PhD Ewelina Stobiecka, Coordinator of the International Mediation Centre
1ST CASE UNDER MEDIATION
PARTIES:
– a German developer, Lessor
– a Scandinavian contractor, Lessee
AMOUNT IN DISPUTE: PLN 1.5 mln
SHORT DESCRIPTION OF THE MATTER, INCLUDING THE REACHED SETTLEMENT
The dispute occurred between a German developer, who is the owner of an office building located in the centre of a big city, and a Scandinavian contractor, who is the lessee in this building. The lease agreement was concluded for a definite period of time and provided detailed regulations with regards to all billing issues.
As a result of the problems on the Lessor’s side e.g. IT system related problems and on the side of the Lessee e.g. incorrectly took over space, a dispute arose between the parties which at the point in time of the application for mediation amounted to PLN 1.5 mln. Due to the fact that the lease agreement was approaching the expiry date and the amount in dispute constituted a substantial part of the Lessee’s annual budget, the case was filed in court.
Bearing in mind the necessity to ensure the financial liquidity of the Lessee, the Parties decided to solve the dispute out of court.
The Mediator’s task was to help to find a solution which would reasonably quickly satisfy the Lessor’s claims while solving the IT system related problems, which caused errors in the charged fees and for the Lessee to regain financial liquidity and move to a different site. As a result of a mediation meeting, after just 3 hours, the Lessor deducted the interest from the due payment and reduced the amount owed which was accrued as a result of the malfunctioning IT charging system. The Lessee undertook to pay the arrears in instalments according to the agreed schedule, which allowed the lessee to maintain financial liquidity.
In addition the parties negotiated and reached an initial agreement in relation to the potential lease of the office space in the daughter company locations in the Middle East and Eastern Europe.
As a result of the Mediator and the mediation proceeding the Parties not only solved the dispute i.e. the arrears in payments which resulted from the fault of both parties, but initiated potential cooperation on the markets where they operate through its daughter companies. With both parties being satisfied with the dispute resolution, this resulted in a good business relationship in Poland and negotiations re potential lease of other offices