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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

Poland
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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." 

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