Switzerland as the venue of choice for commercial disputes

This is part 1 of a blog series in which we describe litigation, arbitration, and enforcement in Switzerland. Swiss law and Swiss jurisdiction are excellent choices for Chinese companies’ business relationships, including with non-Swiss counterparties.

In contract negotiations, and in functioning business relationships, parties typically do not spend much time thinking about disputes and their resolution. We will not try to convince you to do otherwise, except when making choices, in particular in the framework of contract negotiations (see part 3 of this blog series).

We all know, however, that the sun does not always shine, including in business relationships. When your business partner is behind schedule with its deliveries or payments, or when their performance falls short of the standards it owes to you, this may have disruptive effects on your own business, affecting your own obligations towards your customers, your financial situation, and also your reputation as a reliable and trustworthy business.

In such situations, it is key to be able to resort to the best possible resources to resolve disputes in a quick, cost-efficient, and predictable manner. Switzerland offers these resources. It has for long been a venue for international disputes, both in arbitration (see part 2 of this blog series) and litigation before State courts.

Switzerland is multilingual and neutral. The Swiss are approachable, straightforward, and commercial-minded. The legal system as well as the economy have been extremely stable for more than a century. Specialised commercial courts have an in-depth understanding of businesses and various industries, and they have virtually no case backlog. In case of need, injunctive relieve – including freezing of assets – is available at short notice, which has become increasingly important in the resolution of business disputes (see part 6 of this blog series).

Disputes can be resolved in an efficient and confidential manner. There is no home-turf advantage for counterparties, including for local counterparties. There is only limited document production and no extensive discovery (see part 4 of this blog series). This, as well as the rules on costs (see part 5 of this blog series), makes sure that claimants are not unduly favoured over defendants.

This all makes the outcome of commercial disputes predictable. In addition, Swiss court decisions enjoy a high degree of recognition all over the globe, thanks to their high quality and a network of bi- and multilateral treaties on enforcement. Due to the principle of reciprocity, the enforcement of Swiss state court decisions in China is not straightforward; by contrast, due to China’s adherence to the New York Convention, Swiss arbitral awards are recognized and enforceable in China as well.

For all these reasons, Switzerland is the venue of choice for commercial disputes for parties from all areas, including from China. Make it your first choice too!

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.