Hi guv1976 (and everyone who responded). Thank you all. I have been quite busy with the trip and work since returning. Just got a chance to go through the responses now (appreciate the patience). First, just want to reply to the comment. My first instinct is to go to an Air Canada desk but they don't have any (confirmed by the airport staff).
As a first update, I called Air Canada and successfully got my miles back (currently waiting for the refund of the taxes and fees).
As next step, I am intending to file a complaint with the EU and US DOT as well as filing a legal complaint if I do not receive a satisfactory response and reimbursement from LOT Polish. Maybe the EU and US DOT complaint won't go anywhere but it has to be put on record for everyone to see and could be useful if I do pursue damages though the courts. I'll provide updates.