Swiss Federal Supreme Court’s Decision regarding a Set-Aside Claim

In its decision 4A_332 / 2020 of April 1, 2021, the Swiss Federal Supreme Court dealt with a set-aside motion in respect of the replacement of an arbitrator who was alleged to be biased.

When the former arbitrator resigned due to the allegations raised against them and the replacement arbitrator was appointed, the respondent sought the repetition of the procedural steps taken up until the resignation, on the basis that the process was tainted. However, the tribunal proceeded with trial and entered an award. In the set-aside action, the Swiss Federal Supreme Court dismissed the motion, by holding that the newly constituted tribunal was not under the duty to repeat the procedural steps taken before the resignation of the former arbitrator.

The decision is welcome as being yet another one where the Swiss Federal Supreme Court upheld the validity of an arbitral award.

Ergin Mizrahi
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