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Katowice Court of Appeal order dated 24 October 2016 Case No. V ACz 1118/16

The rule provided in Art. 5 of the Civil Code cannot be applied to institutions of procedural law. … Thus abuse of a subjective right is not, for example, a procedural act such as filing a statement of claim, but pursuing claims via the courts when this constitutes exercise of a right contrary to principles of social coexistence or the socioeconomic purpose of the right. … In asserting the defence of the arbitration clause, the defendant did not exercise any subjective right arising out of a civil-law relationship, but only a procedural entitlement arising under Art. 1165 §1 of the Civil Procedure Code.

Publication date: 24-10-2016 | Case no.: V ACz 1118/16

Key issues: arbitration agreement

id: 20433

Polish Supreme Court judgment dated 7 October 2016 Case No. I CSK 592/15

1. The essence of an action to set aside an arbitration award is to provide a review mechanism respecting on one hand the separateness and autonomy of arbitration, and on the other hand preventing the functioning in legal circulation of rulings by non-state courts infringing the rule of law. A proceeding to set aside an arbitration award does not lead to reconsideration of the merits of the dispute between the parties, but is intended only to verify the applicant’s allegations of the existence of the grounds raised in the application provided for in Civil Procedure Code Art. 1206 §1, and assess whether any of the grounds provided for in Civil Procedure Code Art. 1206 §2 exist, whether or not asserted by the applicant.

2. Depriving a party of the ability to defend its rights before the arbitral tribunal occurs when the arbitral tribunal for example failed to notify the party of the date of the hearing after which the award was announced, when it did not hear out the party at all or give the party the opportunity to submit statements with respect to the matter in dispute. It does not constitute depriving a party of a defence to fail to admit and consider evidence offered by the party, if the arbitral tribunal justifies that procedural decision duly and in accordance with the accepted rules.

 3. Violation of the fundamental principles of the Polish legal system may occur in the realm of both substantive law and procedural law, which leads to a distinction between the substantive legal system and the procedural legal system. The fundamental principles of the Polish legal system should be understood to mean constitutional principles as well as the leading principles of other fields of substantive and procedural law; the latter undoubtedly include the principle of the equality of the parties.

Publication date: 07-10-2016 | Case no.: I CSK 592/15

Key issues: petition to set aside arbitration award

id: 20432

Polish Supreme Court resolution of 28 September 2016 Case No. III CZP 40/16

1. Enforcement of an arbitration award issued in the Republic of Poland or a settlement concluded before such arbitral tribunal is ruled on by the court of appeal in closed session in a panel of a single judge.

2. A proceeding for recognition or enforcement of an arbitration award issued in Poland or a settlement concluded before an arbitral tribunal in Poland is an auxiliary proceeding, while a proceeding for recognition or enforcement of an arbitration award issued abroad or a settlement concluded before such a foreign arbitral tribunal is analogous to a proceeding on the merits of the case.

3. Art. 12131 §2 of the Civil Procedure Code justifies application as relevant of Art. 390 §1 of the Civil Procedure Code.

4. Recognition and enforcement are treated in the law uniformly, with respect to an arbitration award issued in Poland or a settlement concluded before an arbitral tribunal in Poland, on the one hand, and an arbitration award issued abroad or a settlement concluded before a foreign arbitral tribunal, on the other hand.

5. In proceeding for recognition or enforcement of an arbitration award issued in Poland or a settlement concluded before an arbitral tribunal in Poland, review of the order is provided for through an interlocutory appeal to another panel of the court of appeal (Civil Procedure Code Art. 1214 §4). Such review is conducted in a panel of three judges (Civil Procedure Code Art. 367 §3, first sentence, in connection with Art. 397 §2, first sentence, Art. 3942 §2 and Art. 1214 §4).

Publication date: 28-09-2016 | Case no.: III CZP 40/16

Key issues: recognition and enforcement of domestic arbitration award, recognition and enforcement of foreign arbitration award

id: 20431

Warsaw Court of Appeal order dated 28 September 2016 Case No. I ACa 843/16

1. Art. 9 of [the Act of 10 September 2015 Amending Certain Acts to Encourage Amicable Methods of Dispute Resolution] ensures the continuity of application of the prior regulations of procedural law in cases pursuant to a petition to set an arbitration award which were commenced before the state courts prior to 1 January 2016. In cases in which a petition to set aside an arbitration award is filed with the state court after 31 December 2015, the new regulations apply.

2. Compliance with the deadline for filing a petition to set aside an arbitration award, filed with a state court not authorized to consider cases of this type, is determined by the date on which the unauthorized court (not having subject-matter jurisdiction) forwarded the case to the proper court.

