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Arbitration Court in the Czech Republic

Arbitration Court in the Czech Republic

International arbitration in the Czech Republic is ruled by the Act on Arbitration Proceedings and Enforcement of Arbitration Awards (APA), which is based on the same main principles as the UNCITRAL (the United Nations Commission on International Trade Law) legislation. The majority of commercial disputes, except for those connected to bankruptcy and enforcement proceedings, can be dealt with through arbitration.

The Arbitration Court in the Czech Republic is the principal arbitration institution in this country and it handles international disputes, being part of the Economic and Agricultural Chamber of the Czech Republic. The Court has implemented regulations for international arbitration. If you are involved in an international dispute, it is advisable to consult our attorneys in the Czech Republic for legal advice.

Arbitration Court procedure in the Czech Republic 

In the Czech Republic, arbitration is a widely accepted method for resolving disputes, and its procedures are governed by the Arbitration Act (Act No. 216/1994 Coll.). The following provides an overview of the key procedures involved in arbitration court proceedings in the Czech Republic:

  • Arbitration agreement: Arbitration is based on the principle of party autonomy, meaning that parties must have a valid arbitration agreement in place. This agreement may be a separate contract or a clause within the main contract.
  • Arbitral tribunal appointment: The parties can agree on the number of arbitrators, or if there is no agreement, the default is usually three arbitrators. Each party typically appoints one arbitrator, and the appointed arbitrators select the presiding arbitrator.
  • Arbitral proceedings: The arbitral tribunal conducts the proceedings according to the rules agreed upon by the parties or, in the absence of an agreement, in accordance with the procedural rules set out in the Arbitration Act.
  • Procedural rules: The Arbitration Act provides a framework for arbitration procedures. However, the parties are generally free to agree on the specific rules governing the conduct of the arbitration, including matters such as evidence, hearings, and the timetable for the proceedings.
  • Hearings and evidence: The arbitral tribunal holds hearings as necessary for presenting evidence, hearing witness testimony, and presenting arguments. The tribunal has the authority to determine the admissibility, relevance, and weight of the evidence.
  • Interim measures and preliminary orders: The arbitral tribunal has the power to grant interim measures and preliminary orders to preserve assets, maintain the status quo, or protect the rights of the parties pending the final award.
  • Award: The arbitral tribunal issues a final award, which is binding on the parties. The award must be in writing and include the reasons for the decision. The tribunal has the authority to determine the costs of the arbitration, including legal fees and expenses.
  • Recognition and enforcement: An arbitral award, once rendered, can be recognized and enforced by the Czech courts. The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards is applicable in the Czech Republic, facilitating the enforcement of international arbitral awards.
  • Setting aside an award: Under certain circumstances, a party may apply to the Czech courts to set aside an arbitral award. Grounds for setting aside an award include issues related to the validity of the arbitration agreement, violation of public policy, or procedural irregularities.

It’s important to note that parties engaging in arbitration in the Czech Republic should seek legal advice and ensure compliance with the relevant laws and regulations. Additionally, the specific details of arbitration proceedings may vary depending on the agreed-upon rules or institutional framework chosen by the parties.

How can our lawyers assist you?

Our lawyers in the Czech Republic can play a crucial role in assisting parties with arbitration in various ways. Here are several ways in which our Czech lawyers can provide valuable assistance:

  1. Drafting arbitration agreements: The lawyers at our law firm in Czech Republic can assist in drafting clear and comprehensive arbitration agreements or clauses within contracts. Ensuring that these agreements meet legal requirements and are enforceable is essential for a smooth arbitration process.
  2. Choosing the appropriate arbitration institution or rules: There are various arbitration institutions and rules available for parties to choose from. Our attorneys in Czech Republic can provide guidance on selecting the most suitable institution or rules based on the nature of the dispute, industry practices, and the preferences of the parties.
  3. Initiating arbitration proceedings: The experienced lawyers at our Czech law firm can assist in initiating arbitration proceedings, including preparing and filing the notice of arbitration. They can also guide clients through the initial stages, such as appointing arbitrators and responding to counterclaims.
  4. Representation before the arbitral tribunal: Our Czech lawyers can act as legal representatives during arbitration hearings, presenting the client’s case, examining and cross-examining witnesses, and making legal arguments. Their expertise in procedural and substantive law can contribute to the effectiveness of the client’s presentation.
  5. Evidentiary support: Our lawyers can help gather and present evidence in a manner that is admissible and persuasive in arbitration. This includes document discovery, witness preparation, and the presentation of expert testimony.
  6. Negotiation and settlement: While arbitration is an adversarial process, lawyers can also explore opportunities for settlement and negotiate on behalf of their clients. This may involve engaging in settlement discussions, mediation, or other alternative dispute resolution methods.

Engaging our experienced lawyers in the Czech Republic with expertise in arbitration is essential to navigating the complexities of the process and maximizing the chances of a favorable outcome. Whether the dispute is domestic or international, legal representation can contribute significantly to the efficiency and success of arbitration proceedings in the Czech Republic.

Rules of the Arbitration Court in the Czech Republic

Proceedings at the Arbitration Court in the Czech Republic take place according to its regulations of procedure except for the cases when the agreement parties consent differently. The Court has different regulations for local and international disputes. 

According to section 31(3) of the Rules of Procedure for International Disputes (the International Regulations), the arbitral tribunal makes decisions on the modality in which witness examination will be effectuated or expert proof will be delivered. The proceedings are undertaken in the Czech language unless agreed differently by the parties.

Services of the Arbitration Court in the Czech Republic

The Arbitration Court in the Czech Republic has the authority to deal with different domain name disputes. Starting with 2004, it has issued decisions on .cz disputes and in 2005 it turned out to be an exclusive provider to handle alternative dispute resolutions for .eu domain names. Since 2009, it also emitted decisions regarding generic top-level domain names (.com, .net, .org, .info, and so on). Domain name disputes are handled online by using a distinct online platform.

The Court also has the authority to deal with the following types of commercial disputes:

  • international disputes;
  • consumer disputes;
  • local disputes.

Our law firm in the Czech Republic can offer more details on the type of services the Arbitration Court in this country provides. They can also provide assistance for any type of arbitration in this country. If you are faced with a dispute dealt with by the Arbitration Court in the Czech Republic, please contact us for legal advice.