case law

id : 20060

id: 20060

Polish Supreme Court ruling

dated 23 April 1936

Case No. C II 110/36

Summary by arbitraz.laszczuk.pl:

The buyer and the seller of real estate entered into an arbitration agreement as to disputes arising out of the purchase and sale agreement concluded by the parties. In the arbitration award, the arbitration court ordered conveyance of the property from one party to the other.

The party ordered to convey to the property brought an action to set aside the award, alleging that the arbitration agreement was invalid because it involved real estate but was not made in the form of a notarial deed, and that the award violated public policy because it purported to convey real estate without a notarial deed, as is required by the Notaries Law.

On cassation appeal, the Polish Supreme Court upheld the award, holding that the arbitration agreement as such did not transfer title to real estate and therefore did not need to be made in the form of a notarial deed pursuant to the Notaries Law. The award did not violate public policy because it constituted the equivalent of a judgment conveying real estate from one party to the other, which takes the place of a notarial deed to the same effect and effectively conveys title to the property.

Excerpt from the text of the court’s ruling:

Under Civil Procedure Code Art. 501 §2 and Art. 502, an arbitration award has the weight of a judicial ruling and is equivalent to a state court judgment. Because pursuant to Art. 82 §2 of the Notaries Law judicial rulings effectively take the place of the form of a notarial deed, the arbitration award is thus valid and effective despite the absence of the form of a notarial deed, and does not violate public policy, because it was issued in compliance with applicable regulations of law.

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