Originally from International Arbitration Court Decisions - 3rd Edition

DECISION BY THE STOCKHOLM DISTRICT COURT

RENDERED IN 2004 IN CASE Ä 860-04 AND DECISION BY THE SVEA COURT OF APPEAL RENDERED IN 2004 IN CASE ÖÄ 4247-04

Subject-Matter:
Finality of a determination by an arbitration institution regarding a challenge of an arbitrator’s impartiality.

Finding:
Under Swedish law, parties may agree that an arbitration institution’s determination regarding a challenge brought against an arbitrator for lack of impartiality, should be conclusive. Such a determination cannot be overturned by the courts, and an application for this purpose will be dismissed.

Parties:
Claimant: JSC Novokuznetsk Aluminium Plant (Russia)
Respondent: Base Metal Trading S.A. (Switzerland)

Place of Court Proceedings:
Sweden

Applicable Law:
The Swedish Arbitration Act 1999, in particular Sections 10 and 11

Summary
In November 2003, Base Metal Trading S.A. (“BMT”) submitted a request for arbitration to the Arbitration Institute of the Stockholm Chamber of Commerce (the “SCC Institute”) against JSC Novokuznetsk Aluminium Plant (“NKAZ”) and appointed an arbitrator. The request was based on a number of contracts, all indicating that disputes between the parties should be resolved by arbitration in accordance with the rules of the SCC Institute (the “SCC Rules”).