PROCEDURE | Business entities must bear in mind that if an arbitrator’s decision is contrary to public policy, it is not possible for a common court to recognise it or ascertain its enforceability. This may also result in the reversal of an arbitration court’s decision and the need to resolve the dispute once again.  

Even though the consequences of a situation in which a common court applies the public order clause appear only after an arbitration court issues a decision, they are grave indeed. It may thwart the settlement of a dispute reached by the arbitrators. If the case needs to start all over again, it may expose business entities that have decided to resolve a dispute in a court of arbitration to considerable costs and loss of time.

Author: Karolina Pasko, lawyer at FKA Furtek Komosa Aleksandrowicz
Source: Rzeczpospolita

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