Arbitration & ADR, Tavernier Tschanz updates

Switzerland

Contributed by Tavernier Tschanz
One transaction but multiple arbitration agreements: extent of jurisdiction
  • Switzerland
  • 07 May 2020

The Supreme Court recently confirmed an arbitral tribunal's broad interpretation of the objective scope of an arbitration agreement contained in a quality assurance agreement (QAA) to cover disputes which were unrelated to the QAA but arose within the contractual relationship of the parties thereto.

Partial annulment of award based on ultra petita grounds
  • Switzerland
  • 20 February 2020

A recent case addressed the partial annulment of an award which granted damages where the prayer for relief sought only a declaration (ultra petita). In addition to confirming the well-established line of decisions on penalty and substantive public order, this decision is among the few annulments, albeit partial, of an international award by the Supreme Court.

State-owned entity's consent to arbitrate does not bind state – in principle
  • Switzerland
  • 19 December 2019

According to a recent Supreme Court decision, the fact that a party to an arbitration agreement is fully owned by a state is insufficient grounds to have that agreement extended to said state. Therefore, an arbitration agreement concluded by a state-owned entity does not necessarily bind the state itself. In order to do so, the arbitration agreement must be extended to the state.

Supreme Court annuls award for second time in same arbitration dispute
  • Switzerland
  • 29 August 2019

In principle, if an application for an annulment of an arbitral award is upheld, the Supreme Court may cancel only the award (the so-called 'cassatory' nature of the setting aside proceeding). However, as shown by a recent decision, the Supreme Court's findings underlying a cancellation for the violation of a party's right to be heard seem to qualify as directions for the arbitral tribunal which must remake the decision.

Award upheld despite violation of right to be heard
  • Switzerland
  • 09 May 2019

The formal nature of the right to be heard has long been recognised by the Supreme Court. Applied strictly, it entails that an award affected by a violation of such right must be set aside, irrespective of whether the violation affected the outcome of the case. However, the Supreme Court's more recent practice tends to depart from a strict application of the formal nature of the right to be heard and to require the applicant to establish a causal link between the asserted violation and the (adverse) outcome of the case.


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