Litigation in Poland

1. General Trends

1.1. What is the current state of litigation in your jurisdiction, and what recent trends or developments have been observed?

Courts conducting civil proceedings in Poland currently face significant caseload burdens, resulting in prolonged durations of proceedings, notably in the first-instance courts but also in the appellate courts and the Supreme Court. Depending on the complexity and nature of the case, the time required to obtain a final judgment often spans several years. Consequently, there has been a noticeable increase in interest in arbitration over the years. In large contracts between businesses, particularly in the context of mergers and acquisitions, arbitration clauses are standard practice.

Currently, there is also an issue regarding the improper appointment of judges in Poland in recent years. This situation has led to ongoing concerns about the stability of judgments issued by judges whose appointments are in question.

In terms of trends and directions in ongoing litigations, consumers are very active on the Polish litigation scene, particularly in suing clients from the banking sector (primarily in the areas of FX-indexed loans, free credit claims, and financial instruments claims). We are seeing an increasing number of claims based on allegations of unfair contract terms. Cases have begun to appear in which consumers challenge loan interest rates due to allegations against the WIBOR reference rate. Additionally, with new legislation concerning representative actions implementing EU regulations, we expect increased litigation activity from social organizations acting on behalf of consumers.

1.2. What are the key legal frameworks that regulate litigation?

The primary legal act regulating the rules of civil procedure in Poland is the Code of Civil Procedure. The Code of Civil Procedure primarily governs civil matters in the substantive sense (such as matters under civil law, as well as family and guardianship law, and labor law), but it also applies to other matters where a specific provision stipulates the application of the Code of Civil Procedure (for example, cases concerning social security and regulatory matters). 

Additionally, regulations concerning civil procedure for certain categories of cases are contained in separate statutes. For example, group proceedings (equivalent to class actions) are regulated by a separate statute. Another such statute is the so-called Private Enforcement Act, which mainly contains procedural provisions governing the pursuit of damages claims resulting from violations of competition law.

2. Jurisdiction and Competence

2.1. How is the court system structured in your jurisdiction?

The court system in Poland is structured hierarchically and is composed of several types of courts, each with specific functions and areas of jurisdiction.

Common Courts

Common courts handle most civil, criminal, and family law cases and are divided into three levels:

• District Courts which are the courts of first instance for most cases. They hear all civil court cases except for those cases that fall under the jurisdiction of Regional Courts. In particular, they handle minor criminal and civil cases, as well as family matters.

• Regional Courts which serve as both courts of first and second instance. They handle cases concerning property rights, in which the value of the subject of the dispute exceeds one hundred thousand zlotys and other cases enumerated by the statute, including certain types of cases, such as intellectual property or competition law matters. They also handle appeals from district court judgments.

• Courts of Appeal which are courts of second instance that handle appeals from regional courts. They are responsible for ensuring the consistency and legality of verdicts rendered by the lower courts.

Administrative Courts

These courts deal with cases involving public administration and are divided into two levels:

• Voivodeship Administrative Courts which hear all administrative court cases except for those cases that fall under the jurisdiction of the Supreme Administrative Court. In particular, they handle appeals against administrative decisions made by public authorities.

• Supreme Administrative Court which is the highest court in the administrative judiciary system, handling appeals from voivodeship administrative courts.

Supreme Court

The Supreme Court is the highest judicial authority in Poland. It supervises the functioning of the lower courts and ensures the consistent application and interpretation of laws. In particular, it handles cassation appeals, which are appeals on points of law, correcting any errors of law that might have occurred in the lower courts, as well as resolves significant legal issues in the form of resolutions.

Constitutional Tribunal

This tribunal is not part of the ordinary court hierarchy. It assesses the constitutionality of laws and regulations, resolving conflicts of competence between central constitutional authorities, adjudicating the conformity of international agreements with the Constitution, and ruling on matters regarding political parties and elections.

2.2. Are there specialized courts for specific types of litigation?

In the structure of the Polish courts, there are divisions dedicated to handling cases from various areas and fields of law. These include, for example, civil divisions, family divisions, criminal divisions, commercial divisions, labor divisions, and social security divisions.

