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Jara Drapala & Partners Obtains Significant Monetary Judgment for PORR in Claim Against General Directorate for National Roads and Highways

Jara Drapala & Partners Obtains Significant Monetary Judgment for PORR in Claim Against General Directorate for National Roads and Highways

Poland
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Jara Drapala & Partners is reporting that the Court of Appeal in Warsaw had awarded a "seven-digit amount" to firm client PORR (a contractor of road and bridge construction projects) in a dispute against Poland's General Directorate for National Roads and Highways.

According to JD&P, the Court's November 6 award was made "on account of an increase of the remuneration due to an unforeseeable increase in asphalt prices in 2009–2012 (before EURO 2012) and compensation for the related loss under the contract."

According to the JD&P, "this is the first final judgement in Poland where the contractor proved that a change in asphalt prices in the years 2009–2012 constituted an extraordinary and unforeseeable change of circumstances according to Article 3571 of the Polish Civil Code, as well as that the loss suffered by the contractor [qualified as] a 'glaring loss'." the firm reports that the court's judgement provides "a reasonable chance for other construction companies to succeed in currently pursued claims for the period from before EURO 2012, based on similar facts."

The firm's team was led by Partner Przemyslaw Drapala, who explained its significance: "Our success is a chance for other contractors. I hope that the judgement of 6 November 2017 will encourage the employers to negotiate with their contractors to settle disputes amicably. We also were ready to make a settlement at each stage of the dispute, however, the negotiations failed. Moreover, both employers and contractors should take account of this judgement while drafting construction works contracts. Both parties will benefit more from sharing the risk of price increase than from fighting in courts for damages."

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