New Model Clause for Fast Dispute Resolution
The SCC adopts a Model Agreement for Submission of an Existing Dispute to Arbitration.
Many domestic and international business may be facing disputes that either are pending in courts or will be referred to courts as they did not include an arbitration clause in their contract. The SCC is making a new SCC model submission clause available. The purpose of this model clause is to facilitate the use of arbitration by parties in ongoing disputes where the parties have not previously agreed on arbitration. Submission agreements can be entered into after the dispute has arisen and may include a reference to a specific disputed matter. Submission agreements have been an increasingly requested and discussed tool in the last months.
– As a result of the Covid pandemic, courts have increasingly long backlogs and do not prioritize commercial disputes. For many businesses, waiting for a dispute to be finally resolved it is not an option as the business needs to quickly respond to business disruptions and cannot afford to wait for uncertain outcomes, says Dr. Patricia Shaughnessy, founder of the Master of International Commercial Law Program at Stockholm University. The SCC Model Submission Agreement provides a simple tool for parties to bring the dispute to the SCC for fast and final resolution.