RKKW obtains legally binding security for a claim in a construction dispute

The District Court in Legnica fully granted the motion to secure the claim filed by RKKW Law Firm in a multi-threaded construction dispute and established a compulsory mortgage on the investor’s property.

Lawyers from RKKW Law Firm represent the contractor in a dispute arising from a construction contract. The client of RKKW concluded a construction contract with the investor, the property owner, under which he was to carry out the reconstruction of a 19th-century tenement house in order to separate high-standard residential units. In addition, the parties concluded a preliminary sales contract under which the client of RKKW was to purchase the renovated and separated units.

Although the client had carried out the vast majority of the work stipulated in the construction contract, the investor shirked from concluding the promised sales contract. Ultimately, he submitted a declaration of withdrawal from the construction contract and refused to pay the RKKW Client remuneration, citing the provision of the construction contract which made the payment of any remuneration conditional on the conclusion of the promised contract of sale of premises. In addition, he deprived the contractor of access to the construction site.

In order to protect the contractor’s interests, RKKW obtained a decision to secure evidence, which prevented the investor from destroying or concealing the effects of RKKW’s client’s work. In addition, RKKW filed an application to secure the claim for payment of remuneration by establishing a compulsory mortgage on the property on which the building under reconstruction is located. In the application, RKKW argued, among other things, that the withdrawal from the construction contract was not effective and that making the remuneration for the work performed dependent on the conclusion of another contract was incompatible with the nature of a construction contract. The Regional Court in Legnica fully agreed with RKKW’s arguments and granted the injunction as requested.

The decision on securing evidence and the decision on securing the claim are final. The main proceedings are pending.

The case is being conducted by:

Marcin Jasiński – Partner in charge of the Real Estate Department of RKKW Law Firm, legal counsel,

Konrad Oleszczuk – Counsel, legal counsel

Augustyn Żurawski – Junior Associate