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Setting-off or setting aside? Polish court holds that tribunal's refusal to consider set-off violates Polish public policy

  • Publication Name: Blog
  • Publication Name Index: Blog

The Appellate Court in Warsaw (Case No. VII AGa 804/19) considered whether a narrow arbitration clause maybe a reason for rejecting a set-off argument raised by a respondent in arbitration proceedings if the basis of the set-off claim is not covered by the arbitration clause. The Court found that in case of a set-off executed outside of the proceedings, there is no reason to exclude a defense based on this circumstance from the arbitral tribunal’s jurisdiction.