case law

id : 20427

id: 20427

Poznań Court of Appeal order

Dated 22 November 2013

Case no. I ACz 703/12

Summary by arbitraz.laszczuk.pl:

In a proceeding before the Court of Arbitration at the Polish Chamber of Commerce, G.S.L. obtained an award against a Polish company for over EUR 3.3 million “plus statutory interest from 21 October 2010.” The Poznań Regional Court granted G.S.L.’s application for enforcement of the award.

On interlocutory appeal to the Poznań Court of Appeal, the respondent alleged that the lower court erred in enforcing the award because it violated public policy, specifically because the arbitral tribunal had rejected the respondent’s motion to cut the amount of the contractual penalty provided for in the parties’ contract, and because the award was allegedly incapable of performance because it did not state the end date of the period for payment of interest.

The court of appeal first pointed out that the respondent had already pursued an application to set aside the award on the issue of the arbitral tribunal’s failure to cut the contractual penalty. That application was denied with legal finality. The court there had held that failure to reduce the contractual penalty could not serve as grounds for setting aside the award because the amount of the contractual penalty was not excessive in light of the scale of the parties’ venture. That ruling established the precedent in the case. Concerning the award of interest, the award was capable of performance because interest was due until the date of payment, regardless of whether or not that was expressly stated in the award. The court denied the appeal accordingly.

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