Arbitration

THE COURT OF ARBITRATION AT THE POLISH CHAMBER OF SHOE AND LEATHER INDUSTRY OPERATED BY MEDIACJA I ARBITRAŻ SPÓŁKA Z O.O.

The Substance of the Problem

In Doing Business Index 2015 report, Poland ranked 32nd (among 189 of countries included within the Index) with the comparative result reaching 74% of the best result.

However, in the area of effectiveness of the administration of justice (measured in the scope of claiming receivables under contracts), Poland ranked only 52nd, with comparative result reaching 65% of the best result.

source: http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual-Reports/English/ DB15-Full-Report.pdf

This remote rank is a consequence of, among others, prolixity of court proceedings which (in cases with the value of the subject of litigation of up to PLN 75 thousand) today wait for settlement (in both instances) two and a half year on average!

registration

of cases

Percentage of cases concluded within: Average duration of proceedings
(in months)
3 months 6 months year 3 years
District Courts 544 664 GNc 51,8% 89,9% 98,9% 100,0% 3,5
73 254 GC 6,7% 23,4% 60,8% 98,5% 12,6
Regional Courts 11 382 Ga 12,0% 31,6% 62,3% 95,4% 13,2

źródło: http://isws.ms.gov.pl/pl/baza-statystyczna/opracowania-jednoroczne/rok-2014/

Diagnosis and Remedy

According to the Ministry of Justice, causes of the above-indicated state of affairs include, among others: a high number of lodged appeals, non-existence of the free-of-charge legal aid at the pre-court stage, a low level of social trust in the profession of the judge, unused potential for digitalisation of the contact with citizens.

source: http://ms.gov.pl/pl/dzialalnosc/strategia/

According to judges (Polish Judges Association IUSTITIA), the causes are rather to be sought in very broad jurisdiction, formalised procedure, excessive amount of extra-judicial tasks imposed on judges, non-existence of qualified administrative assistance.

source: http://www.iustitia.pl/informacje/699-sytuacja-wymiaru-sprawiedliwosci-w-polsce

The correctness of these diagnoses aside, it is worth drawing attention to nowadays widely promoted Alternative Dispute Resolution (ADR): negotiations, mediation, and arbitration as a solution to a given situation.

source: http://www.ms.gov.pl/pl/dzialalnosc/broszury-i-publikacje/mediacje

Arbitration – legal basis

The legal basis for operation of courts of arbitration, including the one operated by Mediacja i Arbitraż spółka z o.o. is provided by Article 1157 of the Code of Civil Procedure under which ‘if a specific provision does not provide otherwise, parties may submit disputes concerning property or non-property rights which may be the subject of a court settlement, with the exception of alimony matters to settlement by a court of arbitration.’

Under Article 1161 CCP ‘submitting a dispute to settlement by a court of arbitration requires parties to conclude an agreement which shall indicate an object of a dispute or a legal relationship from  which the dispute has arisen or might arise.’

We suggest the use of the following arbitration clause: ‘Any and all disputes arising from this agreement or in connection therewith shall be in a final and binding manner settled by the Court of Arbitration at the Polish Chamber of Shoe and Leather Industry operated by Mediacja i Arbitraż spółka z o.o., in compliance with the Rules of Procedure of the said Court (www.meiar.pl).”

Why choose the Court of Arbitration at the Polish Chamber of Shoe and Leather Industry operated by Mediacja i Arbitraż spółka z o.o.

The goal of the Polish Chamber of Shoe and Leather Industry is to improve the conditions of functioning for leather industry entrepreneurs, among others by operating courts of arbitration.

The mission of Mediacja i Arbitraż spółka z o.o. is to provide entrepreneurs with effective arbitration services. We have been operating continuously since 2010. Within this period more than 330 awards have been rendered. Thus, we are Poland’s second biggest court of arbitration – second only to the Court of Arbitration at the Polish Chamber of Commerce and preceding the Court of Arbitration at the Polish Confederation Lewiatan. Thanks to the continually improved Rules of Procedure, currently the average time for a final and valid award to be rendered is merely 19 days. So far, not even a single award rendered by our court has been challenged by way of a complaint for the setting aside of an arbitral award. Our arbitrators are practitioners of economic transactions, legal counsels, and attorneys-at-law.

Advantages

Resorting to the Court of Arbitration at the Polish Chamber of Shoe and Leather Industry operated by Mediacja i Arbitraż spółka z o.o. yields multiple advantages for:

  • Parties to proceedings:
    • Preservation of settleability
    • Speed of proceedings – a final and valid decision in 19 days on average, instead of 2.5 years
    • Lower court fee – 4% (+VAT) instead of 5%
    • Full confidentiality of proceedings
  • Professional attorneys:
    • Costs of legal representation are awarded in the amount ranging from a single full to six-fold value of the minimal rate
    • Friendly and effective service at the Court’s secretariat
    • It allows to comply with requirements of § 4.1 and §4.2 (automatically, due to the permanent nature of the Court of Arbitration operated by Mediacja i Arbitraż spółka z o.o.) of the Code of Deontology of the Legal Counsel Profession

Contact

In case of any queries related to the functioning of the Court of Arbitration at the Polish Chamber of Shoe and Leather Industry operated by Mediacja i Arbitraż spółkę z o.o., please do not hesitate to contact us at the following email address: poczta@meiar.pl

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