How can a Dutch company litigate in the Czech Republic

Facing a legal dispute with a Czech partner can feel daunting for any Dutch company. This guide provides clear, practical answers for navigating litigation in the Czech Republic, from choosing the right court to enforcing a judgment. With an expert English-speaking lawyer from a leading Czech law firm in Prague, EU, you can confidently protect your commercial interests and achieve a successful outcome.

Need advice on this topic? Contact the ARROWS law firm by email office@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

The Starting Point: Determining the Right Court for Your Dispute

Before you can address the substance of a commercial dispute, you must first answer a critical question: which country’s courts have the authority to hear the case? Within the European Union, this is governed by a unified set of rules. Understanding these rules, and how to use your contracts to your advantage, is the first step in any cross-border litigation strategy.

EU Rules on Jurisdiction: An Overview for Businesses

Cross-border civil and commercial litigation within the EU is governed by the Brussels I bis Regulation ($Regulation (EU) No 1215/2012$). The general rule is straightforward: a defendant should be sued in the courts of the EU member state where they are domiciled. If your dispute is with a company based in Prague, the default location for your lawsuit would be the Czech courts.

However, the Regulation provides crucial exceptions for commercial matters. For disputes concerning a contract, you may sue in the courts for the "place of performance of the obligation in question". For non-contractual matters, such as a tort claim, the competent courts are those of the "place where the harmful event occurred".

While these rules seem simple, their application can be complex. For example, determining the "place of performance" for a software development contract with digital deliverables can be ambiguous. Is it where the code was written (the Czech Republic) or where it was used (the Netherlands)? This uncertainty can lead to preliminary legal battles, underscoring the need for expert analysis from the outset.

The Strategic Importance of a Jurisdiction Clause

The most effective way to avoid uncertainty is to take control of the situation before a dispute arises. The Brussels I bis Regulation allows parties to include a choice of jurisdiction clause in their contracts, agreeing in advance which country's courts will resolve any future disagreements.

This clause is not a mere formality; it is a powerful strategic tool. A properly drafted written agreement on jurisdiction provides legal certainty and is generally respected by courts across the EU. Deciding whether to choose Dutch or Czech courts requires careful consideration of factors like legal costs, procedural speed, and, crucially, the location of the other party's assets for future enforcement. ARROWS lawyers regularly provide contract drafting and review services to ensure this clause serves your best interests.

Risks and Penalties	How ARROWS Helps
Incorrect Forum Selection: Filing a lawsuit in the wrong country, leading to immediate dismissal, wasted legal fees, and lost time.	Legal Opinion: We provide a definitive analysis of the correct jurisdiction under the Brussels I bis Regulation. Need to confirm your legal standing? Email us at office@arws.cz.
Disputes over Jurisdiction: The opposing party challenges your chosen court, leading to costly and lengthy preliminary litigation about procedure, not the substance of your claim.	Representation in Court: Our litigators are experts in jurisdictional challenges and will robustly defend your choice of forum. For immediate assistance, write to us at office@arws.cz.
Invalid Jurisdiction Clause: Your contract's jurisdiction clause is found to be improperly drafted and unenforceable, creating legal uncertainty and opening the door to litigation in an unfavorable location.	Contract Drafting and Review: We draft and review your commercial contracts to ensure your jurisdiction clause is legally sound and protects your interests. Get tailored legal solutions by writing to office@arws.cz.

The Mechanics of a Cross-Border Lawsuit: Serving Papers and Gathering Evidence

Once jurisdiction is established, the litigation process begins. The EU has created streamlined procedures to handle two essential steps: formally notifying the defendant of the lawsuit and gathering evidence located in another member state. Navigating these rules correctly is vital to avoid procedural errors that can delay or even derail your case.

Formally Initiating a Claim: The EU Service of Documents Regulation

To officially begin a lawsuit, you must "serve" the legal documents on the defendant. This process is harmonized under $Regulation (EU) 2020/1784$. The standard method involves your lawyer submitting the documents to a designated "transmitting agency" in the Netherlands, which then sends them to a "receiving agency" in the Czech Republic for formal delivery to the defendant.

A critical point for foreign companies is the language requirement. Under Article 12 of the Regulation, a defendant has the right to refuse to accept documents if they are not written in a language they understand or in the official language of the member state where service is being made—in this case, Czech. 

Serving documents in English, even if it was the language of your business dealings, is a common but costly mistake. A refusal on language grounds will invalidate the service, forcing you to start over with a certified translation and losing valuable time.

FAQ – Legal tips about serving documents in the EU

• Do I have to translate my claim into Czech?
  Yes, absolutely. To ensure valid service and prevent the defendant from refusing the documents, your claim must be translated into Czech. Our firm can arrange for certified translations to avoid any procedural delays. For assistance, contact us at office@arws.cz.
• Can I just send the documents by international courier?
  While service by post is permitted under the Regulation, using the formal agency-to-agency transmission is the most reliable method to guarantee legal validity and obtain official proof of service. Need legal help? Contact us at office@arws.cz.
• What happens if the defendant has moved and their address is unknown?
  The Regulation includes procedures for requesting assistance in finding the defendant's address using standardized forms. This is a crucial step that a local law firm is best equipped to handle. Our lawyers are ready to assist you – email us at office@arws.cz.

