Polish Supreme Court judgment
dated 11 July 2001
Case No. V CKN 379/00
Summary by arbitraz.laszczuk.pl:
Bogdan M. filed a claim before the Permanent Court of Arbitration at the Wielkopolska Chamber of Industry and Commerce against Bank Gospodarki Żywnościowej for over PLN 2 million allegedly due under a contract for renovations and decoration. The arbitration court issued an award for 80% of the claim.
The agreement provided in §22 that disputes would be decided by the Permanent Court of Arbitration at the Wielkopolska Chamber of Industry and Commerce, but §23(2) provided: “If a settlement is not reached at the first session, the dispute between the parties shall be submitted to the Common Court.”
The respondent filed a petition with the province court to set aside the award on the grounds that there was no arbitration clause in force. The court found that the agreement provided only for mediation before the arbitration court to help the parties reach a settlement, but there was no submission to arbitration. The appellate court denied the appeal and the Supreme Court denied the cassation appeal on the same grounds.
Excerpt from the text of the court’s ruling:
The essence of an arbitration clause is submission of a dispute to the arbitration court for resolution. If the agreement does not provide the arbitration court with a dispute-resolution function, then it does not contain an arbitration clause.