Getin Noble Bank and legal costs of Swiss franc borrowers | KWKR
Getin Noble Bank’s bankruptcy trustee and legal costs awarded to Swiss franc borrowers. Kamil Szymański and Natalia Kangier for Infor.pl
Why does a final judgment ordering Getin Noble Bank’s bankruptcy trustee to reimburse legal costs not result in their immediate payment? Kamil Szymański and Natalia Kangier of KWKR analyse this issue in an article published by Infor.pl.
Final judgments and the payment of legal costs
Swiss franc borrowers are obtaining final judgments ordering the bankruptcy trustee of Getin Noble Bank’s bankruptcy estate to reimburse their legal costs. As the authors explain, a final judgment establishes that the legal costs are due, but this does not necessarily mean that the trustee may pay them immediately.
A distinction must be made between the obligation to pay arising from a final judgment and the order in which claims are satisfied from the bankruptcy estate.
This distinction is crucial to understanding why the awarded legal costs are not currently being paid.
Legal costs in bank bankruptcy proceedings
In the article, the authors explain how legal costs awarded in proceedings initiated by borrowers are classified under Polish Bankruptcy Law. In their view, such costs do not constitute the costs of bankruptcy proceedings within the meaning of Article 230(1), but rather other liabilities of the bankruptcy estate referred to in Article 230(2).
Priority of resolution costs
Article 440(3) of the Polish Bankruptcy Law is particularly relevant to bank bankruptcy proceedings. The order of priority established by this provision means that other liabilities of the bankruptcy estate may only be satisfied after the costs of the bankruptcy proceedings and resolution costs.
In the case of Getin Noble Bank, these include, among others, costs incurred by the Bank Guarantee Fund.
Can the bankruptcy trustee withhold payment?
The authors conclude that the lack of current payment of awarded legal costs does not mean that final judgments are being disregarded. The bankruptcy trustee remains bound by the statutory order in which claims must be satisfied and cannot pay awarded legal costs in breach of the priority afforded to other claims.
More about the relationship between a final judgment, the status of legal costs and the rules governing their payment in bank bankruptcy proceedings can be found in the article by Kamil Szymański, Attorney-at-law and Senior Associate at KWKR, and Natalia Kangier, Attorney-at-law and Associate at KWKR, published by Infor.pl.