Building Your Case: The EU Taking of Evidence Regulation

Successful litigation depends on strong evidence. But what if your key documents or witnesses are in another country? $Regulation (EU) 2020/1783$ provides a modern framework for gathering evidence across EU borders, simplifying what was once a complex process.

There are two primary methods. First, a Dutch court can send a request to a competent Czech court, asking it to take evidence on its behalf, such as formally questioning a witness. The Czech court must generally execute this request within 90 days.

Second, and increasingly common, is the direct taking of evidence. A Dutch court can request permission to hear a witness located in the Czech Republic directly, often using modern communication technology. The explicit inclusion of videoconferencing has transformed cross-border litigation, allowing you to participate in witness examinations from your office in Amsterdam, dramatically reducing travel costs and logistical hurdles.

Navigating the Czech Court System: A Comparison with the Netherlands

Every country's legal system has its own character and rhythm. For a Dutch company accustomed to the efficiency of its own courts, particularly the specialized Netherlands Commercial Court (NCC), the Czech system can present a different experience. Understanding these differences is key to managing your expectations and developing a winning strategy.

What to Expect in Czech Civil Proceedings

Commercial litigation in the Czech Republic is governed by the Civil Procedure Code ($Act No. 99/1963 Coll.$) and proceeds through a court structure of District, Regional, and High Courts, with the Supreme Court at the apex. Unlike the fast-paced, English-language proceedings of the NCC, which can resolve matters in months, standard Czech proceedings are conducted entirely in Czech and can sometimes take years to conclude.

The process tends to be more judge-led than in jurisdictions like the Netherlands. While Czech procedure is moving towards a more adversarial model, the judge still plays an active role in the proceedings. The case typically progresses through an exchange of written submissions followed by one or more oral hearings where evidence is presented and witnesses are examined.

Bridging the Gap with Global Expertise and Local Knowledge

Successfully navigating these differences requires a partner who is fluent in both the local legal culture and the expectations of international business. ARROWS is a leading Czech law firm in Prague, EU, with a proven track record of representing foreign clients. Our deep understanding of the Czech judicial system allows us to manage your case effectively and proactively.

Furthermore, our international capabilities are reinforced by our networks. For over 10 years, we have built the ARROWS International network, connecting us with trusted legal partners in over 90 countries to handle complex cross-border matters. ARROWS is also a proud member of ETL Global, a German-founded international powerhouse of legal, tax, and audit professionals in over 50 countries, with a strong focus on serving SMEs. This affiliation is a mark of quality, assuring you of internationally recognized standards of service.

Risks and Penalties	How ARROWS Helps
Language Barriers: All official court proceedings and documents are in Czech. Misunderstanding a judge's instruction or a legal filing can have severe consequences for your case.	Bilingual Legal Representation: Our English-speaking lawyers manage all communications, provide certified translations, and ensure you understand every step of the process. Do not hesitate to contact our firm – office@arws.cz.
Strict Procedural Deadlines: The Czech Civil Procedure Code imposes strict deadlines for submitting evidence and arguments. Missing a deadline can result in that evidence being barred from the proceedings.	Proactive Case Management: We manage all deadlines meticulously, ensuring your case is presented completely and on time. For immediate assistance, write to us at office@arws.cz.
Unfamiliar Evidence Rules: The rules on the burden of proof and admissibility of evidence may differ significantly from what you are used to in the Netherlands.	Strategic Legal Consultation: We advise you on how to build your evidence portfolio to meet the specific requirements of the Czech courts. Get tailored legal solutions by writing to office@arws.cz.

 

Securing Your Victory: Enforcing Judgments Across Borders

Winning a lawsuit is only meaningful if you can enforce the judgment and recover what you are owed. The EU has created a powerful system to ensure that a victory in one member state is not just a piece of paper in another, but a legally binding and enforceable decision.

You've Won Your Case in the Netherlands. What's Next?

Thanks again to the Brussels I bis Regulation, a judgment from a Dutch court is automatically recognized in the Czech Republic without needing any special procedure. This means you do not have to re-litigate your case or prove its merits again to a Czech judge.

To begin enforcement, a Dutch judgment creditor can apply directly to the Czech enforcement authorities. The process is simple, typically requiring only a copy of the judgment, a standard certificate from the Dutch court, and a certified translation into Czech. This streamlined system ensures that the ultimate goal of litigation—financial recovery—is achievable across borders.

From Judgment to Payment: The Czech Enforcement Process (Exekuce)

Once your Dutch judgment is ready for enforcement in the Czech Republic, the process, known as exekuce, is swift and effective. A court-appointed bailiff (exekutor) is granted significant legal authority to seize the debtor's assets to satisfy the judgment.

