SCC Arbitral Awards: 2004-2009 - Hardcover
SCC Arbitral Awards: 2004-2009 - Electronic
XI. FINAL ARBITRAL AWARD
RENDERED IN 2006 IN SCC CASE 7/2005
(1) Jurisdiction under an arbitration clause not expressly referring to
the SCC Institute
(2) Failure of respondent to appear (procedural default)
(3) Applicable substantive law
(4) No oral hearing
(5) Application sua sponte (ex officio) of contractual penalty
provisions to claimant’s potential detriment
(6) Recovery of arbitration costs when claim partly withdrawn
(1) Sufficiently clear that the reference in the arbitration clause to
the International Commercial Arbitration Court in Stockholm,
Sweden, shall be understood as a reference to the SCC Institute.
(2) Respondent’s failure to appear did not prevent the arbitration
from moving forward to an award on the merits. Despite the
failure of the Respondent, the Arbitral Tribunal must examine
whether or to what extent the Claimant’s claims are justified.
(3) The contracts underlying the dispute were silent on applicable
substantive law. The Arbitral Tribunal did not determine the
applicable substantive law.
(4) In the absence of a request from either party, the Arbitral Tribunal
found it appropriate to render an award without an oral hearing on
the basis of the submissions and the written evidence presented.
(5) Contractual penalty provisions to claimant’s potential detriment
could not be applied by the Arbitral Tribunal of its own motion
(sua sponte, ex officio).
(6) Only half of arbitration costs awarded to claimant because about
half of original claim withdrawn late in the arbitration.