Lex Mundi Global Arbitration Institutions Guide |
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Czech Republic |
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(Europe)
Firm
PRK Partners
Contributors
Robert Nemec |
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| Name of Arbitral Institution; with abbreviation, if any. | Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic (the "Arbitration Court") |
| Where is the seat of the Arbitral Institution? | Prague, Czech Republic |
| Is there an umbrella organization for the Arbitral Institution? | Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic |
| How is the Arbitral Institution structured? | The Board (consisting of President, 4 Vice-presidents and 8 other Board members) and the Secretariat (managed by Secretary). |
| Is there a compulsory list of arbitrators that parties are required to choose from? | The arbitrators are selected from a list of arbitrators. However, on request of a party, the Board may decide on registration of an arbitrator exclusively for a given dispute (ad hoc). This shall not apply to a sole arbitrator or presiding arbitrator. |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | The arbitration is regularly held at the seat of the Arbitration Court in Prague or in other permanent places of arbitration (Brno, Plzeň, Ostrava, Hradec Králové). With consent of the Secretary granted on the basis of an agreement between the parties or an instigation by the arbitral tribunal (if the parties have not agreed on the place of the arbitration), the arbitral tribunal may decide that the place of the arbitration shall be held at some other place in the Czech republic or abroad. |
| What is the amount of the registration fee? | "The amount of the registration fee varies in accordance with the value of the dispute, as follows: - up to CZK 50,000,000: fee equals to 5 % of the value of the dispute, but not less than CZK 11,000 - up to CZK 250,000,000: fee equals to CZK 2,500,000 and 1 % of the value of the dispute exceeding CZK 50,000,000 - up to CZK 1,000,000,000: fee equals to CZK 4,500,000 and 0,5 % of the value of the dispute exceeding CZK 250,000,000 - over CZK 1,000,000,000: fee equals to CZK 8,250,000 and 0,25 % of the value of the dispute exceeding CZK 1,000,000,000. These fees only apply for domestic disputes pursuant to Section 57 (2) of the Rules of the Arbitration Court, as fees for other types of disputes are slightly higher. " |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | The average cost would be approximately CZK 1,125,000 if it was a domestic dispute. If it was not a domestic dispute, the average cost would be approximately CZK 1,012,000 plus CZK 350,000 for administrative costs. Under Section 57 (2) of the Rules of the Arbitration Court, a domestic dispute means a dispute in which the Czech substantive law is applicable, the proceedings are conducted in Czech language and in the territory of the Czech Republic, the decision is rendered in Czech language and all the participants are Czech residents or entities. " |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | The average cost would be approximately CZK 4,250,000 if it was a domestic dispute. If it was not a domestic dispute, the average cost would be approximately CZK 3,787,000 plus CZK 730,000 for administrative costs. |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | The average cost would be approximately CZK 11,375,000 if it was a domestic dispute. If it was not a domestic dispute, the average cost would be approximately CZK 10,513,000 plus CZK 1,000,000 for administrative costs. |
| Who pays advances on costs? What happens in the event of default? | Advances on costs are not a concept recognized by Czech law or by the Rules of the Arbitration Court. Only the arbitration fee must be paid by the claimant upon the filing of the statement of claim. If the fee is not paid within the period of time set by the Arbitration Court, the proceedings shall be discontinued. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | The conduct of proceedings is mostly up to arbitral tribunal's discretion. The few exceptions are stipulated in the Rules of the Arbitration Court, which provide for some formal requirements regarding the statement of claim and the constitution of the arbitral tribunal. |
| Which languages can be used for communication with the Arbitral Institution? | Czech, Slovak, English and German |
| Who is the main point of contact for the parties within the Arbitral Institution? | Each case has an appointed case manager from the Arbitration Court's Secretariat, and that person will be the main point of contact for the parties. |
| Are there restrictions on the language that the arbitration may be conducted in? | The language of the proceedings is Czech or Slovak unless the parties agree otherwise in writing before the proceedings have been commenced (after the proceedings have been commenced any agreement between the parties on changing the language of proceedings is not binding for the arbitrators). As already mentioned, the other languages, in which proceedings may generally be conducted are English and German. |
