Kubas Kos Gałkowski updates

Award vacated for ultra petita decision regarding interest
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 01 August 2019

It is obvious to arbitration practitioners that an arbitral award cannot deal with claims not brought before a particular tribunal. However, it is also clear that vacating an award due to a violation of public policy should be an exceptional measure. The Supreme Court recently dealt with these two principles and leaned towards the former, setting aside a domestic award granted for interest for a different period than the one demanded by the claimant in the proceedings.

E-financial statements are first stage of digital revolution in Polish corporate law
Kubas Kos Gałkowski
  • Company & Commercial
  • Poland
  • 29 July 2019

The legislature recently introduced a regulation on e-financial statements. As a result, all financial reports submitted by Polish companies (with the exception of entities preparing financial statements in compliance with the international accounting standards) must be drawn up electronically using files with an '.xml' extension as defined by the Ministry of Finance. Polish companies should take appropriate steps to mitigate the potential risks and comply with this revolutionary regulation as soon as possible.

Special rules of representation for limited liability companies
Kubas Kos Gałkowski
  • Company & Commercial
  • Poland
  • 08 July 2019

The Commercial Company Code allows representation by a supervisory board or proxy appointed by a resolution of a shareholders' meeting in contracts or disputes between companies and their management boards. In this context, the Supreme Court recently examined whether a limited liability company should be represented by a general partner or its management board when amending a limited partnership agreement, despite the fact that the limited partner was a member of the company's management board.

President of Energy Regulatory Office's term of office comes to an end
Kubas Kos Gałkowski
  • Energy & Natural Resources
  • Poland
  • 01 July 2019

Maciej Bando's five-year term of office as the President of the Energy Regulatory Office recently came to an end. A new head of the regulatory body may lead to a change of method in the execution of some competences under its administrative discretion. This change of method may be particularly visible in network and supply activities, as most of the regulations in this regard are developed by the President of the Energy Regulatory Office and other administrative bodies in the European Union.

High-efficiency cogeneration support system takes shape
Kubas Kos Gałkowski
  • Energy & Natural Resources
  • Poland
  • 27 May 2019

The Act on Promoting Electricity from High-Efficiency Cogeneration recently entered into force. It establishes support mechanisms for combined heat and power (CHP) installations connected to district heating networks, which will replace the previous support scheme that expired at the end of 2018 and was based essentially on certificates of origin for energy from CHP installations.

State court not obliged to review arbitral case file
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 23 May 2019

In post-arbitral proceedings, parties challenging an unfavourable award or its enforcement often argue that they were deprived of the right to present their case or that the tribunal violated the rules of procedure or committed some other procedural error and often request the state courts to order the tribunal to present the arbitral case file. A recent Supreme Court decision evaluated the usefulness and necessity of granting such requests and clarified that such measures should be granted only rarely.

Violation of articles of association not enough to annul shareholders' resolution
Kubas Kos Gałkowski
  • Company & Commercial
  • Poland
  • 29 April 2019

Appealing against shareholders' resolutions is one of the most controversial areas of Polish company law. A recent Supreme Court resolution found that the shareholders' resolution of a limited liability company could not be annulled by the courts just because it was contrary to the company's articles of association. This resolution appears to put an end to many years of controversy.

State court refuses recognition or enforcement in collusion cases
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 07 February 2019

Parties unhappy with an arbitration award often try to question its enforcement based on public policy, raising numerous violations of law that do not amount to public policy. However, public policy is a tool that can also protect the legal system in certain situations. Two interesting Katowice Court of Appeals decisions made on the same day by the same judge in two non-related cases demonstrate how the courts deals with collusion cases.

Arbitral tribunals must consider all evidence or risk violating public policy
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 06 September 2018

It is a well-established rule that the setting aside of an arbitral award or the refusal of its recognition or enforcement due to a violation of public policy can occur only as a last resort to remedy a grave error in the award. It is also well established that the state courts in post-arbitral proceedings do not reconsider the facts established by an arbitral tribunal. A recent Supreme Court decision illustrates that although these rules are clear on paper, they are less clear when applied in practice.

Statutory limitations of claims periods excluded from public order
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 19 July 2018

The Supreme Court recently held that the autonomous position of arbitration courts as an alternative to state courts means that the judicial review of an arbitral award by an arbitral tribunal cannot be considered the equivalent of appellate review by a court. The control over arbitration exercised by common courts is primarily aimed at eliminating abuses of arbitration, including violations against the public order; however, provisions regarding the statutes of limitations of claims are excluded from this category.

