Stockholm Chamber Of Commerce To Provide Decisions On Arbitrator Challenges

The Arbitration Institute of the Stockholm Chamber of Commerce has announced that it will provide reasons for its decisions on challenges to arbitrators, making it the third institution to do so.

From 1 January 2018, the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) will begin providing reasons for its decisions on challenges to arbitrators, joining the London Court of International Arbitration (LCIA), which was the first to do so in 2006, and the ICC International Court of Arbitration (ICC) that followed suit in 2015.

According to a release, the SCC Rules do not require the board to motivate any of its decisions, including those related to challenges. However, it has chosen to do so occasionally, in order to benefit parties and arbitrators.

The new policy means that the organisation will provide reasoned decisions on all arbitrator challenges decided by the board, unless the parties agree otherwise.

Annette Magnusson, secretary general at the SCC, said in a statement: "We believe that giving parties and arbitrators insight into the board's decision-making with regard to challenges will further enhance their confidence in the arbitral process."

Transparency is vital

The word transparency in now a buzzword for institutions to inform commercial parties and legal practitioners of its processes.

Speaking to CDR, James Hope, partner and head of litigation and arbitration at Vinge in Stockholm, and a member of the SCC board, tells CDR: "What's particularly interesting is this whole requirement for transparency," and adds that "the arbitral institution is the final decision-maker on this issue, which means at least as far as we were concerned, natural justice generally suggests that you need reasons before a final decision".

Clare Ambrose, an arbitrator at 20 Essex Street, states that "it's not that surprising that the SCC is following the LCIA and the ICC and there are good reasons of legitimacy and transparency for giving some reasons for these decisions".

This drive towards transparency has resulted in institutions consistently updating and amending their rules and guidance. In July 2016, the ICC revised its process for transparency, giving its users more clarity during the scrutiny process, particularly.

Pontus Scherp, partner at Norburg Scherp in Sweden, explains: "There has been lately a growing use and demand of transparency in arbitration in general, which will "enhance the transparency in the arbitration process more".

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