polish

case law

id : 20528

id: 20528

Supreme Court of Poland order

 dated 20 December 2013

Case No. V CSK 171/13

Summary by arbitraz.laszczuk.pl:

A dispute arose between K. M. and I. Bank, a joint-stock company (S. A.), in K. As an arbitration agreement was in place, an arbitral tribunal was competent to render an arbitration award. However, a petition to set aside the arbitration award was filed to the Court of Appeal, and thus this court delivered a judgment of 30 October 2012. Subsequently, K. M. filed a cassation appeal to the Polish Supreme Court. He alleged, among other things, that the arbitration award was in violation of the rule of law and principles of community life. Finally, the Polish Supreme Court refused to hear the cassation appeal and ordered K. M. to pay I. Bank PLN 600 as reimbursement of the cost of the cassation appeal proceedings.

The Polish Supreme Court found that the task of a state court hearing a petition to set aside an arbitration award is to explain whether or not there was a legal ground to set aside this award in the case. In principle, the court does not examine whether or not an arbitration award is within the substantive law, whether an arbitration award is based on the facts cited in the reasoning and whether or not these facts were correctly determined (cf. the Polish Supreme Court rulings: dated 6 May 1936, Case No. I C 1914/35, dated 18 March 1938, Case No. II C 2989/37, dated 21 December 2004, Case No. I CK 405/04, dated 8 December 2006, Case No. V CSK 321/06, dated 11 May 2007, Case No. I CSK 82/07.

The Polish Supreme Court found also that the presented allegations were meritless, both in the opinion of the Court of Appeal and the Polish Supreme Court. Contrary to K. M.’s allegation, the Court of Appeal had not infringed the provisions which were cited in the cassation appeal.

Excerpt from the text of the court ruling:

1. The legal grounds of setting aside an arbitration award are exhaustively specified in Art. 1206 of the Polish Civil Procedure Code. A court hearing a petition to set aside an arbitration award is bound by the grounds raised by the petitioner, so the court may set aside an arbitration award due to existence of a ground indicated in Art. 1206 only inasmuch as this ground was indicated in the petition.

2. The Polish Supreme Court ex officio, that is even without them being raised in the petition, takes into account only two legal grounds of setting aside an arbitration award indicated in Art. 1206 of the Polish Civil Procedure Code: the statutory inability of the arbitral tribunal to resolve the dispute (Art. 1206 § 2 point 1 of the Polish Civil Procedure Code) and inconsistency of the arbitration award with the fundamental principles of the legal order of the Republic of Poland (Art. 1206 § 2 point 2 of the Polish Civil Procedure Code).

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