Poznań Court of Appeal judgment dated 24 May 2019 Case No. I ACa 989/18
1. [V]iolation of the fundamental principles of the Polish legal system may occur in the realm of both substantive and procedural law, which leads to a distinction between the substantive legal system and the procedural legal system. The fundamental principles of the Polish legal system should be understood to mean constitutional principles as well as the prime principles applicable in other fields of substantive and procedural law; the latter undoubtedly include the principle of the equality of the parties… .
2. A failure to admit and consider evidence offered by a party does not constitute deprivation of that party of a defense, if the arbitral tribunal duly justifies that procedural decision in accordance with the accepted rules… .
3. The essence of a petition to set aside an arbitration award is to provide a review mechanism respecting, on one hand, the separateness and autonomy of arbitration, and on the other hand, preventing the functioning in legal circulation of rulings by non-state courts violating the rule of law. Proceedings to set aside an arbitration award do not lead to reconsideration of the merits of the dispute between the parties, but are intended only to verify the petitioner’s allegations of the existence of the grounds raised in the petition provided for in Art. 1206 § 1 of the PCPC and assess whether any of the grounds provided for in Art. 1206 § 2 of the PCPC exist, whether or not asserted by the petitioner… .
4. [A]n arbitration agreement, arbitration rules of a permanent court of arbitration or otherwise adopted rules of procedure cannot violate Art. 1197 [of the PCPC – insertion added]. An arbitration award may contain elements not indicated in the provision – first and foremost, a ruling on the costs of the proceedings.
5. The written form of an [arbitration – insertion added] award is obligatory. An arbitration award shall, as a matter of principle, be signed by all the arbitrators, including arbitrators voting against the majority position. However, in the event of granting an award in the composition of at least 3 arbitrators, signatures of the majority of the arbitrators with indication why there are no signatures of the remaining arbitrators, are sufficient. It is accepted in the doctrine that an award acquires legal force when it is signed.
6. Article 1197 § 2 [of the PCPC – insertion added] stipulates that an arbitration award shall state the reasons for the ruling. Indication of the reasons for a ruling, on which an arbitral tribunal has based the award, does not have to comply with the requirements for the proceedings before a state court. In particular, an arbitral tribunal is not obliged to indicate the legal basis of its ruling. However, it shall result out of the reasoning on what facts an arbitral tribunal has based its ruling and which circumstances have been found by the arbitral tribunal to be significant to resolve a dispute.
7. Article 1197 [of the PCPC – insertion added] does not require an arbitration award to contain a ruling regarding the demands of the parties. This, however, is obvious.
Publication date: 24-05-2019 | Case no.: I ACa 989/18Key issues: arbitration award, petition to set aside arbitration award