Arbitration boom
The changes in the Code of Civil Proceedings, passed by Parliament on July 28, 2005, entered into force on October 17. Before this date arbitration courts were allowed to handle assets-related cases only. Now, they can handle almost all non-asset issues such as partnership and employment relations issues as well. In the majority of law experts' opinion, it's a beneficial change conforming Polish law to international standards.
"Changes in this bill decidedly draw our regulations closer to international standards, especially to the [The United Nations Commission On International Trade Law's procedures,]" says Natalia Zagajewska, lawyer in the Lenodorski lusarek i Wspólnicy chancery. "The [changes] may indeed increase Polish courts' chances of competition with foreign counterparts, due to the fact our courts are and will remain cheaper."
Dodging a bullet
The private sector in Poland will gain much thanks to the new regulations. So far companies have dodged state courts, as the length of time required to resolve a suit there often led businesses to the edge of bankruptcy. Arbitration courts are much faster, since the average trial time there is about sixmonths, while the same case in an "ordinary" Polish court usually takes several years.
Thus, companies are likely to choose arbitration to solve their internal problems, but complained about the narrow spectrum of arbitration possibilities. Now, they will be able to solve most contests through the arbitration courts. There is only one condition: company statutes must include the possibility of doing so.
Bringing labor issues to arbitration is perhaps the most important change, although the procedure is proving a little unclear, since an employer is not allowed to attach an arbitration appendix to an employment contract. Secretary of the National Chamber of Commerce, Jolanta Dumas, explains how labor issues can appear before the court: "Employment matters can not be signed to arbitration a priori [i.e. before the matter has been brought before an ordinary court], but it is possible to sign an [arbitration] accord between sides after the contest has started. Thanks to that, every non-asset issue apart from alimony can be dealt with by arbitration."
