Is it worth to make settlements and on what terms?

Experience / 04.03.2021

The Law Firm’s advocates represented a Client, who is the owner of shopping malls, in court proceedings for payment of more than PLN 15 million as full compensation for termination, without notice, of a lease agreement concluded for a definite period of time. It can be said that the proceedings were a complete success, as a result of the mediation settlement, the Client paid to the tenant a total amount of approximately PLN 200 thousand.
The tenant, taking legal action, argued that as a result of the unlawful termination of several leases of commercial premises in the shopping center, he suffered a total damage of more than PLN 15 million. The amount included both actual damage and lost profits. An additional complication in the case was that the tenant obtained a security order for the full amount of the claim, which, taking into account the fact that the Client had an outstanding loan for the construction of the mall, led to its prompt termination by the bank. The Law Firm’s legal team first had to appeal the court’s order securing the claim, then support the Client in talks with the bank to maintain the loan agreement, and later deal with arguments aimed at proving that it was not the Client’s fault that the lease agreements were terminated.
As a result of lengthy proceedings, the court eventually overturned the security provision of the lawsuit, the bank did not terminate the loan, deeming that the strengthening of the collateral was sufficient to continue the contract, and the court of first instance suggested that the parties submit the case to mediation. As a result of the clarification of certain contentious issues at the collateral stage, and thanks to the legal arguments presented by the Law Firm’s lawyers at the mediation, the parties reached a settlement, based on which the Client paid the tenant an amount approximately 75 times less than what was claimed in the lawsuit. The Client considered this settlement a complete success for the Law Firm.