The Zurich International Commercial Court (ZICC) represents a transformative development in international dispute resolution, offering global businesses an innovative, cost-effective, and efficient forum for resolving cross-border commercial conflicts. As a dedicated chamber of the Zurich Commercial Court, the ZICC combines Switzerland’s renowned neutrality, judicial excellence, and industry-specific expertise to address the evolving needs of international commerce.
This insight answers five critical questions about the ZICC: its key benefits, eligibility criteria, efficiency, procedural differences with arbitration, and the types of businesses most likely to benefit.
What is Zurich International Commercial Court and why is its creation relevant for non-Swiss businesses?
The Zurich International Commercial Court (ZICC) is a new chamber of the Zurich Commercial Court to be operational in 2027 (according to informal information given by Zurich Commercial Court itself) that is meant to be easily accessible court for international dispute resolution. It is expected that ZICC will offer several key benefits for international businesses:
The ZICC will conduct proceedings and draft judgments in English, making it more accessible and convenient for international parties. The Zurich Commercial Court, which the ZICC will be part of, has a track record of resolving cases quickly. In 2022, 72% of cases were settled within a year, and 54% within six months. A large benefit of the Zurich Commercial Court is participation of judges who are expert in various professional fields (e.g. insurance, construction, shipping etc.) in the judge panel. The ZICC will also have such specialized judges from various professional fields, allowing for industry-specific considerations in dispute resolution. The ZICC is expected to offer greater flexibility in proceedings, allowing parties to shape the process through mutual agreement.
Swiss courts also have a proven record of effective enforceability of their judgments. This advantage will also apply to the ZICC. Additionally, due to its location in neutral Switzerland, the ZICC will provide a trusted venue for resolving disputes between international parties.
Who is eligible to submit a case to be heard by the ZICC?
The ZICC will have jurisdiction over cases that meet the following eligibility criteria:
- At least one party must be engaged in commercial activity (commercial dispute).
- The dispute value must be at least CHF 100,000.
- The dispute must affect the business activity of at least one party.
- The parties must consent to the jurisdiction of the commercial court in a forum selection clause.
- At least one party must be domiciled abroad, at the time of consent.
By meeting these criteria, the ZICC ensures its focus remains on cross-border commercial disputes, making it a prime venue for global businesses involved in high-value or complex legal conflicts.
How efficiently and promptly can the ZICC resolve cases, including urgent international commercial disputes?
The ZICC is expected to start operations in 2027, so there are no specific timelines available for this court yet. However, based on the performance of the existing Zurich Commercial Court, we can infer potential timelines for the ZICC.
The Zurich Commercial Court is known for the fast resolution of cases. 72% of cases in the Zurich Commercial Court are settled within less than a year, and 54% are resolved within six months. This is due to its settlement efficiency. The Commercial Court of Zurich has a practice of holding settlement talks after the first exchange of briefs, which can lead to faster resolutions. This effectiveness is driven by practices like early settlement discussions and an efficient appeals process. When commercial court judgments are appealed to the Federal Supreme Court, almost 90% of these cases are decided within one year, and 73% within six months. Given these statistics, it is reasonable to expect that the ZICC will aim for similar efficiency, potentially resolving a majority of cases within 6-12 months.
In general, Swiss courts (including ZICC) can order interim remedies, which may be applicable for urgent matters, so that ZICC would be generally able to resolve urgent cases in an efficient manner.
What is the difference between the procedure at the ZICC and an arbitration procedure?
It is crucial to recognize that the ZICC is a specialized chamber of the Zurich Commercial Court, meaning it renders court decisions rather than tribunal arbitral awards. Hence, the ZICC will follow the codified Swiss procedural rules compared to arbitration. The Swiss Civil Procedure Code governs ZICC proceedings, allowing factual assertions and evidence to be introduced only up to the second exchange of written submissions. In contrast, arbitration procedures typically offer more flexibility, allowing parties to introduce factual assertions and evidence later in the proceedings.
The ZICC will be significantly more restrictive in allowing document production than what is typically accepted in international commercial arbitrations. In ZICC proceedings, witnesses will primarily be interrogated by the judge, not by the parties’ counsel. Cross-examinations, which are standard in international arbitrations, are not practiced in Swiss civil courts. However, additional questions by the parties to the witnesses should generally be possible.
Another important difference are the court fees. ICC proceedings are expected to be substantially less expensive than arbitration, making it a more affordable option for businesses.
Finally, it is important to consider that while arbitration procedures are confidential with no information available to the public, the ZICC proceedings are as a rule public.
Who should consider choosing the ZICC over arbitration?
In our opinion, the ZICC is particularly suitable for parties involved in international commercial disputes who value cost-effectiveness, speed, and the expertise of specialized judges, while still benefiting from Switzerland’s reputation as a neutral and efficient forum for dispute resolution. In particular, the ZICC procedure can be more attractive for smaller and medium-sized companies engaging in international business, as it offers a middle ground between expensive international arbitration and the perceived risk of going to court in unknown territories. ZICC is also more appealing to companies seeking cost-effective dispute resolution, as state court proceedings, including the ZICC, are generally less expensive than international commercial arbitrations, which can be prohibitively costly for claims that are not significant enough.
For parties valuing industry-specific expertise, the ZICC, as part of the Zurich Commercial Court, benefits from specialized judges with experience in various professional fields, potentially reducing the need for expert witnesses. Finally, given that 72% of cases at the Zurich Commercial Court are settled within less than a year, with 54% resolved within six months, the parties who are interested in a fast dispute resolution may prefer the ZICC over an arbitration tribunal.
A downside could be the more difficult enforcement of ZICC’s court decisions abroad, as the New York Convention of 1958, which generally facilitates the enforcement of foreign arbitral awards, will not be applicable.
For businesses of all sizes seeking a reliable and professional venue for dispute resolution, Switzerland’s ZICC offers unparalleled benefits. If you’re considering the ZICC for your international legal matters, let LINDEMANNLAW support you through the process. Contact us today to learn how we can help protect your business interests and maximize the opportunities offered by the ZICC.
