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JDP Successful for Mostostal Warszawa in Waste Incineration Plant Contract Dispute in Court of Appeals

JDP Successful for Mostostal Warszawa in Waste Incineration Plant Contract Dispute in Court of Appeals


Jara Drapala & Partners, working with SWS Strykowski Wachowiak, has successfully represented Mostostal Warszawa S.A., one of Poland's largest construction companies, in Poland's Court of Appeals, in a dispute against Zaklad Unieszkodliwiania Odpadow regarding a contract for the construction of a waste incineration plant in the northwestern city of Szczecin.

According to JDP, WSE-listed Mostostal, "after it had terminated the contract, demanded the return of the paid amounts as a consequence of an unjustified draw-down of the performance bond. JDP successfully proved the abuse of [Mostostal's] right to draw down the bond whilst arguing that the relevant time to examine whether the [company] had grounds to call the performance bond was the moment of filing such demand, regardless whether any such grounds appeared subsequently."

The Court of Appeals, following JDP’s line of reasoning, ordered ZUO to return PLN 34 million (approximately EUR 7.85 million) together with statutory interest for delay. ZUO has announced that it is filing a cassation appeal to the Supreme Court. 

WKB Wiercinski Kwiecinski Baehr reportedly represented ZUO.

Finally, according to JDP, firm Partner Przemyslaw Drapala, co-counsel to Mostostal, "secured a final and binding judgment in favor of our client." 

Poland Knowledge Partner

Established in 1957, Wolf Theiss is one of the leading European law firms in Central, Eastern and South-Eastern Europe with a focus on international business law. With 300 lawyers in 13 offices located in Albania, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine, Wolf Theiss represents local and international industrial, trade and service companies, as well as banks and insurance companies. Combining law and business, Wolf Theiss develops comprehensive and constructive solutions on the basis of legal, fiscal and business know-how.

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