⚖️ Svea Court of Appeal refuses Russian party’s challenge to SCC award over untimely evidence

The Russian JSC “Soyuzparfumerprom Mobile Mechanized Column” (claimant), as buyer, and an Italian manufacturer (respondent), as supplier, entered into an agreement for the supply of equipment to Russia (the Agreement). The Agreement contained an arbitration clause providing for arbitration under the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).

In early 2022, the respondent informed the claimant that it was unable to perform its contractual obligations due to force majeure and declared the Agreement terminated. Disagreeing with the respondent’s actions, the claimant commenced SCC arbitration. The arbitral tribunal ruled in favor of the respondent, finding that the termination was lawful due to the existence of valid force majeure circumstances.

The claimant applied to the Svea Court of Appeal to set aside the award, arguing that:

👀When interpreting the contractual requirement to deliver the goods through a “reliable carrier,” the tribunal unjustifiably concluded that the carrier was required to guarantee safe delivery even in circumstances involving hostilities risks;

👀The tribunal unlawfully refused to allow the claimant to submit additional evidence and arguments after determining the meaning of that contractual provision;

👀As a result, the tribunal was manifestly biased and the arbitrators therefore lacked authority to adjudicate the dispute.

The Svea Court of Appeal rejected the claimant’s arguments and upheld the award, relying on the following considerations:

🔘The tribunal had carried out an ordinary contractual interpretation based on the evidence submitted and the applicable principles of transport law, and had not attached particular significance to the contractual reference to a “reliable carrier”;

🔘The refusal to admit the claimant’s new evidence was justified because the evidence had been submitted in breach of the procedural timetable;

🔘The tribunal had acted within the permissible scope of its discretion in conducting the arbitration, and the claimant’s allegations of bias were therefore frivolous;

🔘Among other things, the tribunal’s raising the issue of the meaning of the “reliable carrier” provision did not demonstrate any lack of impartiality on the part of the arbitrators;

🔘Each party had been given an opportunity to submit written observations during post-hearing briefs, thereby ensuring procedural equality of the parties.

Accordingly, the Svea Court of Appeal refused the Russian claimant’s application to set aside the arbitral award.

📎An analysis of the court’s decision is available at the link.

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