The Supreme Court of Poland has issued a resolution that significantly impacts the protection of the personal interests of companies and organizations. The matter concerns compensation for the infringement of a legal person’s good name. Can a company claim monetary compensation for damage to its reputation? As of now – yes, explicitly on the basis of the provisions of the Polish Civil Code (Civil Code, ‘CC’).

 

A company brought a lawsuit against an internet user for a negative review regarding the sale of its products. The court of first instance found that the company had indeed suffered a violation of its personal interests but awarded a lower amount of compensation than initially claimed. The case was brought before the Supreme Court, which resolved this pivotal issue by confirming that a legal person is entitled to compensation for the infringement of its personal interests.

 

This decision of the Supreme Court opens the door for companies, organizations, and other legal entities to pursue claims in the event of damage to their reputation. Although different interpretations had been previously presented, it is now settled that Article 448 § 1 of CC, in conjunction with Article 43 of CC, applies equally to legal persons (like limited liability companies). The harm in such cases does not consist of mental suffering, but rather of impediments to business operations, such as loss of customer trust. This marks a significant shift in the approach to protecting corporate reputation.

 

Nevertheless, caution must be exercised, as each case must be assessed individually. The Supreme Court emphasized that the justification for awarding compensation must be evaluated case by case. Key factors will include the extent of the violation and its impact on business activities. For individuals posting content online, this serves as a clear warning to be mindful of their statements unwarranted criticism may now have serious financial consequences.

 

Do you have a legal problem related to the matters of your company? We’d be happy to discuss it.

Tel. (+48) 536 34 34 32
sekretariat@blumski.pl

Our law firm is experienced in corporate law and litigation, with experience stemming from, among other things, serving as a manager in companies within the Bank Zachodni WBK S.A. group (currently Santander Bank Polska S.A.) and serving as Chairman of the Supervisory Board of a publicly traded company.

 

This article has its text in Polish.