application). Once appointed, the emergency arbitrator takes over the case and has 5 days to issue a decision. 

As stated in question 12 above, the use of an emergency arbitrator is appropriate in cases of urgency. For example, in a situation where the other party is suspected of taking actions that may cause damage or sabotage a future arbitration, it is necessary to quickly put in place provisional (interim) measures. In such a situation, an emergency arbitrator may be an effective solution.

Read more about emergency arbitrators here.

SCC Express is the SCC Arbitration Institute’s latest dispute resolution tool. The method is not as fast as an emergency arbitrator under questions 12-13 above, but significantly faster than traditional arbitration. In brief, the SCC Express works by the parties requesting a neutral expert to examine the dispute and submitting a written submission arguing and presenting evidence on the issues at stake. The neutral expert must then issue their assessment within three weeks of being appointed. 

The main difference between SCC Express and the SCC Arbitration Institute’s other procedures is that the former dispute resolution method is much faster. It should be noted, however, that an assessment obtained through SCC Express does not have legal force, i.e. it cannot be enforced by, for example, the Swedish Enforcement Authority. However, the parties can agree that an assessment obtained through SCC Express will be contractually binding between the parties.

As stated above under question 15, the parties may agree that an assessment obtained through SCC Express shall be contractually binding between the parties. The parties can achieve this by stating in their agreement regarding SCC Express that the Neutral’s assessment shall be contractually binding between the parties.

SCC Express as a dispute resolution method requires that the parties agree to obtain an SCC Express assessment. It will be difficult to enforce a procedure under the SCC Express rules if the parties do not agree at the time of obtaining such an assessment.  

SCC Express is particularly suitable for resolving disputes that may arise under specific contractual provisions, especially where such issues may arise regularly and where the parties want to avoid dragging the issues out. The dispute resolution method in question is also generally suitable for longer contracts of various kinds, such as co-operation agreements concerning joint ventures or the relationship between shareholders, where individual contractual mechanisms can be expected to give rise to issues on an ongoing basis.  

 As mentioned under question 15 above, the SCC Express is a fast method of dispute resolution. However, the process is not as fast as the use of an interim arbitrator. If it is important to get a decision within a very short time, an emergency arbitrator should be used (see above under questions 12-13).

Read more about SCC Express here.

The SCC’s Ad Hoc Platform is an administrative service provided by the SCC Arbitration Institute that can be used, for example, by an Arbitral Tribunal to facilitate the management of ad hoc arbitrations, i.e. arbitrations where the parties have not agreed that the rules of a particular arbitration institution should govern the arbitration. The SCC’s Ad Hoc Platform allows participants in an arbitration to communicate, share and archive all materials related to the arbitration in a cyber-secure and efficient manner.

No, the participants in an arbitration may use the SCC Ad Hoc Platform also in a case that is not governed by the SCC Arbitration Institute’s rules for arbitration. In other words, the use of the service is independent and does not mean that the case is otherwise administered by the SCC Arbitration Institute or that the proceedings are subject to its rules.

Read more about SCC’s Ad Hoc Platform here.

Ad hoc arbitration is not administered by the SCC Arbitration Institute and is not governed by its rules. However, it is possible to seek assistance from the SCC Arbitration Institute in various ways within the framework of such a procedure. For example, the parties may choose to use the SCC Ad Hoc Platform or request the SCC Arbitration Institute to appoint an arbitrator.  

Ultimately, it is up to the parties to decide how many arbitrators will be involved in the arbitration. If the parties do not agree on the number of arbitrators – or do not address the issue at all – the question of the number of arbitrators may, for example, be decided by the SCC Arbitration Institute. The latter presupposes in principle that the dispute is otherwise administered by the SCC Arbitration Institute and that the proceedings are governed by its rules.

Section 8 of the Swedish Arbitration Act states that an arbitrator shall be impartial and independent. That this is the case also follows from Article 18 of the Arbitration Rules of the SCC Arbitration Institute. In order to ensure the impartiality and independence of arbitrators, if an arbitrator is asked to accept an assignment in a particular case, the arbitrator is obligated to immediately disclose all circumstances that may prevent the person in question from acting as arbitrator, including the requirements for impartiality and independence. If, in the course of the proceedings, circumstances arise that disqualify an arbitrator, he or she may be released from the position of arbitrator.  

