“What use is satisfaction in winning to me? I can't pay my invoice with satisfaction... So much for luxury…”

“What power does such a judgment have? Can it be sent to a bailiff?”

– these are fairly common comments on our posts. The idea of a swift and modern court is very popular, yet some readers remain sceptical. There's a prevailing belief that arbitration means resolving matters amicably, peacefully, and consensually. Given this, why bother with it, since the money from the invoice is still missing? However, in reality, it's quite different! Let's show, step by step, how arbitration can be utilised to effectively pursue outstanding claims.

For an arbitration court to handle a case, an additional arbitration clause must be stipulated in the contract. This clause states that any future disputes will be resolved by the chosen arbitration court – for example, Ultima Ratio. This clause is known as an arbitration agreement and is crucial. If our contractor does not protest at this point and agrees to the contract with such a clause, then the decision is final, and the case must go to the arbitration court.

Even if one of the parties later changes their mind, the die is cast, and a state court can no longer handle the case as it will dismiss the claim upon the other party's request. This is stipulated in Article 1165 §1 of the Civil Procedure Code.

So, you have an agreement with your contractor for arbitration.

When they fail to pay you, you submit the case to the arbitration court, and it is processed in accordance with its rules. In large, reputable arbitration courts, proceedings are conducted in air-conditioned conference rooms, with coffee and cakes. However, these are usually complex cases involving substantial sums of money. At Ultima Ratio, we prefer the smaller cases, which a competent arbitrator can resolve quickly, conveniently, affordably, and online - in our virtual courtroom. We often boast that our software and rules are designed to ensure the case lasts no longer than 3 weeks. Regardless, every court, whether state or arbitration, large or small, fast or slow, seeks to issue a judgment regardless of whether the other party favours it or not. That's simply its role, and a judgment must be issued!

So, the arbitration court issues a judgment. We hope it is favourable for you. Are you wondering what comes next? What legal power does a judgment from a private institution have?

The law settles this issue unequivocally: according to Article 1212 §1 of the Civil Procedure Code, an arbitration court judgment has the same legal effect as a state court judgment. This happens because the more cases that go to arbitration courts, the less work state court judges have. So why worry? If entrepreneurs preferred the arbitration court with its conference rooms, cakes, and coffee, then so be it.

Can you immediately enforce such a judgment?

Unfortunately not! Here, our readers undoubtedly have a point, as every judgment, whether from a state or arbitration court, should undergo a procedure for obtaining enforceability. In the case of ordinary courts, this is a straightforward, almost mundane task. It's handled behind closed doors, and the judgment with enforcement clause is sent by post.

With arbitration courts, the matter is a bit more complex. A state judge must read the judgment and ensure that there are no compromising errors that the arbitration court should not have made. This could include issuing a judgment despite the absence of an arbitration agreement, awarding alimony, taxes or other such obligations, or including statements that conflict with the basic principles of legal order in our country.

So, before directing the case to the bailiff, you must submit a request to the appellate court in the district where you plan to carry out the execution, for the judgment to be granted an enforceability clause. Are such requests effective?

Generally, refusal of granting an enforceability clause occurs rather exceptionally. Which arbitrator would show such ignorance as to issue a judgment without first verifying whether the parties even agreed to it? Or sentence someone arbitrarily to imprisonment? If your judgment is burdened with such defects, you will probably feel that something is fundamentally wrong with its legality. Enforcement clauses are granted by appellate courts at non-public sessions. Therefore, the procedure is relatively certain, safe, and fast, as appellate courts, by their nature, do not handle a large volume of cases.

Nevertheless, remember that the credibility of the arbitration court is crucial here. Therefore, behind Ultima Ratio stands a reputable and respected legal institution, and the Court Council includes law professors and appellate court judges.

That's all. With an arbitration court judgment with an enforceability clause, you can submit it to the bailiff! In the case of using Ultima Ratio, you have a significantly higher chance of success than in a normal court. Our court operates very quickly and will resolve the case before a state court has even assigned a signature to a similar case. The debtor is unlikely to escape with the assets. They will also not have the option – as in ordinary courts – to deliberately delay the case, because they will have to pay an arbitration fee to submit a reply to the lawsuit.