Lisbon Court of Appeal | Motivation of Arbitral Awards | Annulment | 27-06-2019 | Case nr. 2794/18.8YRLSB.L1-2 | Case #95
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Headline:
According to the Portuguese Arbitration Law, an arbitration award which lacks reasoning shall be considered null and void. However, a merely defective statement of reasons is not sufficient to grant the annulment of the award.
Summary:
I – The decision maker must be able to communicate her decision so that it fulfills the purpose of realizing effectively the right of its addressees and of the wider community.
II – It is the reasoning, as an element of communication, that provides the means to challenge the decision with its assumptions, allowing its examination.
III – However, the control of an arbitral award cannot allow its annulment where the court judge has merely found that the reasoning is insufficient or unconvincing.
IV – According to Article 42(3) of the Portuguese Arbitration Law, approved by the Law nº 63/2011, of December 14th, an arbitration award which lacks reasoning shall be considered null and void.
V – In the present case, the arbitrator provided for a critical assessment of the evidence produced, albeit superficial and adapted to the abbreviated and informal nature of the arbitration procedure.
Summary kindly provided by Carolina Roque (carolinaamroque@gmail.com)