A Ruling on the Authority of Arbitrators in the Sense of a Ruling of Procedural Nature against Which a Separate Request for the Annulment of an Arbitral Award Cannot Be Made; Public Policy Exclusively as a Qualifi ed Violation of Fundamental Legal Principles

Ruling of the Supreme Court of Hungary (Magyar Köztársaság Legfelsőbb Bíróság) Ref. No. Gfv. XI.30.073/2006 delivered in 2007

Rationes Decidendi:

Not every violation of the law is a violation of public policy. A violation of public policy must be a considerable violation of a qualified degree that disrupts the fundamental principles of the Hungarian law.
The fact that a respondent does not oppose a ruling delivered in the course of arbitral proceedings, which concludes that the arbitration tribunal does not have a jurisdiction to resolve a dispute, does not deprive this party of the right to object a lack of jurisdiction in proceedings on the annulment of the arbitral award with regard to the merits of the case. In proceedings on a request to annul an arbitral award, the court examines the validity of the relevant arbitration clause from the position of an official authority.

keywords
award on jurisdiction
civil law
common law
partial arbitral award
nature of award on jurisdiction
investment securities
interim award
jurisdiction requirement
procedural award on jurisdiction
arbitration clause
decision on the merits
management of investment securities
public policy
about the authors

Univ. Professor, Dr.iur., Mgr., Dipl. Ing. oec/MB, Dr.h.c. Lawyer admitted and practising in Prague/CZE (Branch N.J./US), Senior Partner of the Law Offices Bělohlávek, Dept. of Law, Faculty of Economics, Ostrava, CZE, Dept. of Int. and European Law, Faculty of Law, Masaryk University, Brno, CZE (visiting), Chairman of the Commission on Arbitration ICC National Committee CZE, Arbitrator in Prague, Vienna, Kiev etc. Member of ASA, DIS, Austrian Arb. Association. The President of the WJA – the World Jurist Association, Washington D.C./USA.

e-mail: office@ablegal.cz