The SCC is often confronted with questions regarding commercial dispute resolution and the SCC Rules.
Below are some brief answers providing general information on arbitration and mediation. The answer shall not be regarded as advise in individual cases.
For further information please contact the
Secretariat.
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Disclaimer.
Questions:
How do I start SCC arbitration?
How much is it?
How long is an arbitration before SCC?
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 litigation?
How do I appoint an arbitrator?
What should be included in the respondent’s answer?
What is mediation?
Do we have to sit in Stockholm when conducting SCC arbitration?
What is new in the 2007 SCC Arbitration Rules?
Answers:
How do I start SCC arbitration?
The claimant initiates arbitration by filing a request for arbitration with the SCC Secretariat. Upon filing such request, the claimant shall pay a registration fee.
For more detailed information on go to
“Initiation of Arbitration”.
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How much is it?
The arbitration costs consist of the fees of the arbitrators, the administrative fee of the SCC and any expenses of the arbitral tribunal or the SCC (such as hotel or travel expenses).
The costs are based on the amount in dispute and are calculated in accordance with a schedule of costs attached to
the SCC Rules. The amount in dispute includes all claims, counterclaims and set-offs. Where the amount in dispute cannot be ascertained, the SCC Board determines the costs taking all relevant circumstances into account.
Go to our calculator for an estimation of the arbitration costs.
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How long is an arbitration before SCC?
One of the major reasons why the parties prefer arbitration before litigation is speed. The SCC offers a fast and secure process.
According to the
SCC Arbitration Rules an arbitral award shall be rendered within six months and according to the
SCC Rules for Expedited Arbitration an award shall be rendered within three months. The time limits may be extended by the SCC Board.
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Is an arbitration clause necessary?
Yes. The parties’ agreement to arbitrate, either as an arbitration clause in a business contract or as a separate arbitration agreement, is a requirement for resolving the dispute by arbitration instead of state court proceedings.
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How do I draft an arbitration clause?
On our website you find several
model clauses recommended to use when drafting a dispute resolution clause referring to the SCC.
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Our agreement refers to the Swedish Arbitration Act. What does that mean?
If the dispute resolution clause merely refers to the Swedish Arbitration Act 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, the SCC lacks jurisdiction and the parties and arbitrators must administer the arbitration pursuant to the Act themselves.
However, should the parties so wish they could reach a new arbitration agreement referring the dispute to the SCC.
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What is the difference between the SCC Arbitration Rules and the SCC Rules for Expedited Arbitration?
If the parties have not agreed otherwise, the arbitral tribunal shall consist of three arbitrators according to
the SCC Arbitration Rules. However, if the arbitration clause in silent on the number of arbitrators, the SCC Board may (taking into account the complexity of the case, the amount in dispute or other circumstances) decide that the tribunal shall consist of a sole arbitrator. When the
SCC Rules for Expedited Arbitrations are applied, a sole arbitrator shall always decide the dispute.
Moreover, pursuant to the SCC 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 SCC Expedited Rules such time limit is three months.
In SCC Expedited Arbitration, the number of written statements is limited and a hearing shall be held only if deemed necessary by the sole arbitrator.
The SCC Expedited Rules provide a faster and less costly alternative and are developed for minor and not too complex disputes.
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What is the difference between arbitration and litigation?
Arbitration has several advantages in comparison to court proceedings. Arbitration is faster, confidential and more flexible. The parties have great influence on the proceedings - i.e. language, applicable law and seat of arbitration. Furthermore, since each party shall appoint an equal number of arbitrators, the parties can ensure the arbitral tribunal possess the relevant qualifications.
If the dispute concerns an international relationship, arbitration is preferable since the award is recognized and enforceable almost all over the world thanks to
the New York Convention of 1958.
In contrary to a state court judgment, an arbitral award cannot be appealed on the merits.
In arbitration the parties pay, besides costs for legal representation, fees to the arbitral tribunal and the SCC and any expenses occurred during the arbitration.
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How do I appoint an arbitrator?
Unlike some other arbitration institutions, the SCC does not keep a list/panel of arbitrators. Consequently, a party is free to appoint anyone as arbitrator as long as he or she is impartial and independent.
At the request of a party, the SCC can assist by recommending a few people suitable as arbitrators.
When appointing a chairperson or a sole arbitrator, the SCC Board for example takes the following aspects into consideration:
- Experience as arbitrator,
- the subject matter of the dispute,
- applicable law,
- the seat of arbitration and
- language of the proceedings.
If the parties are of different nationalities the SCC appoints a chairperson or a sole arbitrator from a third country.
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What should be included in the respondent’s answer?
The answer may be brief. It shall 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 jurisdictional objections.
If the claimant has argued on applicable set of arbitration rules, language to be used, number of arbitrators, seat of arbitration or anything else that might affect the process, the respondent is advised to comment thereon in its answer.
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What is mediation?
Besides arbitration the SCC offers Mediation Rules.
Mediation is an alternative to arbitration and litigation. It is a fast and inexpensive way of resolving commercial disputes where the parties fully control the entire process. After a successful mediation the parties often may continue doing business.
The purpose is to reach an amicable settlement between the parties. An independent third party, acting as mediator, assists in order to help the parties to conduct practical discussions and finding a solution acceptable for both parties. A mediator may be appointed by the SCC or by the parties jointly.
The parties may, at any time, terminate the attempt to mediate.
For more information go to the SCC Mediation Institute.
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Do we have to sit in Stockholm when conducting SCC arbitration?
No. The seat of arbitration is agreed upon by the parties or, failing such an agreement, by the SCC Board.
Furthermore, the arbitral tribunal may, after consultation with the parties, conduct hearings etc at another place than the seat of arbitration.
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What is new in the 2007 SCC Arbitration Rules?
The new SCC Rules is applied to all cases filed after 1 January 2007.
No fundamental changes were made in the 2007 SCC Rules. The revision primarily aimed at making the SCC Rules correspond to recent practice and developments in international arbitration. The structure of the SCC Rules and the transparency of the decision-making procedures were also improved.
One of the most important changes was the provision regarding consolidation, which enables the SCC Board, upon the request of a party, to consolidate arbitral proceedings, if the cases 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.
Furthermore, the possibility for the parties to influence the appointment proceedings was improved by a new provision on the appointment of a sole arbitrator. According to this provision the parties are given 30 days to jointly appoint such arbitrator.
A new feature was 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. Further, the 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.
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