The new regulations have already been passed and will come into force later this year. The authors of the project argue that a preparatory meeting is intended to resolve the dispute without the need for further hearings. What would it look like? In an informal setting, the court will talk with the parties, look them in the eyes, listen to their complaints, test the waters, determine what the dispute is about, prepare a schedule for further hearings, and consider evidence motions. That's the theory, because in practice, substantive consideration of the case will only occur at a later date. Since, at present, parties wait up to six months for the first hearing, the proceedings in commercial cases could be extended by this period due to the introduction of the new regulations.

A case of the cure being worse than the disease

Can the new rules really increase the number of settlements? It's a rather risky assertion. The Pacific Gas and Electric environmental contamination case did indeed end in a settlement, but anyone who has watched “Erin Brockovich” knows it's a much more complicated story, and business processes in our country are nothing like the compensation cases everyone knows from American cinema. Unpaid invoices for leasing, loan instalments, goods or rent. Few people know that 96% of commercial cases for payment in our country involve sums under 100,000 złotys! They arise from invoices, emails, acknowledgments of receipt, or bank statement extracts. If the preparatory meeting were to serve to clarify ambiguities in such documents, then indeed - it might prove helpful. Nevertheless, practice shows that such errors are rare, and preparatory meetings are supposed to be organized in every instance.

And cunning debtors are still thriving

Acts of desperation cause other issues for entrepreneurs. The invoice payment date is approaching, but their counterpart simply lacks either the funds or the will to settle it. They don't respond to payment demands, so the entrepreneur files a lawsuit. When the counterparty learns about it and their account is still empty, the most rational course of action is... to mount a defense! Even the most trivial justification is enough for the case to go to "ordinary proceedings" - that is, those with hearings, witnesses, and a verdict months later. What can increasingly frustrated entrepreneurs do? Unfortunately, nothing. The legal protection system renders them completely helpless in such situations.

It is hard to gauge the scale of such cases. Considering that appeals to district courts are only lodged against 14% of regional court judgments (both civil and economic), there must be a significant number of such cases. An appeal is the first action for which the defendant must pay any fee.

How will such savvy defendants react to the new regulations? Probably with enthusiasm. The amendment seems to completely overlook their problem, thus providing them with yet another tool to delay proceedings.

Green light for electronic arbitration

Fortunately, there is considerable freedom in arbitral proceedings when it comes to setting the rules (Art. 1184 of the Civil Procedure Code). In the new regulations, we see a chance to persuade entrepreneurs to use our arbitration services.

The courtroom, yes, but virtual

Since in the 21st century more and more aspects of life move online, at Ultima Ratio we have also dispensed with the courthouse and traditional hearings. Entrepreneurs' claims ultimately arise from invoices, documents, emails, or acknowledgments of receipt. Instead of entirely unnecessary court hearings, within our Court's electronic system, one can present document scans, show photos, take screenshots, and even play videos or listen to audio recordings. This results in incredible time and money savings. Instead of getting stuck in traffic on the way to court and wondering why they have to waste another entire day, entrepreneurs can, for example, record their statement on video or with a voice recorder and upload it to the case profile.

Fair play

At Ultima Ratio, we also fully understand the issue of intentional delay of proceedings. This is why with us, the defendant pays a fee for their response to the lawsuit as high as the claim fee itself. Otherwise, their actions are ineffective. It seems more just this way - defendants only mount a defense when they truly believe in the strength of their arguments. Moreover, from a speed standpoint, it doesn't matter whether the defendant submits a response to the claim or not. We have designed our system and procedures so that the case concludes no later than three weeks from the claim filing.

Additional court hearings will not speed up economic cases. They also won't persuade defendants to make voluntary payments, as sometimes depicted in American legal thrillers. The world has moved far enough forward that every commercial case can be resolved without holding a hearing. As exemplified by Ultima Ratio, it is exactly the abandonment of court hearings that is key to improving court efficiency.