ADR Features in Switzerland

Of all ADR methods, arbitration in Switzerland takes the leading place as an alternative to litigation. However, this type of ADR is more common in international commercial disputes than in domestic ones.

Mediator services in Switzerland have not yet gained significant popularity. Lack of awareness and the presence of some prejudices about mediation leads to the fact that many businessmen still do not know about such an out-of-court conciliation procedure or knowingly avoid it. However, more and more legal professionals strive to add mediation services to their portfolio of services because they understand the value of this tool.

Arbitration in Switzerland

The jurisdiction is considered one of the traditional and most popular locations for international arbitration. Thanks to the liberal approach adopted in Swiss law and extensive jurisprudence when it comes to international arbitration, it is Switzerland that businesses choose to settle international institutional disputes through arbitration.

International arbitration in Switzerland is governed by the Private International Law Act, which provides a broad interpretation of arbitrable issues. This can be the settlement of disputes in the field of antitrust law in Switzerland, labor disputes, conflicts of shareholders. IP infringement claims are also subject to arbitration.

If you start arbitration proceedings in Switzerland, then be sure that your rights are reliably protected from unjustified interference by both local and foreign courts. The independence of arbitration proceedings in Switzerland is one of the most important advantages of the jurisdiction, which attracts entrepreneurs from all over the world.

If you are interested in settling an international arbitration dispute in Switzerland, please note that the appeal procedure in the jurisdiction is very simple. An appeal can only be made to one instance - the Federal Court.

However, this body is not always willing to interfere in the arbitration process in Switzerland. Over the past 30 years, only two verdicts (the settlement of a sports dispute in Switzerland) have been reversed. One - because of a violation of official government policy, the other - for public policy.

The settlement of arbitration disputes in Switzerland, when all parties are outside the jurisdiction, implies that the participants are given the opportunity to completely refuse to appeal to the Federal court of that state. In this case, the grounds for appeal are slightly expanded.

If you want to start institutional arbitration in Switzerland, you should take into account that this process is governed by the Rules of International Arbitration. Note that the resolution of IP disputes in Switzerland is governed by the WIPO Geneva arbitration rules.

Mediation in Switzerland

The Chamber of Commercial Mediation offers a wide range of mediation courses and hence there is a significant number of Swiss professionals with specialized knowledge of mediation. However, mediation procedures in Switzerland are of secondary importance mainly due to the fact that a Swiss lawyer usually tries to settle a case bilaterally before formal proceedings begin.

It is important to understand that not all negotiations, even if they are successful and lead to the signing of a settlement agreement by the parties, are mediation. But any mediation is structured negotiations.

The meaning of mediation becomes clear through its principles:

• voluntariness;
• confidentiality;
• mediator’s neutrality;
• personal responsibility of the parties.

Benefits of mediation in Switzerland for the parties to the dispute:

• the ability to maintain your status;
• the ability to save your time and money (mediation is a more economical procedure than litigation, both in terms of time and costs);
• an opportunity not to focus on the past, but to look into the future, in particular, together with the other side of the conflict;
• the ability to go beyond the subject of the dispute, and move in any direction;
• flexibility of a solution focused on the interests and needs of the parties to the dispute.

Other ADR methods in Switzerland

There are some other forms of settlement of international commercial claims in Switzerland. For example, peer review in determining the value of a property in M&A transactions in Switzerland or in relation to property matters. At the request of the parties, local chambers of commerce will offer highly qualified experts in various fields of expertise.