How can a French company litigate in the Czech Republic

When a commercial dispute arises in the Czech Republic, French business leaders and in-house counsel often face a landscape that seems both familiar and deceptively different. This guide provides specific answers to your most pressing legal concerns, explaining how to navigate the Czech court system effectively.If you are a French company facing litigation in the Czech Republic, an English-speaking lawyer in Prague is your most critical asset.

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 First Critical Question: Which Court Hears Your Case?

The foundational strategic decision in any cross-border dispute is determining which country's courts have the authority—the jurisdiction—to hear the case. Within the European Union, this is not a matter of chance or negotiation after the fact; it is governed by a clear and unified legal framework designed to create predictability for businesses operating across the single market.

The EU's Unified Framework: Brussels I Recast Regulation

For civil and commercial disputes between parties in France and the Czech Republic, the governing law is the Brussels I Recast Regulation (EU) No 1215/2012. This regulation establishes a common set of rules for all EU member states, ensuring that the process for determining jurisdiction is consistent whether you are in Paris or Prague. The core purpose of this regulation is to facilitate the "free circulation of judgments," treating the EU as a single judicial area. This means that a Czech court is not entirely "foreign" but part of an integrated system where common rules apply.

The General Rule: Defendant's Domicile

The default principle of the Brussels I Recast Regulation is straightforward: a person or company should be sued in the courts of the EU member state where they are domiciled. Therefore, if your dispute is with a Czech company that has its registered office in the Czech Republic, the Czech courts will generally have jurisdiction to hear the case. This rule is designed to be fair to the defendant, who can more easily defend themselves on their home ground.

Crucial Exceptions for Commercial Disputes

The regulation provides several important exceptions, known as rules of "special jurisdiction," which offer strategic flexibility. For commercial matters, two exceptions are particularly relevant:

1. Matters of Contract: A party can be sued in the courts for the "place of performance of the obligation in question". This is a vital strategic consideration. For example, if your French company contracted with a Czech supplier to deliver goods to your warehouse in Lyon, and they failed to do so, the obligation was to be performed in France. This could give French courts jurisdiction, even though the defendant is Czech.

2. Matters of Tort/Delict: For claims involving non-contractual harm, such as unfair competition or intellectual property infringement, the case may be brought in the courts of the place where the "harmful event occurred". If your company suffered damages in the Czech market due to a competitor's actions there, Czech courts would have jurisdiction.

The Power of a Jurisdiction Clause

The most effective way to create legal certainty is to include an exclusive choice-of-court or jurisdiction clause in your commercial contracts. The Brussels I Recast Regulation gives strong protection to these agreements. By mutually agreeing in writing that any disputes will be resolved in the courts of a specific member state (e.g., the Czech Republic), you can override the default rules.

This proactive step is crucial for preventing tactical litigation, such as the infamous "torpedo," where one party rushes to file a lawsuit in a notoriously slow or inconvenient jurisdiction simply to create delay and pressure. The Recast Regulation specifically counters this by allowing the court chosen in the contract to proceed with the case, even if it was not the first one to be seized of the dispute. Investing in proper contract drafting, a core service provided by ARROWS, therefore has a direct and tangible benefit in preventing procedural sabotage and ensuring a predictable legal path.

Launching a Lawsuit: A Practical Step-by-Step Guide

Once jurisdiction is established, the next phase involves formally initiating the lawsuit and ensuring the other party is legally notified. Within the EU, this cross-border process has been dramatically simplified, replacing slow and complex diplomatic procedures with a modern, efficient system.

Initiating the Claim in the Czech Republic

A lawsuit begins by filing a formal claim with the competent Czech court. This document, which ARROWS lawyers can draft and file on your behalf, must clearly state the facts of the case, the legal grounds for the claim, and the specific remedy being sought (e.g., payment of a debt, damages). The next crucial step is serving these documents on the defendant in France.

Serving Documents Under the EU Service Regulation

The service of judicial documents between EU member states is governed by Regulation (EU) 2020/1784, which creates a streamlined and direct channel for cross-border notification. This regulation establishes a network of designated "transmitting agencies" (in this case, the Czech court where the claim is filed) and "receiving agencies" (a competent local authority in France, such as a Commissaire de Justice, formerly huissier).

The process works through standardized, multilingual forms. The Czech court sends the legal documents along with "Form A" (Request for service) directly to its French counterpart. Because the forms are standardized, with numbered fields corresponding to the same information in every EU language, the administrative process is simplified and language barriers are minimized. The system is increasingly supported by a secure, decentralized IT network (e-Codex) to make transmission even faster.

