case law

id : 20169

id: 20169

Polish Supreme Court order

dated 1 March 2000

Case No. I CKN 1311/98

Summary by arbitraz.laszczuk.pl:

H. sp. z o.o. brought an action against the Polish State Treasury seeking possession of property and an order requiring conclusion of a final contract of sale of the property. (T.P. SA was an intervenor on the side of the defendant.) The parties had entered into a preliminary agreement to sell the property, which annexed and incorporated by reference the form of the final agreement, which contained an arbitration clause.

The province court dismissed the action in its entirety on the grounds of the arbitration clause in the exhibit to the preliminary agreement.

On interlocutory appeal, the appellate court issued an order amending the order below to allow the action to proceed with respect to the claim for possession of property, which in the opinion of the appellate court was unrelated to the preliminary agreement which incorporated the arbitration clause by reference, but upheld dismissal of the claim seeking an order requiring conclusion of a final contract of sale on the grounds that the claim was subject to arbitration.

On cassation appeal by the plaintiff (in response to which the defendant also moved to vacate the order of the appellate court), the Supreme Court held that the justification for the order by the appellate court was internally inconsistent with the substance of the order, and vacated the order of the appellate court.

Excerpt from the text of the court’s ruling:

An arbitration clause is an agreement governed by Civil Code Art. 65.

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