Fundamental Principles of the Legal Order: Arbitration Award That Infringes the Guiding Legal Principles

Supreme Court (Sąd Najwyższy) [POL], Docket V CSK 8/08 as of 11 June 2008

Rationes Decidendi:

The review of the subject matter of the arbitral award by common law is limited to an assessment of whether or not the delivered award infringes any principles of the legal order. The legislature applies the term of “fundamental principles of the legal order” (Article 1206, Section 2, Item 2 of the Code of Civil Procedure), which expressly indicates that we are dealing with such an infringement of regulations in material law that leads to the violation of the principles of the rule of law (law and order), and the delivered arbitral award violates the fundamental legal principles applicable in the Republic of Poland, it harms the governing legal order, and thus violates the systemic, political, social and economic principles.
Fundamental principles of the legal order essentially include the principle of redress for damage. Unarguably, the compensation should match the damage.
Any legal action performed to evade the regulatory prohibition against deducting any claims from a composition arrangement violates the public order clause.

keywords
arbitral award
annulment of arbitral award
arbitral proceedings
arbitration court
constitution
legal order
fundamental principles of the legal order
public order
redress
rule of law
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


Mgr. Tomáš Řezníček (*1978) works as a legal trainee in the Law Offi ces of Bělohlávek, Prague, Czech Republic. Graduated from the Law Faculty of Charles University in Prague in 2007, also absolved foreign studies at the Law Faculty of Jagiellonian University in Krakow. Coauthor of various articles with prof. A. Bělohlávek published in professional periodicals in the Czech Republic. Field of interest: Commercial Law, Private International Law, Pharmaceutical Law.

e-mail: tomas.reznicek@ablegal.cz