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Swedish Arbitration Portal: Challenge of arbital award dismissed – does not violate ordre public

Svea Court of Appeal rejects the challenge claim regarding the partial award and some parts of the final award in an investment dispute.

The Claimant requested the court to declare both the Partial Award in its entirety, and parts of the Final Award invalid, and as an alternative, set aside.

The Claimant argued that the arbitral awards and the manner in which they arose were manifestly incompatible with the fundamental principles of the Swedish legal system (ordre public) as a result of irregularities by the arbitral tribunal in the course of the proceedings. It argued that the arbitral tribunal wrongfully rejected the Claimant’s motion for document production and then dismissed the case on the ground that the Claimant had not proved its case concerning the legality or illegality of the disputed actions by the host state.

The court rejected the challenge in its entirety. The court found that circumstances raised by the Claimant were not of such nature that the arbitral awards or the manner in which they arose could be considered to be manifestly incompatible with the fundamental principles of the Swedish legal system. Additionally, the court found that the Claimant had not objected to the alleged irregularities made by the arbitral tribunal during the proceedings and was consequently not allowed to invoke the circumstances as grounds for challenging the awards.

 

Read the decision (Case No T 82-16) here

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