This is a serious operational risk for any company that fails to comply with a court order. A Czech bailiff can freeze and seize funds from all Czech bank accounts, place liens on and force the sale of real estate, seize movable property like vehicles and inventory, and even garnish payments owed to the debtor from their own business partners.

FAQ – Legal tips about enforcing foreign judgments

• How long does it take to enforce a Dutch judgment in the Czech Republic?
  Once the necessary documents are prepared and translated, the enforcement process (exekuce) can be initiated very quickly. The timeline for actual recovery depends on the type and location of the debtor's assets. Our lawyers can manage the entire process for you. Need legal help? Contact us at office@arws.cz.
• What if the Czech company tries to hide its assets?
  Czech bailiffs have extensive legal powers to trace assets. We can also assist with asset identification through public databases like the Commercial Register and Real Estate Cadastre before enforcement begins, ensuring a targeted approach. Our lawyers are ready to assist you – email us at office@arws.cz.

Risks and Penalties	How ARROWS Helps
Debtor Insolvency: The Czech counterparty declares insolvency before you can enforce your judgment, jeopardizing your ability to recover the debt.	Representation in Insolvency Proceedings: We act quickly to register your claim in any insolvency proceedings and fight to maximize your recovery. Get tailored legal solutions by writing to office@arws.cz.
Ineffective Enforcement: Failure to correctly identify and target the debtor's most valuable assets, leading to a prolonged and ultimately unsuccessful enforcement process.	Strategic Enforcement Planning: We work with leading Czech bailiffs to develop an effective strategy for identifying and seizing assets to satisfy your judgment. For immediate assistance, write to us at office@arws.cz.
Ignoring a Czech Judgment: As a defendant, failing to comply with a Czech court order, leading to swift and severe exekuce proceedings, including frozen bank accounts and seizure of property.	Negotiation and Compliance: We can negotiate payment plans or help you comply with judgments to avoid the severe consequences of forced enforcement. Do not hesitate to contact our firm – office@arws.cz.

 

Your Strategic Next Steps with ARROWS

Navigating a commercial dispute in a foreign country requires more than just an understanding of the law; it requires a trusted local partner. While EU regulations provide a common framework, success in the Czech courts depends on expert local execution, strategic planning, and proactive communication.

As an international law firm operating from Prague, European Union, ARROWS provides the comprehensive support your Dutch business needs. Our services include:

• Legal consultations to assess your case and develop a litigation strategy.
• Contract drafting and review to prevent future disputes.
• Full representation in court and in arbitration proceedings.
• Professional training for your management on mitigating cross-border legal risks.

Do not let a legal dispute disrupt your business. Contact our team of experienced English-speaking lawyers today for a consultation. Let us put our local knowledge and international strength to work for you. For tailored legal solutions, write to us at office@arws.cz.

FAQ – Most common legal questions about Czech Commercial Litigation

• How much does it cost to litigate in the Czech Republic?
  Court fees are generally calculated as a percentage of the claimed amount, for example, 5% for claims between CZK 20,000 and CZK 40 million, which can be more predictable than the high fixed fees of some specialized European courts. Legal fees depend on the case's complexity, and we provide transparent cost estimates upfront. To discuss your specific case, please contact us at office@arws.cz.

• How long will a commercial dispute typically take in a Czech court?
  While complex cases can take several years, many commercial disputes are resolved more quickly. The duration depends on the court's workload, the complexity of the evidence, and the procedural tactics of the opposing party. Our lawyers actively manage the process to ensure the most efficient timeline possible. For a case-specific estimate, write to us at office@arws.cz.

• Do I really need a Czech lawyer if my company's lawyer is an expert in EU law?
  Yes. While EU regulations provide the framework, all proceedings are conducted in Czech and governed by the Czech Civil Procedure Code. A local, licensed lawyer is essential to navigate the national courts, meet procedural requirements, and effectively represent your interests in front of a Czech judge. Get the local expertise you need by emailing office@arws.cz.

• Can ARROWS represent us in arbitration as well as court litigation?
  Absolutely. We have extensive experience representing foreign clients before the main Czech arbitration institutions and in international arbitration proceedings. Arbitration can often be a faster, more confidential, and more flexible alternative to court litigation. To explore all your dispute resolution options, contact us at office@arws.cz.

• Our dispute involves a highly technical matter. Do Czech courts use experts?
  Yes, the use of court-appointed or party-proposed experts is a standard and crucial part of Czech civil procedure, especially in disputes involving complex technical, financial, or industry-specific issues. We can help you identify and instruct the right technical experts to build a convincing case. For specialized legal help, write to office@arws.cz.
• What makes ARROWS different from other large international firms in Prague?
  ARROWS combines deep-rooted Czech legal expertise with the global reach and SME-focus of the ETL Global network. This unique combination allows us to provide world-class, internationally-minded service with the practical, on-the-ground knowledge essential for success in the Czech courts, all while understanding the specific needs of businesses like yours. Experience the difference by contacting us at office@arws.cz.

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