How Chinese Firms Can Navigate Czech Courts: A Guide to Legal Proceedings

Chinese enterprises expanding into the EU increasingly encounter disputes requiring resolution through Czech courts. While the Czech Republic offers stable frameworks, its civil litigation system operates on fundamentally different principles than common law or Chinese practices. Understanding these procedural complexities is essential, as even straightforward disputes can become costly without proper legal navigation.

The structure of Czech courts and judicial organization

The Czech judicial system is established as a hierarchical framework composed of general courts (handling civil and criminal matters), administrative courts, and a Constitutional Court. The organization reflects principles of judicial independence and professional career judiciary.

Judges are appointed civil servants rather than elected officials, ensuring a stable professional environment for dispute resolution. Understanding this structure is crucial for Chinese firms because it determines where disputes can be filed. It also dictates which courts have authority to hear specific claims and what appeal options exist once a judgment is rendered.

General courts and their jurisdiction

The Czech court system operates with four principal levels of general jurisdiction: District Courts (okresní soudy), Regional Courts (krajské soudy), High Courts (vrchní soudy), and the Supreme Court (Nejvyšší soud).

Most commercial disputes involving Chinese firms begin in District Courts, which possess subject-matter jurisdiction as courts of first instance unless specific statutes provide otherwise. District Courts are distributed across the Czech Republic, handling initial civil proceedings. For Chinese enterprises, determining which District Court has territorial jurisdiction is the first procedural hurdle.

Filing in an incompetent court can waste months of time and resources, so identifying the correct venue is a critical initial step. Territorial jurisdiction rules under Czech procedure depend on several factors defined in the Code of Civil Procedure. The general rule establishes that Czech courts have jurisdiction over defendants domiciled in the Czech Republic.

However, the Brussels I Recast Regulation governs jurisdiction in cross-border disputes within the European Union. If the defendant is domiciled in an EU Member State, EU rules apply. If the defendant is not domiciled in an EU Member State, jurisdiction is determined by Czech national law on private international law.

For Chinese firms specifically, the default position is that if they sue a Czech defendant, the suit typically proceeds in Czech courts under the Brussels I Recast framework.

Conversely, if a Czech company sues a Chinese firm, Czech courts may exercise jurisdiction based on where the harmful event occurred. This also applies to where goods were delivered or where services were performed. Certain types of cases require Regional Courts as courts of first instance rather than District Courts.

These specialized cases involve particularly complex matters that require greater expertise, such as certain corporate disputes, intellectual property, or competition matters. Regional Courts also serve as appellate courts reviewing District Court decisions. This multi-tiered system means that Chinese firms must budget for potential appeals, as losing a first-instance decision does not end the matter.

Administrative and constitutional courts

Disputes involving administrative law issues fall under the jurisdiction of administrative courts rather than general civil courts. The Supreme Administrative Court (Nejvyšší správní soud) handles appeals from administrative court decisions.

For commercial disputes between Chinese enterprises and Czech counterparts, administrative courts are relevant primarily when disputes involve regulatory decisions or licensing matters.

The Constitutional Court (Ústavní soud) reviews the constitutionality of laws and handles constitutional complaints. It is not a part of the general court system and reviews cases only after all other remedies have been exhausted.

Civil procedure in Czech courts: Fundamental differences

Chinese firms often make critical errors when initiating litigation in Czech courts. They may transpose procedural expectations from Chinese courts or assume that European civil procedure mirrors common law discovery processes.

The Czech civil litigation system operates under fundamentally different foundational principles that create a "front-loaded" procedural structure.

The absence of discovery and pre-trial evidence development

One of the most significant procedural differences Chinese firms must comprehend is that Czech courts do not employ wide-ranging discovery mechanisms similar to those in American litigation.

While there is a limited duty to surrender documents (ediční povinnost), there are no broad mandatory document disclosures or depositions of opposing parties conducted before trial. This absence of discovery fundamentally restructures litigation strategy. In Chinese courts, parties can often rely on the court or regulatory authorities to investigate facts.

