- Swiss Federal Tribunal confirms high threshold for appeals against arbitral awards for violation of public policy (A, B, C and D v Syrian Arab Republic)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Arbitration analysis: The Swiss Federal Tribunal (SFT) dismissed the appeal of several investors who claimed that the arbitral tribunal had violated substantive public policy and/or the ne extra petitia principle by awarding them the compensation sought under the applicable bilateral investment treaty in Syrian lira (SYP) instead of US dollars (USD) as requested. Although this meant that the investors had to bear the significant devaluation due to inflation, the SFT did not consider the overall awarded compensation so blatantly disproportionate to the value of the lost investment that it would have justified the setting aside of the arbitral tribunal’s award. In view of this latest decision, the formulation of the legal claims and, in particular, the choice of the currency claimed in international arbitral proceedings may take on even greater weight in the future. Written by Valentina Hirsiger, Dr iur, attorney-at-law, associate at Baker McKenzie, Zurich.
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