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Payment in the contract currency

The case concerned payment claimed by an Italian company Fratelli L. srl, from a polish company for delivered textiles, and dispute concerned a currency in which Fratelli claimed a payment. District Court used an Italian Civil Code, but polish civil procedure, and ordered a payment in polish zloty. At the stage of the appeal, plaintiff converted currency of claimed payment into euro. The Appeal Court in Łódź upheld the judgment requiring payment in polish zloty and said that currency conversion did not constitute claim change.

However, Supreme Court ( case number: II CSK 783/14)  set aside this judgment and ordered a retrial of the case by the Appeal Court. In the justification for its judgement, Supreme Court said that “the currency principle (art. 358 of Polish Civil Code) belongs to substantive law, not procedural, and the Appeal Court could not change the claim. If the base of a complaint is a specific legal relationship, i.e. the contract with prescribed payment in foreign currency – in this case in euro – it is not allowed to claim such payment in other currency. In Italy is also the same principle. So, strong legal obstacles not allowed to uphold such judgment, fair.”

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