Sovereign Immunity – Switzerland

Enforcing a decision against a foreign state in Switzerland – no straight forward issue

As a rule, attachment proceedings initiated by a creditor in Switzerland based on a court or arbitral decision are quite straightforward. The applicable Debt Enforcement and Bankruptcy Act grants creditors who hold a judgment in hand an effective instrument to safeguard their claims in the form of a quick ex-parte blocking measure. This so-called Arrest may be granted by the single court judge in the district of the located debtor assets without any further requirements as to a connection to Switzerland, as long as the underlying claim is due and unsecured and assets have been plausibly identified in Switzerland. The attachment judge is even competent to issue attachment orders not only for assets located in his district but also for any other assets identified by the applicant throughout Switzerland, including real estate.