In Czech courts, the burden of evidence gathering falls entirely on the parties themselves before filing the claim or immediately thereafter. Any documents or evidence that a Chinese firm intends to rely upon must be identified and gathered. They must be translated into Czech and submitted with the initial claim or during early procedural stages.

When a Chinese firm files a claim in Czech court expecting to obtain evidence from the Czech defendant during litigation, that expectation often proves false. The Czech court operates under the principle of free evaluation of evidence (volné hodnocení důkazů). This means judges assess evidence based on their independent judgment rather than following rigid evidentiary rules.

However, judges can only evaluate evidence that parties have already presented, placing the burden of proof firmly on the claimant. If the Chinese firm fails to present convincing evidence of a critical fact, the court will not "discover" that evidence later in the proceedings.

The burden of allegation and evidence architecture

Czech procedure requires parties to identify their allegations and evidence with precision. The principle of burden of allegation (břemeno tvrzení) establishes that parties must clearly state which facts they rely upon.

The Code of Civil Procedure explicitly provides that each party is required to prove its claims by specifying the relevant evidence. This creates a sharp distinction from Chinese administrative proceedings where the relevant authority often takes investigative steps. In Czech courts, parties must essentially build their case file independently before presenting it to the judge.

ARROWS Law Firm regularly assists foreign clients—including Chinese enterprises—with this front-loaded evidence architecture, which requires strategic preparation months before any court filing occurs.

The complexity lies not merely in gathering documents but in understanding which evidence is admissible under Czech law. It involves authenticating documents, structuring witness testimony, and presenting technical evidence. Without proper preparation, a Chinese firm's seemingly strong case can collapse at the filing stage because the court deems evidence insufficient.

Procedural concentration and temporal constraints

Czech civil procedure operates under the principle of procedural concentration (koncentrace řízení). The court expects parties to present comprehensive evidence and arguments within concentrated procedural phases.

Once a case enters trial hearings and the court declares the concentration effective, the court will generally not permit new factual allegations. The judicial panel issues a preliminary hearing schedule and set time limits for parties to supplement allegations and evidence. Missing these deadlines carries severe consequences.

Unlike some jurisdictions where "excusable neglect" might allow late-filed motions, Czech courts impose strict deadline adherence. Exceptions are limited to situations where the party could not have presented the evidence earlier through no fault of their own. A Chinese firm's failure to submit evidence by a court-ordered deadline effectively forecloses that evidence from the case.

This procedural rigidity means that Chinese firms must engage experienced Czech legal counsel immediately upon identifying a dispute.

How jurisdiction works: Critical considerations

For Chinese enterprises with Czech business relationships, understanding jurisdictional rules is foundational. Filing a claim in the wrong court wastes months and can render an otherwise meritorious claim unenforceable.

Jurisdiction involves two separate concepts: subject-matter jurisdiction and territorial jurisdiction.

Subject-matter jurisdiction and competence allocation

District Courts possess general subject-matter jurisdiction for civil disputes unless specific statutes allocate jurisdiction elsewhere. Payment disputes and contract breaches typically fall within District Court jurisdiction.

However, certain specialized commercial claims may require Regional Courts as courts of first instance. A Chinese firm filing a claim in the wrong court tier may face transfer of proceedings, consuming critical time.

Territorial jurisdiction and the role of contractual choice-of-court clauses

Under Czech civil procedure, the general rule establishes that the defendant's place of residence or domicile governs territorial jurisdiction. If a Czech company is domiciled in Prague, suit should ordinarily be filed in the relevant Prague district court.

However, this general rule yields to contractual choice-of-court clauses (prorogation). The Brussels I Recast Regulation permits parties to agree in advance on which court will hear disputes. Many contracts between Chinese firms and Czech partners contain jurisdiction clauses selecting specific courts or arbitration.