Certain competition law cases are handled by the Competition Court in Warsaw, which is a division of the Regional Court in Warsaw.

Also in Warsaw, due to the very high number of cases concerning FX-indexed consumer mortgage loans, a specific division has been established to deal exclusively with such cases.

Intellectual property cases are generally handled only by five regional courts in Poland, located in Warsaw, Lublin, Gdansk, Poznan, and Katowice. Only these courts have established intellectual property divisions. Furthermore, in cases concerning computer programs, inventions, utility models, integrated circuit topographies, plant varieties, and trade secrets of a technical nature (so-called technical cases), exclusive jurisdiction is vested in only one of these courts, namely, the Regional Court in Warsaw.

2.3. How is jurisdiction determined in cross-border litigation, especially in cases involving foreign parties or multiple jurisdictions?

In Poland, jurisdiction in cross-border litigation, particularly in cases involving foreign parties or multiple jurisdictions, is largely determined by a combination of EU regulations, international conventions, and national laws (especially the Polish Code of Civil Procedure). Poland is a party to various legal instruments determining jurisdiction, particularly in the context of EU regulations. Specifically, Poland is subject to:

• Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) (“Brussels I Regulation 2012”)

The Brussels I Regulation 2012 governs jurisdiction and the recognition and enforcement of civil and commercial judgments within the EU. It specifies that, as a general rule, a defendant should be sued in the Member State where they are domiciled. It also provides rules for:

– Special jurisdictions: In certain cases, jurisdiction can be based on specific grounds, such as the place of performance of a contractual obligation or the place where a harmful event occurred.

– Exclusive jurisdiction: Certain matters, like those related to real estate or company law, have exclusive jurisdiction confined to the courts of specific member states.

– Choice of court agreements: It foresees the possibility of entering into the choice of court agreements (prorogation of jurisdiction).

• Council Regulation (EU) 2019/1111 of 25 June 2019 on jurisdiction, the recognition and enforcement of decisions in matrimonial matters and matters of parental responsibility, and on international child abduction (recast) (“Brussels II Regulation 2019”)

The Brussels II Regulation 2019 focuses on jurisdiction and the recognition of judgments in matrimonial matters and parental responsibility. It sets forth jurisdiction in matters relating to divorce, legal separation, or marriage annulment, as well as parental responsibility.

Poland is also a party to the Hague Convention on Choice of Court Agreements 2005 (“Hague Convention”), which establishes uniform rules on jurisdiction in cases where parties have a previously agreed-upon forum. Parties to the Hague Convention acknowledge the validity of choice of court agreements in civil law matters. Consequently, any court not designated in the agreement must suspend proceedings, except if the chosen court declines to exercise jurisdiction. Under the Hague Convention, the chosen courts have exclusive jurisdiction to resolve the dispute. Judgments rendered by the chosen court are required to be recognized in all States parties to the Hague Convention.

If no EU regulation or international convention applies, Polish national law steps in to determine jurisdiction. As a rule under the Code of Civil Procedure, Polish courts have jurisdiction to hear disputes if the defendant has a place of residence, habitual residence, or registered office in Poland. The Code of Civil Procedure further regulates the jurisdiction of Polish courts in various types of cases. Importantly, Polish courts retain jurisdiction once it is established at the time of initiating proceedings, even if the basis for jurisdiction ceases during the proceedings.

3. Initiating Litigation

3.1. What are the primary steps required to initiate litigation in your jurisdiction?

The initiation of civil proceedings occurs through the filing of a lawsuit with a court. A lawsuit should clearly outline the factual and legal basis of a claim. A lawsuit includes:

• a precisely defined demand;

• an indication of the value of the subject of the dispute in cases concerning property rights unless the subject of the case is a specified sum of money;

• an indication of the date when a claim becomes due;

• an indication of the facts on which the claimant bases a claim and, if necessary, justifying the jurisdiction of the court;

• information on whether the parties have attempted mediation or another form of alternative dispute resolution, and if such attempts have not been made, an explanation of the reasons for not undertaking them.