Translation is Non-Negotiable

A critical rule under the regulation is the addressee's right to refuse to accept a document if it is not written in, or accompanied by a translation into, either a language they understand or the official language of the member state where service is being made—in this case, French. Failure to provide a proper translation will invalidate the service and cause significant delays. This underscores the necessity of working with a law firm that can manage certified translations as part of the litigation process.

FAQ – Legal tips about serving cross-border legal documents

• Do I need to translate all documents into French?
  Yes, absolutely. The defendant has a legal right under EU regulation to refuse documents not in French. ARROWS manages all necessary certified translations to ensure compliance and avoid delays. For assistance, email us at office@arws.cz.
• Can I serve documents directly by post?
  While EU Regulation (Art. 18) allows for postal service, it can be procedurally risky and difficult to prove legally valid delivery. Using the official agency-to-agency channel provides legal certainty and is the recommended method. To choose the safest approach for your case, contact our experts at office@arws.cz.

Navigating the Czech Court System: Key Differences from France

While EU regulations harmonize many cross-border procedures, the internal workings of the Czech and French court systems remain distinct. Understanding these differences in legal philosophy, court composition, and rules of evidence is essential for a French company to build a winning strategy.

Legal Philosophy: The Primacy of Codified Statutes

The Czech Republic's legal system is part of the Germanic branch of civil law, which places supreme importance on codified statutes. Judges prioritize the literal text of the law as found in the Civil Code and other acts. While judicial precedent is considered, it is not binding in the way it is in common law systems. This contrasts with the French legal tradition which, though also codified, has its own unique historical development and interpretive style.

Court Structure: Professional Career Judges vs. Business Peers

This is perhaps the most significant practical difference for a French litigant. In France, commercial disputes are typically heard by a Tribunal de Commerce, which is composed of non-professional judges—business owners and managers elected by their peers. These judges bring a pragmatic, business-oriented perspective to their decision-making.

In the Czech Republic, commercial cases are heard in district or regional courts staffed by professional, career judges. These judges are legal scholars whose frame of reference is the statutory code, not commercial practice. An argument that "this is standard industry practice" may be persuasive in a French commercial court but will likely fail in a Czech court unless it is explicitly supported by a provision of law. This fundamental difference in judicial culture requires a complete shift in how arguments are framed and presented.

Evidence: A Fundamental Divide

The approach to gathering and presenting evidence also differs significantly. The French system relies heavily on written evidence submitted in a dossier de plaidoirie, with very limited scope for pre-trial discovery (through the targeted "Article 145" procedure) and no live witness cross-examination.

In the Czech system, while there is also no broad, US-style discovery, the court often takes a more active role in evidence gathering. The principle of "free evaluation of evidence" grants the judge significant discretion in weighing the proof presented by the parties. A key feature of Czech litigation is the court's reliance on a court-appointed expert witness, whose report, or znalecký posudek, often carries decisive weight in technically complex cases. Preparing for this eventuality is a critical part of case strategy.

Risks and Penalties	How ARROWS Helps
Assuming a French-style evidence process: Submitting a written dossier without preparing for witness testimony or a court-appointed expert, leading to a weak or dismissed case.	Strategic Case Building: We build your case according to Czech procedural rules, preparing all necessary evidence and anticipating the need for expert testimony. Need a case evaluation? Email us at office@arws.cz.
Misunderstanding the Judge's Role: Expecting a peer from the business community (like in a Tribunal de Commerce) and instead facing a career judge focused strictly on the letter of the law, leading to arguments based on "commercial practice" being ignored.	Courtroom Representation: Our lawyers have extensive experience before Czech judges and know how to frame arguments to align with the court's focus on statutory law. For expert representation, write to us at office@arws.cz.
Failure to Secure Evidence: Waiting for a "discovery" phase that never comes, potentially losing the ability to prove your case.	Proactive Evidence Strategy: We advise on securing necessary evidence from the outset, using all available Czech procedural tools to compel disclosure from the other party. Get tailored legal solutions by writing to office@arws.cz.

Critical Legal Traps: Why French Business Instincts Can Fail

Certain aspects of Czech commercial law diverge so sharply from French practice that they can act as legal traps for the unwary. Relying on business instincts honed in the French market can lead to severe and unexpected financial consequences in the Czech Republic.

The "Validity Trap": The Peril of Informal Agreements

In French business culture, a long-standing relationship and a verbal understanding can often form the basis of a binding agreement. This approach is perilous in the Czech Republic. Czech law imposes strict written form requirements for many types of commercial contracts, such as agency agreements. An agreement your company believes is solid and enforceable could be declared legally void by a Czech court, leaving you with no legal recourse after investing significant resources.

