How to Pursue Court Claims in the Czech Republic as a Montenegrin Company: A Practical Route to Litigation

When your Montenegrin company faces unpaid invoices, breached contracts, or commercial disputes with Czech partners, knowing how to pursue claims in the Czech Republic is crucial. This article offers practical guidance on jurisdiction, procedure, common documentation pitfalls, and enforcement options, including debt recovery through Czech bailiffs. ARROWS law firm, a leading Czech law firm in Prague, provides specialized support to ensure your claims are enforced efficiently and in full compliance with Czech procedural law.

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.

Does a Czech Court Have Jurisdiction Over Your Montenegrin Claim?

Before filing any lawsuit, you must determine whether Czech courts have the legal authority to hear your case. Unlike litigation within the European Union, where jurisdiction is governed by the Brussels I bis Regulation, Montenegro is not an EU member state. This means that jurisdiction between your Montenegrin company and a Czech defendant is determined primarily by Czech domestic law and any bilateral treaties between the two countries.

Under Czech procedural rules, the general principle is straightforward: a defendant domiciled in the Czech Republic can be sued in Czech courts. For contractual disputes, Czech courts also have jurisdiction if the place of performance of the obligation in question is in the Czech Republic, such as delivery of goods to Prague or provision of services in Brno. For non-contractual claims like tort, Czech courts have jurisdiction where the harmful event occurred.

However, the most strategic way to secure Czech jurisdiction is through a written jurisdiction clause in your commercial contracts. A properly drafted exclusive jurisdiction clause designating Czech courts provides legal certainty and is generally respected. ARROWS lawyers regularly draft and review such clauses to ensure they serve your commercial interests and avoid jurisdictional disputes that waste time and money. For immediate assistance, write to us at office@arws.cz.

What Documentation Must a Montenegrin Company Prepare Before Filing?

One of the most dangerous procedural traps for foreign companies is the strict documentation requirement that Czech courts impose on non-Czech claimants. Foreign corporate clients face strict documentation requirements simply to initiate court action. Your Montenegrin company cannot simply appear in court with a standard Power of Attorney signed by your director.

The Power of Attorney that authorizes legal representation must be accompanied by a translated and notarized extract from your company's commercial register. This official extract must prove your company's legal existence and clearly identify who is legally authorized to act on your behalf under Montenegrin law. The extract must be translated into Czech by a court-certified translator and properly authenticated.

If your Montenegrin company fails to meet these rigorous formal criteria—for example, by submitting an unverified Power of Attorney or lacking the necessary supporting corporate documentation—the court may reject the filing altogether. Such a rejection causes costly and time-consuming delays that significantly increase the risk of your claim becoming time-barred under Czech limitation rules. This is not a simple administrative formality but a mandatory legal requirement that, if mishandled, can destroy an otherwise valid claim.

ARROWS handles this documentation process daily and can guide you through the specific requirements for Montenegrin corporate documents, including authentication procedures and certified translations. Our lawyers are ready to assist you – email us at office@arws.cz.

How Do You Actually Initiate a Lawsuit in Czech Courts?

Once your documentation is in order, the next step is to file a formal statement of claim (žaloba) with the competent Czech court. The lawsuit must be filed in writing, in Czech, and must contain specific mandatory elements defined in the Czech Code of Civil Procedure. These mandatory elements include:

• Precise identification of both the plaintiff (your Montenegrin company) and the defendant
• The court to which the claim is addressed
• A clear statement of what the action concerns and the specific relief sought (e.g., payment of CZK 500,000)
• A detailed description of the relevant facts supporting your claim
• Identification and designation of all evidence you will rely on to prove each factual allegation

Crucially, all documents submitted to a Czech court, including the statement of claim and all supporting evidence, must be in the Czech language and accompanied by an officially certified translation. This is a strict and non-negotiable procedural rule. A Montenegrin company that files documents in English or Montenegrin will see them ignored by the court, and critical deadlines will pass. Procedural mistakes at this early stage are common for foreign litigants and can lead to significant delays or even dismissal of your case before its merits are ever considered.

You must also pay a court fee when filing your claim. Court fees in commercial matters are typically 5% of the claimed amount. For a claim of CZK 1,000,000, the court fee would be CZK 50,000. This fee must be paid promptly to avoid delays in processing your claim. Get tailored legal solutions by writing to office@arws.cz.

