Advantage Advokatbyrå International Commercial Arbitration Law Firms In Sweden

Overview of the Commercial Arbitration Process

Arbitration stands as a widely used alternative dispute resolution (ADR) method. Serving as an alternative to court litigation, it offers a confidential and formal avenue for resolving commercial disagreements.

Resolving business disputes can be time-consuming. At Advantage, their commercial arbitration lawyers adopt a strategic approach to litigation resolution, prioritizing the achievement of the best possible outcome for you over strict adherence to legal technicalities.

Essential Components of Sweden Arbitration Law for Commercial Disputes

When businesses opt for commercial arbitration to settle their disputes, the applicable rules can vary. Nonetheless, all arbitration proceedings in Sweden must adhere to The Arbitration Act. Section 25(4) of the Swedish Arbitration Act explicitly empowers arbitrators to issue decisions on interim measures upon the request of a party unless the parties have agreed otherwise. Again, Section 2 of the Swedish Arbitration Act provides that the arbitral tribunal is permitted to decide on its own jurisdiction. Given that Sweden is a favoured venue for commercial arbitration, it’s crucial to note that such legislation may evolve over time. Awareness of potential legal developments is paramount, particularly considering recent scrutiny by the Law Commission aimed at ensuring the Act remains relevant and effective. Advantage commercial arbitration law firm in Sweden is well equipped to support you in your need in the Arbitration process.

 To provide insight into the fundamental principles of arbitration law and potential updates, three key aspects of Sweden’s arbitration law are outlined below.

Confidentiality

Arbitration is intended to maintain confidentiality as it occurs outside of traditional court proceedings. Typically, parties agree to keep arbitration proceedings confidential through contractual agreements or arbitration clauses. However, such confidentiality isn’t legally mandated, as alternative dispute resolution (ADR) methods are designed to offer greater flexibility compared to court proceedings. It’s worth noting that not all forms of arbitration are necessarily confidential.

As part of its review, the Law Commission has explored the prospect of mandating confidentiality in arbitration proceedings under the Act. Implementing such a mandate would underscore the significance of privacy and offer assurance that arbitration remains confidential. Advantage international law firm Sweden has the history of keeping your case confidential and away from unintended users.

Laws Pertinent to the Arbitration Agreement

The Law Commission has also proposed clarification regarding the applicable law in arbitration proceedings. This would be particularly beneficial for parties involved in complex or cross-border disputes within Sweden. The recommendation suggests that the Act mandates that arbitration be governed by the laws of the seat of arbitration or the jurisdiction where the arbitration takes place, unless expressly agreed otherwise by the parties.

Presently, in cases where the arbitration agreement does not specify the applicable law, the situation is somewhat ambiguous. Parties typically have to assess whether the arbitration agreement is part of a broader contract that explicitly stipulates the governing law of a particular jurisdiction. Alternatively, they must determine which law appears to be most closely associated with the arbitration agreement. That’s why, our prestigious customers not only use Advantage International Commercial Arbitration Law Firm in Sweden services but also refer us to other potential clients.

Challenging Arbitral Awards

Currently, under Sweden arbitration law, a party to a commercial dispute can challenge an arbitral award by claiming that the arbitration body lacks the appropriate authority. However, the Law Commission has scrutinized this practice due to concerns about parties challenging arbitral awards twice: once before the tribunal that rendered the award and again in court.

While the Law Commission concluded that a full rehearing may be permissible, it proposed imposing certain limitations on parties challenging an arbitral award. These limitations, it suggested, should be outlined in court rules rather than in the Act. The proposed constraints would come into play when a party has previously contested the tribunal’s authority.

The limitations on such challenges include:

•       Inability to introduce new evidence or grounds.
•       Rehearing of evidence only if deemed necessary in the interest of justice.
•       Permission for a challenge only if the tribunal’s decision on jurisdiction was deemed incorrect.

Key Takeaways

Arbitration serves as a valuable alternative to court proceedings for resolving commercial disputes. Therefore, it’s essential to understand the laws governing arbitration in Sweden and any potential amendments. The Arbitration Act stands as the primary governing law in this regard. However, a recent review by the Law Commission aimed to assess its current relevance and effectiveness.

The review has highlighted areas for potential change, which include:

•       Clarifying in legislation that arbitration proceedings are confidential.
•       Clearly identifying the applicable laws for cross-border arbitrations when the arbitration agreement is silent on this matter.
•       Addressing challenges to arbitration awards based on assertions of tribunal authority.

If you require assistance in understanding Sweden’s arbitration law for commercial disputes, our team here at Advantage Commercial Agreement Law Firm Sweden can provide guidance and support as part of our Legal Vision.

 we are always available by phone and email. Feel free to contact us and we will help you.

Three Potential Challenges in Arbitration for Commercial Disputes

Arbitration serves as an alternative to commercial litigation and may be a suitable option for resolving your commercial dispute. However, our excerpts at Advantage International Commercial Arbitration Law Firm in Sweden states that there are potential challenges associated with the arbitration process.

Below, we outline three such challenges in commercial arbitration.

1. Enforcing or Disputing an Arbitral Award

Enforcing or disputing an arbitral award poses challenges in arbitration disputes. Despite being legally binding, enforcing or disputing an award requires court intervention, adding complexity and cost. Parties must navigate limited legal grounds for challenging awards, making court proceedings costly and potentially outweighing the benefits of arbitration. This underscores the importance of carefully considering arbitration clauses and procedural mechanisms to mitigate such challenges in commercial agreements. Advantage Law Firm in Sweden has the panel of commercial arbitration lawyers who will serve you according to your unique needs in this process.

2. Employing Virtual Hearings in Commercial Arbitration

Virtual hearings offer a viable option for conducting arbitration, a practice increasingly adopted during the COVID-19 pandemic and still preferred by some parties. They provide benefits such as cost savings, flexible scheduling, and environmental friendliness. However, virtual proceedings present challenges for commercial disputes in arbitration. These include technical glitches, internet disruptions, and concerns regarding confidentiality and evidence security. Despite these challenges, Advantage commercial arbitration lawyers’ careful planning and technological safeguards can mitigate risks and ensure a smooth arbitration process.

3. Getting the Right Arbitrator

In the arbitration process, the parties involved in any commercial dispute should carefully choose their arbitrator lawyers or panel of arbitrator’s lawyers. This decision is crucial as it can significantly impact the arbitration proceedings.

It’s essential to understand that arbitrators should be experts in the relevant subject matter rather than impartial third parties. Therefore, for disputes involving technical or complex issues, arbitrators must possess a deep understanding of the subject matter. Failure to do so can impede the resolution process. Hence, it’s imperative to thoroughly examine the arbitrator’s background and experience before selection. Advantage commercial arbitrators law firm in Sweden work hard to eliminate the above mentioned issue and hence are considered the best commercial agreement law firm in Sweden.

You are welcome to contact us, you can reach us either on  08 20 21 40  or at  info@advantage.se