In addition, a lawsuit may include requests for establishing interim security (for details, please refer to the answer to question no. 5), granting the judgment immediate enforceability, conducting the hearing in the absence of the claimant, and motions to prepare the hearing, in particular, requests for:

• summoning witnesses and experts indicated by the claimant to the hearing;

• conducting an inspection;

• ordering the defendant to provide at the hearing a document in their possession that is necessary to present evidence or an object for inspection;

• requesting evidence located in courts, public authorities, or possessed by third parties, along with demonstrating that the party cannot obtain them on their own.

It is crucial to gather all relevant evidence at the stage of preparing a lawsuit. Introducing evidence at a later stage may result in the court considering it untimely and disregarding it when issuing a judgment. This requirement is particularly important in commercial cases between entrepreneurs.

The defendant is given the opportunity to respond to the lawsuit in a response, which can be filed within a deadline specified by the court (not shorter than two-week time) after the lawsuit is delivered to the defendant. The response to a lawsuit typically includes a defense and counterarguments along with supporting evidence.

The defendant may also file a counterclaim against the claimant. A counterclaim is permissible if it relates to the claimant’s claim or is suitable for set-off.

3.2. Are there any specific requirements for parties regarding pre-litigation procedures?

As a rule, a creditor can file a lawsuit if the debtor’s obligation is due. Indicating the due date is, in fact, one of the requirements for a lawsuit. The performance of an obligation is due after the creditor has called upon the debtor to fulfill the obligation, unless the time for performance was previously specified by the creditor or derives from the nature of the obligation. When a call is made by the creditor, the previously indefinite obligation becomes time-specific, and the debtor has a duty to perform the obligation immediately. However, if the time for performance – as immediate performance – has been specified this way in the parties’ agreement, then the debtor should perform even without being called upon by the creditor.

Before filing a lawsuit, the parties should attempt to resolve the dispute out of court, for example, through mediation (for details relating to mandatory requirements for the lawsuit, please refer to the answer to question no. 3.1). The claimant is required to indicate in the lawsuit whether such an attempt has been made and, if not, to specify the reason for not pursuing it.

Alternatively, before a party requesting the performance of an obligation decides to file a lawsuit, it can use a legal instrument in the form of a request for a settlement attempt. A request for a settlement attempt is also submitted to the court and is characterized by fewer formal requirements and a lower court fee.

4. Timelines

4.1. What are the typical timelines for different stages of litigation, from initiation to resolution?

The entire litigation process can take anywhere from several months to several years to reach a final judgment, particularly if appeals are involved. Complex business cases or those requiring extensive evidence or multiple expert opinions tend to take longer.

A general overview of typical timelines for each stage of the proceedings can be divided into a few stages:

Initiation of Proceedings

Once a claim is filed with the court, it is generally reviewed for formal compliance within a few weeks. The claimant must ensure all necessary documents and information are included to avoid delays.

Preliminary Proceedings and Exchange of Subpoenas

After a lawsuit is registered with a court, it is served on the defendant. This usually takes a few weeks. The defendant has at least two weeks to file a response to the lawsuit. In complex business cases, courts set a longer period to file the response.

Before the first hearing, parties may submit further pleadings; however, the court may refuse further exchanges of them.

Hearings

The time taken between hearings can vary, often depending on the court’s workload. It might take from several months to a few years to complete the hearings for a case. The timeline depends on factors like the number of witnesses to be heard, the time required to prepare expert opinions and to hear the authors of those opinions, and the complexity of the specific case.

Judgment

Once hearings are concluded, a judgment is usually issued within several weeks to a few months, depending on the case’s complexity and the court’s caseload.

Generally, proceedings before courts of first instance are relatively lengthy. It is important to remember that the complete evidence proceedings are conducted at this stage, impacting the length of the proceedings.

Appeal

Parties generally have two weeks from receiving the written judgment to file an appeal (with some specific exceptions when the deadline Is three weeks).

The appellate process can take several months, as it involves reviewing the case and potentially holding additional hearings.

Enforcement

Once a judgment is final, enforcement proceedings can begin. This process can vary widely in duration, depending on the ease of locating and recovering assets.

Proceedings before the appellate court can end with the case being referred back to the court of first instance for re-examination. This extends the proceedings because some procedural actions may need to be repeated, or additional procedural actions may be necessary.

