Settlement between manufacturer and subcontractor

During the Polboat Yachting Festival in Gdynia in 2021, we had a conversation with one of the yacht manufacturers showcasing their latest model. The shipyard’s representative mentioned they were facing issues with one of their subcontractors. They were dissatisfied with the quality of the services provided but were not yet able to assess the damage or its extent. Despite these concerns, the subcontractor filed a lawsuit for payment (including costs and interest) amounting to nearly 100,000 PLN.

The case was pending in the District Court in Gdańsk, with a hearing scheduled shortly after the festival, at the beginning of August 2021.

We were familiar with the subcontractor and agreed with the shipyard representatives to take a closer look at the case and explore the possibility of a settlement. A lengthy trial was anticipated, likely involving detailed expert opinions, which would incur additional costs.

By understanding the needs and perspective of the plaintiff – the subcontractor – we facilitated a preliminary settlement even before the case was called in the courthouse hallway. The settlement was deemed reasonable by the judge and involved our clients paying 1/3 of the amount claimed by the plaintiff.

Thanks to the settlement, the shipyard:

• concluded a serious dispute at a financially reasonable level,
• completely eliminated the risk of an uncertain court ruling, along with the significant additional costs (legal fees, expert reports, and court-appointed expert opinions), not to mention the time and emotional toll,
• Returned to its ongoing production without further disruptions.

Our approach was guided by the old legal adage, “even the worst settlement is better than the best judgment.” By realistically assessing the formal stage of the case, the capabilities of both parties, and the potential costs and duration of the trial, we successfully facilitated an agreement.

The settlement was executed, and representatives from both companies continue to meet and converse at industry events to this day.