case law

id : 20056

id: 20056

Polish Supreme Court ruling

dated 22 October 1935

Case No. C II 984/35

Summary by arbitraz.laszczuk.pl:

Mendel R. filed a claim before the Sambor Regional Court against Ozjasz and Felga H., jointly and severally, for zł 3,301.93. The matter was subsequently submitted to arbitration, and the claimant obtained an award against the respondents, jointly and severally, in the amount of zł 2,938.93, on condition that Mendel R. submit a sworn statement to the Drohobycz Municipal Court by 25 February 1933 that after a final accounting he was actually owed this amount; or, failing such condition, in the amount of zł 907.93. If the amount of the award was paid, the case before the regional court would then be dismissed.

In an action to set aside the award, the Lwów Appellate Court found that the conditional relief ordered by the arbitration court did not constitute a proper award because it did not finally resolve the parties’ demands. The court set aside the award accordingly, without considering the other grounds for appeal.

On review, the Polish Supreme Court held that the conditional award issued by the arbitration court was a proper award, because the condition was definite and not subject to interpretation, and the award specified the exact amount that would be owed if the condition were fulfilled or not fulfilled. The Supreme Court set aside the judgment of the appellate court accordingly and remanded the case to the appellate court for consideration of the other grounds raised in the appeal.

Excerpts from the text of the court’s ruling:

1. Civil Procedure Code Art. 503 provides for the ability to set aside an arbitration award only in exceptional circumstances, and such provisions are subject to strict rather than expansive interpretation. As a result, in case of doubt, the award should be maintained in force rather than set aside.

2. It follows from the concept of “resolution” that an award by an arbitration court should be of a type that definitively ends the dispute, and from which it will be apparent in what manner the dispute was resolved, so that any doubts or potential further disputes in this respect are excluded.

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