The arbitration procedure offers a quick and efficient resolution to a dispute.
This dispute resolution method is quick, efficient, confidential and results in an arbitral award which is enforceable in more than 150 countries.
Arbitration is an internationally established way of resolving disputes outside the public court system. The procedure is faster than a court proceeding and is often the preferred method of dispute resolution in international business relations.
Arbitration requires an agreement between the parties (arbitration agreement). An arbitration procedure administered by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) requires that the parties have agreed that the dispute shall be resolved by arbitration under the SCC Arbitration Rules. The parties most often include such a clause in their business agreement (arbitration clause). However, the parties can also agree to settle the dispute by arbitration after the dispute has arisen. In the absence of such an agreement between the parties, the SCC is prevented from administering the dispute.
The role of the SCC within the scope of the procedure is to make decisions in accordance with the SCC Arbitration Rules, e.g:
- Appoint arbitrators
- Determine the costs of the arbitration
- Decide on challenges to arbitrators
- Ensure that the award is made on time
An arbitration proceeding is initiated by one party filing a request for arbitration with the SCC. Upon filing the request for arbitration, the claimant must pay a registration fee to the SCC.
Arbitration is a one-instance procedure and it is therefore not possible to appeal an arbitration award. The arbitration procedure, however, is regulated by law. The law specifies how an arbitration procedure must be carried out in order to meet the requirements of legal certainty. A public court determines whether or not an arbitration procedure has met the requirements of legal certainty upon the request of a party.
Parties who wish to agree on arbitration under the SCC Rules are recommended to use the following arbitration clauses.