Originially from: World Arbitration Mediation Reporter (WAMR) 1990 Vol. 1, No. 5

SWITZERLANDS NEW STATUTE
ON INTERNATIONAL ARBITRATION
By Dr. Charles Poncet, Geneva
The new Swiss law on international arbitration has been in force since January
1, 1989. Its main purpose was to create a legal pattern consistent with the new
developments in international arbitration, as other European countries (such as
France, England, the Netherlands, Belgium, and Italy) adopted liberal arbitration
laws.
The Swiss statute fits the modern requirements and significantly reduces
subsequent court proceedings by providing for limited grounds for appeal, and
appeal to one court only—the Federal Tribunal (or, if the parties prefer, a cantonal
court)—as opposed to a cantonal court and the Federal Tribunal in the past.
Readers should be mindful of the following when considering arbitration
proceedings in Switzerland:
• If the proceedings are to be held in English, the real ability of the arbitrator(s)
to speak, read and write adequate English should not be assumed and deserves a
few inquiries.
• The Statute does not set forth the procedural rules to be applied. One should
not assume that a Swiss arbitrator is either familiar with or favorable to such
American requirements as discovery, cross-examination of witnesses, or even the
presence of a court reporter taking down a verbatim transcript. These issues
should be cleared in advance, possibly in the arbitration clause.
• The assistance of local counsel is not a legal requirement.
• Awards without reasons, or “short” awards (such as in AAA arbitrations) are
not considered favorably by most Swiss arbitrators, who tend to write long
awards. If you wish an “American style” award, this should be specified and
agreed upon at the outset.
The following translation was prepared in collaboration with Prof. Emmanuel
Gaillard of Shearman & Sterling, Paris, and is reproduced with the permission of
the American Society of International Law. Busy readers are advised to read only
articles 176, 178, 182-184, 190, and 192,
STATUTE ON INTERNATIONAL PRIVATE LAW OF DECEMBER 18,
1987
CHAPTER 12: INTERNATIONAL ARBITRATION
I. Scope of the Arbitral Tribunal Article 176
1. The provisions of the present chapter shall apply to every arbitration when