case law

id : 20181

id: 20181

Polish Supreme Court judgment

dated 28 November 2000

Case No. IV CKN 171/00

Summary by arbitraz.laszczuk.pl:

Zygmunt Z., the tenant of land where he conducted fish farming operations, brought a claim in arbitration against the landlord, the Agricultural Property Agency, before the Białystok Regional Chamber of Legal Advisers pursuant to an arbitration clause in the tenancy agreements, seeking a determination of the rent and approval of improvements already made at the property by the tenant, and seeking to require the landlord’s consent to additional improvements. The landlord counterclaimed for back rent. The arbitration court granted the claim in part, denying the claim to require consent to additional improvements, and denied the counterclaim.

The province court granted in part the landlord’s petition to set aside the award as contrary to public policy.

The appellate court reinstated the arbitration award and otherwise denied
the cross-appeals.

On cassation appeal, the landlord claimed that the award was contrary to public policy because it interfered with the substance of the legal relationship between the parties and also because the person who signed the tenancy agreements for the landlord lacked authority to conclude an arbitration clause. The Supreme Court denied the cassation appeal, holding that the award did not violate public policy and that the claim of lack of authority on the part of the landlord’s signatory was raised too late and thus precluded.

Excerpts from the text of the court’s ruling:

1. After the period indicated in Civil Procedure Code Art. 713 §1 expires, the ability to supplement the grounds for a petition to set aside an arbitration award is precluded.

2. It cannot be accepted ... that an award violates the rule of law solely on the grounds that the ruling is not consistent with certain provisions of substantive law. The arbitration court is generally not bound at all by provisions of substantive law. It is bound to apply mandatorily applicable provisions of law whose violation would be tantamount to violation of the rule of law or principles of social coexistence.

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