case law

id : 20153

id: 20153

Polish Supreme Court order

dated 14 July 1998

Case No. III CKN 548/98

Summary by arbitraz.laszczuk.pl:

Several shareholders in B.K.G. sp. z o.o., including the State Treasury, a bank, and limited partnerships, were creditors of another shareholder in the company, G.T. sp. z o.o. The creditors planned to commence an action seeking to exclude the debtor from the company. There was an arbitration clause in the articles of association. The creditors applied to the state court for interim relief prior to commencement of their action to exclude the debtor from the company, in the form of an injunction suspending the debtor from exercising its rights as a shareholder. The province court found insufficient grounds for such “drastic” relief and denied the motion. The appellate court affirmed.

On cassation appeal, the Supreme Court held that no cassation appeal was available at this stage of the proceeding and dismissed the cassation appeal accordingly.

Excerpts from the text of the court’s ruling:

1. Submission of a dispute for resolution by an arbitration court does not definitively exclude the jurisdiction of the state court. The proceeding before the arbitration court constitutes only a fragment of the entire system of protection of the interests of the claimant.

2. The position that a proceeding before the state court, initiated by filing of a motion for interim relief to secure a claim which will be pursued before the arbitration court, becomes an independent case within the meaning of Civil Procedure Code Art. 392 §1 is indefensible. Such proceeding remains a proceeding in which only a certain incidental issue is resolved. The ruling that is issued does not end the proceeding “in the case” even though it ends the proceeding initiated by the motion for interim relief. Only the arbitration award will be a ruling ending the case as a certain entirety submitted for judgment. An interim order issued by the state court concerning security for the claim is a ruling that resolves only an incidental issue.

scroll up