Consequences of Annulment of an Arbitral Award - Chapter 34 - 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.
34.I. PURPOSE OF SECTION 34(1) COMPARED TO SECTION 34(2) AND A NEW HEARING ON THE MERITS
The motion to annul an arbitral award is resolved by a court judgment which can be challenged by a remedial measure provided for under the CCP. Section 34 of the ArbAct sets forth further procedural steps in case the court grants the motion to annul an arbitral award pursuant to Section 31 of the ArbAct. The subsequent procedural steps depend on the grounds for which the AA was annulled. Irrespective of the grounds, however, the procedural and substantive effects of the filing of the request for arbitration (statement of claim) (Section 14 of the ArbAct) are preserved. The same, however, applies to the effects of a counterclaim (the filing of the counterclaim) asserted in the arbitral proceedings.
One of the important issues may be the nature of the new proceedings. Such nature may concern whether the new hearing of the case after annulment of the arbitral award is only a continuation of the initially commenced arbitration that ended with either the issuance of the arbitral award (before the Amendment to the ArbAct) or with the legal force and effect of the arbitral award (after the Amendment to the ArbAct), which was subsequently annulled, or whether the following proceedings are considered new. In this connection, it is necessary to point out the following.