II PK 359/06
AI generated
Contract penalty assessment must reference total penalty amount, not monthly installment, under Polish Civil Code. Dismissed appeal regarding excessive penalty in non-compete agreement.
Poland (PL)
Legislator summary
AI generatedThe Supreme Court partially overturned the appellate court's dismissal of the plaintiff's claim for a contract penalty. The plaintiff argued the penalty was excessive, while the defendant contended the monthly installment was the relevant metric. The court ruled that the assessment of an excessive penalty must be based on the total agreed sum, not the monthly payment, as the penalty compensates for the general loss of the creditor's interest.
Legislator headnote
AI generatedArt. 1012 § 1 i 3 k.p.; Art. 484 § 2 k.c. w związku z art. 300 k.p.: The assessment of whether a contractual penalty is excessively high must be based on the total amount established in the agreement, rather than the monthly installment.
Keywords
AI generated
contractual penalty assessment
excessive penalty clause
non-compete agreement
total penalty amount
monthly installment payment
Polish Civil Code
general loss compensation
Cited Legislation
AI generatedArt. 1012 § 1 k.p.
Art. 1012 § 3 k.p.
Art. 484 § 2 k.c.
Art. 300 k.p.
Art. 398 § 1 k.p.c.
Art. 108 § 2 k.p.c.
Art. 398 § 21 k.p.c.
art. 484 § 2 k.c
art. 300 k.p
art. 5 k.c
Cited Case Law
AI generatedIII CZP 61/03
Fixed penalty clauses remain enforceable without proving actual loss to the creditor under Polish law.
I PK 528/02
Non-compete penalty clauses are valid under civil law but must be adjusted by labor law principles.
I PK 196/04
Supreme Court allows contractual penalty in non-compete agreement despite employer's failure to pay monthly compensation.
III CZP 62/02
Supreme Court refused to rule on 30-year acquisitive prescription due to premature legal assessment.
I PK 22/03
Employer violating social fund spending rules cannot invoke general clauses to avoid liability for damages.
I PK 16/02
Supreme Court allows employer's right to terminate non-compete agreement post-employment under Civil Code.