Swedish Arbitration Portal: New decision from the Svea Court of Appeal
In a decision recently published on the Swedish Arbitration Portal, the Svea Court of Appeal dismissed a party’s challenge to the arbitral award, finding that the arbitral awards were not invalid; the dispute was arbitrable and neither the arbitral award nor the manner in which they arose was incompatible with Swedish ordre public. However, a minor part of the final award was set aside as the arbitral tribunal had exceeded its mandate.
The party challenged the separate arbitral award and the final arbitral award, claiming that the awards were invalid since the dispute was non-arbitrable and in conflict with Swedish ordre public. The Court of Appeal concluded that the substantive disputed issues were arbitrable and that neither the arbitral awards nor the manner in which they arose was incompatible with Swedish ordre public. Also, the circumstances of the case could not, as a matter of law, result in the substantive contents of the arbitral awards being contrary to fundamental EU law. The Court of Appeal stated that the present case was incompatible with the Mostaza Claro ruling and the findings in the Achmea ruling.
However, the Court of Appeal concluded that a minor part of the final award should be set aside as the arbitral tribunal made an addition to the separate arbitral award too late and therefore exceeded its mandate to that extent.