Arbitration in Poland has developed considerably over the years. Currently, the key place of arbitration is Warsaw, which hosts the most reputable arbitration institutions, including the Court of Arbitration at the Polish Chamber of Commerce. The majority of cases concern commercial disputes, including post-M&A, construction, and lease-related disputes.1
Arbitration in Poland is governed by Part V of the Polish Code of Civil Procedure ("Polish Arbitration Law"), which was enacted in 1964. The latest version of Part V of the Code was modified in 2015 and is mainly based on the UNCITRAL Model Law.2
Polish Arbitration Law
Arbitration Agreement
Pursuant to Article 1162 of the Polish Code of Civil Procedure, a valid arbitration agreement must be in writing:
§1. The arbitration agreement shall be in writing.
§2. The requirement as to the form of the arbitration agreement shall also be met if the agreement is contained in correspondence exchanged between the parties or statements made using telecommunications enabling the content thereof to be recorded. Reference in a contract to a document containing a provision on submission of a dispute to arbitration shall meet the requirement as to the form of the arbitration agreement if the contract is made in writing and the reference is such that it makes the clause an integral part of the contract.3
Moreover, the Code further specifies that an arbitration agreement included in articles of association or the statutes of a company concerning disputes arising from a corporate relationship shall be binding upon the company and its shareholders.4
Arbitrability and Kompetenz-Kompetenz
The Code provides comments on the arbitrability of certain disputes, recognizing the arbitrability of labor disputes, albeit with a limited scope:
An arbitration agreement concerning disputes involving labor law may be made only after the dispute has arisen and shall be in writing.5
Polish Arbitration Law recognizes the Kompetenz-Kompetenz principle by providing that:
The arbitral tribunal may rule on its own jurisdiction, including the existence, validity or effectiveness of the arbitration agreement. Invalidity or expiration of the underlying agreement containing the arbitration agreement shall not per se result in invalidity or expiration of the arbitration agreement.6
Additional Powers of Arbitral Tribunals
Moreover, Polish Arbitration Law provides arbitral tribunals with powers to order security 7 while providing for costs in the event of a frivolous application: "[i]f application of an interim security measure ordered by the arbitral tribunal was clearly unwarranted, the party for whom such interim measure was applied shall be liable for injury resulting therefrom."8
Polish Arbitration Law grants broad powers to the tribunal concerning its fact-finding role. Pursuant to Article 1191, the arbitral tribunal can hear witnesses, examine documentary evidence, make inspections, and examine any other necessary evidence, with the exception of the application of coercive measures. The arbitral tribunal also has the power to appoint its own expert witness or require the parties to provide expert reports.9
Arbitration Award
Regarding the final award, Polish Arbitration Law stipulates that in arbitral proceedings with more than one arbitrator, rulings of the arbitral tribunal shall be made by a majority vote, while permitting the president of the arbitral tribunal to make procedural rulings individually, if authorized by the parties and other arbitrators.10
In the event of dispute settlement, Polish Arbitration Law permits the arbitral tribunal to render its award reflecting the settlement terms, should the parties request it.11 In any event, the final award needs to satisfy several formal requirements to be considered valid:
§1. The arbitral award shall be made in writing and shall be signed by the arbitrators who issued it. If the award is issued by a panel of three or more arbitrators, the signatures of the majority of the arbitrators shall suffice, with a statement of the reason for the absence of the other signatures.
§2. The arbitral award shall state the reasons for the decision.
§3. The arbitral award shall indicate the arbitration agreement under which the award was issued, the names of the parties and the arbitrators, and the date and place of issuance. If each of the arbitrators signs the award in a different country and the parties did not specify the place of issuance of the award, the place of issuance shall be specified by the arbitral tribunal.
§4. The arbitral award shall be served on the parties.12
Pursuant to Polish Arbitration Law, once the final award is issued, a party may file a petition to set aside the award by the court on the following grounds:
1) there was no arbitration agreement, or the arbitration agreement is invalid, ineffective or no longer in force under the provisions of applicable law;
2) the party was not given proper notice of the appointment of an arbitrator or the proceeding before the arbitral tribunal or was otherwise deprived of the ability to defend its rights before the arbitral tribunal;
3) the arbitral award deals with a dispute not covered by the arbitration agreement or exceeds the scope of the arbitration agreement; however, if the decision on matters covered by the arbitration agreement is separable from the decision on matters not covered by the arbitration agreement or exceeding the scope thereof, then the award may be set aside only with regard to the matters not covered by the arbitration agreement or exceeding the scope thereof; exceeding the scope of the arbitration agreement cannot constitute grounds for vacating an award if a party who participated in the proceeding failed to assert a plea against hearing the claims exceeding the scope of the arbitration agreement;
4) the requirements with regard to the composition of the arbitral tribunal or fundamental rules of procedure before such tribunal, arising under statute or specified by the parties, were not observed;
5) the award was obtained by means of an offence or the award was issued on the basis of a forged or altered document; or
6) a legally final court judgment was issued in the same matter between the same parties.13
Moreover, the court may set aside the award if it finds that the dispute was not arbitrable or the award is contrary to the fundamental principles of the legal order of the Republic of Poland.14 Because the Republic of Poland ratified the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards on 3 October 1961, the award issued in Poland enjoys all the privileges tied to the Convention.16
Arbitral Institutions in Poland
The foremost arbitral institution in Poland is the Court of Arbitration at the Polish Chamber of Commerce in Warsaw. It was established in 1950 to settle international trade disputes. Since 1990, the Court of Arbitration has continued its operations and has become the most renowned and popular permanent Polish arbitration court. Almost 20% of cases are international in character. In addition to the best Polish lawyers, there are a number of foreign arbitration specialists on the List of Arbitrators.16
Conclusion
In conclusion, arbitration in Poland has evolved into a sophisticated mechanism for resolving commercial disputes. Anchored by the Polish Arbitration Law, which reflects international best practices and draws from the UNCITRAL Model Law, the country boasts a vibrant arbitration landscape centered around Warsaw. From the formal requirements of arbitration agreements to the extensive powers vested in arbitral tribunals, Poland's legal framework offers parties flexibility, efficiency, and enforceability. With its commitment to procedural fairness and the recognition of foreign arbitral awards under the New York Convention, Poland continues to foster a conducive environment for arbitration, making it a preferred choice for businesses navigating complex legal disputes.
Footnotes
1. Delos Guide to Arbitration Places, Poland, p. 1.
2. Delos Guide to Arbitration Places, Poland, p. 3.
3. Code of Civil Procedure, Art 1162.
4. Code of Civil Procedure, Art. 1163(1).
5. Code of Civil Procedure, Art. 1164.
6. Code of Civil Procedure, Art. 1180(1).
7. Code of Civil Procedure, Art. 1181.
8. Code of Civil Procedure, Art. 1182.
9. Code of Civil Procedure, Art. 1191.
10. Code of Civil Procedure, Art. 1195.
11. Code of Civil Procedure, Art. 1196.
12. Code of Civil Procedure, Art 1197.
13. Code of Civil Procedure, Art. 1205-1206.
14. Code of Civil Procedure, Art. 1206(2).
16. Court of Arbitration at the Polish Chamber of Commerce in Warsaw, General Information
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