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Arbitration Procedure

The arbitration procedure is regulated and is based upon Act No. 216/1994 coll. of Laws, on Arbitration Procedure and Execution of Arbitration Awards, which guarantees the quality, observance of arbitration proceeding rules and fair trial.

The arbitration procedure transfers the decision-making on legal disputes between the parties of a certain legal relationship from the court to the arbitrators, who decide without formalities by issuance of an arbitration award. Arbiter, or Arbiters as a tribunal can decide not only on the base of valid law but also on the base of fairness principles if both contending parties agreed. Such a definating clause is very suitable especially in situations where one party is not familiar with the czech law.

Arbitration procedure starts by taking the action to the address of the Czech Arbitration Centre published on it´s websites and payment of the arbitration fee. The arbitration fee is 3.5 % of claimed amount and has to be paid to the bank account of the Czech Arbitration Centre. If the fee is not paid at the same time as the suit is brought, the petitioner is called for the payment.Then the defendant is called for statement, after starting the arbitration procedure. Mostly (in 90 % of all cases) the arbitration procedure is realized without the requirement of a hearing, just on the basis of presented documents.

The arbitration procedure is regulated by the Proceeding Rules (Jednací řád) published at the websites of the Czech Arbitration Centre, which respects all the basic arbitration principles, fully respecting the rights of both parties and gives them the same opportunities to assert their claims and rights. The procedure rules dispose with many instruments to make the procedure very quick, effective and can avoid delay and defendant´s obstructions.

The arbitration award is the final decisson (no appeal can be filed against), which is applicable in the event of nonfulfilment imposed duty in execution, as an execution title. All ownership disputes regarding whether the parties may enter into an amicable agreement, excluding disputes arising in conjunction of bancrupcy, composition and execution, can be settled in arbitration. The quoted provision and the resulting competence of the arbitrators listed at Czech Arbitration.

Centre applies to the area of :

  • commercial law
  • financial law
  • civil law
  • family law
  • labor law.

The basic assumption of a dispute arbitrability is a valid Arbitration Contract or Arbitration Clause. The arbitration contract may be a part of the just concluded contract (this contains a provision on the fact, that all the disputes, which arise in conjunction with its application, will be settled instead of by the legal process by an arbitrator or arbitrators) or may be concluded additionally only after origin of a dispute and may concern only a certain, already arisen dispute. The Arbitration Contract is also binding for the successors of the parties, unless it expressly rules this out. There is the written form for the Arbitration Contract obligated. Recommended wording of arbitration clauses are availabale on the top link.

Arbitrážní Centrum - Czech Arbitration Centre © 2007 - Miloš Žáček