Originally from International Arbitration Court Decisions - 3rd Edition

JUDGMENT BY THE SWISS SUPREME COURT RENDERED ON 7 SEPTEMBER 2006 IN CASE 4P.114/2006 *

Subject matters:
(1) Exclusion of annulment action in Bilateral Investment Treaty
(2) Scope of jurisdiction of an arbitral tribunal

Findings:
(1) The wording “final and binding” does not show an intent to exclude any action for annulment in Switzerland against an arbitral award.
(2) The arbitral tribunal based its decision upon events occurred after the investor acquired its investment and therefore did not exceed its jurisdiction ratione temporis.

Parties:
Claimant: Czech Republic through the Ministry of Finance
Claimant’s counsel in the court proceedings: Prof. Dr. Franz Kellerhals and Dr. Bernhard Berger (Bern)
Respondent: X. (Dutch company)
Respondent’s counsel in the court proceedings: Mr Matthias Scherer (Geneva)

Place of court proceedings:
Lausanne, Switzerland

Applicable Laws and Convention:
Swiss Federal Statute on Private International Law (1987), Articles 190 and 192
The Netherlands-Cezch Republic Bilateral Investment Treaty (1991), Article 8

Place of Arbitration:
Geneva, Switzerland

Arbitrators:
Sir Arthir Watts KCMG QC, Chairman
Dr Peter Behrens
Mr. L. Yves Fortier CC QC