The Extensive Leeway of Arbitrators for the Determination of the Margin of Freedom Given to Parties for Presenting Their Case (Fair Trial in Arbitral Proceedings); Jurisdiction regarding Claims Raised by Means of Setoff Objection

Ruling of the Supreme Court of Hungary (Magyar Köztársaság Legfelsőbb Bíróság) Ref. No. Gfv. XI. 30. 176/2007 delivered in 2007

Rationes Decidendi:

Arbitrators have an extensive leeway in the determination of the margin of freedom given to parties for presenting their case.
It is not a violation of the right of a party to present its case [and, consequently, the right to a fair trial in arbitral proceedings] if an arbitration tribunal does not provide a party with a time to respond to the last document submitted by the counterparty as part of the proceedings.
Arbitral tribunals have the jurisdiction to settle a claim raised as part of proceedings as a setoff objection even though the relevant arbitration clause does not expressly apply to it.

keywords
setoff objection
right of a party to present its case
freedom to state one´s position
fair trial
setlff
annulment of arbitral award
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