To date, public policy remains one of the grounds for setting aside an arbitral award. However, whether an arbitral award will be successfully set aside on the grounds of public policy depends on various factors, such as the provisions of the national laws, judicial interpretation, and the attitude of courts to arbitration. Notwithstanding, the question of how far a party may rely on public policy to set aside an arbitral award remains a subject of debate across various jurisdictions.
The recent decision by the Court of Appeal in Champion Breweries Plc v Brauerei Beck GMBH & Co. KG brews a twist between public policy and party’s conduct. The decision reflects how a party’s conduct may prevent it from seeking to set aside an arbitral award on the grounds of public policy, particularlywhen it had, by its conduct, condoned the act complained against and had enjoyed benefits from the wrong. The Court’s decision reaffirms the sanctity of arbitral awards and draws a firm line between legitimate public policy concerns and mere opportunism by parties seeking to evade contractual obligations.