Katowice Court of Appeal judgment dated 26 October 2022 Case No. V AGa 163/22
1. Only in the situation when the assessment made by the state court that the effects of the arbitration award are grossly and plainly contrary to the fundamental principles of the legal order of the Republic of Poland, it is possible to find a petition to set aside an arbitration award based on the allegation of violation of Art. 1206 § 2 point 2 of the PCPC to be well-founded. In applying the public policy clause, the point is not that the ruling being reviewed is to be consistent with all of the mandatorily applicable provisions of law entering into play, but that it does not exert an effect inconsistent with the fundamental principles of the domestic legal order.
2. The Court of Appeal examining the legitimacy of a petition to set aside an arbitration award cannot change such an award, but only dismiss the petition or set aside the award.
3. [A] basis for setting aside an arbitration award may be … aggravated violations of substantive or procedural law which render the arbitration award irreconcilable with the legal standards deemed fundamental for the functioning of the legal system as such. Therefore, neither a mere misinterpretation of the substantive law nor a misapplication thereof by an arbitral tribunal justifies upholding of the petition even if mandatorily applicable provisions were violated… .
4. [A]n assessment as to whether an arbitration award violates the fundamental principles of the legal order shall be formulated narrowly and on the basis of factual circumstance of a given case.
Publication date: 26-10-2022 | Case no.: V AGa 163/22Key issues: petition to set aside arbitration award