From 1 March, arbitral tribunals sitting in Switzerland will decide on jurisdictional objections and render a decision on the merits, irrespective of whether the same subject matter between the same parties is already pending before a state court or another arbitral tribunal – unless serious reasons require suspending the proceedings.
Article 176.1 of the Swiss Private International Law Statute (PILS) states that the amendment applies to international arbitrations – arbitrations conducted by arbitral tribunals having their seat in Switzerland between parties of which at least one had neither its domicile nor its habitual residence in Switzerland at the time of the conclusion of the arbitration agreement. The amendment does not apply to international arbitrations where the parties have explicitly excluded the PILS in favour of cantonal provisions (which is, however, rarely done) or to domestic arbitrations.
