Poland updates

Arbitration & ADR

Contributed by Kubas Kos Gałkowski
Agent claiming commission for football transfer caught offside
  • Poland
  • September 28 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
  • Poland
  • July 13 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
  • Poland
  • April 27 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
  • Poland
  • February 09 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
  • Poland
  • December 15 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.


Company & Commercial

Have we already concluded an agreement?
  • Poland
  • November 06 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.


Competition & Antitrust

Contributed by Schoenherr Attorneys at Law
Competition authority adopts new approach to gathering electronic evidence during dawn raids
  • Poland
  • October 12 2017

The Warsaw Court of Competition and Consumer Protection recently delivered a significant judgment regarding the collection of electronic evidence during unannounced inspections conducted by the Office for Competition and Consumer Protection. As a result, documents stored on hard drives and emails of managers and employees must now be reviewed by officials on the inspected company's premises.

Parliament adopts Act on Private Enforcement of Competition Law
  • Poland
  • June 15 2017

Parliament recently adopted the Act on Private Enforcement of Competition Law, which transposes the EU Antitrust Damages Directive into Polish law. The act aims to enhance the enforcement of the payment of compensation by companies that have infringed competition rules. The introduction of legal presumptions shifting the burden of proof onto the infringer and specific rules on the disclosure of evidence are steps in this direction.

OCCP imposes fine for resale price maintenance agreement
  • Poland
  • February 16 2017

The Office for Competition and Consumer Protection (OCCP) recently issued a decision in which it concluded that wholesale supplier Fordex and sports retailer Intersport had entered into an anti-competitive agreement and violated Article 6 of the Competition Act. The OCCP's decision stressed that price agreements (even vertical ones) are serious infringements of competition law to which neither the de minimis rule nor the block exemption regulations can be applied.

Price-fixing agreement facilitated by association of undertakings
  • Poland
  • November 03 2016

The Office for Competition and Consumer Protection recently imposed a fine on the Association of Polish Centres for Infertility Treatment and Reproduction Development for entering into an anti-competitive price-fixing agreement and violating the Competition Act. The penalty reflects the fact that price-fixing agreements are regarded as serious infringements of competition law.

Court of Appeal judgment on first antitrust case regarding joint bidding
  • Poland
  • September 08 2016

Although joint bidding is accepted by the European Union and national regulations, companies must remember that their cooperation may be subject to interest from competition authorities. This is because market players must comply with antitrust regulations when tendering collectively. The Warsaw Court of Appeal recently delivered a judgment in the first Polish antitrust case regarding bidding as a consortium.


Corporate Finance/M&A

Contributed by Kubas Kos Gałkowski
Shareholder activism in Poland – an overview
  • Poland
  • October 04 2017

Shareholder activism has grown in popularity in recent decades due to leading law firms specialising in the implementation of available shareholder activism strategies, and the role of hedge funds and related services constitutes a significant niche in the legal services market. Under Polish legislation, various forms of shareholder activism can be applied.

Protection of shareholders against unfavourable share exchange rate in capital companies merger process
  • Poland
  • August 23 2017

By assumption, the process of merging capital companies is advantageous from the point of view of the merging companies and their shareholders. However, sometimes a shareholder may receive fewer shares in the acquiring company than he or she should have. In such a context, the question that arises is whether the protection of shareholders' interests against an unfavourable share exchange rate is possible under Polish law and, if so, how it can be accomplished.

Non-disclosure agreements: an effective tool during negotiations
  • Poland
  • July 12 2017

To a large extent, the security and success of a transaction depends on the correct execution of the process preceding its finalisation. At the pre-contractual stage, a non-disclosure agreement (NDA) is the first agreement that regulates the mutual relationships of the parties involved in the negotiations. Concluding an NDA in Poland is of substantial significance as, in the case of a violation, it enables a party to seek damages to the fullest extent possible.

Limitations on challenging resolutions at shareholder meetings for company mergers
  • Poland
  • June 14 2017

The company merger procedure is regulated by the Commercial Companies Code, which provides for the adoption of shareholder resolutions during company mergers. Similar to other shareholder resolutions during general meetings, the resolution may be challenged according to the principles set out in the code. However, certain exceptions to the general principles apply.

Share purchase agreement forms for share transfers concluded in another state
  • Poland
  • May 03 2017

Under Article 180 of the Commercial Companies Code, the effective transfer of share ownership requires a transfer ownership agreement to be concluded in writing with a signature certified by a notary. However, not all legal regulations in force in EU member states require adherence to a special form. The question that therefore arises is whether adhering to a less restrictive form will suffice for the effective transfer of the legal title in the shares being disposed of.


Employment & Benefits

Contributed by Sołtysiński Kawecki & Szlęzak
Supreme Court decides that employers can demand information on employees' additional work activities
  • Poland
  • October 25 2017

The Supreme Court recently ruled that an employer can demand that an employee inform it of any additional activities that he or she undertakes during the employment period. If the employee fails to do so, this can justify his or her employment contract being terminated upon notice. The judgment confirms the court's existing position in this regard. However, the court's second conclusion concerning data protection is new and may raise doubts regarding its compliance with the Labour Code.

Changes to employment of temporary workers introduced
  • Poland
  • July 05 2017

The Act Amending the Act on the Employment of Temporary Workers and Certain Other Acts recently entered into force. It introduces important changes and limitations concerning temporary work and aims to improve the temporary work market and counteract abusive practices. The amendment concerns all employers that hire temporary workers.

Supreme Court judgment on concluding employment agreement with pregnant woman
  • Poland
  • April 19 2017

In a recent judgment concerning an employment agreement concluded with a pregnant woman, the Supreme Court stated that the actual and real performance of an employment relationship is decisive for determining whether the parties actually concluded an employment contract. Entitling a document 'employment agreement' and having it signed by the parties does not determine its legal status – rather, it is crucial that work is performed on the basis provided for in the employment contract.

Supreme Court issues landmark ruling regarding claims for termination on discriminatory grounds
  • Poland
  • February 08 2017

The Supreme Court recently decided that bringing a claim against an employer for the unlawful termination of an employment contract pursuant to Article 45(1) of the Labour Code is not a prerequisite to obtaining an award of damages pursuant to Article 18(3d) of the code. The decision fundamentally changes the risks associated with serving a termination notice and terminating an employment contract and enables employees to make claims long after their employment has been terminated.

Supreme Court decides on obligation to obey employer instructions
  • Poland
  • December 14 2016

The Supreme Court recently ruled that an employee's breach of the obligation to obey an employer's instructions constitutes a violation of the employer's intangible interests. The court explained that irrespective of the working time system in which an employee is employed, he or she is bound by an employer's instructions concerning work, unless they are against the law.