Stockholm is one of three preferred seats for Polish parties in international arbitration

In the rapidly evolving landscape of international arbitration, the SCC Arbitration Institute and Stockholm are emerging as one of three preferred choices for Polish parties.

A recent study conducted by a research team composed of the SCC Arbitration Institute, the Court of Arbitration at the Polish Chamber of Commerce, the Court of Arbitration at the Lewiatan Confederation, and Kochański & Partners law firm has shed light on the current trends shaping the arbitration scene in Poland. The study, which took place from September to November 2023, provides valuable insights into the growing interest in arbitration among Polish businesses and legal professionals.

The research involved a detailed survey of arbitrators, counsel, and business representatives in Poland who have been involved in international arbitration cases over the past five years. A total of 42 arbitration cases completed between 2017 and 2022 were analyzed, offering a comprehensive overview of the trends and preferences of Polish parties when it comes to resolving international disputes.

From a Swedish perspective, one of the most notable findings from the survey is the growing appeal of Stockholm as an arbitration seat. While Warsaw remains the dominant choice, with 66% of respondents selecting it as their preferred seat, Stockholm has secured a notable position, being chosen by nearly 10% of respondents. This preference for Stockholm underscores its reputation as a neutral, efficient, and legally sophisticated venue for resolving international disputes involving Polish parties.

Markiyan Malskyy, Partner at Kochański & Partners law firm, conducted the survey. He explains: “Several factors contribute to the growing interest in arbitration among Polish entities. Firstly, arbitration offers a level of efficiency, professionalism, confidentiality, and speed that traditional court proceedings often lack. These advantages are particularly appealing in an era where businesses are increasingly global and disputes are more complex. Secondly, Poland’s robust economic growth over the past two decades has led to a rise in both the number and complexity of disputes, many of which are better suited for arbitration than for resolution in domestic courts. Finally, the Polish legal environment has become more arbitration-friendly, with courts increasingly understanding and supporting the process.”

The survey results also highlight the preferences of Polish parties regarding arbitration rules and institutions. SAKIG leads with 39% of the cases, reflecting its strong position within Poland. However, international rules and institutions like the SCC and the International Chamber of Commerce (ICC) are also popular, each chosen in nearly 10% of the cases.

In terms of case duration, the survey reveals that most cases (46.1%) are concluded within two years, demonstrating the efficiency of the arbitration process. Moreover, an overwhelming majority (85.4%) of cases are heard by a three-arbitrator tribunal.

The growing trend of selecting Stockholm as an arbitration seat, alongside the SCC’s strong reputation, suggests that the city will continue to play a pivotal role in international arbitration involving Polish parties. As Poland’s economy continues to integrate more deeply with global markets, the need for reliable and effective dispute resolution mechanisms will only increase. Stockholm, with its established arbitration framework and neutral stance, is well-positioned to meet this demand, making it a strategic choice for Polish businesses and legal professionals alike.

Caroline Falconer, SCC Secretary General, says: “We are happy to see that a steady number of Polish parties are choosing SCC arbitration and Stockholm as a seat for international arbitrations. We are proud to see that our reputation for professionalism and efficiency resonates strongly within the Polish business and legal communities."

In conclusion, the findings of the study emphasize the importance of understanding and adapting to the evolving preferences of Polish parties in international arbitration. For those involved in cross-border disputes, Stockholm and the SCC Arbitration Institute offer a compelling combination of expertise, efficiency, and neutrality that is increasingly recognized and valued by the Polish arbitration community.

Markiyan Malskyy is a Ukrainian attorney-at-law and partner in the International Disputes practice at Kochański & Partners law firm, one of the leading dispute resolution law firms in Poland. He is also the Head of the Ukrainian Desk there and Honorary Consul of Austria to Lviv. He specializes in resolving disputes, primarily in international commercial and investment arbitration. Markiyan started his career in the international arbitration department of Freshfields Bruckhaus Deringer in Paris, France. For 15 years, he practiced at the leading Ukrainian law firm Arzinger, where he was a partner, leading the firm’s international dispute resolution practice and supervising the West Ukrainian branch office.