polish

case law

id : 20282

id: 20282

Katowice Appellate Court judgment

dated 18 October 2004

Case No. I ACa 565/04

Summary by arbitraz.laszczuk.pl:

S. sp. z o.o. brought ad hoc arbitration proceedings against C.T. under a 1997 investment agreement, seeking some PLN 24 million plus interest.

The arbitration court issued an award in 2003 for the principal amount but found that the claim for interest was barred by the statute of limitations. There was a dispute concerning whether a notation by the debtor, in response to a request to confirm the balance outstanding, that payment of the interest should be negotiated, constituted acknowledgement of the claim, interrupting the statute of limitations. The arbitration court considered the behaviour of the parties and found that the respondent had not acknowledged the interest claim and thus the statute of limitations continued to run.

The claimant filed a motion with the Katowice Regional Court to set aside the award as internally contradictory and contrary to public policy. (The respondent did not join issue in the judicial proceeding.) The court denied the motion, finding that the award was proper and consistent with the law. The appellate court affirmed.

Excerpts from the text of the court’s ruling:

1. The court where a petition to set aside an arbitration award is filed does not act as a court of second instance, authorized to review the case on the merits applying provisions of substantive law, but assesses the challenged award only in terms of the violations indicated in Civil Procedure Code Art. 712 §§ 1 and 2.

2. There can be no violation of the rule of law where the arbitration award complies with substantive law in force and was not issued in violation of provisions of substantive law, let alone gross violation. Only a gross violation would warrant a finding that the arbitration award violated the rule of law.

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