In the first half of this year, courts have resolved nearly 36,000 Swiss franc cases

District courts are resolving an increasing number of ‘frank’ (Swiss franc) cases. The latest data shows that in the first half of this year, there was an increase in this area of over 45% year-on-year. At the same time, the number of lawsuits filed is several thousand more than the disputes resolved. Although the situation at the District Court in Warsaw is different, with fewer new cases than completed ones. Experts highlight that it has a so-called special franc division, and over a year ago the rules of civil procedure were amended. Looking only at data for cases resolved from January to June this year, it is clear that district courts in the largest cities occupy the next places in the ranking. According to experts, this is due, among other things, to increasingly better settlements offered by banks.

As data obtained from 47 district courts across Poland shows, 35.6 thousand frank cases were resolved in the first half of this year. This represents a year-on-year increase of 45.1% from 24.5 thousand. However, the number of lawsuits filed in this area is higher. From January to June 2024, it amounted to 39.4 thousand. A year earlier, it was at the level of 38.9 thousand. The situation is different in the District Court in Warsaw, where in the first half of 2024 the number of cases resolved was greater than the number filed (10.3 thousand vs. 6.6 thousand).

“The District Court in Warsaw has a specialized franc division. Judges there only rule on cases involving loans indexed and denominated in foreign currency. In addition, in April last year, there was an amendment to the rules of civil procedure requiring lawsuits to be filed in the court appropriate for the borrower. This has greatly reduced the number of new cases in the so-called franc division,” comments legal counselor Agnieszka Dudek from Merito WSB University.

In contrast, according to attorney Mikołaj Majcher from MBM Legal, the situation in the District Court in Warsaw results from relieving the franc division from the influx of borrower lawsuits from all over Poland. Other courts should be prepared for an increase in the number of lawsuits filed by consumers. In the expert’s opinion, the upward trend in court rulings outside of Warsaw should already be visible this year. They can rely on the already established line of rulings on loans denominated in foreign currencies.

“The fact that the number of cases resolved in the District Court in Warsaw exceeds the number of lawsuits filed is evidence of the high efficiency of this court. This may indicate better work organization and the experience of judges in franc cases. I think such a scenario is also possible nationwide if other courts take advantage of these experiences and improvements. Further organizational changes in the courts will be key. Also important will be increasing the number of judges specializing in franc cases,” states legal counselor Adrian Goska from SubiGo Law Firm.

Looking at the data for the first half of 2024, it is clear that the highest number of franc cases were resolved in the already mentioned District Court in Warsaw – 10.3 thousand (the previous year – 7.9 thousand, an increase of + 29.6%). The District Court in Poznań was next with 2.2 thousand (previously – 1.6 thousand, + 43% year-on-year), Warsaw-Praga in Warsaw – 2.1 thousand (956 and an increase of +117.5%), Krakow – 2.1 thousand (1.1 thousand and +96.5%), Gdańsk – close to 2 thousand (1.2 thousand and +64.3%) and Wrocław – 1.8 thousand (867 and +102.3%).

“The increase in the number of franc case judgments issued by courts in different parts of Poland indicates an improvement in consumer situations and faster dispute resolution. The increasing number of judgments is a consequence of amending civil procedure rules. It has been in force since mid-April 2023 and shifted the influx of new cases to individual courts. The latest rulings of the Supreme Court and CJEU, as well as the increasing experience of judges ruling on franc cases, also positively affect the situation of borrowers in disputes with banks,” argues attorney Mikołaj Majcher.

On the other hand, attorney Adrian Goska points out that the significant increase in the number of cases resolved in other cities, such as Poznań, Kraków, or Gdańsk, indicates the growing activity of courts in resolving these disputes. In the expert’s opinion, this is a good direction that increases the chance for quicker court proceedings nationwide. It is also important for courts in smaller cities to draw from the experience of larger centers. This could contribute to even greater efficiency in handling these cases.

“The fact that in some parts of the country there are more applications filed than cases resolved is, of course, a temporary issue. We do not after all have an infinite number of frank cases, eventually new lawsuits will decrease. This backlog results from an increase in lawsuits. This is primarily a consequence of the CJEU’s decision. Clients with fewer fears file lawsuits, as fears related to standing up against the bank are diminishing. However, we do not have a sudden increase in the number of judges dealing with such disputes,” says economist Marek Zuber.

As legal counselor Agnieszka Dudek points out, from year to year there will probably be fewer lawsuits in matters of indexed and denominated loans. This can improve the speed of judgments. The expert also emphasizes that more and more settlements are being signed. Meanwhile, attorney Milena Mocarska from MBM Legal Law Firm informs that some banks have started to offer settlements worth the attention of borrowers. The fact of reaching an agreement allows for a quick resolution of the case. This is an argument often affecting franks.

“Banks are increasingly not appealing against first-instance judgments or withdrawing appeals during the course of the case. They are beginning to understand that their attitudes and making settlements may be more profitable. This contributes to the quicker end of proceedings. The increase in the number of cases ending with a settlement also positively affects the pace of dispute resolution,” concludes the expert from SubiGo Law Firm.