For Chinese firms reviewing existing contracts, identifying and understanding any choice-of-court clause is an absolute first step before initiating litigation. If a contract mandates arbitration through the Czech Arbitration Court or international institutions, filing in civil court violates the agreement. The Czech court will likely dismiss the case upon the defendant's objection.

ARROWS Law Firm insists on thorough contract review before any litigation planning commences with Chinese clients to avoid these jurisdictional pitfalls.

Cross-border jurisdiction under the Brussels I Recast Regulation

The Brussels I Recast Regulation establishes unified jurisdictional rules across all EU member states. Under Article 4, the general rule provides that persons domiciled in an EU member state shall be sued in the courts of that member state.

This means a Chinese firm suing a Czech company domiciled in the Czech Republic must typically sue in Czech courts. Conversely, if a Czech company sues a Chinese firm, jurisdiction is generally determined by the national laws of the Member State seized. However, Article 7 of the Regulation establishes exceptions to the general domicile rule.

For contract disputes, parties may sue in the court where the contract is performed, creating tactical opportunities for Chinese firms. If a Czech company breached a contract that was to be performed in the Czech Republic, a Chinese firm may sue in the Czech court where performance was due.

The civil litigation process: From claim to judgment

Understanding the procedural sequence in Czech civil litigation helps Chinese firms appreciate the timeline. The process differs fundamentally from Chinese administrative proceedings in duration and structure.

Chinese firms must be prepared for a structured timeline that offers specific strategic windows for settlement.

Initiating proceedings: The claim (Žaloba) and court fees

Czech civil litigation commences when the claimant files a written application to commence proceedings, called the žaloba. The claim must be filed in Czech language and must contain mandatory elements defined in the Code of Civil Procedure. Simultaneously with filing, the claimant must pay court fees (soudní poplatek) as a condition precedent to commencing proceedings.

Court fees are calculated based on the monetary value of the claim.

• For claims up to CZK 20,000, a fixed fee of CZK 1,000 applies.
• For claims exceeding CZK 20,000 but not exceeding CZK 40,000,000, the fee is 5% of the claim amount.
• For claims exceeding CZK 40,000,000, the fee is CZK 2,000,000 plus 1% of the amount over CZK 40,000,000.

If court fees are not paid, the court demands payment within a set deadline; failure to pay results in discontinuation. Czech law permits electronic filing of claims through the Data Box (datová schránka) system. Documents in languages other than Czech must be accompanied by certified translations.

The pre-litigation demand letter

Under the Code of Civil Procedure, a claimant must send a formal pre-litigation demand letter (předžalobní výzva) to the defendant. This must be sent at least 7 days before filing the claim.

Failure to send this letter results in the denial of reimbursement for legal representation costs, even if the claimant wins. This letter must contain a clear identification of the claim and a demand for performance. It serves as a final warning and a procedural necessity for cost recovery.

ARROWS Law Firm structures pre-litigation correspondence carefully to ensure compliance and create strong foundations for cost recovery.

Court review and service of the claim

After filing, the court reviews the claim for formal correctness. If defects exist, the court notifies the claimant to cure them. Once the claim passes formal review, the court serves it on the defendant via Data Box or mail for local entities.

For defendants domiciled in China, service follows international treaties and is substantially slower, often taking several months.

The preliminary hearing and case management

After the defendant files a response, the court typically schedules a preliminary hearing. At this hearing, the judge informs parties about procedural requirements and attempts to facilitate a settlement.

During this phase, the judge issues a schedule for supplementing allegations and evidence, which must be strictly followed. A Chinese firm's late submission of crucial evidence is typically rejected due to the concentration principle.

Trial hearings and evidence presentation

Once the preliminary phases conclude, the court schedules trial hearings. The judge leads the questioning of witnesses, who are summoned by the court.

Witnesses testify about facts within their knowledge, and parties may pose questions only with the judge's permission.

Documentary evidence is presented, and the court evaluates it under the principle of free evaluation. The court decides which evidence to take and may decline evidence it deems irrelevant.

