Proposed Class Action Laws

Draft legislation on pursuing claims in group actions has

been produced by the Polish Civil Law Codification

Commission

The bill's introduction into law may be months away and

its contents subject to change in the meantime. However, the

opportunity to pursue claims collectively would be a

significant step for claimants and its emergence as a

possibility is likely to elevate the importance of litigation

risk management for major businesses in Poland.

The key proposals set out in the draft legislation are:

At least 10 claimants would be required all of whose

claims must be based either on the same facts or on the same

material factual circumstances and the same legal

grounds.

All claims within a group action would have to be unified

although, in some circumstances, they need only be unified in

sub-groups.

Once a group action claim has been brought to court, the

court would set a date before which other potential claimants

have a right to opt in.

Details of every claim would be published in the official

court journal (Monitor S?dowy i Gospodarczy) and, at the

court's discretion, may also be announced in the

press.

Claims are brought by a group representative who must be

either a member of the group or the municipal consumer

ombudsman. The group representative must be legally

represented in court.

Legal fees may be a percentage of the award (there is no

maximum percentage).

Cases would be heard by the Regional Court composed of

three professional judges.

To protect potential defendants against unjustified

claims, the court must first decide whether to certify the

group action. Its decision can be appealed.

As well as having to pay the defendant's costs in

unjustified claims, claimants can also be required to pay a

deposit of up to 20% of the value of the claim as security

for costs.

The defendant is given a set period within which it may

object to individuals being members of the group (or

sub-group).

The court may refer the parties to mediation at any stage

in the proceedings.

As a general rule, the court will also need to approve

the terms of any settlement reached. Settlements will not be

approved if they don't comply with the law or good

morals, constitute an attempt to circumvent the law or

blatantly violate the interests of the claimant group.

Settlements, which violate the defendant's interests,

are not protected, raising concerns that the court will allow

'blackmail settlements', where defendants find it

necessary to settle even...