case law

id : 20240

id: 20240

Polish Supreme Court judgment

dated 12 September 2007

Case No. I CSK 192/07

Summary by arbitraz.laszczuk.pl:

Marek D. filed a claim against M. SA for a contractual penalty in the amount of PLN 3.0 million before the Court of Arbitration at the Polish Chamber of Commerce. The arbitration court held that the amount of the penalty was excessive and issued an award for PLN 1.5 million. M. SA had undergone an arrangement proceeding, concluded with a confirmed arrangement with creditors in which Marek D.’s claim had been disallowed because it was disputed by the debtor. On a petition by M. SA to set aside the award, the regional court held that the award was lawful and did not violate public policy. The appellate court found that the arbitration court had erroneously interpreted Art. 67 of the former Law on Arrangement Proceedings (superseded in the interim by the Bankruptcy & Reorganization Law of 2003) but the violation did not rise to a level constituting a violation of public policy. The Supreme Court denied the cassation appeal on the same grounds.  

Excerpts from the text of the court’s ruling:

1. The construction of the petition to set aside an arbitration award shows that this instrument is not intended for substantive review of the correctness of the decision of the arbitration court by the state court, as in the case of appellate review within a judicial proceeding.

2. The assessment of a decision by an arbitration court in substantive terms involves an assessment of whether it violates the rule of law or principles of social coexistence.

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