The issue of whether and when an arbitral award can be challenged has been analysed by state courts for years. 

The Code of Civil Procedure states in Article 1205 that an arbitral award issued in Poland may be set aside by a state court exclusively in proceedings initiated upon the submission of a complaint for its annulment. A complaint is nothing more than a separate lawsuit. It must be submitted to the court of appeal within three months of the date of delivery of the arbitral award. The mere submission of the complaint does not suspend its enforceability. A "normal" court fee must also be paid for the complaint. 

The complaint is not an appeal

People most often file complaints arguing that the arbitral tribunal incorrectly assessed the evidence or misinterpreted the provisions. On this basis, they demand changes to unfavourable judgments. Unfortunately, by presenting such a line of defence, complainants usually leave empty-handed. A complaint to annul an arbitral award is not a "normal" appeal. The state court is not a higher instance court that would change the award if necessary. 

What does the court of appeal examine? 

To better understand this matter, it is best to let the Court of Appeal in Warsaw speak for itself.

“A complaint is not a means of appeal, and the role of the state court, unlike in appellate proceedings, is not to re-examine the case decided by the arbitral award on the merits. In proceedings before the state court, the court does not examine whether the arbitral award is contradictory to substantive law or whether it is based on the facts cited in the award, nor whether these facts have been correctly established.”

Single-instance proceedings

So is the die cast? Does a person aggrieved by an arbitral award have no chance of having the case reconsidered by another court? 

The answer is found in the further reasoning of the Court of Appeal's judgment.

“By entering into an arbitration agreement, the parties knowingly waive the strictures governing proceedings before a state court, including some procedural guarantees present in such proceedings. By deciding to submit the potential dispute to the resolution by an arbitral tribunal, they must be aware of both the positive and negative consequences of including appropriate provisions in the clause. In resolving cases, the arbitral tribunal need not adhere strictly to the provisions of substantive law, as a state court must, but may base its decision on principles of equity or issue a judgment according to general principles of law” (Judgment of the Court of Appeal in Warsaw dated 17 October 2018, ref. no. I AGa 11/18).

In other words - if the parties consciously opted out of state courts because they wanted a faster, more convenient judgment without unnecessary formalities - they must now face the consequences. The principle of "turning to God when in distress" does not apply here.

When can you file a complaint

According to Article 1206 of the Code of Civil Procedure, a party may seek the annulment of an arbitral award by way of a complaint if: 

1. there was no arbitration agreement, the arbitration agreement is invalid, ineffective, or has lost its effect

2. the party was not properly informed of the proceedings before the arbitral tribunal or was otherwise deprived of the opportunity to defend their rights; 

3. the arbitral award relates to a dispute not covered by the arbitration agreement or goes beyond the scope of such agreement

4. the requirements for the composition of the arbitral tribunal or the fundamental rules of procedure before this tribunal were not met

5. the award was obtained by a crime or the basis for issuing the award was a forged or altered document

6. in the same case and between the same parties, a final state court judgment has already been rendered 

7. under the law, the dispute cannot be resolved by arbitration at all 

8. the arbitral award is contrary to the fundamental principles of the legal order of the Republic of Poland (public order clause)

An analysis of what these premises specifically mean goes beyond the scope of this entry. Moreover, even if we wanted to discuss them here, we would never do so as competently, clearly, simply, and accessibly as Prof. Dr. hab. Jacek Gołaczyński in the video below. If you have 13 spare minutes and the above topic intrigues you, be sure to watch:

Soon, the next part of the interview with Prof. Dr. hab. Jacek Gołaczyński. We will discuss the possibility of directing the award to enforcement by a bailiff!