mARCH 2012 28 Global Arbitration
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ARBITRATION SWEDEN
Taking a look at Sweden, as part of our Legal Focus on Arbitration, Lawyer Monthly speaks to James Hope, partner at Swedish law firm, Advokatfirman Vinge KB (Vinge), one of the largest Swedish commercial law firms. James is responsible for running the international dispute resolution group at the firm’s Stockholm office, which consists of around 25 lawyers, and here discusses with us some issues surrounding arbitration in Sweden and more generally.
Commercial contract disputes form a large majority of our caseload. A theme which we have seen repeated several times in recent years is disputes arising out of long-term contracts when the underlying economic circumstances have altered the equilibrium between the parties.
Q Q
Is there a typical method of dealing with dispute resolution for all businesses or do you have to employ a specific tactic for foreign companies compared to local companies?
One of the most crucial issues in arbitration is the selection of the arbitral tribunal. Where foreign companies are involved, this can be particularly difficult – for example, if there are several different languages or systems of law involved.
I quite often find myself in the position of
seeking to explain Swedish law concepts to common law arbitrators, which requires translation not only of words but also often of ideas. There are also frequently cultural issues that need to be considered when parties come from different countries.
Q
what, in your opinion, are the advantages of arbitration as a dispute resolution method, as opposed to court action?
We find that arbitration is advantageous in two particular situations:
- in an international setting, since parties want a tribunal which they perceive as neutral (often with arbitrators drawn from each of their respective countries), and since arbitration awards are enforceable in 146 countries worldwide by virtue of the New York Convention;
what are the common causes of disputes between businesses in Sweden, and across borders?
- in a domestic setting in Sweden, since there is no dedicated commercial court in Sweden.
However, arbitration is not perfect. There is a particular drive at present to improve efficiency in arbitration, and it is good to see the Arbitration Institute of the Stockholm Chamber of Commerce at the forefront of such initiatives.
Q
The recent breakdown in relations between carmakers Suzuki and Volkswagen has recently pushed Suzuki to demand that Vw submit to arbitration as it attempts to force the company to sell a 20% stake it owns in the Japanese group. what are your opinions on this case?
I am not involved in the case, but from what I read in the press this arbitration concerns the breakdown of the alliance between the two car companies. It is regrettably quite common, in my experience, for disputes such as this to end up in arbitration, particularly during times of economic turbulence.
Some press reports say that Suzuki is filing
for divorce, and the analogy of a marriage can often be quite apt. It is easy to enter into a commercial alliance, but it is hard to look ahead and cater for all the eventualities that will arise along the way. And like a divorce, the formal legal proceedings are normally just one part of a complicated process of unwinding the business relationship.
Q
Do laws and regulations differ for domestic companies as opposed to foreign companies?
Generally, no. However, as I mentioned above, the proceedings in an international arbitration can in practice be quite different from those in domestic arbitration proceedings.
James Hope, Partner
Advokatfirman Vinge KB Stockholm Sweden
james.hope@vinge.se Q
How do you assist clients involved in arbitration? Is there any general advice you could offer clients to prevent the situation from escalating?
One of the most important practical tips is to assemble evidence at an early stage. Most disputes turn on factual issues, and increasingly emails (particularly internal emails) can turn out to be key pieces of evidence. These issues need to be considered from the moment a dispute first arises: often, by the time external lawyers get involved, key evidence has already been created. LM
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