| Who appoints substitute arbitrators? | The substitute arbitrator is appointed by the same person or entity that appointed the initial arbitrator. |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | In addition to the parties (the claimant and the defendant), a person who has the legal interest in the result of the proceedings and pays the Arbitration Fee may also participate in the proceedings as an intervening party if allowed by the arbitral tribunal. There are no specific regulations for multi-party proceedings. |
| Are oral hearings compulsory? | No, except for disputes arising out of consumer contracts. |
| What are common evidence-taking practices? | As the general rule, the parties are obliged to prove the circumstances on which they rely in respect of their claims or pleas, as well as in their other assertions. The parties may produce written evidence either in the original counterpart or in a copy. Evidence shall be taken in the manner stipulated by the arbitral tribunal. The presiding arbitrator or several arbitrators may be entrusted to take evidence by ruling of the arbitral tribunal. The arbitral tribunal may request the original counterpart of a produced deed. The arbitral tribunal is free to assess the evidence in its discretion. Witnesses that are heard by the arbitral tribunal are not "under oath", meaning that there are is no potential criminal liability of a witness that gives a false testimony. |
| What is the average duration of arbitration proceedings? | Official statistics are not available however from our experience, arbitration proceedings are generally resolved by the Arbitration Court in less than one year. |
| What is the timeframe for rendering the award? | There is no mandatory time frame imposed by law or by the Rules of the Arbitration Court. |
| Are extensions to time limits permissible? | Yes |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | No. Only ordinary courts can impose interim measures. If the party decides to apply to the competent court for interim measures during ongoing arbitral proceedings, the Arbitration Court must be informed about the application as well as about the decision of the court. |
| Do the institutional rules provide for an emergency arbitrator? | No |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | Yes. There is an option of expedited proceedings where the arbitral tribunal will render a decision within four months after the payment of the increased (by 50%) arbitration fee or within two months after the payment of the increased (by 75%) arbitration fee, unless the above periods of time have been extended on request or with consent of the party that paid the increased arbitration fee. If the arbitral tribunal does not meet the deadline, the party that paid the increased arbitration fee shall receive a refund of the increased portion of the arbitration fee. The two month expedited proceedings may only be conducted on the basis of a written agreement between the parties. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | Arbitral awards are reviewed and co-signed by the President and the Secretary of the Arbitration Court. Another possibility is for the arbitral award to be reviewed by other arbitrators based on a request of either party, provided that the parties have agreed to this possibility in advance. |
| Do costs necessarily follow the event? | No. The arbitral tribunal has discretion according to Section 55 (6) of the Rules of the Arbitration Court, also the parties may agree otherwise on reimbursement of the costs. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes, an arbitral award may be annulled by ordinary courts in the Czech Republic. The reasons for annulment in principle correspond to the reasons for the denial of enforcement according to the New York Convention. |
| Link to institutional rules | http://en.soud.cz/rules/rules-consolidated-text-1st-october-2015 |
| Link to model clause | http://en.soud.cz/recommended-wording-of-arbitration-clauses-in-contracts |
Lex Mundi Global Arbitration Institutions Guide
Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic (the "Arbitration Court")
Prague, Czech Republic
Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic
The Board (consisting of President, 4 Vice-presidents and 8 other Board members) and the Secretariat (managed by Secretary).
The arbitrators are selected from a list of arbitrators. However, on request of a party, the Board may decide on registration of an arbitrator exclusively for a given dispute (ad hoc). This shall not apply to a sole arbitrator or presiding arbitrator.
The arbitration is regularly held at the seat of the Arbitration Court in Prague or in other permanent places of arbitration (Brno, Plzeň, Ostrava, Hradec Králové). With consent of the Secretary granted on the basis of an agreement between the parties or an instigation by the arbitral tribunal (if the parties have not agreed on the place of the arbitration), the arbitral tribunal may decide that the place of the arbitration shall be held at some other place in the Czech republic or abroad.
"The amount of the registration fee varies in accordance with the value of the dispute, as follows:
- up to CZK 50,000,000: fee equals to 5 % of the value of the dispute, but not less than CZK 11,000
- up to CZK 250,000,000: fee equals to CZK 2,500,000 and 1 % of the value of the dispute exceeding CZK 50,000,000
- up to CZK 1,000,000,000: fee equals to CZK 4,500,000 and 0,5 % of the value of the dispute exceeding CZK 250,000,000
- over CZK 1,000,000,000: fee equals to CZK 8,250,000 and 0,25 % of the value of the dispute exceeding CZK 1,000,000,000.
