CMS lawyers bring an end to disputes over the construction of the National Stadium in Warsaw

9 December 2016

CMS has successfully conducted negotiations related to the amicable settlement of long-running disputes concerning the construction of the National Stadium in Warsaw. By way of lengthy negotiations and the process of reaching a settlement CMS lawyers represented an international insurer, which was the guarantor of the proper performance of the contract for the construction of the National Stadium.

The settlement reached on 14 November of this year not only brings to an end one of the major disputes on our market, but is also the first time a matter of such complexity has ended amicably. Małgorzata Kluziak from the Regional Court in Warsaw described the settlement as the most important in the history of the Polish judicial system.

The settlement has closed more than a dozen proceedings in Poland and abroad, including between the State Treasury – the Ministry of Sport and Tourism as the contracting party and the National Sports Centre – Rozliczenia sp. z o.o. on one side and the guarantor on the other, as well as between members of the consortium of the general contractor and the State Treasury, as well as between the contracting party and members of the consortium of the general contractor as well as between members of the consortium of the general contractor and the contracting party and the main subcontractors, i.e. Elektrobudowa S.A. consortium, Qumak S.A., Przedsiębiorstwo “Agat” S.A., as well as companies that emerged from the division of Imtech Polska sp. z o.o.

“The first step towards the success of the negotiations involved building trust in the process of settlement negotiations between the parties involved” – emphasised Lidia Dziurzyńska-Leipert, Partner in CMS’s Real Estate and Construction Department, managing a team of lawyers specialising in legal advice for construction sector clients. “An analysis of previous experience in resolving construction disputes showed that in order for the negotiations to be successful it was of key importance to engage the public side, which could be observed in the very professional and consistent attempt to reach a settlement on the part of the public side negotiation team, the Ministry of Sport and Tourism and NCS Rozliczenia, including the State Treasury Solicitors’ Office. Another factor that facilitated the compromise was the support and openness of the Court, which was very flexible in searching for a formula of communication that would allow the settlement to be concluded”.

The following CMS construction lawyers led by Lidia Dziurzyńska-Leipert (legal adviser and partner heading CMS’s construction practice) handled the legal proceedings and subsequent negotiations towards the settlement: Michał Bork (legal adviser), Ludwina Klein (advocate) and Bolesław Szyłkajtis (advocate).