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Amendments concerning the Civil Code and the Code of Civil Procedure

added: 15.11.2017
Amendments concerning the Civil Code and the Code of Civil Procedure

By virtue of the Act of 7th April 2017 on the Change of Certain Acts with the purpose of facilitation of the recovery of claims (Official Journal of 12th May 2017, position 933) amendments concerning inter alia Civil Code (regarding construction works contract) and Code of Civil Procedure (regarding injunction and security and scope of application of simplified procedure) entered into force on 1st June 2017.

Article 6471 of the Civil Code was given a new wording. On the basis of amended article 6471 of the Civil Code investor and contractor (general contractor) shall bear joint and several liability for payment of remuneration due to subcontractor for the construction works performed by him, which detailed subject was notified to the investor by the contractor or subcontractor prior to proceeding to the performance of these works unless the investor within thirty days from the day of notification gives objection to the contractor and subcontractor towards performance of these works by the subcontractor. Such notification is not necessary if an investor and a contractor determined detailed object of construction works performed by an indicated subcontractor in a contract concluded in writing under the pain of nullity. Investor shall be liable for paying remuneration to the subcontractor in the amount determined in the contract between subcontractor and contractor unless this amount exceeds amount of remuneration due to the contractor for construction works which detailed object stems respectively from the notification or from the contract. In such case investor’s liability shall be limited to the amount of remuneration determined in the notification or in the contract. The notification of detailed object of the construction works and the objection shall be done in writing under the pain of nullity. Contractual stipulations which are contrary to article 6471 of the Civil Code shall be null and void.
Previous regulations provided that joint and several liability of investor and contractor for the payment of remuneration to the subcontractor arises only when the investor expressed his consent for the conclusion of a contract between contractor and subcontractor. If within 14 days from presenting of a contract with subcontractor or draft of this contract along with a part of documentation regarding works an investor did not notify in writing any objection or remarks, the conclusion of the contract was deemed approved by an investor (so-called passive consent).
Provision of article 6471 of the Civil Code in the previous wording shall apply to construction works contracts concluded prior to the day of the entrance into force of amending Act and to the liability for payment of remuneration stemming from such contracts.

Provisions of the Code of Civil Procedure have also been changed. By virtue of amended Article 5051 simplified procedure shall apply to contractual claims where the amount in dispute does not exceed 20.000 Polish zlotys (the prior value was 10.000 Polish zlotys).
Provisions concerning security procedure have also been amended. Under previous regulation warning notice in a mortgage register of a prohibition of transferring of a cooperative title to premises (in case of granting by the court of such security) was recorded at the obligee’s request. After entrance into force of amended provisions a court which awarded such decision shall refer it to the court recording a notice in a mortgage register and the notice shall be recorded ex officio. Court which records a warning notice shall deliver ex officio an order granting security to the obliged and the housing cooperative. Housing cooperative shall be liable for any damage caused by actions facilitating the sale of the cooperative title to premises (article 7523 of the Code of Civil Procedure).
The amending Act implements also a provision according to which legal act performed contrary to the prohibition on transferring or encumbering immovable property which has no land and mortgage register or whose land and mortgage register has been lost or destroyed shall be null and void. Legal act performed contrary to the prohibition on the sale of a cooperative title to premises in case when there was made an inscription of a warning notice of that prohibition in a land and mortgage register shall also be null and void (article 7523a of the Civil Procedure Code).
There is also a change of the regulation on cancellation of the security of pecuniary claims (article 7541 § 1 of the Code of Civil Procedure). The term running from the date when an order granting the secured claim shall become final and non-revisable after which injunction shall be cancelled has been extended from one month to two months. This term shall run from the date when not only the order granting the secured claim shall become final and non-revisable but also form the date when order rejecting an appeal or another legal remedy filed by the obligee against an order granting the security of a claim shall become final and non-reversible.
In cases concerning receivership establishment over an enterprise or the agricultural farm of an obliged or a plant constituting part of the enterprise or part of the agricultural farm a security shall collapse whether obligee within a term of a month (it was before two weeks) from the day when the judgment accepting a claim become final and non-reversible or judgment on rejection of the appeal or another legal remedy filed by an obliged appealing judgment allowing claim which was subject to injunction or security became final and non-reversible obligee did not file an application for performance of further executive actions. The Court shall award a judgment ascertaining cancelation of injunction or security in part or in whole at the request of obligee (article 7541 § 2-3 of the Code of Civil Procedure).
Analogical regulations to the above mentioned are introduced within the scope of injunction of security of claims other than pecuniary claims (articles 7563, 7564, 757 of the Code of Civil Procedure).
Furthermore amending act provides extension of the disclosure of property items (article 913 § 1 of the Code of Civil Procedure). Hitherto a creditor was entitled to request that the debtor is ordered to submit a list of his property specifying the assets and their location, debtor’s receivables and other property rights. On the basis of new regulation the list shall encompass also information concerning non-gratuitous and gratuitous legal acts which has as its object a movable or right of a value exceeding on the day of performance of these acts the amount of a minimum remuneration for work established on the basis of the Act of 10th October 2002 on a minimal remuneration for work, performed in favor of third parties in the five-year period predating commencement of enforcement as a result of which debtor became insolvent or became insolvent in a higher degree than he was prior to the performance of the act.
The abovementioned regulations apply to proceedings instituted after the day of entrance into force of the amending Act.