Originally from International Arbitration Court Decisions - 3rd Edition

JUDGMENT OF THE SUPREME COURT OF SWEDEN RENDERED IN 2000 IN CASE T 5119-99 

THE 3S CASE

Subject Matter:
Recourse against a party which has not complied with a request for advance payment of the arbitration tribunal’s costs.

Findings:
A party to an ongoing arbitration proceeding that has provided the entire advance payment of the tribunal’s cost does not have a right to recourse against the other party for such payment, unless an obligation for the parties to pay an advance on costs has been specifically included in the arbitration agreement.

Parties:
Claimant: 3S Swedish Special Supplier AB (“3S”) (Sweden)
Respondent: Sky Park AB (“Sky Park”) (Sweden)

Place Of Arbitration:
Sweden

Place Of Court Procedures:
Sweden

Applicable Law:
The Swedish Arbitration Act of 1929
Excerpts below follow an unofficial translation of the proceedings in the Stockholm
District Court, The Svea Court of Appeal and the Supreme Court of Sweden.
The case was reported in Nytt Juridiskt Arkiv (NJA) 2000, p. 773.

Summary
The parties had entered into a Retail Distribution Contract which included an arbitration clause when a dispute relating to the contract arose, and 3S initiated arbitration against Sky Park.

At a preparatory hearing in February 1999, the arbitration tribunal requested that the parties pay SEK 250 000 each as an advance payment of the tribunal’s costs. 3S paid its share. Sky Park informed the tribunal that they did not intend to make any payment. In April 1999, 3S paid the remaining amount.