Swiss Supreme Court examines requirements for revision of arbitral awards | Practical Law

Swiss Supreme Court examines requirements for revision of arbitral awards | Practical Law

PD Dr. Nathalie Voser (Partner) and Anya George (Associate), Schellenberg Wittmer (Zurich)

Swiss Supreme Court examines requirements for revision of arbitral awards

Practical Law UK Legal Update 9-521-2361 (Approx. 4 pages)

Swiss Supreme Court examines requirements for revision of arbitral awards

by Practical Law
Published on 06 Sep 2012Switzerland
PD Dr. Nathalie Voser (Partner) and Anya George (Associate), Schellenberg Wittmer (Zurich)
In two French-language decisions of 28 June and 23 July 2012, respectively, the Swiss Supreme Court dealt in some detail with the procedural and substantive requirements for the revision of arbitral awards. The second case, which concerned domestic arbitration, raised several issues which are also of interest to international arbitration practitioners, in particular the question of the admissibility of a request for revision based on an expert report established after the award was made.

Case 4A_570/2011

In Case 4A_570/2011, the petitioner (who was the respondent in the arbitration) claimed to have discovered "new" facts and evidence after the award was rendered, namely that the claimant had entered into an agreement with a third party, undertaking to withdraw its claim in the arbitration at that party's request. Such a request had been made, but the petitioner had refused to withdraw its claim.
The Supreme Court did not have to deal in detail with the evidence submitted by the petitioner, as it was apparent from the documents on file that the petitioner had knowledge of the alleged "new" facts for over two years before filing its request for revision of the award. The petitioner had therefore clearly failed to comply with the statutory time limit for filing a request for revision, which is 90 days from the discovery of "new" facts or evidence.

Case 4A_105/2012

Background

In a domestic arbitration, Article 396(1)(a) of the Swiss Code of Civil Procedure (SCCP) permits a petition for revision of domestic arbitral awards when "the applicant has subsequent knowledge of important facts or discovers decisive evidence that it was not able to invoke in the arbitration, excluding facts and evidence that only came into existence after the decision."
This provision is identical to the provision which applies to the revision of international arbitration awards (Article 123(2)(a) of the Federal Statute on the Swiss Supreme Court).

Decision

The Supreme Court examined the requirements for granting revision of an arbitral award in Article 396(1)(a) SCCP. It confirmed that:
  • Only facts or evidence which existed at the time of the award, but were only discovered thereafter, can lead to a revision of the award.
  • Newly discovered evidence must serve to establish the facts of the case, not merely to provide a new interpretation of known facts.
In this case, the petitioner introduced a new expert report which challenged the conclusions of the reports submitted in the arbitration. Given the wording of Article 396(1)(a) SCCP, it is doubtful whether any expert report established after the award was rendered could be admitted in support of a request for revision, as the provision excludes "evidence which was established after the decision".
The Supreme Court referred in this regard to the hotly debated issue of whether an expert report which makes use of scientific methods discovered or developed after the award was rendered is admissible as "newly discovered" evidence justifying a revision. This question was at the centre of the much-publicised Pechstein case, in which the ice-skater Claudia Pechstein requested the revision of an award of the Court of Arbitration for Sport confirming a doping-related competition ban. She produced a medical report based on a new scientific method which allegedly showed that the results of her doping test could be explained by a genetic condition. At the time, the Supreme Court left open the issue of whether such a report could be admitted as "newly discovered" evidence (see Case 4A_144/2010, discussed in Legal update, Swiss Supreme Court rejects two petitions for revision).
In a decision of 10 February 2011, the Supreme Court seemed to have clarified the issue. It held that only evidence which actually existed at the time of the award, but was discovered subsequently, could serve as evidence in support of a request for revision. A witness statement which was made after the award was therefore considered inadmissible (see Case 4A_212/2010, discussed in Legal update, Supreme Court clarifies concept of "new" evidence as ground for revision of arbitral awards).
In the present decision, the Supreme Court examined but, as in the Pechstein case, ultimately left open the issue of whether or not an expert report made after the award should, per se, be excluded as a basis for revision of the award. Referring to its case law on the revision of state court decisions, the Supreme Court held that, in any event, a new expert report such as the one submitted by the petitioner, which merely provides a different interpretation of facts known at the time of the decision, cannot justify a revision of such decision. The request for revision was dismissed on those grounds.

Comment

It is not entirely clear whether or not the Supreme Court considers that an expert report which is based on "newly discovered" facts (that is, facts existing but unknown at the time of the decision), could be excluded as a basis for revision merely because it has been made after the award was rendered. The authors' view is that such an interpretation would be contrary to the wording and purpose of the provisions on revision. As long as an expert report is based on or serves to prove facts that existed at the time of the award, it should be admissible.