15 November 2010

18th September 2009 a meeting of the Justice and Human Rights Committee, devoted to discussion of the possible consequences of the implementation of the government’s draft law on the recovery of claims in the proceeding group (No. 1829). Among MP’s there were also present: representatives of the Polish Insurance Association, the Polish Bank Association and the Polish Confederation of Private Employers “Leviathan.”

During the meeting the guest – Mr M. Scevola de Cazotte from the Institute of Legal Reform of the United States Association of Commerce – gave a detailed lecture on the functioning of institutions of group action lawsuits in the U.S. The speaker’s main message was to highlight the immediate consequences of the proposed legislation to the MP’s. U.S. experience prooves that good intentions, meaning: strengthening consumer protection in practice led in many markets only to the development of the law sector deriving profits from the management of disputes.

The vast majority of court compensation goes to the accounts of law offices in the form of payment for legal services. In addition, the institution of collective actions contributes to the reduction of foreign investment in the country by introducing preferences for collective action.
A sharp increase can be observed in bankruptcy, both of small, medium and large companies involved in the long, costly, though not always right processes. Mr. M. Scevole de Cazotte recommended caution in implementing solutions critically evaluated in countries with years of practical experience. According to the invited guest, it is necessary to carry out a thorough analysis of economic, social and economic project before approving it.

The representatives of the PIU, PBA and PKPP “Leviathan” shared and completed the review of the representative of the Institute of Legal Reform of the United States Association of Commerce with further doubts and detailed examples.

Because of the importance of the arguments and raised doubts, the Bureau of the Justice and Human Rights Committee decided to postpone the deadline for consideration of the report of the subcommittee on the investigation of claims in the group proceedings by two weeks. During this time, there will be another independent expertise drawn up, taking into account in particular the benefits and risks of the proposed solutions.

The Committee also requested the Office of the Seym to assess the economic impact of the project.