Supreme Court of Sweden re-visits Titan reasoning

26.11.2010 Supreme Court of Sweden re-visits Titan reasoning

In a decision on 12 November 2010, the Swedish Supreme Court clarifies the effect of the seat of arbitration under Swedish law: "Since RosInvestCo and the Russian Federation have agreed that the arbitral proceedings shall take place in Sweden, the Swedish Arbitration Act is applicable.

Consequently, Swedish courts are competent to rule on the arbitrators’ jurisdiction and as to whether there is sufficient connection to the Swedish legal system." The reasoning of the Supreme Court means that the Court rejects the previous reasoning of the Svea Court of Appeals in the so-called Titan-case from 2005 (Titan Corporation v Alcatel CIT SA).

In Titan, the Svea Court of Appeal dismissed a challenge against an arbitral award on the ground that the award did not have sufficient connection to Sweden, and thus lacked Swedish judicial interest. The decision in Titan has been the subject to much debate.

Source: SCC


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