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An arbitration court, unlike a state court, is not a state body. Its right to resolve disputes between the parties results from the will of the parties expressed in the concluded contract. The flexibility of procedures and the shorter time of case consideration are increasingly encouraging entrepreneurs to use the institution of an arbitration court.

The will of the parties is decisive

Unlike in the case of proceedings before common courts, the choice of the competent arbitration court is determined solely by the will of the parties. Pursuant to an appropriate arbitration agreement or contractual clause, the parties may agree that disputes arising in connection with the concluded agreement will be resolved by an arbitration court. Such an exemplary arbitration clause may read as follows: “any disputes that may arise during or in connection with the conclusion, performance, termination of this agreement, the Parties submit to the Court (…)”. The parties may designate a permanent arbitration court as having jurisdiction to resolve the dispute or an ad hoc arbitration court, i.e. a court appointed on an ad hoc basis to resolve a specific dispute. There are currently about fifty permanent arbitration courts in Poland, and the largest include, m.in, the Court of Arbitration at the Lewiatan Confederation and the Court of Arbitration at the Polish Chamber of Commerce in Warsaw. In turn, in the Silesian Voivodeship – the Court of Arbitration at the Regional Chamber of Commerce in Katowice.

Arbitrator Selection

What distinguishes proceedings before an arbitration court is the possibility of selecting an arbitrator, i.e. indicating in the agreement a specific person who will resolve a given dispute. This is particularly beneficial in cases where knowledge of the specifics of the industry is important. An arbitrator with the appropriate knowledge, qualifications and at the same time an expert in a given field will consider the dispute much more thoroughly, with a practical understanding, which will undoubtedly translate into the legitimacy of the ruling issued. In proceedings before a common court, cases are assigned to judges randomly, within individual categories of cases, but despite their vast knowledge, they do not have to be specialists in every field.

Duration of proceedings and costs

In general, proceedings before an arbitration court are characterized by a shorter duration compared to proceedings before a state court. According to the data published on the website of the Ministry of Development and Technology, in the Court of Arbitration at the Lewiatan Confederation, a case in accelerated proceedings, with the value of the subject of dispute below PLN 50,000, is resolved within 3 months from the moment of the constitution of the adjudicating panel, while in the ordinary procedure within 6 months from the moment of the constitution of the adjudicating panel. According to data from the Ministry of Justice, the average duration of proceedings before a regional court in 2022 was 5.9 months, but practice shows that this time is often significantly extended.

The costs of proceedings in the case of arbitration courts are not uniform, because each court has its own tariff. Fees usually consist of an administrative fee (fixed) and an arbitration fee (depending on the amount in dispute). By way of example, with the value of the subject of dispute amounting to PLN 100,000:

• The Court of Arbitration at the Polish Chamber of Commerce in Warsaw requires a registration fee of PLN 2,460, the arbitration fee is PLN 4,797 when a case is heard by one arbitrator, and when a case is heard by three arbitrators, the arbitration fee will be PLN 9,594;
• Court of Arbitration at the Lewiatan Confederation – the administrative fee is PLN 2,000, while the arbitration fee is PLN 8,100, whereby the consideration of a case by one arbitrator reduces the arbitration fee to PLN 4,860, and the consideration of a case by more than three arbitrators results in the need to add PLN 2,025 to the arbitration fee for each additional arbitrator;
• Court of Arbitration at the Regional Chamber of Commerce in Katowice – the registration fee is only PLN 150, and the arbitration fee is PLN 3,000 – if the case is heard by one arbitrator. Consideration of a case by three arbitrators increases the fee to PLN 5,000.

The fee for a lawsuit in a common court is PLN 5,000. However, these are not the only costs to be incurred, because the losing party is obliged to reimburse the opponent at his or her request for the costs necessary for the purposeful assertion of rights and purposeful defense. The costs of representation will amount to PLN 3,600 with the above-mentioned value of the subject of dispute.

Comparing the above costs, it should be stated that proceedings before an arbitration court may be cheaper than proceedings before a state court. Among arbitration courts, in economic terms, the most beneficial for the parties to the proceedings will be proceedings before the Court of Arbitration at the Regional Chamber of Commerce in Katowice – both in the case of a single-judge and a three-judge panel.

The arbitration court is not bound by the provisions on proceedings before the state court

An important difference between a state court and an arbitration court is that the latter is not bound by the provisions of civil procedure. Parties who have decided to submit a dispute to an arbitration court may freely shape the rules of procedure, adapting them to their needs, which allows for more flexible and effective dispute resolution. This rule does not apply if the parties have decided to submit the dispute to a permanent arbitration court, because then the rules of that court are binding. As a rule, proceedings before the arbitration court are single-instance, which, however, does not exclude the possibility of establishing two-instance or multi-instance proceedings. It is obvious, however, that the greater the number of instances, the greater the costs and the longer the duration of the proceedings.

Is it worth opting for an arbitration court?

The final choice between a state court and an arbitration court depends on the individual characteristics of a given case and, above all, on the parties’ agreements on the rules of procedure. The possible degree of complexity of the case or even the chances of its imminent conclusion are also important. Therefore, when deciding on the choice of the appropriate court, it is important to carefully consider which option will best suit the needs of the parties and their budget.