Mediation is an effective tool for dispute resolution, including in cases concerning the protection of entrepreneurs’ personal rights. In the Polish legal system, mediation serves as an alternative to court proceedings, allowing parties to reach an agreement in a less confrontational and more efficient manner. This article discusses the importance of mediation in such cases, including: examples from case law, definition of personal rights of entrepreneurs, legal basis for mediation in Poland, the mediation process
What are entrepreneurs’ personal rights?
Entrepreneurs’ personal rights are non-material values that are crucial for a company’s operations and its position in the market. According to Article 23 of the Polish Civil Code, personal rights include, among others: health, freedom, dignity, name, image, and the secrecy of correspondence. In the context of entrepreneurs, this list also includes:
- The good name and reputation of the company – essential for building trust among clients and business partners.
- The company name – protected against unlawful use by competitors.
- Trade secrets – covering confidential information related to the company’s operations.
- Trademarks and other identifiers of the company – protected against unfair competition.
The protection of entrepreneurs’ personal rights is based on Article 43 of the Polish Civil Code, which states that the provisions concerning the protection of personal rights of natural persons also apply to legal persons.
Legal basis for mediation in civil cases
Mediation in civil cases, including those concerning the protection of entrepreneurs’ personal rights, is regulated by the Polish Code of Civil Procedure (KPC). According to Article 183¹ of the KPC, mediation may be conducted either on the basis of an agreement between the parties or by referral from the court. For entrepreneurs, mediation can serve as a valuable tool to resolve conflicts without the need for lengthy court proceedings.
Additionally, mediation is supported by the Act on Out-of-Court Consumer Dispute Resolution and the provisions concerning the protection of personal rights contained in the Civil Code (CC). Mediation can be an effective tool for pursuing claims related to the violation of a company’s reputation, name, or trade secrets.
Course of Mediation
Mediation consists of several stages:
- Contacting the mediator – the parties express their willingness to mediate, agree on the terms, and select a mediator.
- Preliminary meeting – the mediator meets with the parties, explains the rules of mediation, and outlines the process.
- Negotiations – the parties present their positions, and the mediator assists in working out a compromise.
- Conclusion of a settlement – if the parties reach an agreement, a settlement is drafted, which may be approved by the court.
Role of the Mediator
The mediator is a neutral party who helps the participants reach an agreement. They do not make decisions but support the parties in their negotiations. A mediator must be a person with full legal capacity and listed on the register of mediators maintained by regional courts. The mediator is required to maintain impartiality and confidentiality.
Significance of the Settlement
A settlement reached through mediation has legal force and can be approved by the court. Once approved, the settlement becomes enforceable, meaning that if it is not fulfilled, claims can be pursued through enforcement proceedings.
Examples of Case Law
In Polish case law, there are examples where mediation could have played a significant role in protecting entrepreneurs’ personal rights. One such case was heard by the Court of Appeal in Białystok (Case No. I ACa 439/2013), which concerned the violation of an entrepreneur’s good name through the publication of false information in the media. The court emphasized that violating an entrepreneur’s personal rights may result in the obligation to issue a public apology and provide compensation. This case illustrates how mediation could have offered a less confrontational and more efficient path to resolution, potentially avoiding a lengthy court process.
Another important ruling is the resolution of the Supreme Court of October 3, 2023 (Case No. III CZP 22/23), in which the Court held that a legal person may claim compensation for non-material harm under Article 448 of the Civil Code. This decision confirms that entrepreneurs can effectively seek protection of their personal rights in the event of a violation, including the right to claim non-pecuniary damages for harm suffered.
Summary
Mediation in cases concerning the protection of entrepreneurs’ personal rights is an effective tool that enables quick, efficient, and less costly conflict resolution. Thanks to legal regulations and court rulings, mediation is becoming an increasingly popular method of dispute resolution, allowing entrepreneurs to protect their reputation and good name without the need for lengthy court proceedings.