Arbitration in Switzerland

In this blog discuss dispute resolution in Switzerland, focusing on arbitration. Switzerland has a long tradition as a venue for international arbitration. In fact, the very first arbitration ever was seated in Switzerland, so arbitration is, so to speak, a Swiss invention. For over two hundred years, Switzerland has been one of the most important venues worldwide for international arbitrations.

Arbitration in Switzerland can take place in all kinds of languages, under any applicable law, and under different sets of rules of arbitration. The key advantages remain the same:

• The legal and economic environment is extremely stable, so outcomes are predictable and an unbiased process is safeguarded;
• Arbitrability is broader than in most jurisdiction, which means that virtually any dispute with a financial interest can be resolved via arbitration;
• The legal community offers highly dedicated, learned, and multilingual professionals with a profound knowledge of international trade and commerce, both as counsel and arbitrators;
• Arbitral proceedings are even more confidential than proceedings before state courts;
• An efficient court system supports the parties, and also the arbitral tribunal, in case of need (e.g., by providing injunctive relief or appointing a chairperson of the tribunal);
• The grounds to appeal an award are very narrow, so the appeal process is limited to – statistically extremely exceptional – instances where the award is defective or the process that led to it was faulty;
• The appeal process is extremely fast (the average duration is six months);
• In international cases where neither of the parties has its domicile in Switzerland, they can even altogether exclude the possibility of an appeal, which streamlines the process and makes it even more cost-efficient;
• Awards are enforceable all over the globe due to their high quality as well as Switzerland’s accession to the New York Convention.

As of 1 June 2021, the Swiss Chambers’ Arbitration Institution (SCAI) has changed its legal form and was renamed to Swiss Arbitration Centre. At the same time, the Swiss Rules of International Arbitration were revised. The new rules are cutting-edge. They, in particular, provide for a more active role of the court and the secretariat, contain improved provisions dealing with multi-contract and multi-party arbitrations, and implement changes reflecting technological developments (remote hearings etc.).

Switzerland offers thus world-class dispute resolution via arbitration. Choosing Swiss-seated arbitration, whether or not in combination with Swiss substantive law as the governing law, is therefore a wise choice for contractual parties.

If you have any questions, please feel free to contact us.

By Thomas Weibel, Vischer, Switzerland, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact switzerland@transatlanticlaw.com

Disclaimer: Transatlantic Law International Limited is a UK registered limited liability company providing international business and legal solutions through its own resources and the expertise of over 105 affiliated independent law firms in over 95 countries worldwide. This article is for background information only and provided in the context of the applicable law when published and does not constitute legal advice and cannot be relied on as such for any matter. Legal advice may be provided subject to the retention of Transatlantic Law International Limited’s services and its governing terms and conditions of service. Transatlantic Law International Limited, based at 42 Brook Street, London W1K 5DB, United Kingdom, is registered with Companies House, Reg Nr. 361484, with its registered address at 83 Cambridge Street, London SW1V 4PS, United Kingdom.