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Trade disputes involving parties from different countries are quite often resolved by arbitration rather than through local courts. However, a ruling from a foreign tribunal does little use unless it can be acknowledged and implemented in another country. Poland has developed a formal and generally favourable system for this process. Knowing how this system works is a must for companies, lawyers and investors who use arbitration as a way of settling disputes.

The article provides the necessary information on this matter, including the explanation of why using services of Eli Lithuania is advisable.

Legal Foundations

The way Poland deals with this matter is determined by the country’s global commitments and its national law. First of all, it is the New York Convention of 1958, the instrument Poland ratified in the early 1960s. This multilateral treaty demands member states to recognize and enforce awards made in other member states unless one of the limited grounds for refusal applies.

Besides the above international framework, the implementation of arbitrations and the acknowledgment of overseas awards are regulated by the Polish Code of Civil Procedure (Kodeks postępowania cywilnego – KPC).

Those rules are not only consistent with widely accepted standards but also embody a strong pro-arbitration approach.

In addition, the country in question has ratified the European Convention on International Commercial Arbitration (1961) and a number of bilateral agreements which enhance cooperation among states and ease formal matters.

Procedure Before Local Judiciary

A party who wants to rely on an award has to raise the matter before the country’s judicial body (the competent authority is the Sąd Apelacyjny acting as the first-instance body in such cases). The procedure is quite formal but with the right approach it may not be too taxing.

Submitting the request, the party should provide:

• the original award of the tribunal;
• the arbitration agreement;
• Polish translations performed by a sworn translator.

The court is not called to readdress the dispute. It only has the jurisdiction to check whether basic legal principles were observed and whether, according to local law, the parties could have their dispute settled.

In the absence of legal impediments, a decision is issued granting validity and execution effect (including the effect of an execution clause). Once granted, the award is treated in the same manner as a local judgment, and the successful side may take subsequent measures, including the taking of the debtor’s property by a bailiff.

Situations Leading to Refusal

Although the country is in general willing to respect the awards, there are certain situations acknowledged by law when enforcement may be refused. These are interpreted strictly and, to a large extent, the exceptions follow the list of the New York Convention and Art. 1215 of the KPC.

Major grounds are:

• no existence or invalidity of arbitration clause;
• lack of proper notice or inability of a party to make a defense;
• excess of jurisdiction of the tribunal;
• irregularities in the formation of the tribunal;
• the award not being binding or having been set aside at its origin;
• contradiction of fundamental principles of the Polish legal system.

However, the last ground has a special significance. It is used as a protection against results which may be incompatible with the principles of the legal system but at the same time it is very limited in order not to jeopardize the arbitration in general.

Practical Aspects and Common Obstacles

In many cases, the biggest problems do not arise from the legal framework itself. Even minor errors or inaccuracies can cause delays.

Frequently encountered problems are:

• incorrect or inconsistent translations (not performed by a Polish sworn translator);
• the arbitration clause and the award not matching;
• the opposing party raising formal irregularities;
• delays due to formal deficiencies in submissions.

Nevertheless, the country being discussed is generally recognized as a country that upholds arbitration seriously and predictably. Court decisions show a steady inclination to enforce awards made abroad as long as the fundamental procedural demands have been fulfilled.

Costs and Time Considerations

The financial and timing issues are very crucial. The legal process is sufficiently defined; however, the total time and expenditure are subject to fluctuation based on certain factors.

Considering the element of cost, the parties should include the:

• fixed court fees (opłata sądowa) for filing the application, which are generally moderate in the country being discussed;
• cost of translations to be sworn (tłumaczenia przysięgłe);
• fees for legal assistance;
• some costs are paid to the bailiff once the award is formally accepted.

Speaking of timing, simple cases, when the other party does not oppose the process, usually take between 6 to 12 months due to the workload of the Appellate Courts. However, if the opposing party files an interlocutory appeal (zażalenie) or if the case reaches the Supreme Court, the timeframe will increase significantly due to additional hearings and procedural steps.

Overview of the Key Elements

Why Use Eli Lithuania Assistance

Dealing with these issues alone can result in unnecessary delays or failure even at the initial stage. From taking care of the translation work to drafting the presentation of the arguments for the potential objections, every single action in the process needs to be made with utmost precision.

When it comes to dispute resolution involving more than one country, Eli Lithuania provides a highly organized and efficient support system. Our specialists work with clients by helping them in:

• gathering the necessary documentation,
• identifying their positions and risks,
• leading them through the sequence of procedural phases, etc.

We are especially focused on the points where objections can be raised such as the validity of arbitration clauses and also procedural fairness.

By means of the knowledge and skills of our specialists, Eli Lithuania makes it possible to lower the degree of unpredictability and guarantee that every phase is carried out with full understanding and precision.

Conclusion

The country in question offers a very stable and predictable environment for enforcing awards made abroad. The whole mechanism is based on widely recognized legal standards and backed by uniform court decisions.

The official route is quite clear, however, winning is a matter of thorough preparation and meticulousness. Mistakes at the very beginning could be detrimental and therefore, in complicated situations, getting a professional advisor would be a wise decision.

Looking at the big picture, Poland is still a safe and dependable country where people decide on an arbitral award that was issued in a foreign country.

FAQ

Can a ruling of a foreign judicial body have a legal effect in Poland?

Yes. However, in addition to meeting legal demands of the global treaty and local rules, the Apellate Court checks whether serious formal issues are absent before allowing such results to have an effect.

Is the Polish court system willing to re-open the subject matter of the dispute?

No. The disputing parties will not have the substance of the dispute examined by the judicial body again (prohibition of révision au fond). The court’s inquiry will be limited to aspects like whether the proceedings and the legal basis have been compliant with the law.

What is generally required at the first stage?

In most cases the party will be asked to submit:

• the original award (or an approved duplicate);
• the arbitration agreement;
• Polish translations by sworn translators.

What is the average time frame of this procedure?

The duration varies. Due to the workload of Appellate Courts, straightforward cases may take 6 to 12 months. If the debtor raises objections or files an appeal, the process will take longer.