Decision of the Svea Court of Appeal, 27 June 2014, Case No. Ö 3377-13
Summary: A party sought enforcement in Sweden of an award rendered in China under the CIETAC Rules. The opposing party resisted enforcement alleging, among others, that some of the costs awarded in the the award arose from agreements reached after the framework agreement, which was the agreement giving rise to the dispute and containing the arbitration clause. Thereby, those costs were not covered by the framework agreement and fell outside the scope of the arbitration clause. The Court explained that under Section 54(3) of the Swedish Arbitration Act enforcement shall be denied when the award includes a decision on an issue falling outside the scope of the arbitration clause. The arbitration clause in the framework agreement submitted to arbitration “all disputes in connection with this contract (…)” and the requesting party had commenced arbitration to obtain compensation for costs incurred due to the opposing party’s breach of the framework agreement. In the view of the Court the opposing party failed to submit evidence to support that the costs awarded were insufficiently connected to the framework agreement. The Court found that the arbitral award did not include a decision over an issue not connected with the framework agreement, and thereby the costs fell within the scope of the arbitration clause. The Court granted enforcement.
This is an unofficial translation from www.arbitration.sccinstitute.com.
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