Arbitration in Poland
In Poland, parties most often choose the Court of Arbitration at the Polish Chamber of Commerce in Warsaw (SA KIG) or the Lewiatan Court of Arbitration. Ad hoc arbitrations are also popular. Some parties opt for ICC arbitration in Warsaw.
Arbitration law in Poland is a part of the Polish Code of Civil Procedure. It is based on the UNCITRAL Model Law on International Commercial Arbitration (1985).
Confidentiality in arbitration is not regulated by Polish law. Regulations on confidentiality differ between the arbitration rules of Polish arbitration institutions. Therefore, it is advisable for the parties to include confidentiality in their arbitration agreement.
The parties may submit most civil law disputes to arbitration. There are minor exceptions to this rule (e.g. disputes relating to alimonies cannot be resolved through arbitration). An arbitration agreement covering labour disputes can only be made after the dispute has arisen.
Arbitration agreements must be made in writing. An arbitration agreement is considered to be in writing if it is contained in a document signed by the parties, or in an exchange of letters using a means of telecommunication that provides a record of the agreement. A reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement, provided that the contract is in writing and the reference makes that clause part of the contract.
In the case of labour disputes, an arbitration agreement has to be contained in a document signed by the parties.
Yes. Under Polish law, the invalidity or expiry of an underlying contract containing an arbitration agreement will not trigger the invalidity or expiry of the arbitration agreement.
According to Polish law, an arbitration tribunal may rule on its own jurisdiction, including the existence, validity or effectiveness of an arbitration agreement (the Kompetenz-Kompetenz doctrine).
If a party disputes the jurisdiction of an arbitration tribunal, it should raise a plea of lack of jurisdiction within the time limit specified in the relevant arbitration rules. A plea of lack of jurisdiction should be raised before a defence on merits is presented.
An arbitration tribunal may rule separately on the issue of jurisdiction. If a plea of lack of jurisdiction is rejected, parties can challenge that decision in a national court. The national court’s decision may be appealed against. If a tribunal decides that it has jurisdiction in a final award, the parties can file a petition with a national court to set aside the arbitration award based on an alleged lack of jurisdiction.
According to Polish law, arbitration proceedings are initiated by a request for arbitration. However, according to the arbitration rules of the Court of Arbitration at the Polish Chamber of Commerce in Warsaw (SA KIG), the proceedings may also be initiated by a statement of claim, while the arbitration rules of the Lewiatan Court of Arbitration require that proceedings be initiated by a statement of claim.
A filing fee is usually payable when initiating arbitration proceedings. Then there is an arbitration fee, proportional to the value of the dispute and dependent on the number of arbitrators deciding the case.
Document production is common in Polish arbitration proceedings. The IBA Rules on the Taking of Evidence in International Arbitration are usually followed.
In arbitration in Poland, witness evidence is usually taken in two stages. The first stage is written – each party submits written statements from its witnesses. The second stage is oral testimony. Most often, only witnesses who have been singled out for cross-examination will testify at the hearing.
Arbitration tribunals in Poland usually apply the ‘loser pays’ rule. The tribunals take into account reasonable costs incurred by the parties. This means it is possible to be awarded the actual costs of arbitration, including remuneration paid to experts and legal counsel’s fees.
Arbitration proceedings in Poland take a similar amount of time as in other jurisdictions. Most cases take between six months and two years.
Under Polish law, arbitration awards have the same legal force as court judgments as soon as a national court declares the enforceability of an award or recognises it. Therefore, if an award was issued in your favour and the losing party is not complying with it voluntarily, you should file an application for a declaration of the enforceability of an award, or an application for the recognition of an award with a national court (a court of appeals). A declaration of enforceability concerns awards that are suitable for enforcement. Recognition concerns awards that are not suitable for enforcement.
A national court can refuse to declare an award enforceable or refuse to recognise an award. The grounds for refusal are limited (for example, public policy may constitute suitable grounds). A losing party always has a chance to present its position in court and raise arguments regarding the enforceability or recognition of an award.
The decision of a court of appeals about the recognition or enforcement of an arbitration award issued in Poland may be appealed against to another panel of that court.
A losing party has the right to file a petition with a national court (a court of appeals) to set aside an arbitration award.
The review of arbitration awards by national courts is very limited. The national court will set aside an arbitration award only on strictly defined grounds, in particular when there was no arbitration clause or when the arbitration award is contrary to the fundamental principles of the legal order of the Republic of Poland (public policy grounds). A petition to set aside an arbitration award does not lead to a re-examination of the case by a national court. It cannot be based, for example, on errors by an arbitration tribunal in assessing the evidence. The vast majority of petitions (over 90%) to set aside an arbitration award are dismissed.
A cassation appeal to the Supreme Court of Poland may be lodged against a judgement issued as an outcome of a petition to set aside an arbitration award.
Poland is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). Therefore, awards made in other states that are a party to the New York Convention can be enforced and recognised in Poland according to that convention.
Poland is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). Therefore, awards made in Poland are enforceable in other countries that are a party to that convention.