Swedish Arbitration Portal: Dismissal of an applications for a summons due to procedural impediment (res judicata)
Svea Court of Appeal dismisses an application for a summons in which the claimant moved that an arbitral award should be declared invalid.
The Republic of Kazakhstan (Kazakhstan) applied for a summons, moving that the Court of Appeal as per item 1, alternatively item 2, of the first paragraph of Section 33 of the Swedish Arbitration Act should declare an arbitral award (the Award) invalid. As legal grounds for its motion, Kazakhstan argued that the Award was invalid because it included the review of a matter which, under Swedish law, may not be decided by an arbitral tribunal and that the manner in which the Award was rendered was obviously in violation of fundamental principles of Swedish law.
However, through a previous judgment the Court of Appeal had already rejected a case brought by Kazakhstan in which Kazakhstan moved, in the main, that the Court of Appeal should declare the Award invalid. The judgment has become final and binding. The question before the Court of Appeal was therefore whether the application for a summons should be dismissed due to procedural impediment (res judicata).
The Court of Appeal found no reason that the rules on the binding and final nature of judgments should apply differently in a motion to have an arbitral award declared invalid.
Since the Court of Appeal found that the matter was identical in both trials and that a procedural impediment was at hand, Kazakhstan’s application for a summons was dismissed.