The Supreme Court has clarified the fate of an arbitration clause in the event of termination of the underlying contract.
The Commercial Cassation Court within the Supreme Court considered a case concerning the jurisdiction of a commercial court where the contract contained an agreement to resolve disputes in an international arbitration institution. The key issue was whether the right to arbitration remains valid if one of the parties declares the complete termination of the main contract. It was also necessary to determine how deeply a state court may examine the factual status of the contract before refusing to consider the case on the merits.
The Court adopted a decision clarifying the rules on the separability (autonomy) of procedural agreements. Its conclusions shed light on whether an arbitration clause automatically loses effect together with the contract and whether judges are empowered to assess the legality of contract termination at the preparatory stage of proceedings. This position is expected to significantly impact legal strategies in commercial disputes involving a foreign element.
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