case law

id : 20586

id: 20586

Polish Supreme Court judgment

 dated 28 March 2017

Case No. II CSK 444/16

Summary by arbitraz.laszczuk.pl:

The claimant, that is C. K., demanded that the amount of approx. PLN 3,200,000 with statutory interest be paid by the respondent, that is K. L., a joint stock company, in P. The dispute concerned renumeration stipulated in an agency agreement concluded by the parties regarding the acquisition of a football player R. L. by the respondent. As per the arbitration agreement, the Football Arbitration Court at the Polish Football Association (the “Football Arbitration Court”) delivered an award. As a result of a petition for reconsideration filed by the respondent, the Football Arbitration Court re-examined the case and delivered another award.

The claimant filed a petition to set aside the arbitration award to the Regional Court in P., but the petition was found to be meritless. Then the claimant filed an appeal, but the Court of Appeal stated that the position of the Regional Court had been correct. Finally, the claimant decided to file a cassation appeal to the Polish Supreme Court.

The Polish Supreme Court dismissed the cassation appeal. It stated that the control exercised under Art. 1206 § 2 point 2 of the Polish Civil Procedure Code (the “PCPC”) concerns fundamental principles and infringements of a gross and cardinal nature, therefore the claims could not be deemed well-founded.

Excerpts from the text of the court ruling:

1. The difference between ruling on the basis of the principles of equity and application of Art. 5 of the Polish Civil Code lies is the scope of the interference. Resolution of a dispute on the basis of the principles of equity allows an arbitral tribunal to substitute positive law with social norms and to assess all circumstances of the disputed relationship according to this criterion, whereas application of Art. 5 of the Polish Civil Code is limited to assessment of compliance of the exercise of a subjective right with social norms.

2. [T]he public policy clause makes it possible to eliminate systemically defective arbitration awards that grossly transgress against the foundations of the Polish legal order.

3. [A]ssessment whether the principle of pacta sunt servanda has been infringed as a result of a restriction arising out of a contractual subjective right, especially in the case when an arbitral tribunal rules on the basis of legal provisions (Art. 1194 § 1 of the PCPC) must include an examination of the grounds of applying Art. 5 of the Polish Civil Code, because only this way it may be assessed whether the foundations of the legal order have been violated or not.

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