Poland, Kubas Kos Gałkowski updates

Arbitration & ADR

Contributed by Kubas Kos Gałkowski
Appeals courts confirm procedural public policy violations
  • Poland
  • 01 April 2021

The Polish courts rarely confirm violations of procedural law. In two recent cases, the appellate courts found that procedural errors in arbitration were grave enough to justify setting aside the awards in question. These cases are interesting, especially from the perspective of arbitrators. Arbitrators must be careful in verifying whether they have ruled on a case exactly as it was brought before them. The consequences of a mistake in this respect can be serious.

Lack of funds does not enable parties to escape arbitration
  • Poland
  • 21 January 2021

Arbitration does not provide for legal aid or an exemption from paying costs. Some regard this as a disadvantage of alternative dispute resolution. One party's lack of funds to pay for its share of arbitration costs can indeed deprive it of its day in arbitration court. This issue recently came before the Warsaw Court of Appeals, which decided that a party's lack of funds to launch arbitration does not render the arbitration agreement defective.

Arbitral award vacated for violation of EU competition law
  • Poland
  • 15 October 2020

The issue of arbitral tribunals' application of EU law is not new. In the 1990s the European Court of Justice (ECJ) established that a national court which receives an application to annul an arbitration award must grant such application if it considers that the award in question is contrary to EU law. In recent years, this issue was revived in investment arbitration and the ECJ's famous (or for many, infamous) Achmea judgment. A landmark decision of the Warsaw Court of Appeals is yet another chapter in this story.

Ready, set, off: Warsaw Court of Appeals confirms tribunal's jurisdiction over set-off claims
  • Poland
  • 23 July 2020

The issue of an arbitral tribunal's jurisdiction over set-off claims that are not covered by an arbitration agreement is controversial, with the rules differing from jurisdiction to jurisdiction. In a recent judgment, the Warsaw Court of Appeals held that even if a set-off claim is based on an agreement that is outside the scope of an arbitration agreement, the tribunal must determine the set-off's effects on the main claim raised in the proceedings.

Words, words, words: concise reasoning not grounds to vacate award
  • Poland
  • 27 February 2020

Parties which lose in arbitration often continue to fight off a claim before a state court in post-arbitral proceedings, despite not having a strong case. This provides a double benefit for Polish arbitration practice: not only are a vast majority of these attempts defeated, but the Supreme Court also has a chance to confirm its pro-arbitration approach. One recent decision underlines that the mere fact that the reasoning of an arbitral award is concise is insufficient grounds to vacate the award.


Energy & Natural Resources

Contributed by Kubas Kos Gałkowski
Clean transport zones: amending Act on Electromobility and Alternative Fuels
  • Poland
  • 22 February 2021

In order to prevent the negative impact of transport pollutant emissions on human health and the environment, the legislature passed the Act of 11 January 2018 on Electromobility and Alternative Fuels, which introduced the possibility for community councils to create clean transport zones. In such zones, vehicle traffic restrictions were introduced, from which certain vehicles were exempt. However, in response to public expectations, the ministry has proposed draft amendments to the act.

Capacity fee enters into force
  • Poland
  • 01 February 2021

The President of the Energy Regulatory Office recently announced the capacity fee rates for 2021. As of 1 January 2021, this fee will be added to electricity end-users' bills for the first time. This article provides an overview of the capacity fee, the rates thereof and the purpose of its introduction, as well as the key principals of the capacity market.

Erroneous charging inconsistent with tariff conditions justifies administrative fine
  • Poland
  • 25 January 2021

The Supreme Court recently applied Article 56(1)(6) of the Energy Law to clarify when the Polish regulator can impose an administrative fine on an energy company. The Supreme Court dealt with a situation where the tariff applied was contrary to the conditions specified therein. This verdict will have an important impact on similar administrative proceedings against trading companies.

Legislative works undertaken to achieve electricity market reforms
  • Poland
  • 02 November 2020

Pursuant to Article 20(3) et seq of EU Regulation 2019/943, some EU countries – including Poland – had to prepare a specific roadmap for the implementation of the new electricity market's principles, which could be adapted to accommodate the social and economic realities of the given country. This article summarises the actions taken by Poland to adapt its national legal environment to the requirements of the Clean Energy for all Europeans package.

Capacity market: consultation on necessary amendments
  • Poland
  • 14 September 2020

In recent weeks, information has been published concerning the draft amendment to the Act of 8 December 2017 on the Capacity Market. The amendment aims to adapt Polish regulations to reflect the new electricity market structure agreed at the EU level as part of the Clean Energy for all Europeans package. The Ministry of Climate is responsible for the draft law, the adoption of which is planned for the third quarter of 2020.


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