Judgment in the Svea Court of Appeal, 30 May 2017. Case No. T 6335-16
Summary: The Respondent to the arbitration challenged the arbitration award under item 2 of Section 34 of the Swedish Arbitration Act. The challenging party moved that the Court of Appeal should annual items 1a, 1b, 3, 5 and 6 of the arbitration award. The challenging party argued that the tribunal exceeded its mandate by basing its decision on circumstances which had not been referenced by the parties. It further argued that this had deprived them of the opportunity to argue its case and that this alleged excess of mandate directly affected the outcome of the arbitration. The Claimant to the arbitration claimed that the tribunal did not base its decision on any circumstance which had not been referenced by a party and that even if it had done so, it would not have affected the outcome of the arbitration.
The Court dismissed the challenge in its entirety. Pursuant to the Court’s reasoning, the challenging party must bear the burden of proof for the circumstances serving as grounds for its challenge. The challenging party did not provide sufficient evidence to reach the threshold for the burden of proof required. Therefore the challenging party did not establish that the tribunal had exceeded its mandate. Additionally the contested circumstances were referenced by the claimant to the arbitration and were therefore known within the arbitration proceedings. The Court found that the Tribunal had not exceeded its mandate.