Court refuses to set aside award containing no reasons issued by rabbinical arbitral tribunal

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In Decision 4A_41/2023, the Swiss Supreme Court refused to set aside an award issued by a rabbinical arbitral tribunal which did not contain findings of fact or reasons. The Swiss Supreme Court held that it was de facto not in a position to assess whether the alleged grounds for setting-aside were met. Anya George (Partner) and GĂ©raldine Ineichen (Associate), Schellenberg Wittmer Ltd

In a recently published German-language decision, intended for official publication in the court reporter, a party sought to set aside an award rendered by a rabbinical arbitral tribunal (Bais Din). The dispute originated from a real estate investment. The involved parties entered into an arbitration agreement, agreeing to refer the matter to a three-member rabbinical arbitral tribunal seated in Zurich. The arbitration agreement also specified that the proceedings would be conducted following Jewish
procedural law.

The tribunal held a one-hour hearing, for which it prepared written minutes that it did not sign. Shortly afterwards, it rendered an award that did not contain any factual findings or legal reasons. One of the parties sought to challenge the award before the Swiss Supreme Court. According to the court, the award met the requirements of an arbitral award under article 189 of the Federal Act on Private International Law (PILA) and it was therefore open to a challenge under article 190 of PILA. Additionally, it noted that the prohibition on ecclesiastical jurisdiction did not apply and that rabbinical arbitral tribunals can rule on arbitrable matters. Read more

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