Lisbon Court of Appeal | Motivation of the Arbitral Award | 21-03-2019 | Case #089

Lisbon Court of Appeal
Date: 21-03-2019
Case Nr. 1412/18.9YRLSB.L1-2
LINK DGSI

Headline:

The arbitral award must contain its motivation, consisting of an assessment of the evidence produced, the indication of the facts proven, particularly those admitted by the parties, the reasons justifying the application of the legal rules to the facts, and the conclusion resulting from the combination of the facts and the applicable legal provisions.

 

Summary:

I – The proper motivation of an arbitral award must consist of an assessment of the evidence produced, the indication of the facts proven, particularly those admitted by the parties, the reasons justifying the application of the legal rules to the facts, and the conclusion resulting from the combination of the facts and the applicable legal provisions.

II – The arbitral award is not limited to a resolution of a dispute; it is also an element making part of the global system that prevents further disputes; it thus holds a pedagogical role that can only be undertaken if there is consistent reasoning; the decision must be underpinned in the evidence, must state the documents or expert witnesses on which it relies, it shall also provide a response to each and every relevant fact in a reasoned fashion, and decide the matter with proper motivation; this does not mean, however, that each legal argument of the parties have to be considered or that every possible solution needs to be put forward; However, the essential issues raised by the parties cannot be ignored. Not only must the reasoning be formal but also  effective, and shall indicate the real reasons that led to the decision, which is based upon the evidences and the legal rules; thus, the arbitrators must justify their options based on the law, which should be presented in serious, plausible and convincing terms. The nuclear issues on which the decision is based, decided and substantiated must also be explained.

III – If the arbitral award, in its reasoning, not only indicates the facts that were considered as proven but also those which were not proven, if it identifies the subject matter of the dispute without any stain, and interprets article 25 of the articles of association in question in light of the proper law, and if it also explicitly points out the legal rules as well as a logical reasoning that, while succinct, is not unintelligible as a whole, there is no basis for its annulment.