FAQ – Legal Tips About Filing Requirements

• Can we file the lawsuit in English to save time?
  No. Czech courts conduct all proceedings exclusively in Czech. Any document filed in English, Montenegrin, or any other foreign language is legally worthless until accompanied by an officially certified Czech translation. This requirement applies to the statement of claim, contracts, invoices, correspondence, and all evidence. Contact us at office@arws.cz to ensure all your documents meet court requirements.
• What happens if we miss a mandatory element in the statement of claim?
  The court will issue a procedural order requiring you to correct the deficiency within a specified deadline, typically 7-15 days. Failure to correct the deficiency can result in dismissal of your claim. The procedural formality of Czech courts is unforgiving, and even experienced foreign legal departments often underestimate the level of detail required. Do not hesitate to contact our firm – office@arws.cz.

Can You Use the Fast-Track Payment Order Procedure?

For clear, undisputed monetary claims, Czech law offers a highly efficient fast-track procedure called platební rozkaz (Payment Order). This procedure is particularly advantageous for Montenegrin companies seeking to recover unpaid invoices or other straightforward debt claims.

The process works as follows: your legal representative files a formal application with the court, supported by evidence such as contracts and invoices. The court reviews the documents without scheduling a hearing. If the claim is well-founded and the evidence is clear, the court issues the platební rozkaz. The Czech debtor then has a critical 15-day window from the date of delivery to either pay the full amount or file an objection (odpor).

If the debtor does not object within 15 days, the payment order becomes final and immediately enforceable. This means you can proceed directly to enforcement through a Czech bailiff (exekutor) without the need for a full trial. If the evidence is clear, the court can issue the order relatively quickly, often in weeks, and if the debtor does not object, the order can become final and enforceable in 1-2 months.

However, there is an important limitation: it is not possible to issue a standard Czech payment order if it is to be served on the debtor abroad or if the debtor's place of stay is not known. This means the platební rozkaz procedure is only available when your claim is against a Czech defendant with a known address in the Czech Republic.

For claims exceeding CZK 1,000,000, the electronic payment order (elektronický platební rozkaz) is not available, as this procedure is capped at CZK 1,000,000. Need legal help? Contact us at office@arws.cz.

What Are the Statute of Limitations Rules You Must Know?

Missing the statute of limitations deadline results in the absolute and permanent loss of the right to sue. This is one of the most critical procedural deadlines, and Montenegrin companies often miscalculate the applicable period based on assumptions drawn from their home jurisdiction.

Under Czech law, the general subjective limitation period for civil and commercial claims is three years from the date when the right could first be exercised. However, this is subject to an overriding objective period of ten years from when the claim matured. For claims arising from intentional wrongful acts, the objective period extends to 15 years.

The limitation period does not necessarily begin on the invoice due date. According to recent decisions of the Czech Supreme Court, if a contract stipulates that the basis for payment is an invoice issued in the future, the limitation period begins to run from the date when the creditor could first issue the invoice, not from the invoice due date. This means that for contracts requiring performance before invoicing, the limitation period may begin before the debt is even due.

This complexity underscores why attempting to calculate limitation periods without local Czech legal advice is dangerous. A miscalculation based on Montenegrin limitation rules can render a valid, high-value claim completely worthless overnight. Our lawyers are ready to assist you – email us at office@arws.cz.

How Long Will Your Case Take in Czech Courts?

Many Montenegrin companies expect their litigation to be resolved quickly. While Czech judicial statistics continuously rank among the fastest in the EU, with an average duration of less than one year in the first instance, the reality is different for complex commercial disputes.

If disputes are more complex, first instance proceedings extend to several years. A typical commercial lawsuit can take between two and three years to reach a final judgment at first instance, depending on complexity. If the case involves extensive evidence, expert witnesses, or cross-border elements, the timeline extends further.

Appeals must be filed within 15 days of service of the written judgment. Representation by a licensed Czech attorney is mandatory at the appellate level. The appellate court (Regional Court or High Court, depending on the first instance court) will review the case, and appellate proceedings can add another 6-18 months to the overall timeline.

Extraordinary appeals to the Supreme Court are possible but are limited to specific legal grounds and do not automatically stay enforcement of the lower court judgment. For immediate assistance, write to us at office@arws.cz.

What Happens When You Win Your Judgment?

Obtaining a judgment is only half the battle. The ultimate goal is financial recovery, which requires enforcement. The Czech enforcement process, known as exekuce, is swift and effective, but it requires precise procedural steps.

In the Czech Republic, the creditor does not enforce the judgment themselves. Instead, they file an enforcement proposal, and the court authorizes a licensed judicial bailiff, known as an exekutor. The exekutor has broad and powerful tools for forced recovery, including:

• Seizing bank accounts: Freeze and seize all funds in the debtor's bank accounts, including business accounts
• Garnishing wages: Garnish the debtor's salary or other forms of income
• Seizing movable property: Seize and auction movable assets such as vehicles, machinery, or office equipment
• Attaching real estate: Place a lien on the debtor's real property, which can ultimately be sold at auction to satisfy the debt

The bailiff sends the debtor a notice to comply voluntarily, giving them 15 days to pay. If the debtor does not pay voluntarily, the exekutor proceeds with enforcement measures. If the debtor does not object to the enforcement before a court, the duration of executor enforcement can be approximately six months. However, if the debtor objects, the process can extend to several years.

