Franciszek Wiącek
Is an arbitration clause unenforceable if one of the parties is unable to cover the arbitration fees?
In a controversial ruling, the Supreme Court of Poland has held that a party’s objective inability to bear the costs of arbitration may render an arbitration clause unenforceable within the meaning of Art. 1165 §2 of the Civil Procedure Code. This issue has already been addressed by leading courts in Finland, Germany, Portugal and the UK, and more broadly by the European Court of Human Rights.
The purpose of referral to arbitration
Generally, dispute resolution is entrusted to state courts, but the parties can renounce this jurisdiction in favour of arbitration. Typically, the parties elect arbitration in an arbitration clause included in their original contract, signed well before any dispute arises. In other cases, after a dispute arises, the parties may agree to seek arbitration by signing a post-dispute referral to arbitration.
When a debtor rejects an inheritance to the detriment of a creditor
Seeking to evade their obligations, debtors may take various actions in connection with their possible right to inheritance from a third party. A debtor might attempt to conceal the elements or value of the estate. They might even reject the inheritance before the court or a notary, but the creditor is not defenceless in that situation. The purpose of this article is to introduce readers to a legal instrument protecting the creditors’ interests in a situation where the debtor rejects an inheritance.