Some cases, such as those involving smaller claims or uncontested matters, may be resolved more quickly through simplified procedures.

4.2. Are there specific time limits for filing claims, and do these vary depending on the type of dispute?

Generally, the ability to pursue claims of a financial nature is limited by the limitation periods specified mainly in the Civil Code. The expiration of the limitation period does not affect the ability to pursue a claim if the person against whom the claim is being pursued waives the defense of limitation. In the case of the lapse of a limitation period, there are no obstacles to submitting a claim to a court (the claim still exists). However, raising the plea of lapse of the limitation period will prevent the awarding of the claim amount to the claimant and its satisfaction.

However, in the case of claims submitted by entrepreneurs against consumers, it is not necessary for the consumer to raise a plea of lapse of the limitation period. This means that the court, before which the proceedings are taking place, takes the expiration of the limitation period into account ex officio.

Non-property claims do not become time-barred, for example, those arising from the violation of personal rights or existing in family legal relationships. However, pursuing the payment of a specified sum of money in connection with the violation of personal rights is a property claim and is subject to limitation.

The general limitation period provided for in the Civil Code is six years, and for claims concerning periodic payments and claims related to business activities, it is three years. However, this general rule has many exceptions and provides a different method of calculating the limitation period depending on the subject of the dispute, such as the source of the legal act or the event constituting the basis of the claim.

5. Interim Measures

5.1. What interim remedies are available in your jurisdiction?

The Code of Civil Procedure provides for the possibility of granting interim security before the commencement of or during civil proceedings. Proceedings for the granting of interim security are independent of judicial proceedings. Their purpose is to provide legal protection to the party seeking interim security and having a claim against another person or entity.

A claimant can file an application for security before the commencement of judicial proceedings, simultaneously with its commencement, or during the proceedings. If the court grants interim security before the commencement of judicial proceedings, the claimant must file a lawsuit and initiate judicial proceedings no later than two weeks (the court specifies the exact term). In case of failure to submit a lawsuit, the interim security would lapse.

If interim security is granted, its beneficiary is not adversely affected by the duration of the proceedings. Granted interim security enables the achievement of the objectives of the proceedings before they are resolved on the merits. A beneficiary of interim security can be confident that, in the event of a successful final judgment on the merits, they will be able to satisfy themselves from the object of the granted interim security.

A claimant may obtain interim security in respect of claims able to be recognized in any type of civil proceedings conducted in front of a common or arbitration court.

Interim security can be granted irrespective of the claim being the subject of the case. Therefore, the granting of interim security is possible in cases concerning performance, in cases concerning the determination of a right or legal relationship, as well as in cases concerning the formation of a right or legal relationship.

5.2. Under what circumstances can a party obtain an interim injunction, and how quickly can such relief be granted?

Generally, the basis for granting interim security is the likelihood of the claim and the likelihood of the existence of a legal interest in granting interim security. In security proceedings, it is not necessary to prove the circumstances supporting the validity of granting security. Therefore, a lower degree of certainty is sufficient. Security proceedings do not serve to determine the existence of the claim but aim to secure the execution of a future judgment or to guarantee its effectiveness. It is sufficient for the court to recognize that there is a high likelihood of the claim’s existence. This assessment may be revised during the main proceedings after a full evaluation of the evidence.

The likelihood of a legal interest in granting interim security means that the entitled party must indicate circumstances that will likely demonstrate the risk of non-execution of the judgment or failure to achieve the purpose of the proceedings. The basis for security can thus be said to exist when the absence of security would result in the legal protection provided in the judgment issued in the main proceedings being incomplete.

If the claim concerns a monetary benefit, a legal interest in granting security can be said to exist when the lack of interim security may prevent or seriously hinder the execution of a future judgment. Such a situation occurs when the solvency of the opposing party is at risk, for example, when they are disposing of their assets, have lost their source of income, or have ceased conducting business.

In the case of non-monetary claims, a legal interest justifying the granting of security arises, for example, in situations where there is a risk of loss or destruction of an item or an attempt by third parties to thwart the execution of a future judgment.

