SCC Case 108/1997 - Chapter 6 - 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:
Michael S. Walker, Fulbright & Jaworski L.L.P., London.
Originally from SCC Arbitral Awards 1999-2003
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Subject-matters:
(1) Law applicable to the obligation to arbitrate.
(2) Whether, because of its conduct, a parent company is considered party to an arbitration agreement concluded by its subsidiary.
(3) Liability for arbitration costs in a parallel arbitration.
Findings:
(1) The law applicable to the agreement to arbitrate is the law to which the agreement has the strongest connecting factors. The place of arbitration is considered a strong connecting factor.
(2) Under the Swedish contractual principle of “theory of trust”, where a parent company holds itself out as the party managing and implementing a contract between one of its subsidiaries and a third party, by means of renegotiating such contract and making payments thereunder, the third party is entitled to trust its impression that the parent company has entered as a party into the same contract.
Where a parent company’s conduct must be considered to constitute acceptance of the entire contract, it includes the agreement to arbitrate any dispute with the third party.
(3) The parent company is not held liable for the arbitration costs incurred by its subsidiary in a parallel arbitration against the third party.
Parties: Claimant: X (United States)
Respondent: Z (Russian Federation)
Subsidiary of the Respondent: Y (Russian Federation)
Full Table of Contents from "SCC Arbitral Awards - 1999-2003"
FOREWORD
I. SCC case 17/1997
Subject-matters:
(1) Jurisdiction; interpretation of contract under Swedish law.
(2) Validity of assignment and the right of assumed assignee
[Claimant] to rely on the arbitration clause.
(3) Can a third party beneficiary rely on the arbitration clause in an agreement
to which it is not a party?
(4)Reduction of the claimed legal expenses.
Observations By John Kadelburger
II. SCC case 19/1997
Subject-matters:
(1) Is the Arbitration Court in Stockholm a reference to ad hoc or institutional arbitration?
(2) Refusal by a party to participate in the proceedings.
(3) Value added tax on the arbitrators’ fee.
Observations by Guillermo Aguilar Alvarez
III. SCC case 99/1997
Subject-matters:
(1) Conformity of delivered goods (quality complaints).
(2) May prolongation of the delivery term in the issued letter of credit beyond the dates
stated in the contract be interpreted as extension granted to the seller for delivery?
(3) Who is to bear the costs of arbitration as between the parties, when both parties’ claims
were satisfied in part?
Observations by Sarah Francois-Poncet
IV. SCC case 104/1997
Subject-matters:
(1) Bankruptcy of Respondent during the arbitration. Non-binding effect of the award
under Finnish law.
(2) Discontinuance of the arbitration.
Observations by Sigvard Jarvin
Observations by Carita Wallgren & Bernt Juthstrom
V. SCC case 107/1997
Subject-matters:
(1) Applicable law.
(2) Contradictory provisions in the contract regarding technical specifications.
Non-conformity of goods delivered.
(3) Contractual provision depriving the buyer of its remedies against the seller’s
breach of contract.
(4) The Vienna Sales Convention, article 74, and right to set-off.
Observations by Ivan Zykin
VI. SCC case 108/1997
Subject-matters:
(1) Law applicable to the obligation to arbitrate.
(2) Whether, because of its conduct, a parent company is considered party to
an arbitration agreement concluded by its subsidiary.
(3) Liability for arbitration costs in a parallel arbitration.
Observations by Michael S. Walker
VII. SCC case 16/1998
Subject-matters:
(1) Trading in Russian securities; failure by trader to comply with client’s instructions;
client’s identity and validity of instructions questioned.
(2) Does deposit of securities with a public notary constitute discharge under Article
327 of the Russian Civil Code?
(3) Applicable law: Russian or Swedish?
(4) Does a penalty clause relating to late payment apply in lieu of or in
addition to default interest provisions under Swedish law?
Observations by John Kadelburger
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
IX. SCC case 36/1998
Subject-matters:
(1) No oral hearing held.
(2) Interest rate on overdue payment; New York law and force majeure;
Starting point for calculating interest on over due amount.
(3) Moratorium decreed by the Central Bank of Russia.
(4) Reduction of attorneys fees.
Observations by Gerald Aksen
X. SCC case 53/1998
Subject-matters:
(1) Arbitrability of tax issues.
