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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 No. 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

Polish Supreme Court judgment dated 20 January 2016 Case No. IV CSK 282/15

1. Accepting that an arbitration award does not have binding force or res judicata effect would totally undermine the purpose for the existence of arbitration.

2. Pursuant to Civil Procedure Code Art. 1212 §1, the state court is bound, under the rules set forth in Civil Procedure Code Art. 365, by a legally final and enforceable arbitration award, which also has res judicata effect in the respect indicated in Civil Procedure Code Art. 366.

3. Under Civil Procedure Code Art. 365, both the court and the parties are bound by a legally final and enforceable arbitration award issued in the case pending with their participation. This binding force means that such award is of a preclusive nature in another case between the same parties if the specific relationship exists between the award and the subsequently pending case consisting in the legally final prior ruling impacting the resolution of the pending case.

Publication date: 20-01-2016 | Case no.: IV CSK 282/15

Key issues: arbitration award

id: 20415

Polish Supreme Court judgment dated 4 December 2015 Case No. I CSK 26/15

The concept of “public policy” is included in numerous provisions of Polish public law. This concept under the New York Convention corresponds to the concept of “fundamental principles of the legal order” included in a dozen or more provisions of Polish law. Fundamental principles of the legal order constituting grounds for evaluating an arbitration award should be understood to mean not only constitutional norms, but also the principal norms in specific fields of law.

Publication date: 04-12-2015 | Case no.: I CSK 26/15

Key issues: New York Convention, recognition and enforcement of foreign arbitration award

id: 20408

Polish Supreme Court judgment Dated 29 October 2015 Case No. I CSK 922/14

Examination of the case with respect to the grounds for setting aside an award under Civil Procedure Code Art. 1206 §2(2) may not proceed beyond aggravated violations of law. This position results directly from the wording of this provision, which authorizes the state court to set aside an arbitration award if it finds that it is contrary to fundamental principles of the legal order of the Republic of Poland, and not if it is inconsistent with just any regulation in force in that system.

Publication date: 29-10-2015 | Case no.: I CSK 922/14

Key issues: petition to set aside arbitration award

id: 20409

Warsaw Court of Appeal judgment dated 9 October 2015 Case No. I ACa 2048/14

1. An arbitration clause included in an agreement of the parties cannot be a limitation on exercise of a subjective right. Such a clause has a different purpose; if the relevant objection is raised, it excludes the possibility of pursuing a claim covered by the clause before the state court. An arbitration clause aims at exerting procedural effects, preventing resolution of the dispute by the state court. It does not automatically carry over to a proceeding to defeat execution, as that does not serve to pursue a claim. It is a claim to establish a right.

2. Civil Code Art. 498 does not contain a requirement that a claim be undisputed or that the claim presented for setoff be undoubted as to its existence and easy to demonstrate. All the more, there are no grounds for requiring that it be reduced to a judgment, including an arbitration award.

Publication date: 09-10-2015 | Case no.: I ACa 2048/14

Key issues: arbitration agreement

id: 20421

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