Generally, the court considers an application for granting security promptly, but no later than within a week from the date the application is filed with the court. This deadline is instructional, and its breach does not affect the validity of the decision issued in this regard. The short instructional deadline aims to discipline the court to consider the application without delay.

Even when security is granted, the obligor has the option to appeal the court’s decision. In such a situation, the court’s decision regarding the security becomes final only after the obligor’s appeal is considered.

6. Discovery

6.1. What are the rules governing the discovery process in your jurisdiction?

Polish civil procedure does not generally provide for a discovery process as understood in common law jurisdictions, where each party can obtain evidence from the others through civil procedure law. There is no separate stage like document production where parties can request documents from each other. Each party is obligated to present its own evidence to support its claims.

However, the Code of Civil Procedure includes a mechanism that allows the court, during the proceedings, to compel a participant or a third party to present a document they possess, which serves as proof of fact crucial for the resolution. It is possible to demand the opposing party to present a document they possess necessary for evidence, or an item for inspection, right in the lawsuit. One can also request evidence that is located in courts, offices, or with third parties, provided there is a reasonable likelihood that the party cannot obtain it themselves.

In addition to general rules, there are specific regulations regarding legal measures to demand evidence in certain types of cases, for example:

• Claims for damages resulting from competition law violations.

• Intellectual property infringement cases.

Claims for Damages from Competition Law Violations

Specific regulations provide detailed rules on the disclosure of evidence in claims for damages resulting from competition law violations. For a claimant’s request to disclose evidence to be granted:

• the claimant must substantiate their claim;

• the evidence sought must pertain to a fact crucial for the resolution.

The regulation covers, among others:

• the content required in the application;

• procedural rules for deciding on the application;

• grounds for dismissing the application;

• permissible limitations on access to evidence;

• the admissibility of appealing and amending decisions.

These specific regulations transpose the provisions of Directive 2014/104/EU.

Intellectual Property Infringement Cases

In intellectual property infringement cases, a claimant who has substantiated their claim can request the defendant to disclose or provide evidence in their possession, particularly banking, financial, or commercial documents, aimed at revealing and proving facts.

This measure is only usable during ongoing proceedings. In these cases, the Code of Civil Procedure specifies the requirements for an application to disclose evidence and the procedure for considering the application. If the court grants the application, it issues an order compelling disclosure or provision, specifies the deadline for disclosure or delivery and sets terms for its use or review. The order is enforceable upon issuance.

The regulations for disclosing or providing evidence are the result of transposing the rules from Article 6 of Directive 2004/48/EC into Polish law.

Another legal measure that can be utilized even before filing a lawsuit (pre-trial stage) in intellectual property infringement cases is securing evidence. The court grants the securing of evidence upon the applicant’s request if they substantiate their claim and demonstrate a legal interest in securing evidence. A legal interest exists when:

• the absence of the requested securing prevents or seriously hinders the presentation or proof of significant facts;

• there is a risk of destruction of the evidence;

• delay in obtaining the evidence may prevent or seriously hinder achieving the goal of the evidentiary proceedings.

Other reasons necessitate confirming the current state of affairs.

6.2. What types of evidence can be requested, and how are discovery disputes resolved?

Types of evidence that can be requested

General Principles

The court can require a participant in the proceedings or a third party to present a document they possess. A document in the meaning of the Civil Procedure Code includes paper documents and electronic media (e.g., a hard drive or cloud storage). The definition is technologically neutral, encompassing content preserved on paper, in electronic form, or in sound, visual, or audiovisual form.

Exceptions exist where the document contains:

• classified information, or

• information to which a person could refuse to testify.

A party cannot refuse to present a document if the harm from doing so would merely be losing the case.

Intellectual Property Infringement Cases

The provisions applicable to intellectual property infringement cases broadly refer to evidence without strictly defining it, particularly bank, financial, or commercial documents necessary to reveal and prove facts. In legal literature, it is indicated that this can include all tangible evidence, such as objects or collections of objects.

Claims for Damages from Competition Law Violations

The provisions applicable to claims for damages resulting from competition law violations generally reference evidence but specify document categories excluded from disclosure or subject to restrictions, The documents excluded from disclosure are:

• statements under leniency programs;

• settlement proposals

If these are only part of a document, the remaining content must be disclosed.

