(Portugal) Supreme Court of Justice | Negative Effects of the Arbitration Agreement | Hardship | 16-10-2018| Case #081

Supreme Court of Justice
Date: 16-10-2018
Case Nr. 2258/16.4T8CBR.C1.S1
LINK DGSI

Headline:  The arbitration agreement produces a negative effect that will force the court judge to dismiss the judicial procedure in which the arbitration agreement was invoked, unless it is manifestly null, inoperable or incapable of producing its effects. An allegation of “just cause” or “change in circumstances” is not valid ground to object to those negative effects.

 

Summary:

I – According to Art. 5 of the Arbitration Act, the arbitration agreement produces a negative effect that will force the court judge to dismiss the judicial procedure in which the arbitration agreement was invoked, unless the court judge is able to conclude that the arbitration agreement is manifestly null, inoperable or incapable of producing its effects.

II – The mere existence of a written notification sent by the petitioner to the defendant, where the former declared that it intended to “revoke” or “terminate” the arbitration agreement on the grounds of “just cause” and “change in circumstances”, is not a sufficient evidentiary material  that may allow the court judge to conclude, without hesitation, that the arbitration agreement ceased to produce its effects.