SCC Case 34/1998 - Chapter 8 - SCC Arbitral Awards - 1999-2003
About the Editors:
Sigvard Jarvin has been involved in more than 215 international arbitrations under the arbitration rules of the ICC, the Stockholm Arbitration Institute, the Dutch Arbitration Institute, the American Arbitration Association, LCIA, UNCITRAL, the Cairo Regional Centre, and other arbitration organizations. He was general counsel to the ICC International Court of Arbitration, Paris (1982-1987) and member of the Court (1988-1995). He also chaired the ICC working party revising the ICC/CMI Maritime Arbitration Rules (1997-1998).
Mr. Jarvin was the rapporteur at the 1990 and 1998 ICCA Congresses and was chairman of the foreign section of the Swedish Bar from 1999 to 2000, and he is also a member of the board of the Institute of Arbitration Law at Stockholm University and a member of the ICC Commission on Arbitration and the International Arbitration Club, London. He is cited yearly as one of the best arbitration lawyers in France in Chambers Global — The World’s Leading Lawyers , published by Chambers & Partners.
Annette Magnusson, is a Professional Support Lawyer at the firm of Mannheimer Swartling, Stockholm. She was formerly Assistant Secretary General and legal counsel for the Arbitration Institute of the Stockholm Chamber of Commerce.
Observation Commentary by:
Ivan Zykin, Professor and Vice President of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation.
Originally from SCC Arbitral Awards 1999-2003
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Procedure:
(1) Ex parte award.
Subject-matters:
(2) Law applicable to the interest rate; What rate applies if the banking rate relied upon “presently varies between 13 and 18 percent”?
(3) Claimed legal expenses reduced.
Findings:
(1) Respondent has been duly informed of this arbitration, given the opportunity to plead its cause and received a summons to the oral hearing. Therefore, the failure of Respondent to appear in this arbitration does not prevent the Tribunal from rendering an award.
(2) Under Swedish private international law, a contract for sale of goods, which is executed in Russia, will be governed by Russian law. This relates also to the questions regarding interest. The interest rate to be applied in this case is 15.5 per cent.
(3) The compensation claimed appears reasonable except for the expenses for legal services [USD 21 000] which, taking into account the relatively limited complexity of this arbitration, can only be satisfied in the amount of USD 10 000.
Parties: Claimant: X, Seller (Russian Federation)
Respondent: Y, Buyer (British Virgin Islands)
Place of arbitration: Stockholm
Nationality of arbitrators: Chairman: Swedish
Arbitrator: Swedish
Arbitrator: Russian
VIII. SCC case 34/1998
Subject-matters:
(1) Ex parte award.
(2) Law applicable to the interest rate; What rate applies if the banking rate
relied upon "presently varies between 13 and 18 percent"?
(3) Claimed legal expenses reduced.
Observations by Ivan Zykin