About us   Model Arbitration Clause   Services   Organisation   FAQ   Links   Documents    
General Information   Course of Proceedings   Fees   

To put it simply, arbitral tribunals are private courts. Thanks to the sovereignty granted to them by the Swiss constitution, they are able to hand down binding decisions in the same way as ordinary courts. Consequently, an award between the parties has the same effect as a legally binding court order issued by an ordinary court.
Due to their sovereign function vis-à-vis conflicts under private law, arbitration tribunals have become an element of the state court organisation ("privatised jurisdiction"). Thus, the "products" of an arbitration court (settlement, award) have the same material legal effect as a settlement or order made by a public court. From the point of view of enforceability, they thus constitute a definitive proof of claim (Art. 80 f. Federal Statute on Debt Enforcement and Bankruptcy). Like an ordinary judge, an arbitrator is therefore obliged to protect the principles of the rule of law and to comply at all times with basic procedural rights, i.e. the rule of due process of law, the rule of impartiality, as well as the rule of equal treatment of the parties.
Besides these formal-authoritative aspects, arbitral tribunals also have weighty advantages, which, for the

most part, the traditional judicial bodies lack and which - if applied correctly - have the power to defuse the most bitter of conflicts. The parties benefit from, for instance, an unofficial yet professional atmosphere facilitating the settlement negotiations at every stage of the arbitration - perhaps even enabling them to happen at all. Another one of its strengths is the manner in which the decision-making process concentrates on creating win-win solutions. An arbitral tribunal is flexible enough in its procedural strategy to make allowances for the peculiarities of individual cases and can thus achieve long-term conflict resolution in a remarkably short space of time.
The advantages are impressive: If a contract has an arbitration clause, the rules of arbitration - and thus the procedure for settling a conflict - are known to both parties. The time and money needed for settling the dispute are calculable. Since the arbitrators are appointed by the SGO, i.e. by a neutral body, the parties cannot be influenced, and the arbitrators' impartiality is thus preserved.

Home   Sitemap   Contact   Disclaimer   
Copyright © 2005-2009, SGO Swiss Permanent Organisation of Arbitration, Uraniastrasse 12, CH–8001 Zurich / Switzerland / Webdesign: