Originally from International Arbitration Court Decisions - 3rd Edition

(DISTRICT COURT) DECISION OF THE STOCKHOLM DISTRICT COURT RENDERED IN 2001, IN CASE Ä 7197-01

Subject-Matter:
Appointment of arbitrator. Application of Section 14 of the Swedish Arbitration Act (1999). Doctrine of joinder of necessary parties.

Finding:
An arbitration between several claimants and one respondent where joinder of necessary parties (nödvändig processgemenskap) is at hand, was, when applying Sections 12 and 13 of the Swedish Arbitration Act, construed as one arbitration proceeding, and not several.

Parties:
Claimants: Mr. A and others (Stockholm, Sweden)
Respondent: Mr. B (Göteborg, Sweden)
Place of Court Proceedings:
Stockholm, Sweden

Applicable Law:
The Swedish Arbitration Act of 1999
Excerpts below follow an unofficial translation of the proceedings in the
Stockholm District Court.

Summary

I. THE ARBITRATION
In 1988, Mr. A, Mr. B and 52 other accountants entered into a consortium agreement. The agreement included a pre-emption clause. The agreement also contained a clause stating that any dispute arising from the agreement should be resolved in accordance with the Swedish Arbitration Act (“the Act”).

In 2001, a dispute arose between Mr. A and the other members of the consortium (“the Claimants”), on the one hand, and Mr. B, on the other. The Claimants initiated arbitration against Mr. B in accordance with Section 19 of the Act, and gave notice of the arbitrator they had appointed. Within 30 days, Mr. B appointed one arbitrator in relation to 27 of the claimants, and a second arbitrator in relation to the other 26 claimants.