Few people know that arbitration exists

According to Prof. Łukasz Błaszczak, the limited popularity of arbitration courts stems from a lack of awareness among entrepreneurs about the nature and functioning of arbitration. Historically speaking, arbitration is indeed older than the state judiciary, yet few people know that such a thing exists at all. 

Arbitration confused with mediation

The lack of appropriate promotion of amicable justice on the market is partly to blame here. The public simply lacks knowledge about mediation and amicable justice. As a result, they associate these two forms of dispute resolution and, having had poor experiences with mediation, do not use arbitration.

Private court better than state court

Meanwhile, arbitration is effectively a private court, which by the will of the parties replaces the state court. It generally has a less formalized character, is usually cheaper, and most often faster. If companies were thus convinced of this method of dispute resolution, they would exclusively benefit from it.

Intensive advertising needed

However, without the involvement of Chambers of Commerce or other circles that deal with dispute resolution, or even collection agencies that also conduct court disputes, it is hard to hope that arbitration will gain popularity. It is also difficult to hope that the average citizen or entrepreneur will independently reach for the civil procedure code to read about amicable justice. Therefore, intensive advertising and extensive promotional activities on this subject are necessary.

See the full statement of Prof. Łukasz Błaszczak (duration: under 4 minutes).

Arbitration - practical information you should know: 

• Once a contract with an arbitration clause is concluded, neither party can withdraw from arbitration. The arbitration clause is treated in this instance the same as other essential terms of the contract, such as the quantity of goods or price.

• In case of a dispute, instead of the public court, the claim should be filed to the arbitral tribunal. Article 1165 §1 of the Code of Civil Procedure does not allow it to be directed to the state court.

• The arbitration procedure is binding for both parties and the defendant, even if they change their mind along the way, cannot request to "transfer the case" to the state court.

• The arbitral tribunal proceeds with the case regardless of whether the defendant decides to participate or not.

• According to Art. 1212 of the Code of Civil Procedure, an arbitral award has the legal force of a state court's judgement once it is given an enforceability clause.

• Applications for enforceability clauses are considered by appellate courts in closed sessions.

• Applications can be rejected only in cases of gross violation of the law. Statistics indicate that this occurs in less than 5% of cases, causing the matter to return to arbitration for correction of errors and issuance of a proper verdict.

• Once a judgment with an enforceability clause is received, it constitutes an enforcement title, and execution proceedings can be commenced based on it.