About Settlement

Mediation settlement is an agreement between the parties of dispute, executed as a result of mediation, in the presence of mediator, where the parties shape their mutual relations (including rights and duties) in such way in order for them to be able to eliminate or limit the conflict between them, which they do by finding mutual conflict solution, satisfying for both parties. Making mutual compromises could be the only possible but not the only one way to understanding. Whenever necessary, the parties also set the rules preventing reoccurrence or intensification of the conflict in the future.

By itself, mediation settlement is a subject of voluntary execution by parties, however should the voluntary execution be uncertain for one of the parties, each party – even without prior consultation with the other party – has a right to apply to the court in writing for approval. Upon approval, mediation settlement, gains the legal force of court settlement, meaning that with court approval  mediation settlement has legal effects like those deriving from court settlement (Art. 18315 § 1 of Civil Procedure Court).

If the settlement is subject to execution, the court provides approval by granting enforcement clause for the settlement. Once the settlement becomes enforcement title, the authorized party has a right to turn to the court executive officer for enforcing due benefits and actions (Art.777 § 2 item 21 of CPC). In any other case the court provides approval for the settlement in the form of decision (Art. 18314 § 2 of CPC).

Application for providing approval for mediation settlement, including for granting enforcement clause, is subject to judicial fee (for the time being – PLN 50).

Providing or declining approval for the settlement immediately follows application submission, on a closed session, meaning that the parties are not subpoenaed to the court, and the court decision is sent to them via regular mail or at their request to pick up in the court personally.

In some cases (Art. 18314 § 3 of CPC), the court can refuse either to provide approval or to grant enforcement clause for mediation settlement, in part or in whole. It could be the case when:

- the settlement is against the law;
- the settlement is against the principles of community life;
- the settlement is aimed at getting around the law;
- the settlement is illegible or internally inconsistent.

Whenever the mediation is conducted in relation to pending court proceedings (mediation at court request), the final approval of the settlement by the court constitutes the basis for discontinuance of proceedings (Art. 355 § 2 of CPC) as well as for returning ex officio to the order of the party ¾ of paid court fee in first resort (Art. 79 item1 point 2 of the Act on Court Fees in Civil Cases).

Due to the fact that the mediation is voluntary, until the moment when the court decision on discontinuance of the proceedings, the parties of mediation have a right to submit a concerted, written representation on withdrawing from executed settlement, which would result in cancellation of the settlement and reviving of the dispute (also before court).

Notwithstanding, the mediation settlement, the party of mediation has a right to re-initiate court proceedings on the same case, which had already been resolved between the same parties in the form of mediation settlement (the same could happen in case of court settlement). In such case, the defendant however has the right to enter a plea of estoppels, which is a merit plea aimed at dismissing the case.

Court decision on mediation settlement approval (even in case of denial), including on granting an enforcement clause, is subject of a grievance (Art. 795 § 1 of CPC).

Any claims deriving from approved by court, mediation settlement are subject to limitation within 10 years, and future periodic benefits within 3.