INTERNATIONAL AND DOMESTIC ARBITRATION IN SWITZERLAND

Contents XXV § 26 Challenge of arbitral awards under Chapter 12 PILA ........................................620 I. Introduction ..............................................................................................620 II. General requirements................................................................................620 III. Awards subject to challenge .....................................................................622 1. Final awards .......................................................................................623 2. Partial awards .....................................................................................623 3. Preliminary or interim awards ............................................................625 4. Decisions on applications for provisional measures ...........................627 5. Procedural orders................................................................................628 IV. Party autonomy.........................................................................................628 V. Grounds for challenge...............................................................................629 1. Introduction ........................................................................................629 2. The Federal Supreme Court is bound by the findings of fact in the challenged award ................................................................................630 3. Irregular composition of the arbitral tribunal......................................631 4. Incorrect decision on jurisdiction .......................................................634 a. Scope of application .....................................................................634 b. Timeliness and forfeiture..............................................................636 c. Scope of review by the Swiss Federal Supreme Court .................637 d. Admissibility of declaratory relief................................................640 e. Jurisdictional challenges in investment arbitration.......................641 5. Decision on claims not submitted or failure to decide claims.............644 6. Violation of equal treatment or the right to be heard ..........................648 a. Equal treatment ............................................................................648 b. Right to be heard in adversarial proceedings................................648 i. Failure to provide the reasons for the award .........................649 ii. No challenge for incorrect factual findings, manifest errors or wrong application of the law ..................................650 iii. Failure to consider a decisive issue .......................................651 iv. Surprising application of the law (right to be heard and jura novit curia )....................................................................652 v. Procedural issues...................................................................654 c. Timeliness and forfeiture..............................................................654 d. Formal nature of the right to be heard ..........................................655 7. Incompatibility with public policy......................................................656 a. Background and content of the rule..............................................656 b. Swiss or universal public policy? .................................................657 c. Substantive public policy .............................................................660 i. Introduction and recognised principles .................................660 ii. Pacta sunt servanda ..............................................................661 iii. Prohibition of discrimination ................................................662 iv. Violation of Art.27(2) CC (excessive obligation) .................662