PARTIES TO MEDIATION:
– Landlord
– Tenant
VALUE OF DISPUTE SUBJECT MATTER:
PLN 1.5 million
BRIEF DESCRIPTION OF THE CASE, INCLUDING THE SETTLEMENT AGREEMENT
The case arose between a developer, the owner of an office building located in the centre of a large city, and its Scandinavian contractor, the tenant in the building. The lease agreement was concluded for a fixed period and regulated in detail all matters relating to mutual settlements. As a result of, among other things, IT system errors on the part of the Lessor and errors resulting from the erroneous takeover of the leased area on the part of the Lessee, a dispute arose between the Parties, which at the time the case was reported amounted to one and a half million zlotys.
Due to the fact that the Lease Agreement was coming to its end and the value of the subject of the dispute constituted a significant part of the annual budget of the Lessee’s company, the case went to court. Bearing in mind the need to ensure financial liquidity on the part of the Lessee, the Parties decided to settle the case out of court.
The Mediator’s task was to assist in finding such a solution that would ensure relatively quick settlement of the Lessor’s claims, with simultaneous elimination of the system errors on its part which had caused the erroneous calculations, as well as regaining financial liquidity on the part of the Lessee and a smooth move to a new office. As a result of the mediation proceedings, after less than three hours of meeting, the landlord waived interest on the debt and reduced the value of the principal debt by the part which could have been (in the opinion of both parties) generated by the faulty system calculating the fees. The tenant undertook to pay the debt in instalments, setting a schedule that allowed him to maintain his financial liquidity.
Additionally, the parties also reached an agreement with regard to other locations of their subsidiaries in Central and Eastern Europe, and initially discussed the terms of potential lease of office space in those locations.
As a result of the Mediator’s actions and the mediation proceedings, the Parties not only found a solution to their current problem, i.e. the backlog resulting from errors that occurred on both sides of the lease relationship, but also agreed on other markets on which they operated through their subsidiaries. The Parties’ satisfaction with the manner in which the matter was resolved also translated into their good relations in Poland and continued talks regarding the potential lease of other office space.
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