As mentioned under question 2 above, one of the advantages of arbitration as a method of dispute resolution is that the parties can choose the arbitrators. This means that the parties can ensure that the arbitrators have the specific expertise required to resolve a particular type of dispute. For example, if the dispute revolves around a complicated compensation claim, the parties can appoint arbitrators who have particular experience in tackling such issues.  

Usually, the claimant and the respondent each select one arbitrator and these two then jointly select a third arbitrator who will chair the Arbitral Tribunal. The parties may also request the SCC Arbitration Institute to appoint all or some of the arbitrators.

How an arbitrator is appointed in a case is depends on the applicable SCC rules. Arbitrators are generally appointed either by the parties or by the SCC Arbitration Institute. In the case of party-appointed arbitrators, they are normally appointed by a party representative, who contacts a suitable candidate and asks if they are able to act as an arbitrator in the dispute in question. In the case of arbitrators appointed by the SCC Arbitration Institute, they are selected by the Board of the SCC Arbitration Institute on the proposal of the Secretariat. In the latter respect, the SCC Arbitration Institute takes into account, among other things, previous experience as an arbitrator, relevant training, diversity, etc.

Read more about the appointment of arbitrators here.

In Sweden, arbitrators are mainly members of the Swedish Bar Association, with experience in dispute resolution both as lawyers and arbitrators. Active and retired judges and counsellors also act as arbitrators. No specific training or qualification is required to act as an arbitrator. Arbitrators can also be other experts in fields relevant to the dispute, such as economists or engineers.

Read more here.

As mentioned under question 25 above, no special training or qualification is required to act as an arbitrator. However, it is less usual to have an arbitrator who is not a lawyer, a judge, or holding any other prominent role in the legal system.

The SCC offers dispute resolution through its rules on arbitration, expedited arbitration, mediation and SCC Express. The differences between the various rules are mainly due to the fact that the different types of arbitration are intended for disputes of different sizes and that the time taken is thus intended to be different depending on the proceeding. Accordingly, the rules on expedited arbitration are designed to make the proceedings faster than ordinary arbitration.  

As a result, the time for rendering the decision or award differs between the different arbitration rules. In addition, different requirements apply to the submissions to be made by the parties at different points in the proceedings.

Read more about the SCC rules here.

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The dispute resolution clause should specify how – and possibly with which institution – any disputes will be resolved. We recommend including a dispute resolution clause in all business contracts.   

Parties wishing to agree on arbitration under the SCC Arbitration Institute’s rules are encouraged to use the dispute resolution clauses that are available here. However, it is not possible to indicate which dispute resolution clause is most suitable for all contracts. The answer to this question depends, inter alia, on the size and complexity of the dispute. However, in general, it is recommended to use a dispute resolution clause for ordinary arbitration, which allows for a flexible proceeding for all types of claims. Another option is to use a so-called “combination clause”, where the rules for expedited arbitration will be applied if the circumstances of the dispute are appropriate, and if not, the rules for ordinary arbitration will be used.

Provided that you have agreed that the dispute in question will be resolved by arbitration, it may be invoked in the usual way even if the other party does not wish to participate.

Read more about initiating arbitration at the SCC here.

Arbitration proceedings are initiated by a request from one of the parties. The information to be included in such a request is set out in Article 6 of the Arbitration Rules of the SCC Arbitration Institute. Thus, when initiating an arbitration, one shall provide: (i) the names, addresses, telephone numbers and e-mail addresses of the parties and their counsel; (ii) a summary of the dispute; (iii) preliminary information on the claimant’s claims, including an estimate of the value of the claims; (iv) a copy or description of the arbitration agreement or clause relied upon; (v) the name of the arbitrator; (vi) the arbitration agreement on which each claim is based if the claims are based on more than one agreement; (vii) comments on the number of arbitrators and the seat of the arbitration; and (viii) if applicable, the name, address, telephone number and e-mail address of the arbitrator appointed by the claimant.  

Given that most of the information to be included in a request for arbitration can be included in a single document, not many documents are needed to start an arbitration (apart from the request for arbitration itself). Usually, however, parties attach to their request for arbitration both the agreement concluded by the parties and the arbitration clause stating that the dispute in question is to be submitted to arbitration. If a lawyer represents the party requesting arbitration, a power of attorney should also be attached.

