12/03/2025
Court confirms the joint liability of the State Treasury – victory for our client
In one of the cases we handled, the Court of Appeal in Warsaw has finally confirmed that the General Directorate for National Roads and Motorways (GDDKiA), representing the State Treasury as the investor, bears joint responsibility for obligations arising from a construction contract. Our client – a subcontractor – sought payment for construction work performed, while the investor refused payment, citing the restructuring of the main contractor in Italy under concordato preventivo.
The judgment of the Court of Appeal in Warsaw, which was issued in this case, is final, meaning that the subcontractor's position has been conclusively affirmed by the court and is not subject to further appeal.
RMS Lawyers' argument: investor's joint responsibility is independent of the contractor's situation
RMS Lawyers demonstrated that the investor is liable for the main contractor's obligations towards subcontractors, regardless of the financial difficulties of the main contractor and any ongoing restructuring proceedings against them.
The court supported this position, stating that "the investor's liability under Article 647¹ § 5 of the Civil Code is joint, meaning that the subcontractor can claim payment from both the main contractor and the investor." Consequently, the State Treasury as the investor cannot evade its obligations, even if the main contractor is undergoing restructuring proceedings in Italy.
Italian restructuring proceedings vs. Polish investor responsibility
An essential aspect of the case was analyzing the impact of Italian concordato preventivo proceedings on the legal situation in Poland. RMS Lawyers pointed out that:
Italian concordato preventivo is a procedure aimed at reaching an agreement with creditors, but its effects do not affect the joint liability of debtors for a specific obligation in another country. EU regulations (Regulation (EU) 2015/848 on insolvency proceedings) do not restrict subcontractors' rights to claim from joint debtors, such as an investor in a construction contract. The principle of joint liability under Article 647¹ § 5 of the Civil Code is independent of the main contractor's situation, and restructuring in Italy does not exempt the investor from liability towards the subcontractor. The court confirmed that "the restructuring of the main contractor does not affect the extent of the State Treasury's responsibility as the investor, because the obligation towards the subcontractor is separate and independent from the economic situation of the main contractor."
Case outcome – effective protection of subcontractor rights
Thanks to the arguments presented, our client obtained judicial confirmation that the investor is obligated to pay the due compensation, even if the main contractor is undergoing restructuring abroad.
Significance of the judgment – what you should know?
The final judgment of the Court of Appeal in Warsaw confirms that subcontractors have a strong position in disputes over payment for construction work, and a public investor cannot evade its obligations by citing the economic situation of the main contractor. Key considerations in such cases include:
Analysis of international law, including the effects of restructuring proceedings conducted in another country. Understanding the principles of an investor's joint responsibility and effectively demonstrating its independence from the financial condition of the main contractor. Pursuing claims in Poland, even if the contractor is undergoing restructuring in another country. For years, RMS Lawyers have successfully represented clients in construction and cross-border disputes, analyzing both Polish and foreign laws affecting each case.
💡 If you are a subcontractor and have not received payment for work performed, contact us. We will help you analyze your situation and effectively pursue your claims – from both the main contractor and the public investor.
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