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Frequently asked questions
The Arbitration Institute of the Stockholm Chamber of Commerce (“SCC Institute”) is frequently confronted with questions regarding arbitration and the SCC procedure. The brief answers below provide general information only and does not serve as advise in individual cases. For further information please contact us by phone +46 8 555 100 50, by e-mail arbitration@chamber.se or by facsimile +46 8 566 316 50.
(Disclaimer)
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Questions:
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 What is new in the 2007 SCC Arbitration Rules?
How do I initiate SCC arbitration?
How much does it cost?
Is an arbitration clause necessary?
How do I draft an arbitration clause?
Our agreement refers to the Swedish Arbitration Act. What does that mean?
What is the difference between the SCC Arbitration Rules and the SCC Rules for Expedited Arbitration?
What is the difference between arbitration and court proceedings?
How do I appoint an arbitrator?
What should the respondent’s answer include?
What is mediation?
Do I have to sit in Stockholm when conducting an SCC arbitration?
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Answers:
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What is new in the 2007 SCC Arbitration Rules?
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The new rules will be applied to all cases filed after 1 January 2007.
No fundamental changes have been made in the new rules. The revision of the rules primarily aimed at making them even better correspond to international practice and the latest development in international commercial arbitration. The structure of the rules and the transparency of the decision-making procedures have also been improved.
One of the most important changes in the new Rules is the provision regarding consolidation (see Art. 11), which enables the SCC Board, upon the request of a party, to consolidate arbitral proceedings pending under the SCC Rules, if they concern the same legal relationship and involve the same parties. Such decision can be made only after consultation with the Arbitral Tribunal and the parties.
The possibility for the parties to influence the appointment proceedings has improved by a new provision regarding the appointment of a sole arbitrator. According to the new rules the parties are given 30 days to jointly appoint such arbitrator (see Art. 13).
A new feature has been added to the provision regarding interim measures. Now the Arbitral Tribunal may grant an interim measure in the form of an order or in the form of an award (see Art. 32 (3)). Further, the Arbitral Tribunal has the power to make a separate award ordering one party to reimburse the other party for any advance on costs paid on its behalf (see Art. 45 (4)).
For more information about the changes in the 2007 SCC Rules please see the SCC Institute’s Newsletter 1/2007 and an article written by Patricia Shaughnessy and Annette Magnusson.
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How do I initiate SCC arbitration?
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The claimant initiates arbitration by filing a request for arbitration with the SCC Institute (see Art. 2). Upon filing such request, the claimant shall pay a registration fee (see Art. 3).
For more information please follow the link “Initiation of Arbitration”.
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How much does it cost?
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The arbitration costs consist of the fees of the arbitrators, the administrative fee of the SCC Institute and any expenses of the arbitral tribunal or the SCC Institute.
The costs are based on the amount in dispute and are calculated in accordance with a schedule of costs. The amount in dispute includes all claims, counterclaims and set-offs. Where the amount in dispute cannot be ascertained, the SCC Institute decides the costs taking all relevant facts into account.
You find a calculator estimating the costs of the arbitration on our website.
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Is an arbitration clause necessary?
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The parties’ agreement to arbitrate, either as an arbitration clause in a business contract or as a separate arbitration agreement, is a prerequisite for solving the dispute by arbitration instead of court proceedings.
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How do I draft an arbitration clause?
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On our website you find several model clauses recommended to use when drafting the dispute resolution clause.
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Our agreement refers to the Swedish Arbitration Act. What does that mean?
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If the arbitration clause refers to the Swedish Arbitration Act only it means that any dispute in connection with the contract shall be solved by arbitration according to the Act instead of court proceedings. This type of arbitration is called ad hoc arbitration. If the clause does not contain a reference to the SCC Institute, the SCC Institute lacks jurisdiction and the parties themselves must administer the arbitration pursuant to the Act. However, should the parties so wish they may decide to solve their dispute in accordance with the SCC Rules. Such agreement then constitutes a new arbitration agreement.
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What is the difference between the SCC Arbitration Rules and the SCC Rules for Expedited Arbitration?
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If the Parties have not agreed otherwise, the Arbitral Tribunal shall consist of three arbitrators according to the SCC Arbitration Rules unless the SCC Institute, taking into account the complexity of the case, the amount in dispute or other circumstances, decides that the Arbitral Tribunal shall consist of a sole arbitrator. When the SCC Rules for Expedited Arbitrations are applicable, a sole arbitrator shall always decide the dispute.
Moreover, pursuant to the Arbitration Rules, the final award shall be made not later than six months from when the arbitration was referred to the Arbitral Tribunal. In accordance with the Rules for Expedited Arbitration the deadline is three months.
Under the Rules for Expedited Arbitration, the number of written statements is limited. Furthermore, an oral hearing shall be held only if requested by a party, and if deemed necessary by the arbitrator.
The Rules for Expedited Arbitration provide a faster and cheaper alternative and are designed for disputes less complicated and with minor amounts in dispute.
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What is the difference between arbitration and court proceedings?
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Arbitration has several advantages in comparison to court proceedings. Arbitration is faster, confidential and more flexible. The parties have greater influence on the process, especially concerning language, applicable law and seat of arbitration. Furthermore, since each party shall appoint an equal number of arbitrators, the parties can make sure the arbitral tribunal possess the qualifications necessary for the dispute.
In contrary to a court judgment, an arbitral award cannot be appealed on the merits. Further, the parties pay, besides costs for legal representation, fees to the arbitral tribunal and the SCC Institute and any expenses occurred during the arbitration.
If the dispute concerns an international relationship, arbitration is preferable since the award is recognized and enforceable in most countries (see the New York Convention of 1958).
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How do I appoint an arbitrator?
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Unlike some other arbitration institutions, the SCC Institute does not keep an official list of arbitrators. Consequently, a party is free to appoint anyone as arbitrator as long as he or she is impartial and independent (see Art 14). At the request of a party, the SCC Institute can recommend individuals suitable as arbitrators.
When appointing a chairperson or sole arbitrator, the SCC Institute takes the following aspects into consideration: Experience as arbitrator, the subject matter of the dispute, applicable law, the seat of arbitration, language of the proceedings and the nationality of the parties, counsel and co-arbitrators.
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What should the respondent’s answer include?
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The answer (see Art 5) may be brief. Above all, the answer should include the respondent’s position regarding the claimant’s relief, a preliminary statement of any counterclaim or set-offs, the arbitrator appointed - unless the arbitration is to be decided by a sole arbitrator - and any objections concerning the existence, validity or applicability of the arbitration agreement.
If the claimant has expressed an opinion on applicable set of arbitration rules, language of the proceedings, number of arbitrators, seat of arbitration or anything else that might affect the proceedings, the respondent is advised to comment thereon.
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What is mediation?
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Mediation is an alternative to arbitration and litigation. The parties fully control the entire process and may, at any time, terminate the attempt to mediate. The purpose of mediation is to reach an amicable settlement between the parties. An independent third party, acting as mediator, is present during the process in order to help the parties to reach a solution acceptable for both parties.
For more information see the SCC Mediation Institute.
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Do I have to sit in Stockholm when conducting an SCC arbitration?
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No. The Seat of Arbitration is agreed upon by the parties, or in default by the SCC (see Art 20). Also the Arbitral Tribunal may, after consultation with the parties, conduct hearings etc at another place than the Seat.
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