Substantial Facilitation in Commercial Cases – Judgment as Security Title

As a result of last substantial amendment of the Polish Civil Proceedings Code, a separate proceedings for commercial cases has been restored. In my opinion, one of the most important changes is that a first instance judgment in cases regarding money or interchangeable assets, is considered to be an security title. Such judgment is treated as an order for payment issued in order for payment proceedings and from the moment of its issuance is enforceable without having to issue a writ of enforcement.

The above change is a substantial facilitation for creditors. Thanks to that they can more quickly ask a bailiff to start actions and secure assets of the debtor until they receive final and enforceable judgment (on the basis of which the secured assets could be paid out to the creditor). Usually it takes quite much time from the moment of issuance a judgment in the first instance to the moment when the final and enforceable judgment is delivered to the creditor. If the defendant appeals, it takes even longer, sometimes even few years. It happens that in that period, the debtor’s assets get substantially lower.

However, you have to remember about possible liability if due to appeal, the judgment on the basis of which the debtor’s assets were secured, is revoked or changed and the claims – dismissed.