Swedish Arbitration Portal: New translated court decision regarding inadmissibility due to to arbitration clause
In a decision recently posted on the Swedish Arbitration Portal, the Svea Court of Appeal dismissed a counterclaim in a court proceeding because it was covered by an arbitration clause.
Section 4 of the Swedish Arbitration Act provides that a court may not, upon the objection of a party, review a dispute covered by an arbitration agreement. In this dispute, the claimant objected to the respondent’s counterclaim, arguing that it fell within the scope of the arbitration clause in the parties’ shareholders’ agreement, even though the main claim did not. The Court of Appeal agreed, and dismissed the counterclaim. The court also dismissed the respondent’s argument that the parties had orally agreed that certain disputes – including the counterclaim – would be exempt from the arbitration clause. According to the shareholders’ agreement, the court noted, amendments and addenda must be made in writing.
The Swedish Arbitration Portal is facilitated by the Arbitration Institute of the Stockholm Chamber of Commerce (the SCC). The project’s mission is to increase transparency in arbitration by making Swedish case law more accessible to the international community.