52.4.1 Proceedings before the Court of Arbitration at the Polish Chamber of Commerce in Warsaw
On 9 April 2010 the Court of Arbitration served on PZU Życie a statement of claim for payment. The case against PZU Życie was brought by CSC Computer Sciences Polska sp. z o. o. which demanded payment of EUR 8,437 thousand with respect to implementation of the GraphTalk system at PZU Życie. Following subsequent amendments, CSC claimed the total of PLN 35,663 thousand with interest due from the claim date (i.e. from 31 March 2010) until the date of payment.
The amount sought by CSC includes the claims related to licence fees, implementation works, maintenance of the computer system, service works, fee for computer systems, liquidated damages and capitalized interest.
On 31 May 2010 in response to the statement of claim, PZU Życie requested that the Court of Arbitration rule that the court temporarily refuses jurisdiction for some claims and dismissed the entire claims. In the opinion of PZU Życie, the claims of CSC are either unfounded or have not been proven.
PZU Życie also filed a counter claim against CSC, demanding payment of PLN 71,890 thousand as a return of remuneration collected by CSC under the concluded contract or as damages for undue performance of obligations under the concluded contract. In response to the counter claim, on 31 August 2010, CSC motioned dismissal of the entire claim of PZU Życie indicating absence of evidence to accept it.
On 31 January 2012 a hearing was held before the Arbitration Court at the Polish Chamber of Commerce in Warsaw, and on 19 June 2012 the Court closed the case. Following submission of another claim modification by CSC, the Arbitration Court re-opened the case.
On 18 December 2012, the Arbitration Court at the Polish Chamber of Commerce issued a decision (“Decision”) adjudicating the payment of PLN 17,193 thousand for CSC by PZU Życie and cancelled the main complaint regarding the payment of EUR 8,437 thousand with statutory interest for the period from the date of complaint. Further, the Court dismissed the remainder of the action, the mutual action and adjudicated the amount of PLN 199 thousand payable to CSC by PZU Życie as refund of the proceeding expenses.
52.4.2 Proceedings concerning order of enforcement
On 23 January 2013, CSC motioned to the District Court in Warsaw for a statement of enforcement of the Decision and providing it with a writ of execution.
At the request of CSC of 23 January 2013, on 15 March 2013 the District Court in Warsaw decided to issue an order of enforcement with respect to the Judgment.
On 18 March 2013, PZU Życie filed a complaint against the aforesaid decision of 15 March 2013 with the District Court in Warsaw, demanding suspension of its enforcement. In response, on 22 March 2013, the Court decided to suspend enforcement of the aforementioned decision until resolution of the complaint lodged by PZU Życie on 18 March 2013. On 4 April 2013, CSC submitted to the Court its response to the complaint filed by PZU Życie, demanding its dismissal in whole. The Appellate Court decided to adjourn the hearing of the complaint until the date of the District Court’s examination of the complaint filed by PZU Życie to reverse the Judgment.
52.4.3 Proceedings concerning the complaint filed by PZU Życie to reverse the Judgment
On 1 February 2013, PZU Życie submitted a complaint to the District Court in Warsaw, motioning for cancellation of the Decision and suspend its execution with regard to the amount of PLN 17,193 thousand payable to CSC, dismissal of mutual action and adjudicating the payment of PLN 199 thousand to CSC as refund of the proceeding expenses. Further, PZU Życie motioned to adjudicate refund of the proceeding expenses from CSC, including the representation fees according to the prescribed norms and requesting the District Court in Warsaw to motion the Arbitration Court at Polish Chamber of Commerce to submit the arbitration proceeding files to allow the Court to decide whether any circumstances of the case support cancellation of the Decision.
Following the exchange of the filings of CSC and PZU Życie, in its decision of 15 April 2013, the District Court in Warsaw rejected the request submitted by PZU Życie with respect to suspension of enforcement of the Judgment, on grounds of its being premature, as the District Court in Warsaw (in the case presented in detail in Section 52.4.2.) did not declare enforcement of the Judgment pronounced by the court of arbitration, and suspension of enforcement of a judgment which is not subject to an enforcement procedure is not possible.
In its judgment of 12 November 2013, the District Court rejected the complaint to reverse the Judgment. The judgment of 12 November 2013 may be appealed against. The appeal should be filed within 14 days of the service of the judgment with the statement of reasons. On 12 November 2013, PZU Życie filed for preparation of a statement of reasons for the judgment. Until the date of signing these consolidated financial statements PZU Życie has not received the above mentioned reasons for judgment.
52.4.4 Proceedings before the Court of Arbitration at the Polish Chamber of Commerce in Warsaw concerning a suit over payment and composition proceedings before the District Court for the capital city of Warsaw concerning a suit over payment
On 29 March 2013, CSC filed a suit against PZU Życie with the Court of Arbitration at the Polish Chamber of Commerce in Warsaw, for payment of PLN 6,690 thousand plus interest accrued in the period from the suit date to the payment date, including:
- PLN 6,064 thousand – payment of statutory interest (on amounts awarded under the arbitration decision of 18 December 2012, as presented in detail in Section 52.4.1), accrued from 1 April 2010 (the date following the date of CSC’s suit brought in the case described in Section 52.4.1) to 18 December 2012;
- PLN 626 thousand – payment of statutory interest on amounts awarded under the aforesaid arbitration decision, from 19 December 2012 to the suit date.
On 15 May 2013, PZU Życie filed its response to the suit. On 3 September 2013, a preliminary trial was held. During the following trial on 4 march 2014, PZU Życie was obliged to submit a document confirming the correctness of interest calculation within one week, to which CSC may reply within the next week.
The Management Board of PZU Życie believes that the probability that a significant portion of the interest will be awarded to CSC is very high.