Arbitration in Poland
Arbitration has become a popular alternative to litigation in Poland, offering businesses and individuals an efficient and private means of resolving disputes. In Poland arbitration plays an increasingly important role, particularly in commercial and cross-border disputes, as arbitration in Poland provides an effective and efficient means of resolving disputes, particularly for businesses involved in commercial or international matters. Whether resolving contractual disputes, intellectual property issues, or cross-border conflicts, arbitration offers a flexible, confidential, and enforceable solution for those seeking an alternative to traditional litigation.
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The Legal Framework for Arbitration in Poland
Poland’s arbitration system is governed by the Polish Civil Procedure Code (CPC), which sets out the rules for both domestic and international arbitration. The key provisions are found in Part V of the Civil Procedure Code, which covers the Arbitration Proceedings. Poland’s arbitration laws are aligned with international standards, notably the United Nations Commission on International Trade Law (UNCITRAL) Model Law on international commercial arbitration, ensuring consistency and credibility in cross-border dispute resolution. The CPC allows parties to resolve disputes outside the court system by appointing an arbitrator or a panel of arbitrators to make a binding decision. Arbitration in Poland is voluntary and consensual, meaning that both parties must agree to submit their dispute to arbitration. In addition to the CPC, Poland is also a signatory to several important international conventions and treaties, such as the New York Convention of 1958, which ensures the recognition and enforcement of foreign arbitration awards.
Advantages of Arbitration in Poland
Arbitration offers numerous advantages over traditional litigation, making it an attractive option for businesses, especially in commercial and international disputes. Some of the key benefits of arbitration in Poland include:
- Neutrality – for international disputes, arbitration allows parties to avoid national court systems and select a neutral venue and arbitrators, which can help reduce concerns about bias or partiality.
- Confidentiality – one of the main reasons businesses choose arbitration is the confidentiality it offers. Unlike court proceedings, which are generally public, arbitration hearings and awards are private, providing a higher level of discretion for sensitive or proprietary matters.
- Flexibility – the arbitration process is more flexible than court procedures. Parties can choose their arbitrators, set the rules for the arbitration, and determine the time frame and location of hearings. This can result in a faster and more efficient process than traditional court litigation.
- Enforceability – arbitration awards are easier to enforce internationally due to treaties like the New York Convention, which facilitates the recognition and enforcement of foreign arbitration awards in signatory countries, including Poland.
- Expertise – arbitration allows parties to select arbitrators who have specific expertise in the subject matter of the dispute. This is particularly beneficial in complex commercial or technical disputes where the knowledge of a specialist is needed.
The Arbitration Process in Poland
The arbitration process in Poland generally follows a clear set of steps, although specific procedures can vary depending on the rules of the arbitration institution chosen by the parties. Here’s a general outline of the arbitration process:
- Agreement to Arbitrate – the first step in any arbitration is the agreement to arbitrate. This agreement can take various forms, such as an arbitration clause in a contract or a separate submission agreement after a dispute arises. The agreement must be in writing, as oral agreements are not enforceable under Polish law. It should specify the scope of disputes that are subject to arbitration, the rules governing the arbitration, and the place of arbitration.
- Selection of Arbitrators – once the parties agree to arbitration, they must select one or more arbitrators. In Poland, it is common for commercial disputes to be resolved by a panel of three arbitrators: one appointed by each party and a third arbitrator, who acts as the presiding arbitrator, appointed by the other two or by an arbitration institution. If the parties cannot agree on the arbitrators, a court may intervene to make the appointment, although this is generally avoided by selecting arbitrators in advance.
- Submission of the Statement of Claim and Defence – the claimant initiates the arbitration by submitting a statement of claim, which sets out the dispute and the relief sought. The respondent then submits a statement of defence, which outlines their position and any counterclaims. The parties may also exchange further submissions, including evidence and legal arguments.
- Hearings and Evidence – arbitration hearings in Poland are typically more streamlined than court trials. While hearings may be held, much of the evidence is often submitted in writing. However, hearings can still be conducted if necessary, allowing both parties to present their arguments and evidence. The arbitrators may question witnesses and experts during these sessions. The parties have the flexibility to decide on the procedural rules governing the arbitration, including the submission of documents, the use of witnesses, and the presentation of evidence. In cases of complex disputes, expert testimony may be required.
- Award and Enforcement – once the arbitration process is concluded, the arbitrators issue a final award, which resolves the dispute. The award is binding on the parties and is enforceable in Poland and abroad under the New York Convention. In the case of non-compliance, the prevailing party may seek enforcement through the Polish courts.
Arbitration Institutions in Poland
Poland is home to several well-established arbitration institutions that facilitate domestic and international arbitration. The two main institutions for arbitration in Poland are:
- The Polish Chamber of Commerce Arbitration Court (Krajowa Izba Gospodarcza – KIG) – this is one of the oldest and most respected arbitration institutions in Poland. It provides a set of rules and a neutral framework for resolving disputes in various sectors, including business, construction, and commercial contracts.
- The Lewiatan Court of Arbitration (Sąd Arbitrażowy Lewiatana) – The Lewiatan Court is another prominent institution for resolving disputes, particularly in the areas of business law and commercial contracts. It is affiliated with the **Polska Konfederacja Pracodawców Prywatnych Lewiatan**, a major business organization in Poland.
Both institutions offer detailed procedural rules and are capable of handling complex disputes. They provide a structured environment for arbitration proceedings, ensuring that cases are managed professionally and efficiently.
Arbitration in International Disputes
Polish courts are generally supportive of arbitration and adhere to international standards in recognizing and enforcing foreign arbitration awards. For example, the Warsaw International Arbitration Centre (WIAC) has become an increasingly popular choice for international arbitration due to its modern facilities and expertise in handling cross-border disputes. Poland’s membership in international treaties, such as the New York Convention, further enhances its reputation as a favorable jurisdiction for resolving international disputes. The recognition and enforcement of arbitration awards in Poland are consistent with international norms, making it an attractive destination for foreign businesses seeking arbitration services.
Fields of expertise
Agata Kosikowska Law Firm specializes in providing services to both individual customers, entrepreneurs and collective entities. Many years of experience allow us to provide our customers with reliable and professional service in every area of law.
Fields of expertise
Agata Kosikowska Law Firm specializes in providing services to both individual customers, entrepreneurs and collective entities. Many years of experience allow us to provide our customers with reliable and professional service in every area of law.