Nature of Arbitration – Exclusion of Review on Merits and Ordinary and Extraordinary Remedies (Supreme Court; January 14, 1993)

Judgment of Bulgarian Supreme Court (Върховен съд) No. 327, Civil Case No. 257/92 of January 14, 1993

Rationes Decidendi:

An arbitral tribunal in voluntary arbitration is not a judicial authority (such as authorities with special jurisdiction), because of the contractual basis of arbitration. Authorities with special jurisdiction are different, because they were founded by the state (a state authority). This is not the case with commercial arbitration.
Awards rendered in [voluntary] arbitration need not comply with judicial practice and are not subject to any ordinary or extraordinary judicial review, nor are they subject to the laws regulating extraordinary review and the annulment of final and binding decisions of public authorities.
Arbitral tribunals resolve disputes in accordance with their own (internal)17 rules. The court is not allowed to review arbitral awards from the perspective of their [material] validity, because they were rendered under rules different from the CCP [BUL] [rules applicable to court proceedings], and the parties [having agreed on the arbitral clause], intentionally refused intervention by the courts (prohibition of judicial review of arbitral awards/prohibition of revision au fond). Another difference between the two types of proceedings consists of the fact that courts have a varying status within the judicial system (system of public authorities).

keywords
voluntary arbitration
extraordinary review
remedy
authority with special jurisdiction
public authorities
jurisdiction of courts
applicable procedural rules
civil procedure rules/rules applicable to court proceedings
final and binding decision
review of arbitral award
commercial arbitration
decision of a state authority
revision au fond
judicial system
court proceedings
contractual nature
public-law nature
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