Annulment of Arbitral Award by the Court - Chapter 31 - Arbitration Law of Czech Republic: Practice and Procedure
Alexander J. Bělohlávek, 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.
31.I. ANNULMENT OF AN ARBITRAL AWARD AND PROCEEDINGS BASED ON A MOTION TO ANNUL (NATURE, PARTIES, MOTION, CONDITIONS, AND EFFECTS)
31.I.1. Purpose of and conditions for the application of annulment of an arbitral award
Annulment of an arbitral award by a court pursuant to Section 31 et seq. of the ArbAct is not a remedy (ordinary or extraordinary) against the arbitral award.4 It is necessary to keep this in mind whenever the procedure regulated under this provision is applied. The reason is that annulment of an arbitral award is sometimes erroneously confused with a remedial measure, whether ordinary or extraordinary. It is not a remedial measure even if the reason for annulment inheres in the grounds under Section 31(g) of the ArbAct with respect to consumer disputes, although it is true that para. (g) constitutes a certain inroad (albeit in a very special form) in the prohibition of review in the merits. Only a review by other arbitrators under Section 27 of the ArbAct is a remedy, i.e. review of the procedure and of the factual and legal correctness of the decision (providing the parties agree on the review). The application of Section 31 et seq. of the ArbAct can in no way make up for the carelessness and inadvertence of the parties who fail to agree on the possibility of review of their arbitral award by other arbitrators pursuant to Section 27 of the ArbAct and thereby voluntarily waive this opportunity. The function of the review in arbitration is analogous to an ordinary remedy against a decision of the trial court in litigation.