Arbitration Courts and the Judiciary – “Independence and Equivalence”

Ruling of the Supreme Court of Hungary (Magyar Köztársaság Legfelsőbb Bíróság) Ref. No. Gfv.VI.32.866/2001

Rationes Decidendi:

Courts (general/state courts) may not intervene in arbitral proceedings in the event a valid arbitration clause exists.
Arbitration courts are not a part of the judiciary and are not subject to the oversight authority of the Supreme Court of Hungary.
Courts may not intervene in arbitration even in respect of a complaint filed in relation to an arbitral award on the grounds that an arbitral award has violated public policy due to the fact that the arbitral award is contrary to a previously delivered verdict of a [general/state] court regarding an issue that is of material importance for settling the dispute.
Courts, including the Supreme Court (of Hungary), do not have the right to overturn a decision made by arbitrators on the merits.
In the same way as courts that constitute the judiciary system, arbitration courts have the authority to interpret the law and legal regulations (individual laws).

keywords
jurisdiction of arbitrators
jurisdiction of courts
interpretation of the law
public policy
independence of courts
independence of arbitration courts
prohibition of revision au fond
prohibition of review on the merits
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