(1) Applicable law for deciding the arbitrators’ competence.

(2) Does an arbitration agreement between a creditor and a debtor extend to a pledgee to whom the creditor has pledged its claims?

 

Findings:

 

(1) Under Section 39 of the Swedish Arbitration Act (1999), Swedish law shall govern the arbitration agreement when the proceedings take place in Sweden.

(2) The arbitration agreement is applicable and the arbitrators have jurisdiction to try the debtor’s claims against the pledgee for refund of payments made by the debtor through Letters of Credit.

 

Parties:

 

Claimant: B, Buyer (The Netherlands)

Respondent:P, Pledgee (Finland)

Place of arbitration: Stockholm, Sweden

Nationality of arbitrators:

Chairman: Swedish

Arbitrator: Swedish

Arbitrator: Swedish

Amount in dispute: EUR 13 880 000

Arbitration costs: EUR 346 000