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Stockholm Chamber of Commerce Arbitration Institute ("SCC")

A concise overview of the key procedural features, advantages, disadvantages, and practical considerations involved in arbitrations administered by the Stockholm Chamber of Commerce Arbitration Institute ("SCC").

Overview

Overview: advantages and disadvantages

ADVANTAGES DISADVANTAGES 
Confidentiality. SCC arbitration proceedings are confidential. Limited Global Presence. Compared to ICC or LCIA, SCC has fewer offices and outreach globally.
Modern and Flexible. The SCC Rules are modern and flexible; updated on 1 January 2023. Less Familiarity. Some parties may be less familiar with SCC rules and procedure, especially outside Europe.
Neutral Venue. Based in Stockholm, Sweden, SCC offers a politically neutral and legally stable environment. Scrutiny. The SCC has a limited role in scrutinising awards. 
Efficiency. SCC is known for relatively fast proceedings and streamlined rules.
Enforcement. Arbitration awards issued under SCC Rules are recognised and enforceable internationally under the New York Convention.  
Ability to choose the arbitrator(s): The parties may choose arbitrators who have expertise in the subject matter of the relevant dispute and/or who are from neutral jurisdictions.  

Overview: Process

Procedural element Details
Rules
  • The current SCC Rules came into force on 1 January 2023.
Commencing Proceedings
  • A Request for Arbitration is submitted to the SCC Secretariat.  
Answer to the Request
  • To be submitted within the timeframe set by the SCC Secretariat. 
  • Must contain the information specified in Article 9.
Terms of Reference
  • No obligation for the Tribunal to draw up. 
  • The Tribunal should establish a timetable for the conduct of the arbitration during or after the CMC.
Constitution of the Tribunal 
  • Where the Tribunal is to consist of a sole arbitrator, the parties shall be given ten days to jointly appoint the arbitrator. If the parties fail to appoint the arbitrator within this time, the SCC Board shall make the appointment.
  • Where the Tribunal is to consist of more than one arbitrator, each party shall appoint an equal number of arbitrators and the Board shall appoint the chairperson.
Procedural Order No. 1
  • In practice, the first procedural order is issued following the initial case management conference.
Witness evidence
  • The testimony of witnesses may be submitted in the form of signed statements.
  • It is common for witness statements to largely replace direct examination. The direct examination is typically limited to introductory questions.
Fees & costs
  • A registration fee of €3,000 is payable upon filing the Request.
  • Fees are calculated as a percentage of the amount in dispute.
  • The estimated amount of the costs of the arbitration, including the administrative fees of the SCC, shall be paid up front no later than the date set by the SCC.

Expedited arbitrations

Expedited arbitration is available if the parties have entered into an agreement that the dispute will be resolved in accordance with the SCC Rules for Expedited Arbitration.

Constitution of the tribunal

Where the parties have not agreed on the number of arbitrators, the Board shall decide whether the Arbitral Tribunal shall consist of a sole arbitrator or three arbitrators, having regard to the complexity of the case, the amount in dispute and any other relevant circumstances. When the arbitrator is appointed by the SCC Board, the Board will consider:

1. Nature and circumstances of the dispute. 

2. Previous experience and specialisation. 

3. Diversity. 

Note: Emergency Arbitrators

The Rules allow parties to file an application to appoint an emergency arbitrator. The Board shall seek to appoint an emergency arbitrator within 24 hours of receipt of the application.

Arbitrator conflicts / disclosure of interest

Before being appointed, a prospective arbitrator shall disclose any circumstances that may give rise to justifiable doubts as to his or her impartiality or independence. 

Once appointed, the arbitrator shall also submit a signed statement of impartiality and independence, disclosing such circumstances to the SCC. 

If any circumstances which give rise to justifiable doubts as to the arbitrator’s impartiality or independence arise during the course of the arbitration, the arbitrator is also obliged to immediately inform the parties and the other arbitrators in writing.

Note:

The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.

Consolidation

The Rules allow for multiple arbitrations to be consolidated where: 

1. The parties have agreed to consolidation;

2. All of the claims are made under the same arbitration agreement; or

3. Where the claims are made under more than one arbitration agreement, the relief sought arises out of the same transaction or series of transactions and the SCC Board considers the arbitration agreements to be compatible.

Note: Before consolidating the arbitrations, the SCC must consult the parties and the Tribunal.

Pleadings or memorial approach?

The Rules do not mandate one approach over the other. In line with the principle of party autonomy, the parties are free to agree on which approach to be used. In practice, the memorial approach is far more commonly used.

Summary judgment

The SCC Rules allow the parties to seek summary judgment.  Any application for summary procedure should demonstrate that it is efficient and appropriate having regard to all the circumstances of the case. 

In determining whether to grant a request for summary procedure, the Tribunal shall have regard to all relevant circumstances, including the extent to which the summary procedure contributes to a more efficient and expeditious resolution of the dispute.

Security for costs

The Tribunal may, in exceptional circumstances and at the request of a party, order any Claimant or Counterclaimant to provide security for costs.

The Tribunal may order security for costs where it considers such a measure appropriate in the circumstances of the case.

1. The financial position of the claimant.

2. The merits of the claims and defences.

3. The risk of non-payment of an adverse costs order.

4. Any exceptional circumstances identified by the parties.

Disclosure of documents

The parties are, as a general rule, free to present and rely on any evidence, and the Rules do not impose any specific requirements for the production of electronic documents.

Hearings

A hearing shall be held even if only requested by one of the parties.

Note: The Rules allow the hearing to be conducted remotely, in whole or in part by videoconference or other appropriate means.  

SCC's role in scrutiny of arbitral awards

The award is considered to be the product of the arbitrators and, as such, out of the scope of the SCC mandate. 

However, if the SCC Secretariat finds any formal mistake in the award, the Secretariat may bring this to the attention of the Tribunal to enable it to consider whether an amendment should be made.

Appeals

For arbitrations seated in Sweden, the award can only be set aside or annulled based on procedural grounds, under specific and narrowly defined conditions in the Swedish Arbitration Act.

The SCC Rules do not include any rules regarding appeals against Final Awards.

Further information

    Model clause
    Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the SCC Arbitration Institute.
    Recommended additions:
    The seat of arbitration shall be […].
    The language to be used in the arbitral proceedings shall be […].
    This contract shall be governed by the substantive law of […].

If you would like any further information about SCC arbitrations, please contact Joachim Bernström (joachim.bernstrom@nordialaw.com) or Nora Fredstie (nfredstie@dacbeachcroft.com). 

Global Arbitration Map detailing the arbitration landscape around the world 

By clicking on a country or an arbitral body that is highlighted on the map, you can read more about the intricacies of arbitration in those areas. The map will be useful for people who are negotiating contracts and those who have disputes across the world. The map's content was written by lawyers from across DACB's international network of offices as well as friends from firms in other jurisdictions, demonstrating our global arbitration expertise. 

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