Supreme Court sets aside arbitral award for defective reasoning

Dispute Resolution / Litigation & Arbitration

Nikolaus Pitkowitz, ILO Newsletter, 19 January 2017

In a recent decision, the Supreme Court considered if and under what circumstances defective reasoning of an arbitral award may lead to its annulment under the Arbitration Law. In a deviation from previous case law and views expressed by the majority of Austrian legal scholars, the court held that the requirement of sound reasoning is a fundamental principle of the Austrian legal system, and thus that an arbitrator´s failure to comply with this constitutes a violation of procedural public policy. 


Dr. Nikolaus Pitkowitz

M.B.L.-HSG Partner