Success in the court of appeals in a case against members of management board of an ltd. Co

News / 10.05.2021

On 22 April 2021, attorneys and legal advisors from our Law Firm, successfully ended the litigation before the Court of Appeals in Rzeszów, related to a long-term dispute between our Client and members of the management board of a limited liability company concerning payment of over 400,000.00 PLN. The case was related to the liability of members of the management board of a limited liability company, renting space in a shopping centre, in connection to unsuccessful attempts by our Client (landlord) to ascertain payment of a compensation from the company’s estate as a result of premature termination of the tenancy agreement by our Client for causes attributable to the tenant, namely the fact that business operations in the relevant premises had been discontinued.

The Court of the second instance, like the Regional Court in Rzeszów adjudicating in this matter previously, agreed in full with the opinions and arguments presented by our lawyers, insisting that given the actual circumstances of this specific case, there were grounds for waiving the general rule that a company’s creditor suing members of the management board pursuant to Art. 299 of the Code of Commercial Companies should have a writ of execution issued against the company and confirming the liability. Irrespective of the above, the Court also acknowledged the fact that since our Client showed that the management board members failed to meet the deadline for filing bankruptcy and announcing losses incurred by the Client, it was possible to adjudge liability of the management board members based on Art. 21 clause 3 of corporate bankruptcy and reorganization law (the wording of the act prior to 1 January 2016).

Owing to the quick and effective action taken by our lawyers, including activities aimed to secure the relevant claim, inter alia by instituting compulsory mortgage on the defendant’s real property, the litigation ended to complete satisfaction of the Law Firm’s Client who, resulting from the court’s decision, in a short time, received the principal payment, as well as interest and the legal costs, in total exceeding 600,000.00 PLN.