POLAND Law and Practice Contributed by: Justyna Kucia, Katarzyna Paczuska-Tokarska, Barnaba Skibniewski and Anna Tujakowska, Sołtysiński Kawecki & Szlęzak
interest set by the legislation), or – in the absence of the parties’ agreement – by the pertinent legal acts applicable to the dispute. Generally, applicable law does not prescribe the rules regarding the costs of the arbitration proceedings. This issue is also left to the discretion of the parties or the arbitral tribunal. However, according to the rules of the principal arbi - tration institutions in Poland, while awarding the costs of the proceedings, the arbitral tribunal takes into account the degree of defeat of a losing party and often apply the “costs follow the event” approach. The costs are settled according to a schedule of costs submitted by the parties, and include the costs of legal representation. The parties do not have a statutory right to appeal an arbitral award. However, the parties can agree on the right to appeal under an arbitration agreement intro - ducing, for example, two-instance proceedings. Under the CPC, the parties have the right to bring an action before a common court to set aside an arbi - tral award. The court shall set aside an award only in enumerated cases. The court sets aside an award if: • it concerns a dispute that is not arbitrable; • it is contrary to the fundamental principles of the legal order of the Republic of Poland; or • it limits consumer protection. The court may also set aside an award if: • there was no arbitration agreement; • the dispute went beyond the scope of the arbitra - tion agreement; • a party was deprived of the opportunity to defend its rights in the arbitration proceedings – eg, through inadequate notice; • basic rules of procedure were violated; 11. Review of an Award 11.1 Grounds for Appeal
• the award was obtained as a result of a criminal offence or through the use of a counterfeit docu - ment; or • there was a final judgment of a common court in the same case. 11.2 Excluding/Expanding the Scope of Appeal The CPC provides the parties with an absolute right to bring an action before a common court to set aside an arbitral award. The right to bring an action may not be limited, excluded or waived – nor can the parties expand the scope of review of an arbitral award by the state court. 11.3 Standard of Judicial Review Under the CPC, common courts reviewing arbitration awards do not examine the merits of the case. The procedure for the recognition, enforcement or setting aside of an award is limited to a formal examination of the content of the award and an examination of whether the correct procedure was followed. The court refuses to recognise or enforce an award if: • it concerns a dispute that is not arbitrable; • it is contrary to the fundamental principles of the legal order of the Republic of Poland; or • it limits consumer protection. The above-mentioned conditions are also grounds for setting aside an award, following a party’s application. The court may also set aside an award if: • there was no arbitration agreement; • the dispute went beyond the scope of the arbitra - tion agreement; • a party was deprived of the opportunity to defend its rights in the arbitration proceedings – eg, through inadequate notice; • basic rules of procedure were violated; • the award was obtained as a result of a criminal offence or through the use of a counterfeit docu - ment; or • there was a final judgment of a common court in the same case.
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