Arbitration awards and their enforcement

01.05.2014 Arbitration | procedure in Poland

What can be done when an award is unclear or contains mistakes?

The arbitral tribunal may correct, on its own initiative, any inaccuracies in the award or any typographical or computational errors as well as any other obvious mistakes, within one month after issuing the award.

Either party, with notice to the other party, may request the arbitral tribunal to make such corrections or provide an interpretation of the award. The requests must be addressed to the tribunal within two weeks of receipt of the award, unless the parties have agreed on some other period. The tribunal should issue a decision within two weeks after receiving the request.

If necessary, the arbitral tribunal may extend the time provided for correction, interpretation, or issuance of an additional award.

What can be done when the arbitral tribunal has not made a decision on part of a claim?

Unless otherwise agreed by the parties, a party, with notice to the other party, may request, within one month of receipt of the award, that the arbitral tribunal make an additional award concerning claims presented in the arbitral proceedings but omitted from the award. If the arbitral tribunal considers the request to be justified, it will make the additional award within two months.

The arbitral tribunal may if necessary extend the period specified for issuing an additional award.

When is it possible to challenge an award by an arbitral tribunal?

Recourse against an arbitration award may be made only by an application to set aside the award, and only if:

There was no arbitration clause, or the clause is invalid, ineffective or no longer in force under applicable law
The party was not duly notified of the appointment of an arbitrator or of the proceedings before the arbitral tribunal, or was unable to defend its rights before the tribunal
The award does not concern a dispute covered by the arbitration clause or is beyond the scope of the arbitration clause (but if decisions on matters submitted to arbitration can be separated from the extraneous issues, only the part of the award that contains decisions on matters not submitted to arbitration may be set aside)
Requirements concerning the composition of the arbitral tribunal or basic principles of proceedings before the tribunal, as provided by law or specified by the parties, were not met
The award was obtained through a criminal offence or on the basis of a forged or altered document
The dispute was already resolved
The case was not arbitrable, or
The award is contrary to fundamental principles of the legal order of the Republic of Poland (the public policy clause).

Either party may file an application to set aside an award within three months after receipt of the award or a decision concerning a request to supplement, correct or interpret the award, if any (or from the date of discovery of the grounds for setting aside the award, in case of the fifth or sixth point above, but no later than within five years).

When appropriate and upon application of a party, a court requested to set aside an award may stay the proceeding to set aside the award for a certain time to give the arbitral tribunal an opportunity to resume the arbitration or take other action that would eliminate the grounds for setting aside the award.

What are the rules for enforcement of domestic arbitration awards in Poland, and what are the costs involved?

Following recognition or enforcement by the court, an arbitration award or settlement agreed before an arbitral tribunal has the same legal effect as a judgment of a court or a settlement agreed before a court.

Regardless of the country where the award was issued, recognition or enforcement is conducted according to the rules set forth in the Civil Procedure Code.

The court that would have had jurisdiction to consider the matter (had the parties not concluded an arbitration clause) has jurisdiction to recognise or enforce an arbitration award or settlement agreed before an arbitral tribunal, upon application of a party.

The application is subject to a fee of PLN 300.

The party is required to enclose with the application the original award or settlement (or a copy certified by the arbitral tribunal) as well as the original arbitration agreement (or a certified copy). If the arbitration award or settlement agreed before the arbitral tribunal or the arbitration clause is not in Polish, the party is required to enclose a certified Polish translation.

Where an arbitration award or settlement agreed before an arbitral tribunal is capable of being enforced, the court will enforce it by issuing a writ of enforcement.

The court will refuse recognition or enforcement on its own initiative if:

The dispute was not arbitrable, or
Recognition or enforcement would be contrary to fundamental principles of the legal order of the Republic of Poland (the public policy clause).

Furthermore, upon application of a party the court will refuse to recognise or enforce an award where:

There was no arbitration clause, or the clause is invalid, ineffective or no longer in force under applicable law
The party was not duly notified of the appointment of an arbitrator or of the proceedings before the arbitral tribunal, or was unable to defend its rights before the tribunal
The award does not concern a dispute covered by the arbitration clause or is beyond the scope of the arbitration clause (but if decisions on matters submitted to arbitration can be separated from the extraneous issues, only the part of the award that contains decisions on matters not submitted to arbitration will be denied recognition or enforcement)
The composition of the arbitral tribunal or the procedure before the tribunal was inconsistent with the parties’ agreement, or in the absence of agreement, was inconsistent with the law of the country where the arbitration was conducted, or
The arbitration award is not yet binding on the parties or was set aside, or enforcement was stayed, by a court in the country in which or according to whose law the award was issued.

What are the rules for enforcement of foreign arbitration awards in Poland, and what are the costs involved?

Recognition and enforcement of a foreign arbitration award in Poland is based on:

The Polish Civil Procedure Code, and/or
The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958).

Foreign awards may be recognised or enforced on the basis of an international treaty, which has precedence over national law (Civil Procedure Code Art. 1096 and Polish Constitution Art. 91), such as the New York Convention, or, in the absence of a treaty, on the basis of the Civil Procedure Code.

Regardless of the country where an award was issued, recognition or enforcement is conducted according to the rules set forth in the Civil Procedure Code.

The application is subject to a fee of PLN 300.

The party is required to enclose with the motion the original award or settlement (or a copy certified by the arbitral tribunal) as well as the original arbitration agreement (or a certified copy). If the arbitration award or settlement agreed before the arbitral tribunal or the arbitration clause is not in Polish, the party is required to enclose a certified Polish translation.

Where an arbitration award or settlement agreed before an arbitral tribunal is capable of being enforced, the court will enforce it by issuing a writ of enforcement.

The court will refuse recognition or enforcement on its own initiative if:

The dispute was not arbitrable, or
Recognition or enforcement would be contrary to fundamental principles of the legal order of the Republic of Poland (the public policy clause).

Furthermore, upon application of a party, the court will refuse recognition or enforcement where:

There was no arbitration clause, or the clause is invalid, ineffective or no longer in force under the law governing the arbitration clause
The party was not duly notified of the appointment of an arbitrator or of the proceedings before the arbitral tribunal, or was unable to defend its rights before the tribunal
The award does not concern a dispute covered by the arbitration clause or is beyond the scope of the arbitration clause (but if decisions on matters submitted to arbitration can be separated from the extraneous issues, only the part of the award that contains decisions on matters not submitted to arbitration will be denied recognition or enforcement)
The composition of the arbitral tribunal or the procedure before the tribunal was inconsistent with the parties’ agreement, or in the absence of agreement, was inconsistent with the law of the country where the arbitration was conducted, or
The arbitration award is not yet binding on the parties or was set aside, or enforcement was stayed, by a court in the country in which or according to whose law the award was issued.