Judgment and appeal rights

Following trial hearings, the court issues a written judgment. The judgment is served on both parties and becomes final if no appeal is filed within 15 days. Parties may appeal adverse first-instance decisions to the appellate court based on specific grounds like incorrect legal assessment.

The appellate court may uphold, reverse, or modify the decision. Extraordinary appeals to the Supreme Court are available only for questions of law of fundamental importance.

Expedited procedures: Payment orders

For undisputed monetary claims, Czech law provides expedited procedures. The payment order (platební rozkaz) is a fast-track mechanism where the court issues a decision without a hearing.

The payment order is served on the defendant into their own hands, and they have 15 days to pay or file an opposition. If the defendant files an opposition, the payment order is cancelled, and standard litigation ensues. The electronic payment order is available for claims not exceeding CZK 1,000,000.

This procedure is valuable for Chinese firms with straightforward payment claims against Czech debtors located in the country.

Evidence in Czech civil proceedings

The burden of proof in Czech civil proceedings rests on the party making an allegation. In a commercial dispute, the Chinese firm bears the burden of proving the obligation, breach, damage, and causal link.

The standard requires the court to be practically convinced that the allegation is true based on the evidence presented. Under the Civil Code, liability for damages in a contractual context is generally objective. A Chinese firm must understand the specific liability regime applicable to its claim.

Types of admissible evidence and authentication requirements

Czech civil procedure permits documentary evidence, witness testimony, expert opinions, and inspections. Admissibility depends on authentication, with public documents enjoying a presumption of correctness.

A critical requirement is that all documents in non-Czech languages must be accompanied by certified translations into Czech. These must be prepared by court-appointed translators. An invoice in Chinese without certified Czech translation is practically unusable in court.

Witness testimony and expert evidence

Witnesses testify about facts within their knowledge and are questioned by the judge. If a witness is in China and refuses to travel, Czech courts have limited ability to compel attendance.

Expert opinions address technical or economic issues and must generally be prepared by experts listed in the official register.

Evidentiary presumptions and omitted evidence

Czech procedure recognizes presumptions for generally known facts. However, if a Chinese firm fails to present evidence supporting a critical allegation, the court will not infer the truth.

The plaintiff bears the burden of proving its case through affirmative evidence, rather than relying on the silence of the opponent.

microFAQ – Legal tips on evidence in Czech courts

1. If I have documents in Chinese, what must I do before submitting them to a Czech court?
All documents in languages other than Czech must be accompanied by certified translations prepared by court-appointed translators authorized by the Czech Ministry of Justice. The translation must be accurate, complete, and bound with the translator's official clause.

2. Can I present witness testimony from my colleagues in China without them traveling to Prague?
Czech courts can summon witnesses in the Czech Republic. Witnesses abroad cannot be compelled to attend by a Czech court. Written statements are generally not treated as full witness testimony, so video-conferencing or legal assistance through Chinese courts may be required.

3. What happens if I cannot locate or authenticate an original document?
Copies may be accepted, but if the opposing party questions authenticity, you may be required to produce the original. If you cannot, the court may disregard the evidence.

Recognition and enforcement of foreign judgments

Chinese firms should understand that obtaining a judgment is only the first step. Enforcement (exekuce) depends on recognition rules and international treaties.

Different rules apply depending on whether the judgment originates from an EU member state or a non-EU jurisdiction.

Automatic recognition of judgments from EU courts

Judgments from other EU member states in civil and commercial matters are automatically recognized in the Czech Republic under the Brussels I Recast Regulation.

No separate recognition proceeding is required for judgments originating within the European Union.

Recognition of judgments from non-EU countries

Judgments from non-EU countries, including China, do not enjoy automatic recognition. Recognition is governed by the Act on Private International Law and any bilateral treaties. For property disputes, recognition is typically incidental, meaning it is examined as a preliminary question within enforcement proceedings.

