polish

case law

id : 20431

id: 20431

Polish Supreme Court

resolution of 28 September 2016

Case No. III CZP 40/16

Summary by arbitraz.laszczuk.pl:

In February 2016 the Central Securities Depository of Poland (KDPW SA), as creditor, applied to the court of appeal for enforcement of an award issued in Poland in July 2015 by the Court of Arbitration at the Central Securities Depository of Poland against debtor J. SA, through issuance of an enforcement clause for the award.

The court of appeal had doubts under the amended new wording of the Polish arbitration law concerning the judicial panel which should decide such an application at the court of appeal and whether a hearing should be held on the application. The court of appeal sought a ruling from the Supreme Court of Poland accordingly on the following issues:

1) Pursuant to Civil Procedure Code Art. 1214 §2, does the court of appeal consider an application for enforcement of arbitration award or a settlement concluded before the arbitral tribunal after conducting a hearing, or in closed session?

2) When considering an application for enforcement of an arbitration award or a settlement concluded before an arbitral tribunal, as the court of first instance, applying as relevant the regulations governing appeals under Civil Procedure Code Art. 12131 §2, does the court of appeal consider the case in a panel of three professional judges, or in a panel of a single judge?

The Supreme Court found that these issues were not expressly addressed in the Civil Procedure Code amendments of September 2015, which entered into force from January 2016. However, in examining all of the relevant provisions together and in light of the legislative intent behind the amendment, the court determined that an application for recognition or enforcement of an arbitration award issued in Poland should be decided in a closed session by a panel of a single judge.

Excerpts from the text of the court’s ruling:

1. Enforcement of an arbitration award issued in the Republic of Poland or a settlement concluded before such arbitral tribunal is ruled on by the court of appeal in closed session in a panel of a single judge.

2. A proceeding for recognition or enforcement of an arbitration award issued in Poland or a settlement concluded before an arbitral tribunal in Poland is an auxiliary proceeding, while a proceeding for recognition or enforcement of an arbitration award issued abroad or a settlement concluded before such a foreign arbitral tribunal is analogous to a proceeding on the merits of the case.

3. Art. 12131 §2 of the Civil Procedure Code justifies application as relevant of Art. 390 §1 of the Civil Procedure Code.

4. Recognition and enforcement are treated in the law uniformly, with respect to an arbitration award issued in Poland or a settlement concluded before an arbitral tribunal in Poland, on the one hand, and an arbitration award issued abroad or a settlement concluded before a foreign arbitral tribunal, on the other hand.

5. In proceeding for recognition or enforcement of an arbitration award issued in Poland or a settlement concluded before an arbitral tribunal in Poland, review of the order is provided for through an interlocutory appeal to another panel of the court of appeal (Civil Procedure Code Art. 1214 §4). Such review is conducted in a panel of three judges (Civil Procedure Code Art. 367 §3, first sentence, in connection with Art. 397 §2, first sentence, Art. 3942 §2 and Art. 1214 §4).

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