Is pursuing claims before a commercial court still a real form of protecting entrepreneurs’ rights, or rather a long and costly confrontation with no guarantee of an effective resolution?This is a question that all market participants, from entrepreneurs to professional attorneys, should ask themselves. Dr. Łukasz Wydra writes about the problem, the importance of which increases year by year, in the article titled: “The Twilight of the Principle of Efficiency in Civil Commercial Proceedings” in Rzeczpospolita .

The principle of effective conduct – a beautiful theory versus a sad practice

The principle of efficiency in civil proceedings, although repeatedly emphasized by the legislator and doctrine, increasingly diverges from the reality of Polish courts. Data from the Ministry of Justice and the European Commission show that obtaining a judgment in a commercial case takes an average of over 20 months, with many cases lasting much longer. The protracted nature of these proceedings and rising costs not only discourage entrepreneurs from pursuing the protection of their rights but also undermine confidence in the effectiveness of legal protection before common courts.

Why are economic processes taking increasingly longer?

The article’s author analyzes the reasons for this situation, comparing statistical data with personal procedural practices. He points out, among other things, the excessive length of court proceedings, the formalism of procedures, and the lack of fundamental tools to motivate the parties and the court to conclude the dispute efficiently. He emphasizes that extending the duration of proceedings not only results in higher costs for the parties but also often prevents effective enforcement of the judgment, especially when the other party becomes insolvent.

Costs that are not readily apparent

Long-term proceedings entail not only court fees and attorneys’ fees but also lost profits due to frozen funds, disrupted commercial relations, and, in many instances, damage to reputation. The author points out that in business relations, the duration of dispute resolution often determines whether a given enterprise or project will succeed or fail.

Any alternatives: Arbitration and Other ADR Methods as Remedies?

Is there a way out of this impasse? The author points out that arbitration and mediation can be effective tools for resolving commercial disputes, providing faster, cheaper, and more flexible proceedings. However, as he notes, there remains a lack of widespread awareness and a culture of using alternative dispute resolution methods, especially in the SME segment.

The full text of the article by Dr. Łukasz Wydra is available here.