These fees only apply for domestic disputes pursuant to Section 57 (2) of the Rules of the Arbitration Court, as fees for other types of disputes are slightly higher. "
The average cost would be approximately CZK 1,125,000 if it was a domestic dispute.
If it was not a domestic dispute, the average cost would be approximately CZK 1,012,000 plus CZK 350,000 for administrative costs.
Under Section 57 (2) of the Rules of the Arbitration Court, a domestic dispute means a dispute in which the Czech substantive law is applicable, the proceedings are conducted in Czech language and in the territory of the Czech Republic, the decision is rendered in Czech language and all the participants are Czech residents or entities. "
The average cost would be approximately CZK 4,250,000 if it was a domestic dispute.
If it was not a domestic dispute, the average cost would be approximately CZK 3,787,000 plus CZK 730,000 for administrative costs.
The average cost would be approximately CZK 11,375,000 if it was a domestic dispute.
If it was not a domestic dispute, the average cost would be approximately CZK 10,513,000 plus CZK 1,000,000 for administrative costs.
Advances on costs are not a concept recognized by Czech law or by the Rules of the Arbitration Court. Only the arbitration fee must be paid by the claimant upon the filing of the statement of claim. If the fee is not paid within the period of time set by the Arbitration Court, the proceedings shall be discontinued.
The conduct of proceedings is mostly up to arbitral tribunal's discretion. The few exceptions are stipulated in the Rules of the Arbitration Court, which provide for some formal requirements regarding the statement of claim and the constitution of the arbitral tribunal.
Czech, Slovak, English and German
Each case has an appointed case manager from the Arbitration Court's Secretariat, and that person will be the main point of contact for the parties.
The language of the proceedings is Czech or Slovak unless the parties agree otherwise in writing before the proceedings have been commenced (after the proceedings have been commenced any agreement between the parties on changing the language of proceedings is not binding for the arbitrators). As already mentioned, the other languages, in which proceedings may generally be conducted are English and German.
The substitute arbitrator is appointed by the same person or entity that appointed the initial arbitrator.
In addition to the parties (the claimant and the defendant), a person who has the legal interest in the result of the proceedings and pays the Arbitration Fee may also participate in the proceedings as an intervening party if allowed by the arbitral tribunal. There are no specific regulations for multi-party proceedings.
No, except for disputes arising out of consumer contracts.
As the general rule, the parties are obliged to prove the circumstances on which they rely in respect of their claims or pleas, as well as in their other assertions. The parties may produce written evidence either in the original counterpart or in a copy. Evidence shall be taken in the manner stipulated by the arbitral tribunal. The presiding arbitrator or several arbitrators may be entrusted to take evidence by ruling of the arbitral tribunal. The arbitral tribunal may request the original counterpart of a produced deed. The arbitral tribunal is free to assess the evidence in its discretion. Witnesses that are heard by the arbitral tribunal are not "under oath", meaning that there are is no potential criminal liability of a witness that gives a false testimony.
Official statistics are not available however from our experience, arbitration proceedings are generally resolved by the Arbitration Court in less than one year.
There is no mandatory time frame imposed by law or by the Rules of the Arbitration Court.
Yes
No. Only ordinary courts can impose interim measures. If the party decides to apply to the competent court for interim measures during ongoing arbitral proceedings, the Arbitration Court must be informed about the application as well as about the decision of the court.
No
Yes. There is an option of expedited proceedings where the arbitral tribunal will render a decision within four months after the payment of the increased (by 50%) arbitration fee or within two months after the payment of the increased (by 75%) arbitration fee, unless the above periods of time have been extended on request or with consent of the party that paid the increased arbitration fee. If the arbitral tribunal does not meet the deadline, the party that paid the increased arbitration fee shall receive a refund of the increased portion of the arbitration fee. The two month expedited proceedings may only be conducted on the basis of a written agreement between the parties.
Arbitral awards are reviewed and co-signed by the President and the Secretary of the Arbitration Court.
Another possibility is for the arbitral award to be reviewed by other arbitrators based on a request of either party, provided that the parties have agreed to this possibility in advance.
No. The arbitral tribunal has discretion according to Section 55 (6) of the Rules of the Arbitration Court, also the parties may agree otherwise on reimbursement of the costs.
Yes, an arbitral award may be annulled by ordinary courts in the Czech Republic. The reasons for annulment in principle correspond to the reasons for the denial of enforcement according to the New York Convention.