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.