RKKW effectively defends clients against property enforcement proceedings.

The Court of Appeal in Szczecin upheld the appeal of RKKW’s client and overturned the payment order in summary proceedings against valuable commercial property.

RKKW’s client purchased commercial real estate encumbered with a compulsory mortgage pursuant to a decision to grant security. The previous owner of the property (personal debtor) lost a final and binding case for payment against the claimant. The claimant then brought a claim for payment against RKKW’s client, as the debtor in rem, limiting the defendant’s liability to the aforementioned property and the amount of the compulsory mortgage. The Regional Court in Szczecin fully agreed with the claimant’s position and issued a payment order in summary proceedings, and then upheld the order in its judgment.

As a result of an appeal lodged by RKKW’s client, the Court of Appeal in Szczecin amended the contested judgment by revoking the payment order in its entirety in summary proceedings. The court agreed with RKKW’s arguments, noting that a compulsory mortgage, the basis for which is the titles listed in Article 110 of the Act on Land and Mortgage Registers (including decisions on the granting of security) secures claims whose existence was only substantiated at the time of issuing these titles, and not confirmed, as is the case with claims covered by enforcement titles referred to in Article 109(1) of this Act.

The court further stated that the establishment of a compulsory mortgage on the basis of a decision to grant security is not a means of enforcement and its purpose is not to realise the claim.

Since the creditor failed to change the basis of the compulsory mortgage from a decision to grant security to a final court judgment, it is not entitled to pursue its claim against the current owner of the property.

The judgment is final.

The client was represented by Konrad Oleszczuk, Counsel, Attorney-at-law,
and the project was coordinated by Karol Maciej Szymański, Managing Partner.