litigation

Is subcontracting easier? The effects of the amendment of Art. 647¹ of the Civil Code two years after adoption

Art. 647¹ of the Civil Code, providing for the investor’s secondary liability for the contractor’s debts to subcontractors, was introduced into the Polish legal system in 2003. In April 2017, the parliament amended it thoroughly in adopting the Act Amending Certain Acts to Facilitate Debt Recovery. Two years after implementation, we try to answer the question whether the title of the amending act corresponds to reality and subcontractors really have a better chance of receiving payment for their work.

How to recover money paid directly to subcontractors?

The parliament has granted subcontractors a high level of protection. The provisions on joint and several liability are strict for the investor and often in practice mean a risk of double payment for the same thing: the first time to the general contractor and the second time to the subcontractor. Therefore, the investor should be able to recover from the general contractor the sums paid directly to subcontractors.

Between a rock and a hard place: General contractors squeezed by investors’ joint and several liability regime

Od czasu wprowadzenia do Kodeksu cywilnego, a później również do Prawa zamówień publicznych, przepisów o solidarnej odpowiedzialności inwestora za zapłatę należną podwykonawcom robót budowlanych, generalni wykonawcy znajdują się w swoistym potrzasku – między koniecznością nadzoru i dyscyplinowania podwykonawców a presją inwestora, by ich rozliczać.

Forced conciliation

Chapter X of the draft new Public Procurement Law (Art. 620–655) obliges the contracting authority and the contractor to conduct a mandatory conciliation procedure. While the very idea of settlement of disputes deserves full support, the proposed detailed solutions raise serious doubts under the Polish Constitution and EU law.

Where can help be sought when an energy supplier increases the price and threatens to cut off supply?

Increasing electricity prices may not please customers, but despite appearances they cause energy suppliers a lot of problems too. It is obvious that firms selling energy try to pass on increases in market prices to customers, even if they are bound by long-term energy sale agreements that guarantee a fixed price for the duration of the agreement. If this happens, customers need to seek the appropriate legal remedy to prevent costs going up, and in extreme cases prevent the electricity supply from being cut off.

More and more disputes in the gaming industry

Andrzej Sapkowski’s demands for more money for copyrights to The Witcher is the tip of the iceberg. Changes in the gaming industry, like increased production costs and the dominance of digital distribution platforms, will give rise to an increasing number of disputes, in particular over intellectual property rights. What could trigger these disputes and how can they be prevented?