Jurisdiction(s):
United Kingdom

Lugano Convention: Swiss court enforces Slovenian judgment despite earlier Swiss ruling upholding arbitration clause; arbitration objections not refusal grounds, no Article 34(3) conflict, no public policy bar.

Published on: 29 January 2024

Published by a LexisNexis Arbitration expert

Legal News

Article summary

A d.o.o. v B. S.A., ZSU.2023.87, Obergericht, Zivilgericht, 4. Kammer

What are the practical implications of this case?

This decision underscores the delicate interplay between courts and arbitral tribunals regarding arbitral jurisdiction. Such questions can appear in domestic matters, yet they multiply in cross-border disputes where courts in different countries may reach inconsistent outcomes. For parties, the issue is not only ‘who has jurisdiction?’ but equally ‘who decides that question?’ and ‘who is bound by the answer?’ Early engagement of experienced counsel is therefore vital.

The Aargau High Court also affirmed what many scholars had long maintained (though not without debate): when a Swiss court refuses to hear a case on the basis that the parties opted for arbitration, that refusal has no binding effect. As a result, other courts and the arbitral tribunal may legitimately arrive at a different position. Further, the ruling indicates that Swiss courts, when asked to enforce a foreign judgment under the Lugano Convention, will generally do so—even if they previously considered the dispute to belong in arbitration...

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