New SCC rules from 1 January 2023
The SCC Arbitration Institute’s new rules entered into force 1 January 2023.
Our lawyers Mikal Brøndmo and Randi Sagård present the key changes below.
The new rules include revised versions of the
- SCC Arbitration Rules,
- SCC Rules for Expedited Arbitrations,
- SCC Mediation Rules,
- SCC Rules for Express Dispute Assessment, and
- SCC Procedures for UNCITRAL cases.
Introduction
SCC has a leading role among the arbitration institutions. In 2021, SCC received 165 new cases involving parties from 42 different countries. SCC is seen as an innovative arbitration institute in forefront of the development, as illustrated by the SCC Platform and the SCC Express.
While the preamble has been somehow discussed, as it introduces new rules to arbitration agreements already entered into, it remains the same and thereby confirm that parties have agreed to accept future changes to the rules if not otherwise agreed. Hence, the revised rules will apply to cases that are registered as of 1 January 2023.
The key changes to the SCC Arbitration Rules and the SCC Rules for Expedited Arbitrations are presented below.
SCC Arbitration Rules
Of the 2021 caseload, 62% were arbitrations registered under the SCC Arbitration Rules, A total of 75% of the awards rendered under the SCC Arbitration Rules in 2021, were rendered within 12 months from the date of referral.
Firstly, the revised rules include a new provision in Article 32 clarifying that the arbitral tribunal may decide on whether hearings shall be conducted in person or remotely. While this new provision is in line with other institutions recent revisions of their rules, it should be underlined that this is a clarification of the SCC Arbitration Rules. On 30 June 2022, Svea Court of Appeal confirmed in a ruling that the right to an oral hearing under the Swedish Arbitration Act is technology neutral and allows for remote hearings. The Court of Appeal made the same finding as regards the previous version of Article 32 of the SCC Arbitration Rules.
Secondly, changes are made to Article 29 to clarify which information shall be included in the statement of claim and statement of defence.
Thirdly, the revised rules are including a possibility for the arbitral tribunal to terminate the arbitral proceedings by way of an order under Article 45(2). Furthermore, the revised rules include a change in Article 51(5) according to which a decision to terminate a case in whole or in part due to a failure to pay the advance on costs shall be made by the arbitral tribunal after the referral of the case to the arbitral tribunal.
Fourthly, several changes are made for the purpose of accommodating the SCC’s change of name from the Arbitration Institute of the Stockholm Chamber of Commerce to the SCC Arbitration Institute.
In addition, the new rules are removing the agreement on the number of arbitrators as a recommended addition to the SCC model clause for the SCC Arbitration Rules. As of 2017, there is no default under the SCC Arbitration Rules in favour of a three-member tribunal. However, the parties may agree on the number of arbitrators and should still consider including the number of arbitrators in the arbitration agreement. In lack of such agreement, the SCC Board decide whether the arbitral tribunal shall consist of a sole arbitrator or three arbitrators.
SCC Rules for Expedited Arbitrations
Of the 2021 caseload, 30% were registered under the SCC Rules for Expedited Arbitrations. 60% of the awards rendered under the SCC Rules for Expedited Arbitration in 2021 were rendered within three months from referral. Another 29% of the awards were rendered between three to six months from referral.
The key changes to the SCC Rules for Expedited Arbitrations are reflecting the changes made to the Arbitration Rules, and may be summarised as follows:
- A new provision in Article 33 clarifying that the arbitral tribunal may decide on whether hearings shall be conducted in person or remotely.
- Changes to Article 6 and Article 7 to clarify which information shall be included in the request for arbitration/statement of claim and answer to the request for arbitration/statement of defence.
- Including a possibility for the arbitral tribunal to terminate the arbitral proceedings by way of an order under Article 45(2).
- A change in Article 51(5) according to which a decision to terminate a case in whole or in part due to a failure to pay the advance on costs shall be made by the arbitral tribunal after the referral of the case to the arbitral tribunal.
- Changes made for the purpose of accommodating the SCC’s change of name from the Arbitration Institute of the Stockholm Chamber of Commerce to the SCC Arbitration Institute.
Closing remarks
In summary, few material changes are included in the new rules. When comparing the new rules with the previous ones, most changes are various language revisions to improve the clarity, coherency and accessibility of the rules.
The rule revision committee consisted of Barton Legum, Charlotta Falkman (until 1 January 2022), Christoffer Coello Hedberg, Crina Baltag, Dmitri Evseev, Evelina T. Wahlström, Ginta Ahrel and Johan Sidklev.