Conditions for recognition include that the judgment is final and the defendant was not deprived of the right to defense. The absence of a specific bilateral treaty on recognition can complicate this process.

Bilateral treaties and reciprocal recognition

The Czech Republic has bilateral legal assistance treaties with various countries. For China, the Treaty on Judicial Assistance in Civil and Criminal Matters exists.

ARROWS Law Firm advises on the practical application of these treaties to determine the current reciprocity practices of Czech courts.

Strategic considerations: Payment order procedure and enforcement

For Chinese firms pursuing unpaid invoices against Czech debtors, the payment order procedure is optimal when the claim is genuinely undisputed. It can produce an enforceable judgment within weeks.

However, it can only be used if the order can be served on the defendant in the Czech Republic. If the Czech debtor files an opposition, the payment order is cancelled, and full litigation begins. Chinese firms must assess the likelihood of a defense being raised.

Enforcement and asset location

Enforcement is conducted by private bailiffs (soudní exekutoři) whom the creditor selects. The bailiff has extensive powers to locate assets, including bank inquiries and wage garnishment.

Strategic enforcement planning begins before litigation by determining if the Czech defendant owns real property or active bank accounts. Even a final judgment is worthless if the defendant lacks assets.

microFAQ – Legal tips on enforcement and payment orders

1. If I obtain a payment order and the Czech debtor pays within 15 days, is the matter resolved?
Yes. If the debtor pays the full amount plus costs, the matter is concluded.

2. Where do I find the Czech debtor's assets?
Creditors have limited access to asset databases before judgment. However, public registers (Cadastre of Real Estate, Commercial Register) provide some data. After judgment, the private bailiff has statutory authority to query banks and state databases to locate assets.

3. If the Czech debtor has no assets in the Czech Republic, can I enforce a Czech judgment elsewhere?
Yes, within the EU, via the European Enforcement Order or Brussels I Recast. Enforcing a Czech judgment in China or other non-EU states requires recognition under local laws.

Arbitration as an alternative to court litigation

Many commercial contracts include arbitration clauses. Arbitration is governed by specific Czech acts and offers a distinct path from civil courts.

Arbitration offers confidentiality, expertise, and speed, often concluding within 12-24 months.

Advantages of arbitration for Chinese firms

Crucially, arbitral awards are enforceable under the New York Convention, which both the Czech Republic and China have ratified. This makes a Czech arbitral award much easier to enforce in China than a court judgment.

Furthermore, arbitration can be conducted in English, substantially reducing translation costs for Chinese parties.

Limitations and procedural requirements

Only property disputes arising from valid arbitration agreements can be arbitrated. Consumer disputes are generally excluded from this mechanism.

ARROWS Law Firm advises on drafting effective arbitration clauses to ensure validity and enforceability.

International complications: Service, language, and cross-border issues

Service on a Chinese defendant follows the Hague Service Convention. Documents are sent to the Chinese Ministry of Justice, a process that takes months.

Informal service via courier or email is invalid under Czech law for initiating proceedings against a foreign party.

Translation and language requirements

All court proceedings are in Czech. Documents must be translated by certified translators. Parties must pay for interpreters during hearings if they do not speak Czech.

Enforcement of Czech judgments against Chinese defendants

Enforcing a Czech court judgment in China requires recognition by Chinese courts, which apply reciprocity principles. This is not guaranteed and can be difficult.

Arbitration is generally preferred for this reason when the defendant's assets are located in China.

microFAQ – Legal tips on international procedures and service

1. How long does it take to serve documents on a defendant in China?
Typically 3-8 months via the Hague Convention central authority mechanism.

2. Can I conduct my Czech lawsuit entirely in English?
No. Courts operate in Czech. Interpreters and translators are required at your expense.

3. Is it better to sue in Czech court or arbitrate?
If the defendant has assets in China, arbitration is usually better due to the New York Convention. If assets are in the CZ/EU, court litigation is effective.

