Meaning
Statutory provision in the Swiss law of obligations that regulates the suspension of the prescription period for civil and commercial claims under specific circumstances. In cross-border contracts governed by Swiss law, swiss code obligations article 137a ensures that the limitation period is suspended during the process of mediation, conciliation, or a joint dispute review board. This legal pause prevents a party from losing their claim during the execution of agreed multi-tiered dispute resolution steps.
Resumption of the remaining period occurs as soon as the mediation or conciliation process is terminated.
Provisional Pause
The suspension under this article applies to both contractual and tort claims. It requires a clear, identifiable step to initiate the ADR process, such as a written request to mediate or the appointment of a joint expert.
Arbitration Interruption
The provision is highly relevant for international construction and joint venture agreements that require several rounds of discussion before filing an arbitration. It ensures that the time spent in these mandatory discussion phases is not counted against the statutory limitation period.
Claim Preservation
The claimant does not need to file a formal lawsuit or a debt collection request in Switzerland to pause the clock. This lowers the cost of disputes and encourages the parties to find a commercial solution before proceeding to litigation.
