id: 20152

Polish Supreme Court judgment

dated 27 May 1998

Case No. I CKN 709/97

Summary by arbitraz.laszczuk.pl:

P. sp. z o.o. won an arbitration award against housing cooperative K. The cooperative moved to set aside the award on grounds of violation of public policy. The province commercial court denied the petition to set aside the award. The appellate court denied the appeal. The Supreme Court found that the lower courts had thoroughly considered the defects in the award alleged by the cooperative and had determined within their discretion that the award did not violate public policy. Thus the cassation appeal was denied.

Excerpt from the text of the court’s ruling:

The arbitration court is not bound by regulations of substantive law in force, as the one criterion for assessing the correctness of the award provided by the code is the requirement of lawfulness and principles of social coexistence. This means ... that a petition to set aside an arbitration award may not be granted only because the award is found to have legal or factual defects.