CAS awards can be reviewed by EU courts
The International Council of Arbitration for Sport (ICAS) has acknowledged a ruling from the EU’s highest court last week on the review of arbitration awards.
The EU’s Court of Justice (CJEU) found that EU football clubs and players had the right to have decisions made by the Swiss-based Court of Arbitration for Sport (CAS) reviewed by EU courts.
The case was brought by Belgian club RFC Seraing, after the CAS had upheld sanctions imposed on it by football’s governing body FIFA for allowing a third party to hold part of the economic rights to some of its players.
Res judicata
The CAS ruling was subsequently upheld by the Swiss Federal Supreme Court.
Belgium’s court of first instance and court of appeal had declined jurisdiction on the basis that the CAS award was res judicata (binding) under Belgian law.
Belgium’s highest court then sought guidance from the CJEU on whether EU law precluded the application of such national provisions to an arbitral award that had been reviewed solely by a court of a non-EU state.
‘Sport as economic activity’
In , the CJEU held that national rules granting the authority of res judicata such a scope were contrary to EU law.
“The application of rules of this kind deprives individuals of the possibility of obtaining, from the courts or tribunals of the member states, effective judicial review of such arbitral awards,” the judges stated.
They added that CAS awards must be amenable to “effective judicial review”, where disputes relate to the pursuit of a sport as an economic activity within the territory of the EU, even though such a review may “legitimately be limited” in order to take account of the specific features of arbitration.
“That review must, in any event, allow individuals to obtain in-depth judicial review as to whether those awards are consistent with the principles and provisions of EU public policy,” the court stated.
It also ruled that a national court or tribunal should disapply any national legislation or rules of a sports association “that would hinder such effective judicial protection” for individuals.
Ruling ‘in line with jurisprudence’
In a statement, ICAS said that the CJEU judgment had determined that the review of CAS awards should be limited to EU public policy only.
It added that the Seraing decision was in line with previous CJEU jurisprudence and with the International Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).
The council also noted that the court had recognised that sports arbitration was a legitimate mechanism for ensuring a uniform treatment of sporting disputes and a consistent application of sporting rules.
“CAS resolves sporting disputes worldwide and already applies EU law when required,” ICAS said, adding that matters related to EU competition law could already be challenged before EU state courts after .
Matthieu Reeb (CAS Director General) said: “We note that the CJEU did not follow the opinion of Advocate General Ćapeta in full and determined that the potential review of CAS awards by state courts in the EU should be limited to EU public policy.”