Points of law

The Supreme Court finds that an arbitration clause does not constitute an explicit waiver of immunity.

Summary of the case

Tekno-Pharma AB of Stockholm vs. the State of Iran through the Embassy of Iran in Stockholm regarding appointment of arbitrator. Tekno-Pharma AB applied for the appointment of an arbitrator since the Embassy had failed to do so according to a mutual arbitration agreement between the company and the Embassy. The Embassy claimed immunity.

The County administrative board of Stockholm found that the Embassy was entitled to invoke immunity before the board in the matter, regardless of the fact that the Embassy had signed an arbitration agreement, why the board found itself to be legally prevented from trying the company's application. Tekno-Pharma AB appealed to the Svea Court of Appeal, which found that the quoted arbitration clause was not equal to an explicit waiver of immunity, why the appeal was overruled.

The decision was appealed to the Supreme Court, which affirmed the decision of the Court of Appeal.

Sources

Nytt Juridiskt Arkiv 1972, Avd. I, Case No. 1972c434

Additional information (explanations, notes, etc.)

- Supreme Court decision 30 December 1999 (Nytt Juridiskt Arkiv 1999, Avd. I, Case No. 1999:112)
- Svea Court of Appeal decision 18 June 1980 (Rättsfall från Hovrätterna 1981, Case No. 76:81)