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Stockholm Arbitration Report (SAR)

Preview Page SAR 2002 - 2

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.

Findings:
(1) In accordance with Article 28 of the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce, the arbitrator proceeded and rendered an award in the absence of any appearance by the Respondents.
(2) The arbitrator, applying the law of the country where the third-party end user acted, i.e. China, concluded that the third-party end user had not become a party to the arbitration agreement.
(3) The Tentative Provisions do not establish a direct relationship between the principal and the opposite party to the contract as a result of the agent’s contract with the opposite party.

Parties:
Claimant: Alpha International S.A. (France)
Respondent: 1. Beta Industry Company (China), 2. Gamma Industry Company (China)

Place of arbitration: Stockholm, Sweden

Language of the proceedings: English

Nationality of arbitrators:
Sole Arbitrator: Swedish