Court proceedings can take months but they often last for years. In many cases, after a long trial, the opposing party’s financial standing might turn out to be very poor. This puts into question the enforceability of the obtained favorable judgment, namely, whether we, ultimately, get what we have so long claimed. In order to ensure that we are protected until the final conclusion of the proceedings on the merits, the party may apply to the court for security of the claim, i.e. for a tool known also as an interim (temporary) injunction or a freezing measure.
What is the purpose of the interim injunction proceedings
Granting security of the claim should ensure that, despite a long trial, it will be, eventually, possible to have the rendered ruling fully performed. By obtaining an interim injunction, the entitled party receives temporary protection for the time until the proceedings on the merits are over.
Interim injunction proceedings support the resolution of the matter as to its merits. This means that the security measure can be ordered only in connection with the main claim sought. In case the matter is to be resolved by an arbitration court it is still possible to request for granting the security from a state court (in arbitration proceedings – as opposed to the state court interim proceedings – the interim injunction is generally granted only after hearing from both parties and the temporary measure still needs to be approved by the state court for its enforcement).
Who may obtain an interim injunction
Each party to the dispute may be granted the security if it makes plausible the claim and the legal interest in granting the security. It is not required to ‘prove’ these circumstances, but only to show that the presented statements are ‘highly probable’. Thus, in an application for security, it is necessary to convince the court that it is probable that the claim exists.
Additionally, it should be made probable that that the lack of the security will prevent or seriously impede the enforcement of the judgment rendered in the case, or seriously impede the achievement of the purpose of the proceedings. In other words, it is necessary to convince the court that there is a need to provide an interim legal protection to the entitled party before it can obtain the final legal protection in the judgment.
From the beginning, the legal interest is considered legitimate if the claimant is seeking the payment in a commercial transaction under the act on excessive delays in commercial transactions, where the value of said transaction does not exceed PLN 75,000 and the claim being sought has not been settled, and at least three months have passed from the date of expiry of the payment deadline.
When to apply for an interim injunction
The court may grant security before and during the proceedings. Requesting for an interim injunction before filing a lawsuit or directly in the statement of claim is important in situations requiring swift actions. In particular, it should be pursued in cases where there is a reasonable risk that the opposing party may torpedo future enforcement of the judgment, e.g. by immediately disposing the assets when this party learns there is a court claim made against them.
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Lidia Węcłowicz, Partner
lidia.weclowicz@ngllegal.com
Przemysław Tacij, Counsel
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Stanisław Wocial, Junior Associate
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