The Czech Republic Ministry of Health v. Diag Human S.E. Cassation Court of the Grand Duchy of Luxembourg - Case 3987 - French - 29 June 2018
Case Report (free download)
Case Report by Celine Lange, Editor Diego Luis Alonso Massa
The judgment concerns an award rendered in Prague on 4 August 2008 ("the Award") in favour of Diag Human S.E. ("Diag Human"), a corporation organized under the laws of the Principality of Liechtenstein, against the Czech Republic Ministry of Health ("CRMH" or "the Czech Republic"). Diag Human sought enforcement of the Award in Luxembourg and obtained an Exequatur Order by the Tribunal d'arrondissement of Luxembourg ("the district court") on 10 August 2011. CRMH's appeal against the Exequatur Order was dismissed on 27 April 2017 by the Luxembourg Court of Appeal ("the Court of Appeal's Judgment"). CRMH lodged an appeal on points of law before the Luxembourg Cassation Court ("the Cassation Court").
In its judgment dated 29 June 2018, the Cassation Court dismissed CRMH's appeal. CRMH alleged that Diag Human had committed fraud and deceit on the court by submitting an exequatur request for an award that had not yet become binding on the Parties because of an ongoing review process which was permitted under Czech Law. CRMH contended that the Court of Appeal's Judgment on this issue lacked a legal basis. The Cassation Court was satisfied that the judges of the Court of Appeal had delivered a sufficiently reasoned decision and found that, at the time the request for the Award's enforcement was made, CRMH's contention that the Award could not be enforced on public policy grounds (procedural fraud) could not stand as the Award had been rendered enforceable as a result of the Decision on review that had concluded the review proceedings. The Cassation Court also dismissed CRMH's allegations that the Court of Appeal had failed to address whether the Award was res judicata under Czech arbitration law. The Cassation Court found that the Court of Appeal had comprehensively addressed the Czech Republic's submissions that it was not. The Cassation Court then dismissed the remainder of CRMH's submissions on the ground that they concerned questions that were outside of the jurisdiction of the Cassation Court.
What is the effect on an arbitral award of a Resolution issued pursuant to the review process available under Czech arbitration law?
The Czech Republic Ministry of Health v. Diag Human S.E. - Cassation Court of the Grand Duchy of Luxembourg, Case 3987 - 29 June 2018
Case report provided by International Arbitration Case Law (IACL)
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