(2) Liability to compensate for VAT for services rendered by a foreign company
on Russian territory.
(3) Interest rate: alternative claims regarding the accrual dates.
Observations by Alexey Kostin
XI. SCC cases 80/1998 and 81/1998
Subject-matters:
(1) Applicable choice-of-law rules to determine the governing law in a sale
of goods contract.
(2) Applicable law to the arbitration agreement.
Observations by David Goldberg
XII. SCC case 21/1999
Subject-matters:
(1) Claimants’ legal capacity and proper representation; whether a consortium is a party.
(2) Whether the arbitral tribunal has jurisdiction to consider the case
on its merits when, in accordance with the arbitration clause, adjudication
shall precede arbitration.
Observations by M.I.M. Aboul-Enein
XIII. SCC case 34/1999
Subject-matters:
(1) Introduction of a new party in the arbitration. The seller requested
to introduce as party the manufacturer of the goods who had signed a
modification to the agreement, but not the original agreement.
(2) Availability of separate award and dissenting opinion under the SCC Rules.
(3) Applicable law. Whether a stipulation in the contract takes over the CISG.
Observations by Alain Prujiner
Observations by Christophe Imhoos
XIV. SCC case 46/1999
Subject-matters:
(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?
Observations by David St. John Sutton
Observations by Annette Magnusson
XV. SCC case 117/1999
Subject-matter:
Applicable law to the dispute; application of Article 24(1) of the Rules
of the Arbitration Institute of the Stockholm Chamber of Commerce.
Observations by Herbert Kronke
Observations by Juan Fernandez-Armesto
XVI. SCC case 16/2000
Subject-matters:
(1) Whether a contract for the packing and transport of industrial equipment
provided for a fixed or variable price.
(2) When the freight increases due to an increase in the volume of the cargo,
who shall bear the risk for such increase?
(3) Duty of a carrier to notify the customer in the event of expected increase of costs for the transportation.
Observations by Patrik Lindfors & Mika Savola
Observations by Jakob Heidbrink
XVII. SCC case 45/2000
Subject-matters:
(1) Invalidity of a contract under the Swedish doctrine of assumptions (förutsättningsläran).
(2) Liability for damages following the invalidity of a contract by
virtue of the doctrine of assumptions.
Observations by Gustaf Moller
Observations by Jan Ramberg
XVIII. SCC case 49/2000
Subject-matter:
Issue of lis pendens.
Observations by Bruno Leurent
XIX.SCC case 129/2000
Subject-matters:
(1) Party succession and choice of applicable law to decide who are the parties to the agreement.
(2) Choice of applicable law to decide the costs.
Observations by Carita Wallgren & Helle Lindegaard
Observations by Eric M. Runesson & Mikael Swahn
XX. SCC case 133/2000
Subject-matter:
(1) Ambiguous arbitration clause.
Observations by Alexey Kostin
XXI. SCC case 7/2001
Subject-matters:
(1) Letter of credit and unjust enrichment - whether the purchaser had
fulfilled its obligations concerning payment under the contract by obtaining
the letter of credit.
(2) Invalidity of contract - whether the contract was duly signed and dealt
with past events.
(3) Calculation of interest.
Observations by Michael Pryles
Observation by Jon Stokholm
XXII. SCC case 9/2001
Subject-matters:
(1) Bringing a third party into the arbitration proceedings.
(2) Admissibility of a claim of alleged fraud.
Observations by Bernard Hanotiau
XXIII. SCC case 45/2001
Subject-matters:
(1) Ex parte award.
(2) Jurisdiction of the arbitrator over the end user where
the contract had been signed by the end user’s agent. Applicable
law to decide this issue.
(3) Foreign trade agency relationship in Chinese law. The Chinese Foreign Trade
Agency System Tentative Provisions (the "Tentative Provisions") of 29 August 1991.
Observations by Xing Xiusong & He Xiaoli
XXIV. SCC case 96/2001
Subject-matters:
(1) Power of the Arbitral Tribunal to grant interim measures under the SCC Rules.
(2) Applicable law to the merits and to a retention of title clause.
(3) Enforcement of retention of title clause under Uzbek law.
(4)Right to restitution of delivered goods under Uzbek law.
Observations by Fernando Pombo
INDEX