Arbitration in Switzerland: An Overview
Introduction
Switzerland is renowned for its arbitration-friendly environment, making it a preferred venue for international dispute resolution. This article provides an overview of arbitration in Switzerland, including the legal framework, key features, enforcement, and appeals.
Legal Framework
The legal framework for arbitration in Switzerland – a Civil Law jurisdiction – is set out in Chapter 12 of the Swiss Federal Private International Law Statute ("PILA)", which is similar in scope and content to the UNCITRAL Model Law. PILA includes both mandatory and non-mandatory provisions and offers a comprehensive set of rules for cross-border disputes, with Part 3 of the Federal Statute on Civil Procedure primarily governing domestic arbitration. Domestic parties can, however, choose to have their dispute governed by the international framework. The Swiss Rules of International Arbitration, administered by the Swiss Chambers' Arbitration Institution, play a key role in the arbitration process.
Under PILA, parties have the freedom to choose their arbitrators, the applicable law, and the procedural rules. The Swiss Rules offer flexibility and efficiency, ensuring that arbitration proceedings are conducted in a fair and impartial manner.
Key Features of Arbitration in Switzerland
Switzerland's arbitration system is characterized by several key features that contribute to its popularity among international parties:
Switzerland is known for being politically neutral, a theme which extends throughout its civil society. Switzerland's judiciary is renowned for its impartiality, which makes the available pool of Swiss arbitrators a key incentive for international parties.
Swiss arbitrators are highly regarded for their expertise and experience in handling complex international disputes. The Swiss Rules promote the efficient resolution of disputes, with streamlined procedures and time limits for various stages of the arbitration.
International parties to a Swiss-seated arbitration can opt out of the framework set out in PILA in favour of the rules governing domestic arbitration. Similarly, domestic parties are at liberty to choose PILA, which offers greater party autonomy.
Swiss law is silent on the taking of evidence by arbitral tribunals. Arbitrators therefore have a wide discretion to require evidence and may seek the guidance of the Courts ("juge d'appui") on the enforcement of evidentiary provisions pursuant to the Federal Statute on Civil Procedure. Generally, disclosure in Swiss arbitration is restricted to narrowly drawn classes of documents. Privilege adheres to an individual's role rather than to specific documents, allowing parties to withhold production of all correspondence with, for example, lawyers and doctors.
Enforcement and Appeals
Enforcing an arbitral award in Switzerland is relatively straightforward, thanks to the country's adherence to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). Swiss courts generally uphold arbitral awards provided they meet the requirements set forth in the Convention.
Challenging an arbitral award in Switzerland is not easy and is extremely rare (the success rate of challenges is around 6%). Parties may appeal awards to the Swiss Federal Supreme Court on a small number of limited grounds.
Conclusion
Arbitration in Switzerland offers a reliable and efficient means of resolving international disputes. Importantly, parties are offered a large degree of autonomy and may choose the governing statute they wish to apply. These factors make Switzerland a preferred choice for arbitration.
