Justice Canton of Bern plans chamber for international trade disputes

The Bernese commercial court is to be able to deal with international disputes in future. A corresponding amendment to the law is currently undergoing consultation until October 7, as detailed in a press release from the canton.

The amendment is the result of a proposal from the FDP in the Grand Council. In the wake of Brexit, London has become less important as a location for international trade disputes, the proponents argued. Several European countries had begun to step into the breach with specialized chambers.

Switzerland enjoys a good reputation as an "international dispute resolution forum". Bern, like the cantons of Zurich and Geneva, should set up a corresponding court chamber at the commercial court. Primarily medium-sized companies could benefit from the new service. The canton could thus strengthen Bern as a center of justice.

The Grand Council unanimously referred the proposal as a postulate in 2021. In the meantime, the federal government has created the legal basis for corresponding court chambers in the cantons.

In future, international disputes can be brought before the Bernese commercial court - provided that the amount in dispute is at least CHF 100,000 and the parties agree to the jurisdiction of the commercial court. In addition, at least one party must be domiciled abroad.

English permitted

Cases can also be heard in English if required. According to the consultation documents, the Government Council assumes that this will rarely be the case. It therefore does not see an increased need for personnel.

The creation of separate court chambers for international commercial disputes would not create competition with international arbitration, the authors of the 2021 proposal emphasized. Private arbitration is primarily used by large companies to settle disputes discreetly.

However, it is associated with very high costs. The new offer would bring advantages for medium-sized companies in particular.

SDA