Some documents/information can only be disclosed post-competition authority proceedings, such as:

• information prepared specifically for competition proceedings.

• information made by the competition authority and shared with parties.

• withdrawn settlement proposals.

Discovery disputes

General Rules

No specific procedure exists for resolving disputes. A party cannot challenge a court decision denying an application during the proceedings. One can only challenge it through appeal challenging the judgement on merit.

Intellectual Property and Competition Cases

Special rules allow for appealing a court order to disclose a document in intellectual property infringement cases and in cases concerning claims for damages resulting from competition law violations. In both instances, a court order can be formally appealed by filing a complaint during the merit phase of the proceedings.

6.3. How is evidence presented and evaluated during litigation?

Documents obtained under the regulations for disclosing evidence can be presented as evidence in a case, subject to exceptions following specific regulations.

In cases concerning claims for damages due to competition law violations, the court may restrict other parties’ rights to access this evidence or lay down detailed rules for reviewing and using the evidence. This applies when the disclosed evidence contains trade secrets or other confidential information protected by separate regulations.

Similarly, in cases of intellectual property rights infringement, if the defendant invokes trade secret protection, the court can establish specific rules for the use and access to the evidence and may impose additional restrictions.

Generally, there are no specific rules for evaluating evidence. If evidence obtained under the regulations for disclosing evidence is admitted as part of the evidential material, the general rules of evidence evaluation apply.

7. Enforcement of Judgments

7.1. What types of judgments can be issued in civil litigation, and how are they enforced?

Types of Rulings

In Poland, in civil proceedings, there are generally three categories of rulings that may be issued: (i) orders; (ii) judgments (including default, preliminary, and partial judgments); and (iii) payment orders (payment order in payment-order proceedings, payment order in writ-of-payment proceedings).

Orders

In contentious proceedings, the court issues orders that address matters related to the course of the proceedings as well as incidental issues. In non-contentious proceedings, the court issues all decisions in the form of orders, regardless of whether they pertain to the essence of the case or procedural, incidental, or ancillary matters. Provisions relating to judgments in contentious proceedings apply to orders on the substance of the case issued in non-contentious proceedings.

Judgments

A judgment is a court decision that resolves the essence of a case in contentious proceedings. Judgments can be classified into the following categories:

• Based on the outcome:

– judgments granting the claim;

– judgments dismissing the claim;

• Based on content:

– judgments ordering the performance of an obligation;

– judgments determining the existence or non-existence of a legal relationship or right;

– judgments shaping a legal relationship or right.

• Based on legal effects:

– declarative judgments;

– constitutive judgments.

• Based on the scope of the decision:

– full judgments;

– partial judgments;

– preliminary judgments;

– inal judgments;

– supplementary judgments.

Payment Orders

A payment order is a decision issued by the court in a closed session, whereby the defendant is ordered to satisfy the claimant’s demand in full, including the legal costs, within a specified time frame outlined in the order, or to file an appeal within that period. Payment orders can be issued in various procedures, such as in payment-order proceedings and writ-of-payment proceedings. The Code of Civil Procedure regulates the conditions for their issuance and provides different rules for appealing these orders depending on the procedure in which they were issued.

Enforcement Proceedings

Should the defendant fail to comply with the ruling voluntarily, these rulings can be subsequently enforced through established legal mechanisms. Enforcement proceedings in Poland address both monetary and non-monetary claims. These proceedings are mechanisms used by creditors to ensure that debtors fulfill their financial or action-based obligations. Each type of claim proceeds through specific processes governed by legal provisions.

Monetary Claims

Monetary claims involve a debtor’s obligation to pay a specific sum of money to a creditor. They are the most common reason for initiating enforcement proceedings. Assets subject to enforcement include, for example:

• movables;

• salary;

• bank accounts;

• receivables;

• shares;

• real estate.

Enforcement proceedings can be divided into three stages:

• Clause proceedings: Obtaining an enforceability clause for an enforcement title, typically issued by a court upon the creditor’s request.

• Proper enforcement proceedings: In this stage, coercive measures are utilized to recover obligations. For instance, seizing funds from a debtor’s bank account; this stage of the proceedings is conducted by the bailiff.

