Originally From: Arbitration Law of Switzerland: Practice & Procedure

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— Chapter 1 —
INTRODUCTION

1.1 HISTORY AND CURRENT LEGISLATION ON
ARBITRATION

1.1.1 Historical Evolution of Law Relating to Arbitration
Switzerland has long been a preferred venue for international
arbitration. In 1989, the Swiss legislature adopted a new law on
international arbitration, Chapter 12 of the Federal Act on Private
International Law of 18 December 1987 (“PILA”). This law has received
wide international praise and acceptance for its simplicity, flexibility and
pragmatism. Since then, a large body of case law has developed. It
provides guidance on the interpretation and application of the relevant
rules. The broad spectrum of precedents by the Federal Supreme Court
and a large number of academic sources (which—though not binding—
are frequently consulted by arbitrators, counsel and the judiciary) provide
for reliability and predictability.
This arbitration-friendly legal background, together with a longstanding
tradition of arbitration, Switzerland’s historical neutrality and
political stability, its excellent infrastructure, and the high professional
standards of the Swiss legal profession make Switzerland one of the
preferred venues for international arbitration.
1.1.2 Current Law
In Switzerland, international and domestic arbitrations are governed
by different rules, Chapter 12 PILA for international arbitrations and
Part 3 of the Swiss Federal Code of Procedure (the "FCCP") for domestic
arbitrations.