The decision in File no. I CSK, 535/09, reported in the "Rzeczpospolita" daily on 13 September 2010, was the final pronouncement in an action to challenge an award rendered by the Court of Arbitration at the National Chamber of Commerce (KIG) in Warsaw in a dispute over a real property tenancy agreement. The losing party sought annulment of the award on a number of grounds, including that one of the arbitrators was not impartial and independent. This argument was based on the revelation that the arbitrator in question was a friend of the party who appointed him, and had handled court cases as a counsel to the spouse of the party, and a joint-stock company chaired by the party. None of those circumstances were revealed to the other party or co-arbitrators.

Whereas the court of first instance dismissed the challenge against the award, the Court of Appeal in Warsaw reversed that decision and set aside the award on two distinct grounds, including the failure to disclose social and professional ties between the arbitrator and the party. The Supreme Court endorsed the view of the appellate court and emphasised the importance of arbitrators' independence and impartiality, as well as the arbitrators' duty to disclose actual or potential conflicts to the parties.

The decision has been welcomed in Poland. The Supreme Court's judgment reaffirms the importance of the fundamental duties of arbitrators to all parties and counsel related to the conflicts of interest and standards of disclosure and has implemented real sanctions for non-compliance. It is also fully in line with the efforts of the Polish arbitration community to promote internationally accepted standards of disclosure of conflicts of interest.