Common risks and mitigation through ARROWS Law Firm

Risks and sanctions	How ARROWS (office@arws.cz) helps
Missed procedural deadlines: Appeals must be filed within 15 days of judgment delivery; strict evidence deadlines apply.	Deadline tracking: ARROWS manages all deadlines to prevent forfeiture of rights.
Defective claim drafting: Claims lacking mandatory elements or proper evidence designation face dismissal.	Expert drafting: ARROWS ensures claims comply with the Code of Civil Procedure and jurisdiction rules.
Inadequate evidence: "No discovery" means evidence must be prepared upfront.	Evidence strategy: ARROWS gathers and structures evidence before filing to meet the burden of proof.
Language barriers: Untranslated documents are rejected.	Translation coordination: ARROWS manages certified translations and interpretation.
Improper service: Invalid service on foreign defendants voids proceedings.	Hague Compliance: ARROWS coordinates international service through proper channels.
Unenforceability: Judgments may not be recognized in China.	Strategic Planning: ARROWS advises on arbitration vs. litigation based on asset location and enforceability.

Executive summary for management

• Jurisdictional navigation: Czech litigation follows EU and national rules. Filing in the wrong forum is costly. Pre-litigation jurisdictional analysis is essential.
• Front-loaded evidence: There is no US-style discovery. Evidence must be ready at filing. Budget for investigation and translation upfront.
• Strict deadlines: Czech courts enforce deadlines rigidly. Missing a deadline often means losing the argument or the right to appeal.
• Enforcement planning: Asset location should be investigated before suing. Enforcement is a separate process handled by bailiffs.
• Arbitration preference: For cross-border contracts, arbitration often offers better enforceability in China and allows English proceedings.

Conclusion of the article

Chinese firms operating in the Czech Republic encounter a civil litigation system fundamentally different from both Chinese administrative proceedings and common law court structures. Understanding the Czech Code of Civil Procedure, jurisdictional rules, and strict deadline requirements is essential.

The procedural rigidity means that Chinese firms cannot afford to manage Czech litigation without experienced Czech legal counsel. ARROWS Law Firm regularly represents Chinese enterprises in Czech court disputes and arbitration. The firm's lawyers combine expertise in Czech civil procedure with understanding of cross-border litigation.

If you are a Chinese firm facing a commercial dispute with a Czech partner, contact office@arws.cz for a consultation. ARROWS Law Firm will analyze your situation, assess litigation viability, and guide you through Czech procedural requirements.

FAQ – Frequently asked legal questions about how Chinese firms can navigate Czech courts

1. If I have a contract with a Czech company that includes an arbitration clause, should I pursue arbitration?
Yes, if the clause is valid, you are likely bound by it. Arbitration is often advantageous for speed and enforceability in China. Contact office@arws.cz to review the clause.

2. How long does civil litigation in Czech courts typically take?
Standard litigation takes 2-3 years for a first-instance decision. Appeals add time. Payment orders are faster (weeks) if undisputed.

3. If I win a judgment in Czech court against a Czech defendant who moved to China, can I enforce it?
Enforcement in China requires recognition by Chinese courts, which is complex. Arbitration would have been preferable. Consult us for options.

4. What are court fees for a CZK 5,000,000 claim?
For claims between 20k and 40m CZK, the fee is 5%. For 5,000,000 CZK, the fee is 250,000 CZK.

5. Can I file a claim without a Czech entity?
Yes, foreign companies can litigate in Czech courts. You need a Czech attorney for effective representation.

6. How much does certified translation cost?
Costs vary, typically CZK 400–800 per standard page (1,800 characters) depending on language and urgency. ARROWS coordinates this.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we strive for maximum accuracy in the content, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS Law Firm directly (office@arws.cz). We accept no responsibility for any damage or complications arising from the independent use of the information in this article without our prior individual legal consultation and expert assessment. Each case requires a tailor-made solution, so please do not hesitate to contact us.