Abstract

The Supreme Court, in its decision of 12 November 2020, III CSK 28/18, presented a new view on the legal qualification of the reservation in the power of attorney that it expires upon termination of the relationship between the principal and the holder of the power of attorney. According to the arguments presented by the Supreme Court, the application of Art. 94 of the Code of Civil Procedure gives rise to an unauthorized broad interpretation. Thus, the court is obliged to control whether the proceedings are valid and whether the power of attorney has not expired due to the termination of the basic legal relationship. Considering the widespread practice of granting powers of attorney to legal advisors under the employment relationship with a similar reservation, the ruling may have far-reaching effects on the current practice of entrepreneurs. The adoption of such an interpretation also arouses further questions as to the method of judicial control of the validity of the power of attorney and the consequences of the ex-post finding that the power of attorney has expired.