• Distribution proceedings (if needed): This stage involves distributing the funds obtained from enforcement, especially relevant when multiple creditors are involved.

Non-Monetary Claims

These involve enforcing actions or omitting specific actions rather than monetary payments. They often focus on infringements of rights and interests, and include, for example:

• handover of movable property or real estate;

• making specific statements of will;

• refraining from undertaking certain actions.

If the debtor fails to comply with the enforceable title, the creditor may petition the court to initiate enforcement. In cases involving substitute actions, should the debtor not comply within the stipulated timeline, the court may allow the creditor to execute the action at the debtor’s expense and allocate the necessary funds.

7.2. Are there specific provisions for cross-border litigation or enforcement of foreign judgments?

Yes, there are specific provisions concerning cross-border litigation and enforcement of foreign judgments. These matters are regulated at both international and national levels. Poland is a party to various international treaties intended to facilitate cross-border litigation and the recognition and enforcement of judgments across borders, particularly within the EU, but also with countries outside the EU. For example:

• Brussels I Regulation 2012;

• Regulation (EC) No 805/2004 of the European Parliament and of the Council of 21 April 2004 creating a European Enforcement Order for uncontested claims;

• Regulation (EC) No 861/2007 of the European Parliament and of the Council of 11 July 2007 establishing a European Small Claims Procedure;

• Hague Convention;

• Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters.

Poland is also a party to several bilateral treaties on the recognition and enforcement of foreign judgments.

If no EU regulation or international convention applies, Polish national law will be applicable. The recognition and enforcement of foreign judgments are regulated in the Polish Code of Civil Procedure.

8. Appeal

8.1. What is the appeals process, and what are the grounds for appeal in your jurisdiction?

Within Polish civil procedural law, the remedy intended for challenging substantive judgments of the first instance court is an appeal (Polish: “apelacja”). Another remedy intended for challenging procedural orders is a complaint (Polish: “zazalenie”).

Appeal

Filing an appeal transfers the case from the first instance court to a higher court serving as the appellate (second instance) court. An appeal from a judgment of the district court is heard by the regional court, and an appeal from a judgment of the regional court as the first instance is heard by the court of appeal.

An appeal must be lodged with the court that issued the challenged judgment within two weeks from the delivery of the judgment with justification to the appealing party. An appeal suspends the finality of the judgment being appealed.

Filing an appeal leads to a new substantive examination of the civil case previously adjudicated by the first instance court, subject to the limitations set by the scope of the appeal and other legally relevant boundaries. In the appeals process, the court “examines the case,” not just the “allegations raised in the appeal.” Simultaneously, the function of the appeal is not to repeat the entire proceedings of the first instance court but to repeat and supplement those proceedings to the extent necessary for a comprehensive review of the validity and legality of the challenged judgment within the boundaries of the appeal made by the entitled party.

The grounds for appeal may concern both the factual or legal basis of the judgment. The findings of the first instance court are not binding on the appellate court. Therefore, the obligation to make determinations exists for the appellate court regardless of whether the appellant raised an allegation of erroneous or lacking factual findings. The appellate court – regardless of the parties’ positions and the scope of the objections – must apply the proper substantive law provisions, thus also correcting any legal errors of the first instance court, whether or not they were pointed out in the appeal.

The appellate court may issue the following decisions:

• Dismiss the appeal if it is unfounded.

• If the appeal is upheld, modify the challenged judgment and pronounce on the substance of the case.

• In case of annulment of the proceedings, annul the challenged judgment, abolish the proceedings to the extent affected by nullity, and refer the case back to the first instance court for re-examination.

• If the claim is to be dismissed, or there are grounds to discontinue the proceedings, annul the judgment and dismiss the claim or discontinue the proceedings.

• The court may also annul the challenged judgment and refer the case for re-examination if the first instance court did not examine the substance of the case, or if issuing a judgment requires a complete evidentiary procedure.

