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Svea Court of Appeal declares intra‑EU ECT award in Spain v Foresight invalid under section 33(2) SAA (no time bar), reaffirming EU law primacy and Swedish ordre public

Published on: 29 August 2024

Published by a LexisNexis Arbitration expert
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Kingdom of Spain v Foresight Luxembourg Solar and others, Case T-1626-19 What are the practical implications of this case

The Svea Court of Appeal reaffirmed the principles expressed by the CJEU in Achmea, Komstroy and PL Holdings, together with Swedish Supreme Court authority, concluding that arbitral awards between an EU Member State and an investor from another EU Member State, grounded in an arbitration clause within an international agreement, must be regarded as invalid because they are incompatible with fundamental principles of EU law. The invalidity mechanism in section 33(2) of the Swedish Arbitration Act applies without any time limit, so challenges to intra‑EU investment awards are not time‑barred. This creates scope for any intra‑EU investment award to be invalidated. As a result, annulments may become more common where awards are found to infringe core EU principles. The ruling highlights the primacy of EU law in arbitration involving EU Member States...

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