Publication date: 28-09-2016 | Case no.: I ACa 843/16

Key issues: petition to set aside arbitration award

id: 20436

Kraków Court of Appeal judgment dated 14 June 2016 Case No. I ACa 197/16

1. The defectiveness of an arbitration award consisting of violation of the fundamental principles of the legal order (formerly, the rule of law) must be evident from the substance of the ruling. In evaluating whether an arbitration award is inconsistent with fundamental principles of the legal order, the content of the award should be considered, and not the correctness of the procedure before the arbitral tribunal.

2. The principles of civil liability for redress of injury are among the fundamental principles of the legal order in Poland. Under the civil law, and thus in private-law relations, where as a result of various events, particularly actions that are hazardous, or arise out of economic activity or vehicular traffic, as well as transactions, the occurrence of injury is universal in nature and requires legal regulations guaranteeing liability for damages. The regulations in this area are included in the fundamental norms of the law of obligations, and under tort or contract liability may be regarded as making up some of the fundamental principles of the legal order in the state.

Publication date: 14-06-2016 | Case no.: I ACa 197/16

Key issues: petition to set aside arbitration award

id: 20443

Polish Supreme Court order dated 25 May 2016 Case V CSK 257/15

The term “agreement in writing” referred to in Art. II (1) and (2) of the [New York] Convention also includes an agreement which provides for transfer of the rights covered by the agreement. Submission by a party seeking enforcement of a foreign arbitration award of a written agreement containing an assignment of a claim covered by an arbitration clause thus constitutes a formal requirement for the application identical to the requirement set forth in Art. IV(1)(b) of the convention.

Publication date: 25-05-2016 | Case no.: V CSK 257/15

Key issues: recognition and enforcement of foreign arbitration award

id: 20423

Polish Supreme Court judgment dated 6 May 2016 Case No. I CSK 305/15

1. A petition to set aside an arbitration award is a claim to establish a legal relationship, in which the plaintiff (the petitioner) demands that the state court issue a judgment setting aside (vacating) the existing legal relationship established by the arbitration award. A judgment by the state court granting the petition is of a quashing nature, as in such situation the state court can only set aside the arbitration award, and only insofar as demanded by the petitioner.

2. Even though the relief stated in a petition to set aside an arbitration award may involve setting aside the entirety of the arbitration award or part of the award, the state court is bound by the scope of the petition against by the award by the petitioner, and thus the bounds of the petitioner’s application.

3. Exceptionally, it is possible to grant a demand to set aside an arbitration court in part, but only when the challenged part of the ruling can be entirely separated from the rest of the award.

Publication date: 06-05-2016 | Case no.: I CSK 305/15

Key issues: petition to set aside arbitration award

id: 20419

Warsaw Court of Appeal judgment dated 9 March 2016 Case no. I ACa 796/15

1. An arbitration court cannot be regarded as a body of the justice system to which Art. 45 of the Constitution applies directly.

2. Pursuant to Art. 1184 §2 of the Civil Procedure Code, the arbitration court is not bound by regulations on procedure before the state court, and thus in particular Art. 328 §2 of the Civil Procedure Code, setting forth the requirements for the justification of a judgment.

3. Even an erroneous interpretation of regulations of substantive law of fundamental importance for the resolution, made by the arbitral tribunal, does not necessarily mean violation of the public policy clause. The assessment of whether the ruling violates fundamental principles of the legal order should thus be conducted on a case-by-case basis, narrowly, and an affirmative conclusion may be reached only if the effects of the ruling of the arbitral tribunal would result in a material violation of the fundamental principles covered by the public policy clause.

Publication date: 09-03-2016 | Case no.: I ACa 796/15

Key issues: petition to set aside arbitration award

id: 20425

Polish Supreme Court judgment dated 21 January 2016 Case No. III CSK 429/15

1. A petition to set aside an arbitration award is a claim to establish a legal relationship, in which the plaintiff (the petitioner) demands that the state court issue a judgment setting aside (vacating) the existing legal relationship established by the arbitration award. A judgment by the state court granting the petition is of a quashing nature, as in such situation the state court can only set aside the arbitration award, and only insofar as demanded by the petitioner.

2. Even though the relief stated in a petition to set aside an arbitration award may involve setting aside the entirety of the arbitration award or part of the award, the state court is bound by the scope of the petition against by the award by the petitioner, and thus the bounds of the petitioner’s application.

3. Exceptionally, it is possible to grant a demand to set aside an arbitration court in part, but only when the challenged part of the ruling can be entirely separated from the rest of the award.

Publication date: 21-01-2016 | Case no.: III CSK 429/15

Key issues: arbitration agreement

id: 20418

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