The Principle of Lis Pendens in International Arbitration: The Swiss Decision in Fomento v. Colon

Abstract

IN A fundamental decision of 14 May 2001 (Fomento de Construcciones y Contratas S.A. v. Colon Container Terminal S.A.),1 the Swiss Federal Supreme Court has ruled that the principle of lis pendens, well established in the civil procedure rules of most civilian countries, applies in arbitration proceedings governed by the Swiss Arbitration Act.2 The decision of the highest Swiss Court gives a firm answer to many very contentious questions under Swiss arbitration law, but raises many new issues at the same time.