For arbitration agreements entered into after the coming into force of Legislative Decree No. 40 of 2006, the challenge of an arbitral award for violation of rules of law relating to the merits of the dispute is permissible only if expressly provided for by the parties or by statute, pursuant to Article 829(3) of the Code of Civil Procedure. The parties’ silence in the arbitration agreement precludes any challenge to the award for violation of substantive rules of law.
The failure to observe the principle of due process in arbitral proceedings under Article 816-bis(1) of the Code of Civil Procedure is not a formal defect but a defect of activity, the existence of which requires a finding of actual impairment of the right of defence, having regard to the manner in which the parties confronted each other and to the opportunities afforded to them to exercise their procedural rights on an equal footing.
The concept of public policy relevant for the purposes of challenging an arbitral award under Article 829(3) of the Code of Civil Procedure is limited to international public policy, excluding domestic public policy and the mandatory rules associated therewith.
The principle of due process in arbitral proceedings guarantees the parties the opportunity to present their respective submissions, examine the evidence and the findings of the proceedings, and file briefs and replies until the close of the hearing, without however entailing the necessity of admitting every item of evidence requested, as the assessment of admissibility and relevance of evidence falls within the arbitral tribunal’s discretion.