Supreme Court decides that assignee is bound by arbitration agreement
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 21 June 2018

The assignment of rights and obligations stemming from an agreement forms part of everyday business. This issue can become complicated if a transferred claim is covered by an arbitration agreement. A recent Supreme Court decision shows that in such a case, the assignee and the debtor must resolve their disputes through arbitration. This decision confirms the arbitration-friendly approach of the Polish courts, especially regarding the validity and scope of arbitration agreements.

Can arbitrated claims be secured with European account preservation order?
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 22 February 2018

A recent Rzeszow Appellate Court ruling has confirmed that a European account preservation order (EAPO) can be issued by a state court to secure claims which have been submitted by the parties to arbitration. The case concerned a request for arbitration following a lack of fulfilment of contractual obligations. The request was followed by a petition to a regional court requesting that an EAPO be issued against the respondent in the pending arbitration.

Shareholders' rights to give binding instructions to limited liability company managers
Kubas Kos Gałkowski
  • Company & Commercial
  • Poland
  • 22 January 2018

The Code of Commercial Companies provides that the supervisory board of a limited liability company cannot give binding instructions regarding the management of the company's affairs to its managers. As there is no similar explicit provision prohibiting a shareholders' meeting from issuing such instructions, the question arises as to whether this was an intentional omission by the legislature and whether managers of limited liability companies must follow instructions given by shareholders.

ICC award set aside due to irregularities in arbitrator's appointment
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 21 December 2017

Cases involving allegations against the appointment, impartiality or independence of abitrators are usually complicated and it is difficult to make any firm statements, save for obvious cases of bias. A recent Court of Appeals decision set aside an International Chamber of Commerce award due to the fact that, among other things, one party's rights had allegedly been infringed when the sole arbitrator was selected in the course of the proceedings.

Have we already concluded an agreement?
Kubas Kos Gałkowski
  • Company & Commercial
  • Poland
  • 06 November 2017

Parties that negotiate a contract for sale when they are based in different countries are not always aware of the legal nature of their negotiations and the possible legal consequences. As such, it is advisable that parties choose the law applicable to the contract being negotiated and the negotiations themselves as soon as discussions begin. In the event of a dispute, this will enable them to avoid the potential risk of the courts finding that the contract in question has already been concluded.

Agent claiming commission for football transfer caught offside
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 28 September 2017

A recent Supreme Court case found that an arbitral tribunal did not violate public policy by reducing an agent's claim for commission against a football club. In addition to setting a precedent in the field of sports law, the decision is important for arbitration practitioners as it confirms that intervention in the arbitral process on the grounds of public policy is limited to the most severe violations of Polish law.

Supreme Court confirms that agent's email authorisation is necessary to enter into arbitration agreement
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 13 July 2017

International contracts are often concluded via email. This practice requires a more liberal approach to the form of arbitration agreements under the New York Convention. However, the convention is silent on the form in which an agent's authorisation (ie, power of attorney) to enter into an arbitration agreement must be made. A recent Supreme Court decision confirms that under Polish law, such authorisation is required and should be made in an equal manner to that required to conclude the agreement itself.

Unfair arbitration clause declared invalid
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 27 April 2017

Mass contracts are usually drafted favourably only for the stronger party in the contractual relationship. This particularly pertains to dispute resolution (eg, its method or place). The Supreme Court recently ruled strongly in favour of the weaker parties in a contract and found that an arbitration clause in the contract between a Polish franchisee and a Dutch franchisor that opted for New York as the place of arbitration was invalid, as it was grossly unfair to the Polish party.

Important changes regarding consumer arbitration introduced
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 09 February 2017

Significant changes to the regulation of arbitration in Poland were recently introduced. The changes will have a profound effect on business practice and lawyers nationwide, modifying a wide range of rules – from the form of an arbitration agreement to the preconditions for the enforcement of awards. However, the act aims not only to support consumers in arbitration, but also to provide a new impetus for the development and expansion of arbitration in Poland.

Court says no to anti-arbitration injunctions in Poland
Kubas Kos Gałkowski
  • Arbitration & ADR
  • Poland
  • 15 December 2016

Anti-suit and anti-arbitration injunctions are useful instruments for enabling efficient dispute resolution and preventing forum shopping. However, these instruments are not favoured in some legal systems. Poland is one of the jurisdictions that was said to exclude the use of anti-suit and anti-arbitration injunctions. The Krakow Court of Appeals recently confirmed that Polish courts cannot prohibit a party from initiating or continuing arbitration.

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