Judgment of the Supreme Court of Sweden, 15 October 1997, Case No. Ö 3174/95/NJA 1997 s. 866

Summary: The appellant initiated court proceedings in the district court, seeking recovery for a defective ship engine.  The counterparty challenged the court proceedings, asserting that the appellant was bound by two arbitration clauses through contract succession and that the case should be referred to arbitration.  The Supreme Court of Sweden noted that a party that succeeds both the rights and obligations of another in a contract cannot be permitted to circumvent an arbitration clause in that contract in a way that impairs the rights of the original remaining contracting party.  The court agreed with the counterparty and concluded that the appellant was bound by the arbitration clauses.