Arbitration Newsletter (October 2009)

Facts

In April 2003, Swedish citizen A, residing in Italy and BVI registered Corporation Y entered into a sale and transfer agreement pertaining to the company X (the "Sale Agreement"). Swedish citizen B, residing in Italy and majority shareholder of Corporation Y acted in the name and on behalf of Corporation Y throughout the transaction discussions. The Sale Agreement provided for arbitration pursuant to the ICC Rules in Switzerland, and a choice of law provision in favor of Swedish law.

In March 2007, A initiated an arbitration proceeding in Sweden against Corporation Y for the payment of the outstanding purchase price agreed in the Sale Agreement. Both Corporation Y and B failed to "accept" (entgegennehmen) the Notice of Arbitration, resulting in the immediate termination of the Swedish arbitration proceeding. Corporation Y was liquidated without A's knowledge at an unspecified time prior to the filing for arbitration.