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Failed challenge based on ordre public and the right to be heard

26 March 2010

Authors: Nathalie Voser, Philipp Meier

In a decision dated 29 January 2010 (published online on 17 March 2010), the Swiss Federal Tribunal rejected a petition to set aside an award rendered by a sole arbitrator appointed by the Geneva Chamber of Commerce. The dispute before the sole arbitrator related to contracts for the supply of steel products governed by the UN Convention on the International Sale of Goods (CISG). A (the seller) had claimed to be in a force majeure situation and subsequently tried to impose higher prices. Relying on Article 72 CISG, B (the buyer) had terminated the contracts, entered into substitute transactions with another supplier and claimed compensation from A. In the award, B's claims were upheld. In its petition against the award, A had raised challenges based on substantive ordre public and its right to be heard.

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Published in Practical Law Arbitration


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