Lisbon Court of Appeal | Modification of Arbitral Awards | 28-01-2016
Case Nr. 660/15.8YRLSB-2
An arbitral award may be modified if the facts on which it was based have subsequently suffered a material change.
1. The extent to which the motivation of the arbitral award is required for there to be a valid decision varies from case to case. The motivation required is the one that allows an appropriate understanding of the dispute and the decision that was made. A motivation merely insufficient does not constitute grounds to annul the award.
2. Further, the factual background of any given decision must not follow a mandatory template. It is sufficient that the decision points out, in an intelligible manner, the facts upon which it is based, and the indication of the evidences is required only in relation to facts that were disputed between the parties.
3. If the arbitral tribunal has disregarded certain facts, which were neither considered as “proven”, nor as “not proven”, that does not give grounds to annul the award. Such disregard is only capable of conducting to a situation of insufficient reasoning, which is not grounds for annulment.
4. An arbitral award has the same res judicata effects of those produced by decisions of state courts, being subject to the procedural rules applicable to state court decisions, including the rule of Art. 621 of the Code of Civil Procedure, which includes the definition of these effects.
5. A final and binding decision, including an arbitral award, may be modified if the facts on which it was based have subsequently suffered a material change, in particular, if those facts had not occurred when the decision was made, but were nevertheless future and foreseeable at that time, and it eventually becomes certain that they will not occur any longer.