The Financial Hammer: Smluvní Pokuta (Contractual Penalty)

The Czech concept of a contractual penalty, or smluvní pokuta, is one of the most dangerous areas of misunderstanding for foreign companies. Unlike the French clause pénale, which is primarily compensatory, the smluvní pokuta is a powerful preventative and punitive tool.

The critical difference is that a smluvní pokuta is enforceable even if the breach caused no actual financial damage. Its purpose is to create a strong deterrent and compel strict performance. A seemingly minor contractual breach, such as a ten-day delay in payment, could trigger a massive, legally enforceable penalty calculated as a percentage of the entire contract value, potentially erasing your entire profit margin.

The Ticking Clock: Promlčecí Lhůta (Statute of Limitations)

Another insidious risk is the difference in the time limit for bringing a legal claim. The standard limitation period for pursuing a commercial claim in France is five years. In the Czech Republic, the clock ticks much faster. The statute of limitations, or promlčecí lhůta, for most commercial claims is only three or four years. Missing this shorter deadline is an absolute bar to recovery; your legal right to pursue a valid claim simply expires.

Risks and Penalties	How ARROWS Helps
Enormous Contractual Penalties (smluvní pokuta): Facing a penalty of hundreds of thousands of Euros for a minor breach that caused no actual damage, because the contract included a standard-looking but dangerously potent Czech penalty clause.	Bilingual Contract Drafting & Review: We draft and review all contracts to ensure penalty clauses are fair, compliant, and predictable, protecting you from disproportionate financial risk. Do you need a contract prepared? Contact us at office@arws.cz.
Unenforceable Agreements: Investing time and resources into a partnership based on a verbal or informal agreement, only to find it is legally void under Czech law, leaving you with no recourse in a dispute.	Legally Binding Documentation: We ensure all your commercial agreements meet the strict formal requirements of Czech law, making them fully enforceable in court. For immediate assistance, write to us at office@arws.cz.
Expired Legal Claims (promlčecí lhůta): Losing the right to recover a significant debt because you were unaware of the much shorter Czech statute of limitations and failed to act in time.	Proactive Claims Management: We monitor all contractual deadlines and advise you on the timely initiation of legal action to preserve your rights. Want to understand your legal options? Email us at office@arws.cz.

FAQ – Legal tips about Czech commercial contracts

• Can a contractual penalty in the Czech Republic be challenged as excessive?
  A: Yes, a court can moderate a "disproportionally high" penalty, but the threshold is high and relying on this is a risky litigation strategy. It is far safer to negotiate the clause correctly from the start. Our lawyers are ready to assist you – email us at office@arws.cz.
• Is a contract in English valid in the Czech Republic?
  A: Yes, but for it to be safely enforceable, both parties must understand its content, and key terms must align with Czech legal concepts. We draft fully compliant bilingual contracts to avoid ambiguity. Get tailored legal solutions by writing to office@arws.cz.

Enforcing Your Victory: From Judgment to Payment

Winning a lawsuit is only half the battle; the final and most important step is converting that court judgment into tangible payment. The EU's integrated legal system provides a powerful and streamlined process for enforcing judgments across borders.

Enforcing a Czech Judgment

If you obtain a favorable judgment from a Czech court against a Czech-based debtor, the decision becomes enforceable once it is final. If the debtor does not comply voluntarily, enforcement can be carried out by licensed enforcement agents (bailiffs), who have the authority to seize assets, garnish bank accounts, and take other actions to satisfy the debt.

Enforcing a French Judgment in Prague: The Abolition of Exequatur

For a French company that has already won a case in a French court against a party with assets in the Czech Republic, the process is remarkably efficient. Under the Brussels I Recast Regulation, a judgment from any EU member state is directly enforceable in any other member state without needing a separate declaration of enforceability.

The old, time-consuming intermediate procedure known as exequatur has been abolished. A French company now simply needs to provide the competent Czech enforcement authority with a copy of the French judgment and a standard certificate issued by the French court. The Czech authorities must then enforce the decision as if it were a domestic one. The grounds for refusing enforcement are extremely limited (e.g., if it manifestly contravenes public order), and the Czech court is strictly prohibited from re-examining the merits of the original French case.

