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Swiss Supreme Court: Art 190(2)(e) PILA set-aside for public policy remains exceptional; review limited to outcome, not reasoning (Bolivarian Republic of Venezuela v B, 4A_486/2023)

Published on: 19 June 2024

Published by a LexisNexis Arbitration expert
Legal News
Table of contents
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details
Article summary

Bolivarian Republic of Venezuela v B (4A_486/2023), Swiss Supreme Court What are the practical implications of this case?

This ruling reinforces settled jurisprudence. Swiss arbitral awards are only exceptionally set aside for conflict with public policy (Article 190(2)(e) Swiss Private International Law Act), for the reasons below.

  • When faced with challenges based on alleged incompatibility with public policy, the Swiss Supreme Court confines its review to the operative result of the award and does not revisit the arbitral tribunal’s reasoning.
  • The Court’s scrutiny is also narrowly circumscribed by procedure: every ground for setting aside must be demonstrated by reference to the text of the award itself; the arbitral case file is not taken into account.

Accordingly, attempts to overturn awards on public policy grounds will rarely succeed under Swiss law, given the Court’s outcome-focused approach and its strict evidential limits...

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