Judgment of Supreme Court of Cassation No. 689, Commercial Case No. 360/2008 of October 31, 2008
Rationes Decidendi:
A violation of public policy constitutes a breach of overriding mandatory public-law rules based on the Constitution of the Republic of Bulgaria. The breach must affect rules that represent the basis of the legal system.
The court is prohibited from reviewing the merits of the arbitral award and examining the subject matter of the dispute, even if the purpose is to establish whether or not the award violated public policy.
The court is only entitled to set aside an arbitral award on the basis of grounds expressly specified in the International Commercial Arbitration Act (ICAA [BUL]). A violation of public policy constitutes one of these grounds. The violation of public policy must be manifest, without the necessity to examine the decision on the merits.
purchase price
Constitution of the Republic of Bulgaria
public law rule
subject matter of the dispute
review of an arbitral award
review on the merits
violation of public policy
damage
public policy
prohibition of review
basis of the legal system
manifest violation / manifest breach
setting aside of an arbitral award
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