Polish Supreme Court ruling
dated 4 October 1934
Case No. C II 1861/34
Summary by arbitraz.laszczuk.pl:
An arbitration was commenced in Lwów (formerly in Austrian territory) prior to 1 January 1933 (the effective date of the Polish Civil Procedure Code) and concluded in issuance of an award in October 1933.
One of the parties filed a petition to set aside the award, which was denied at two instances. The petitioner filed a cassation appeal with the Supreme Court of Poland, on several grounds, but the cassation appeal was denied on all grounds.
The Supreme Court held that because the arbitration was commenced prior to the effective date of the Polish Civil Procedure Code but did not conclude in issuance of an award until after the effective date of the Polish Civil Procedure Code, the arbitration proceeding was governed by the former Austrian Civil Procedure Code.
The arbitration court refused to remove one of the arbitrators on the grounds of lack of impartiality. The arbitrator was the vice president of the Lwów Merchants Association, of which the claimant’s brother was the secretary. The Supreme Court held that the decision on this motion lay within the discretion of the arbitration court and could not be reviewed by the state court.
The petitioner alleged that the claimant had failed to submit the original arbitration agreement to the arbitration court. The Supreme Court held that this did not invalidate the award, because an arbitration agreement did in fact exist.
The Supreme Court held that the arbitration court’s refusal to permit the petitioner to take the testimony of the claimant was an unreviewable procedural decision.
The Supreme Court held that the arbitration court’s failure to provide a justification for the award was not grounds for setting aside the award.
Excerpts from the text of the court’s ruling:
1. From the perspective of Austrian civil procedure regulations, failure to submit the original arbitration clause to the arbitration court does not justify ineffectiveness of the arbitration award, as this result follows under § 595(1) of the [former Austrian] Civil Procedure Code only from lack of an arbitration clause.
2. The state court is not a higher instance with respect to the arbitration court, and thus determinations made by the arbitration court within its discretion may not be appealed against.
3. The lack of justification of an arbitration award is not included in § 595 of the [former Austrian] Civil Procedure Code as grounds for ineffectiveness of the arbitration award.