Recovering 18,700 PLN for defective parts in 14 days
A manufacturer from Lublin received components inconsistent with the specification. Instead of going to court, we organized one arbitration session. The supplier from the west recognized the claim and paid out the funds in two weeks.
Metal-Bud Sp. z o.o. got stuck in a stalemate after purchasing 142 defective bolts for agricultural machines. Instead of risking a multi-year court process, the owner decided on arbitration at Lublin Union Arbitrage, which allowed the case to be closed in two weeks.
The challenge
The manufacturer ordered a batch of hardened bolts that were supposed to withstand a load of up to 6.5 tons. During the assembly of the first 8 pieces, it turned out that the metal cracked already at 4.2 tons, which threatened a failure of ready machines at customers. The supplier from Greater Poland claimed that the error lay on the assembly side and refused to refund the 18,700 PLN paid in advance.
Due to this conflict, the production line in Lublin stopped for 9 business days. The company began to calculate contractual penalties from its end recipient in the amount of 450 PLN for each day of delay. The situation was tense because the traditional court route in that region lasts on average from 11 to 14 months, which would mean a total loss of financial liquidity with this order.
Our approach
Our arbitrator, Marek Wiśniewski, who has 9 years of experience in technical disputes, analyzed the report from an external material laboratory. We focused exclusively on the hard technical data contained in the 4-page expert assessment, putting aside the emotions of both sides. We used the fast documentation verification method, which is standard at Lublin Union Arbitrage.
We invited representatives of both companies to a session at Krakowskie Przedmieście 22. Instead of allowing mutual accusations, we introduced clear rules of the game: we analyze the steel certificate versus the hardness test results. The arbitrator prepared a point-by-point summary that showed the material defect was hidden and the supplier must have known about it before shipping.
The solution
During two meetings lasting a total of 4.57 hours, we worked out a written settlement with the force of a court judgment. The supplier agreed to an immediate refund of the full amount of 18,700 PLN for the defective goods. Additionally, as part of the settlement, Metal-Bud received a 22% discount on the next batch of material, which compensated them for part of the losses resulting from the downtime.
We applied a simplified procedure that eliminates the need to appoint court experts, which shortened the waiting time by at least 150 days. All findings were recorded and signed in the presence of the arbitrator, which gives both sides a legal guarantee for the fulfillment of obligations.
Results
Thanks to arbitration, the company recovered the full amount of the claim and was able to resume production in less than 14 days from reporting the problem to LUA.
Timeline
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October 8, 2024Reporting the dispute and analysis of Metal-Bud technical documentation
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October 11, 2024Sending the invitation to arbitration and contact with the supplier
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October 16, 2024Arbitration session in Lublin and signing of the settlement
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October 22, 2024Funds received in the client's account and case closed
"For a small company, the court is a death sentence by waiting. At LUA, the matter was handled concretely. The arbitrator knew more about steel than our engineers, which quickly cut the discussion with the supplier."