Monika Hartung | In Principle

On 1 July 2023, another major amendment to the Polish Civil Procedure Code enters into force. The changes involve general provisions, consideration of the merits, interim relief, enforcement, and arbitration. In this article, we will examine the amendments to Part Five of the Civil Procedure Code—the arbitration chapter.

The insurer incorrectly notified the insured of the general conditions of insurance. Could this result in the insurer being required to pay compensation, even though the general conditions of insurance state that there is an exception excluding the insurer’s liability?

The COVID-19 pandemic affects the situation of companies and individuals. Many of them wonder whether they will be able to take advantage of insurance cover they have taken out. The insurance industry is wondering the same thing.

According to the International Energy Agency, over a fourth of oil and gas supplies today come from the seas. Over the past couple of decades, extraction of natural gas from offshore deposits has risen by over 50%. There is also growing emphasis on offshore wind energy. Ventures of this type are technically complex, often innovative, and consequently costly. That is why fuel companies insure platforms, borings, and drilling equipment. What is important to pay attention to in such insurance policies? How to prepare for a potential dispute?

The amendment of the Civil Procedure Code introduces a few technical improvements to increase the efficiency of proceedings.

In arbitration, as in proceedings before the state courts, it is permissible to assert alternative claims alongside the principal claim. But there are no express rules on the fees for such claims in the Act on Court Costs in Civil Cases or in the rules and fee schedules of arbitral institutions. This raises the question of how fees should be calculated for alternative claims in the two types of proceedings, and whether the rules are the same.

In disputes under civil law, a party which raises claims can seek injunctive relief from a court prior to commencement of or during proceedings. Injunctive relief is granted for the duration of the proceedings, which means until a final and binding judgment is issued in the case, and can take various forms (for example seizure of receivables on a bank account). If a court grants injunctive relief, then even if the lawsuit is dismissed after several years of proceedings and the injunctive relief ceases to exist, the business might already have gone bankrupt. A motion for permission from the court for specific withdrawals from a seized account could be an important legal remedy for a business whose bank account has been seized.

In disputes involving cross-border construction contracts, one of the questions to be resolved is jurisdiction. Before joining issue in litigation in Poland, the defendant may assert the defence of the lack of jurisdiction of the Polish courts. Jurisdiction in such cases will be determined by applying the recast Brussels I Regulation. The Wrocław Regional Court recently issued a ruling on application of this regulation in civil litigation involving construction works.

One of the arguments for submitting disputes to arbitration is the confidentiality of the award, which is important for businesses. But as the case law demonstrates, the state courts do not always get the message about the confidential essence of arbitration.

Confidentiality, speed and cost control by the parties are usually ticked off as advantages of arbitration. But these go out the window when the state court intervenes in an arbitration case.

When the state court resolves issues related to arbitration proceedings, the hearing should not be public.

Although the bank guarantee is a commonly used form for securing claims, it is one of the most controversial institutions in Polish law. In a dispute, it is essential to analyse thoroughly the documents establishing the bank guarantee.