Class Actions Come to Poland

In July 2010, the Act on Pursuing Claims in Group Proceedings dated December 17, 2009 (Journal of Laws from 2010, No. 7, item 44) (the Act), went into force, introducing class actions into the Polish legal system. Although it is perceived as a step towards improving the efficiency of court proceedings and facilitating access to courts for people who cannot afford to start a lawsuit by themselves, the effects of the Act (in particular whether it will be the trigger of a revolution in the Polish judicial system and cause a flood of class action suits) remain to be seen. However, what is certain today is that new risks are faced by sectors susceptible to damages caused by hazardous products (eg the tobacco and pharmaceutical industries) or where relations with consumers are standardized on a mass scale (eg banks, developers, tourism). In both cases, insurers and reinsurers could be at risk either indirectly or directly.

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