Several authors have attempted with varying success to derive a complete set of basic equations for the motion of polar fluids having internal rotations and hence in a state of polarization disequilibrium. This work develops a complete set of governing equations derived on the basis of dynamic balance relationships with the dissipation function determined from thermodynamic consideration. The magnetization relaxation equation is thereby determined from requirement of positive entropy production along with a complete set of constitutive laws including antisymmetric terms of the total stress tensor. The analysis employs the Minkowski expression of electromagnetic momentum and assumes that the product of electromagnetic stress and velocity contributes to the energy balance on the same footing as contact stresses of pressure and viscous origin. The work refines the treatment of our earlier effort carrying out the analysis to first order in the ratio of fluid velocity to light speed throughout. (C) 2004 American Institute of Physics.