As stated in question 2 above, arbitration proceedings are generally confidential. However, this answer needs some modification. Firstly, in Sweden the parties to an arbitration need to agree that the arbitration shall be confidential. By referring to the SCC’s Arbitration Rules, the parties ensure that the arbitration will be confidential and, unless the parties have agreed otherwise, the SCC, the Arbitral Tribunal and any appointed administrative secretary shall ensure that confidentiality applies to the arbitration and the award.  

Secondly, an arbitration may become public to some extent if one of the parties seeks to set aside the award by challenging it in court. As stated in question 6 above, the chances of successfully challenging an arbitral award are limited. However, by initiating such a process, a certain part of the arbitration procedure becomes public, including the award.

Yes, it is possible to transfer a case from the court to arbitration. This has happened, for example, when a main hearing in court has been cancelled at short notice. In such a situation, it is possible to transfer the final part of the proceedings to arbitration. However, since arbitration as a method of dispute resolution requires an arbitration agreement, such a transfer requires that the parties agree to transfer the case from court to arbitration.  

Two parties who have agreed that a dispute should be settled by arbitration can only refer the dispute to court if both parties agree. Otherwise, the arbitration agreement prevents the court from hearing the dispute in question.  

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.

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.

As mentioned under question 2 above, arbitration is a single instance procedure. This means that, as a general rule, an arbitral award cannot be appealed. There is, however, a limited possibility to pursue a case for the annulment of the award on procedural grounds. However, the possibilities for such an annulment are very limited and it is only formal errors that can lead to an award being annulled or set aside. Thus, errors in the assessment of the substantive issues in the case cannot lead to the annulment of the award.

The cost of arbitration varies, depending, among other things, on the size of the dispute. In general, however, it can be said that the parties to an SCC arbitration shall pay an administrative fee to the SCC Arbitration Institute, the Arbitral Tribunal’s fee, and compensation for any expenses.  

The SCC Arbitration Institute is a non-profit organisation. The costs are calculated on the value of the subject matter of the dispute according to the tables annexed to the SCC Rules. The value of the subject matter consists of the total value of the claim and any counterclaim and/or set-off defence. The costs of arbitration can be calculated using the SCC’s cost calculator.  

In the case of an ad hoc procedure,the parties shall pay only the Arbitral Tribunal’s fees, which is likely to be higher if the arbitral tribunal is also responsible for administering the dispute.  

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.

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.

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.

Expedited arbitration generally means that an award should be issued within three months, but this depends on the complexity of the case. 

The decision of the emergency arbitrator shall be rendered within five days of their appointment.  

Depending on the size and complexity of the case, an arbitration under the SCC Arbitration Rules generally takes between six months and one year.

Read more about SCC statistics here.

If someone fails to meet the deadlines in a case, they may lose their right to be heard on a particular issue, for example, and the case may be decided against them. 

The SCC Arbitration Institute consists of a Board of Directors and a Secretariat. The Secretariat works under the direction of a Secretary General and the Secretariat performs the tasks assigned to it under the SCC Arbitration Institute’s Arbitration Rules, such as administering individual cases. The Secretariat may also take decisions on matters that the Board has delegated to the Secretariat, such as determination of the amount of the advance payment, extension of the time for rendering an award, etc.  

The Board of the SCC Arbitration Institute takes decisions related to arbitration proceedings administered by the SCC Arbitration Institute, in particular on the appointment and release of arbitrators, jurisdiction, the joinder of parties, and the consolidation of arbitrations.  

The SCC Arbitration Institute administers arbitration proceedings and does not provide substantive advice. However, the SCC Arbitration Institute can advise parties on its organisation and the conduct of the proceedings and how a dispute may fall under the SCC Arbitration Institute’s Arbitration Rules. 

The SCC Arbitration Institute is an independent part of the Stockholm Chamber of Commerce. The SCC Arbitration Institute performs its tasks in the administration of disputes independently of the Stockholm Chamber of Commerce.

The SCC Arbitration Institute periodically updates its rules in order to offer its users even more attractive dispute resolution services. The various updates concern, among other things, what to include in submissions and clarifications of various kinds.   

 The SCC Arbitration Institute has reviewed the various rule changes on its website, see here.

An arbitration proceeding starting in January 2024 will be administered under the 2023 SCC Rules and according to the table of costs applicable from 1 January 2024. 

Here you can find the contact details of the SCC and the staff of the SCC Secretariat.