Complaint

A complaint is a remedy against court orders – rulings concerning procedural matters. It does not apply to decisions resolving the merits of the case. A complaint is lodged either with the second instance court or another panel of the same instance court, depending on the subject matter. A complaint is available against first-instance court orders concluding the proceedings in the case, as well as against orders listed in the statute (e.g., return of the statement of claim, suspension of proceedings, reimbursement of costs, refusal to provide justification for the decision).

Additionally, a complaint to the Supreme Court is available for:

• a second instance court’s order dismissing a cassation complaint;

• a first or second instance court’s order dismissing a complaint to declare a final decision incompatible with the law;

• in case the second instance court annuls a first instance court’s judgment and refers the case for re-examination.

The deadline for filing a complaint is one week from the date of delivery of the order with justification. A complaint must include a request for the modification or annulment of the order, as well as a concise justification indicating, where necessary, new facts and evidence.

Beyond appeal and complaint (so-called ordinary remedies), there are also extraordinary remedies available for challenging final decisions. They include:

• cassation complaint to the Supreme Court;

• complaint for the reopening of proceedings;

• complaint to declare a final decision incompatible with the law.

9. Costs and Funding

9.1. How are legal costs determined, and what are the common practices regarding funding litigation?

In Polish domestic litigation, the standard approach to cost allocation is that the losing party bears the expenses, with only a few exceptions. Upon the winner’s request, the losing party must refund reasonable expenses incurred during the legal proceedings, including court fees, attorneys’ or legal counselors’ charges, and costs related to the party’s court appearance. In the event of only partial consideration of claims, the costs will be mutually offset or proportionately divided. However, the court may impose the obligation to reimburse all costs on one party if its opponent only partially succeeded in their claim or if the determination of the amount due depended on mutual settlement or the court’s assessment.

In general, the court decides on costs in every judgment that concludes a case at the instance level. However, a party that requests an action involving expenses is obliged to pay an advance for their coverage in the amount and within the deadline specified by the court.

Litigation financing (third-party funding) is gaining traction in Poland. Litigation funding has garnered significant media attention in recent years. Also, a funding plan specifically designed for Swiss franc disputes was introduced. This trend is part of a broader global movement towards third-party funding (TPF) in litigation and arbitration. Despite the lack of direct regulation of TPF in Polish statutory law, the landscape is evolving, as evidenced by recent amendments to the Arbitration Rules at the SAKIG (Court of Arbitration at the Polish Chamber of Commerce). These developments reflect a growing recognition of the role and importance of external financial support in facilitating access to justice and managing the financial risks associated with legal proceedings.

9.2. Are there alternative funding options available for parties involved in litigation?

Individuals who find that paying court costs would compromise their essential living expenses for themselves and their families can request an exemption by submitting a statement to that effect. Similarly, legal entities or organizational units that lack legal personality but are granted legal capacity by law may also seek an exemption from court costs. To qualify, these entities must demonstrate that they do not have sufficient resources to meet the payment obligations. This provision ensures that financial constraints do not hinder access to justice for individuals and organizations facing genuine financial difficulties.

10. International Treaties

10.1. How do international treaties or regional agreements impact litigation in your jurisdiction?

As mentioned, international treaties and regional agreements significantly impact litigation in Poland by providing frameworks for cooperation, recognition, enforcement, and jurisdictional determinations in cross-border legal matters. This applies on various levels:

• Harmonization and standardization: Especially EU legislation, such as the Brussels I Regulation 2012, standardizes jurisdictional rules and the recognition of judgments across EU Member States. This harmonization ensures consistent legal procedures, thereby reducing uncertainty in cross-border disputes.

• Simplified enforcement: Various international regulations, both within the EU and outside of it, facilitate the enforcement of judgments in civil and commercial cases. This significantly streamlines and simplifies the enforcement process.

• Legal certainty and predictability: By harmonizing legal procedures and providing standardized frameworks, these treaties and agreements reduce legal uncertainty. This is particularly beneficial for businesses and individuals involved in international transactions, as it offers a predictable legal environment. This reduces the risk of non-enforcement of foreign judgments.

• Cross-border legal assistance: Various legal regulations govern cross-border assistance. For example, the Hague Evidence Convention facilitates cooperation in obtaining evidence abroad, crucial for litigation involving parties or transactions beyond Poland.