Arbitration proceeding

Arbitration is a form of alternative dispute resolution (ADR) using independent and impartial arbitrators and offered as an alternative to litigation for property disputes. The greatest advantages of arbitration are: closed sessions, speedy resolution and cost-efficiency as compared to dispute resolution before courts of law (please see more below).

Arbitration in the Czech Republic is governed by the Act. No. 216/1994 Coll., on Arbitration Proceedings and Enforcement of the Arbitral Awards, as amended, that came into force on 1 January 1995. Until the adoption of the above mentioned Act the Act. No. 93/1963 Coll. governed the arbitration proceedings, pursuant to which only international commercial disputes could be subject to arbitration. By adopting a new Act on arbitration the possibility to use these proceedings for deciding disputes outside the courts of law was much reinforced as the current rules of law enable use arbitration for any property disputes, except for the disputes relating to enforcement of decisions and “incidence disputes”, provided that both parties agree thereupon.

However, commerce remains the traditional area where arbitration is most often sought, and today it is no longer restricted to international commerce but also includes domestic commerce. Arbitration may be conducted by one or more arbitrators appointed by the disputing parties for the particular dispute (ad hoc arbitration) or as proceedings before an institutionalized arbitration court established by an act (institutional arbitration).

Another advantage of arbitration is that arbitral awards are easily enforceable since the New York Convention from 1958 guarantees the recognition and enforcement of arbitral awards in over 140 signatory countries.

What we arbitrate?

Property disputes

  • Domestic disputes
    arbitrating property disputes between parties from the Czech Republic
  • Other disputes
    arbitrating property disputes where at least one party is from abroad.

Consumer Disputes

  • Alternative dispute resolution (ADR)
    of consumer disputes is a system offering an alternative solution to traditional litigation. Consumer disputes are disputes arising out of contractual obligation breaches between providers and consumers. Most typical consumer disputes concern recognition of claims of defective goods purchased in a shop but, essentially, they can involve most disputes arising between entrepreneurs as providers and consumers.
    NOTE: This form of dispute resolution was only applicable in the scope of the project the Ministry of Industry and Trade of the Czech Republic called Alternative Consumer Disputes Resolution. The project is currently suspended.
    Links:
    Ministry of Industry and Trade of the Czech Republic - http://www.mpo.cz/cz/ochrana-spotrebitele/mimosoudni-reseni/
    Czech Chamber of Commerce - http://adr.komora.cz/Stranky/default.aspx
  • Healthcare payments disputes
    The Arbitration Court is an independent body without direct ties to the Executive Branch, healthcare providers or health insurers and healthcare funds. For patients the Arbitration Court comes as a long-awaited and desired tool offering independent and effective supervision of decision-making on health insurance claims to which they compulsorily contribute.

On-line arbitration

The Arbitration Court attached to the Czech Chamber of Commerce and the Agricultural Chamber of the Czech Republic is one of the first institutions in Europe offering on-line arbitration. On-line arbitration is a brand new form of arbitration providing an effective tool especially for resolution of simple commercial disputes. The entire proceedings are electronic and take thirty five days on the average, from filing the lawsuit electronically (including attachments), fee payment, arbitrator appointment, decision, and issuance of the arbitral award. The on-line arbitral award may be obtained in a paper document form from the Secretary of the Arbitration Court.

This modern form of arbitration proceedings is a cost-efficient tool quickly becoming popular among businessmen. On-line arbitration is a closed session proceeding and we provide a special website for each dispute accessible only to the parties and the arbitrator. If circumstances arise making on-line arbitration inconvenient for a dispute started in this form, it is always possible to “transform” the on-line proceedings into the standard arbitration form.

Domain disputes

  • CZ
  • EU
  • .com, .net, .org, .biz, .info, and other top-level domain names
  • .co.nl

Advantages of arbitrating before the Arbitration Court:

  • arbitration is single-instance, speedy and less formal; it takes a few months, or even a few weeks, from the filing of the lawsuit until the delivery of the arbitral award; the arbitral award takes effect and becomes enforceable by delivery to the parties.
  • arbitral awards are easily enforceable; the New York Convention from 1958 guarantees the recognition and enforcement of arbitral awards in all signatory countries.
  • choice of arbitrators; the List of Arbitrators includes a number of experts from all areas of the law and economics from the Czech Republic and from abroad.
  • sensible arbitration costs; arbitration fee for domestic disputes with value up to CZK 50,000,000 is 4% from the value in dispute (the minimum fee being CZK 10,000); domestic disputes include disputes where the parties are permanent establishments of foreign entities registered in the Czech Commercial Register; international disputes’ arbitration before the Arbitration Court attached to the Czech Chamber of Commerce and the Agricultural Chamber of the Czech Republic is more cost-effective than arbitrating in abroad; please find detailed information about arbitration costs by clicking on the Tariff section of our website.
  • administrative support is provided by a professional secretariat.
  • publishing the Rules in the Business Bulletin enables anyone interested to learn about the principles and conditions of arbitration conducted before the Arbitration Court.