A Fairly Obvious Recipe

Electronic arbitration courts, of which there are now over 100 worldwide, demonstrate how the judiciary should function in the digital age. Firstly, disputes are resolved online on specially prepared platforms. Secondly, there is no longer the requirement for parties to perform procedural actions at the same time and place.

Researchers Have No Doubts

The result is easy to predict - procedures are convenient and inexpensive, and cases are resolved extremely quickly. Modern life is accompanied by cameras, emails, computers, and SMSs. These materials, rather than hearings and witnesses, now provide the arbitrator with all the necessary evidence.

We discussed this matter with Prof. Łukasz Błaszczak from the Civil Law Institute of the University of Wrocław, a member of the Ultima Ratio Council. The professor has no doubts. The provisions of the Code of Civil Procedure do not create barriers that would prevent conducting arbitration proceedings electronically. Moreover, in the professor's opinion, today's reality imposes such an approach.

You can see the entire conversation with Prof. Łukasz Błaszczak at the end of this post.

E-arbitration in Our Country

In our country, there are already 4 electronic arbitration courts operating. The standard ones are: Ultima Ratio, CODR, and OAC, while the Arbitration Court at the Polish Confederation of Private Employers "Lewiatan" also has an IT platform for resolving disputes online. Practice shows that this is an ideal solution for companies handling a large number of court cases, often concerning unpaid invoices or bills, with mass contractors. This includes wholesalers, manufacturing companies, utility suppliers, transport companies, telecommunication firms, and the service sector.

How do e-arbitration courts work?

• Arbitration is not mediation! Once an agreement with an arbitration clause is made, neither party can withdraw from arbitration. The arbitration clause is treated in the same way as other important contract provisions, such as the quantity of goods or price.

• In case of a dispute, instead of applying to a common court, the claim should be filed with the arbitration court. Article 1165 §1 of the CPC does not allow referring it to a state court.

• The arbitration procedure is binding on both parties, and the defendant – even if they change their mind during the process – cannot demand "the transfer of the case" to a state court.

• The arbitration court conducts proceedings regardless of whether the defendant decides to participate or not.

• According to Article 1212 of the CPC, the judgment of the arbitration court has the legal force of a state court judgment, once enforceability is granted.

• Applications for enforceability are reviewed by appellate courts in non-public sessions.

• Applications may only be dismissed in cases of gross violation of the law. Statistics show this occurs in less than 5% of cases, leading the case back to arbitration to correct errors and deliver a proper judgment.

• Once a judgment with enforceability is obtained, it constitutes an executive title and execution may be initiated based on it.

Time and Circumstances Are Favourable

Time and circumstances are conducive to the proliferation of online courts. Cases are increasing, and Ultima Ratio receives very positive reviews from people who have already used it. And rightly so. Because if today's common courts had to resolve the Polish dispute with the Teutonic Order over Gdańsk Pomerania and interrogate 126 witnesses, it's frightening to think when we would go on holidays to Władysławowo...

Conversation with Prof. Łukasz Błaszczak (viewing will take 4 minutes)