Risks and Penalties	How ARROWS Helps
Procedural Delays in Enforcement: A French judgment creditor struggling to navigate the local Czech enforcement bureaucracy, leading to costly delays in recovering funds.	Streamlined Enforcement Process: We handle the entire enforcement process, submitting the correct documentation to the appropriate Czech authorities to ensure swift action. Need legal help? Contact us at office@arws.cz.
Difficulty Locating Assets: The debtor attempts to hide assets, making it difficult to enforce the judgment and recover what is owed.	Asset Tracing and Enforcement Strategy: We work with licensed enforcement agents to identify and secure debtor assets, from bank accounts to real property, maximizing your chances of recovery. Do not hesitate to contact our firm – office@arws.cz.
Improperly Filed Enforcement Request: Submitting incorrect or incomplete documentation, resulting in the rejection of the enforcement application and further delays.	Representation Before Authorities: We represent you before all Czech courts and enforcement authorities, ensuring every procedural step is handled correctly. For expert representation, write to us at office@arws.cz.

Your Strategic Partner in Prague: How ARROWS Mitigates Risk and Secures Success

Successfully navigating a commercial dispute in the Czech Republic requires more than just knowledge of the law; it demands a strategic partner who understands the nuances of the local legal culture and can bridge the gap between French and Czech business practices. ARROWS is uniquely positioned to be that partner.

Bridging the Legal-Cultural Gap

Our lawyers possess deep knowledge of both the French and Czech legal environments, allowing us to act as crucial interpreters and strategists for our clients. We anticipate the pitfalls that French companies are likely to encounter—from misinterpreting contractual clauses to misunderstanding courtroom procedure—and develop proactive strategies to avoid them. Our role is to translate your commercial objectives into compelling legal arguments that resonate with Czech judges.

International Reach, Local Expertise

As an international law firm operating from Prague, European Union, ARROWS combines global perspective with indispensable local expertise. Through our ARROWS International network, built over 10 years and active in 90 countries, we are equipped to handle complex cross-border matters. This network ensures that even when a dispute has elements reaching beyond the Czech Republic, we can provide seamless, coordinated legal support.

A Comprehensive Suite of Services

We offer a full spectrum of legal services designed to protect your interests at every stage of the business lifecycle.

• Prevention: Our most effective work is often done before a dispute arises. We provide drafting of bilingual documentation, preparation of internal company policies to ensure compliance and prevent fines, and professional training for employees and management.
• Resolution: When disputes are unavoidable, we provide clear-headed legal consultations, thorough contract review, and vigorous representation in court and before public authorities. Our proven track record, supporting over 150 joint-stock companies and 250 limited liability companies, is a testament to our reputation for speed and quality.

The Next Step

Navigating a commercial dispute in the Czech Republic requires a strategic partner who understands your business and the unique challenges you face as a foreign company. To protect your interests and achieve a successful outcome, contact the expert team at ARROWS, a leading Czech law firm in Prague, EU. For a confidential consultation on your case, email us today at office@arws.cz.

FAQ – Most common legal questions about litigating in the Czech Republic

1. How long does a typical commercial lawsuit take in the Czech Republic?
While it varies depending on complexity, a first-instance proceeding can often take over a year. The key to an efficient process is proper preparation and expert representation to avoid procedural delays. To discuss the specifics of your case and potential timelines, contact us at office@arws.cz.

2. What are the typical legal costs for litigation?
Legal fees can be structured as hourly rates, flat fees, or based on a statutory tariff. In the Czech Republic, the successful party is generally entitled to have its legal costs reimbursed by the losing party. We provide transparent fee agreements tailored to your needs. For a fee estimate, get in touch at office@arws.cz.

3. Is arbitration a better option than litigation in the Czech Republic?
Arbitration can be faster, more confidential, and allows for greater flexibility, making it a common and effective alternative for commercial disputes. The best choice depends on your contract's provisions and your strategic goals. ARROWS has extensive experience in both court litigation and arbitration. To determine the best strategy for you, email our experts at office@arws.cz.

4. My contract says Czech law applies. Does this mean I must litigate in a Czech court?
Not necessarily. The choice of governing law is separate from the choice of jurisdiction (the court). A well-drafted contract should specify both. If it only specifies the law but not the court, the rules of the Brussels I Recast Regulation will apply to determine jurisdiction. For a full analysis of your contract's dispute resolution clauses, contact our legal team at office@arws.cz.

5. As a French company, will I be at a disadvantage in a Czech court?
Under the law, domestic and foreign entities receive equal treatment. However, a practical disadvantage can arise from not knowing the local procedures, language, and judicial culture. Expert local representation from a firm like ARROWS, which understands these nuances, completely levels the playing field. Ensure you have the right support by writing to us at office@arws.cz.

6. Can ARROWS help my French company even before a dispute arises?
Absolutely. Our most valuable service is often preventative. We draft and review contracts, advise on regulatory compliance, and help you structure your Czech operations to minimize legal risk from day one. To proactively protect your business in the Czech market, contact us at office@arws.cz.

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