The exekutor charges fees based on a statutory tariff ranging from 1% to 15% of the amount being enforced. Do not hesitate to contact our firm – office@arws.cz.

Common Litigation Risks and How ARROWS Helps

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Court rejection due to insufficient corporate documentation from Montenegro	Preparation of complete documentation package including certified translations and notarized extracts from Montenegrin Commercial Register.
Claim dismissed because filed in English instead of Czech	Complete translation and filing services with court-certified Czech translations of all documents
Claim becomes time-barred due to miscalculation of Czech limitation periods	Legal consultation on limitation periods and strategic filing deadlines to preserve your rights
Procedural errors in statement of claim leading to dismissal	Drafting of legally compliant statements of claim meeting all mandatory requirements under Czech Civil Procedure Code.
Loss of appeal rights due to missed 15-day deadline	Litigation management including monitoring all procedural deadlines and filing timely appeals

Can You Enforce a Montenegrin Judgment in the Czech Republic?

If your Montenegrin company has already obtained a judgment from a Montenegrin court against a Czech defendant, you may seek to enforce that judgment in the Czech Republic. However, because Montenegro is not an EU member state, Montenegrin judgments do not benefit from the automatic recognition system available under the Brussels I bis Regulation.

Instead, enforcement of a Montenegrin judgment in the Czech Republic is governed by Czech domestic law (the International Private Law Act) and any bilateral treaties between the Czech Republic and Montenegro. The Czech Republic has concluded bilateral agreements with Montenegro, including agreements on legal cooperation and economic cooperation.

For the Czech courts to recognize and enforce a Montenegrin judgment, the judgment must be final and enforceable in Montenegro, and certain grounds for non-recognition must not be present. The grounds for refusal of recognition include:

• Exclusive jurisdiction of Czech courts over the matter
• Violation of Czech public policy
• Irreconcilable conflicting Czech judgment on the same matter
• The defendant was deprived of due process in the Montenegrin proceedings

To enforce a Montenegrin judgment, you must apply to the Czech enforcement authorities with a copy of the judgment, confirmation from the Montenegrin court that the judgment is final and enforceable, and a certified Czech translation. The Czech court will issue a decision on recognition, and once recognized, the judgment can be enforced by the exekutor.

This process is significantly more complex than enforcement of EU judgments and requires specialized knowledge of both Czech procedural law and the bilateral treaty framework. ARROWS handles cross-border enforcement matters daily and can guide you through the recognition and enforcement procedure. For immediate assistance, write to us at office@arws.cz.

Why Montenegrin Companies Need Specialized Czech Legal Representation

Throughout this article, we have identified numerous procedural requirements, documentation traps, and hidden complexities that make Czech litigation challenging for foreign companies. Attempting to navigate Czech civil procedure without a local attorney is a strategic disaster. The procedural system is fundamentally different from other European jurisdictions, and all court proceedings are conducted exclusively in Czech.

Even seemingly straightforward steps—such as preparing a Power of Attorney, calculating limitation periods, or filing a statement of claim—contain hidden exceptions, procedural details, links to other regulations, and risks that laypeople and even experienced foreign legal departments often do not see in the real world. What appears to be a simple payment claim can involve complex questions of jurisdiction, choice of law, service of documents, evidence rules, and enforcement mechanisms.

ARROWS law firm handles this agenda on a daily basis, which can significantly reduce your time and minimize the risk of errors. ARROWS represents over 150 joint-stock companies, 250 limited liability companies, and operates in 90 countries globally. The firm is known for speed and high quality and is able to connect clients with one another when business or investment interests align.

Importantly, ARROWS is insured for damages up to CZK 500 million. It is therefore safer for your Montenegrin company to have litigation matters handled professionally rather than risk procedural errors, missed deadlines, or court rejections that can destroy otherwise valid claims. ARROWS is also a regular partner of corporate lawyers for handling special matters and cross-border disputes. Get tailored legal solutions by writing to office@arws.cz.

Enforcement and Cross-Border Risks

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Montenegrin judgment not recognized by Czech courts due to procedural defects	Legal review and preparation of recognition application meeting all requirements under Czech law and bilateral treaties
Enforcement proceedings delayed due to incorrect documentation	Complete enforcement support including liaison with exekutor and coordination of enforcement measures.
Debtor successfully objects to enforcement, prolonging proceedings by years	Strategic defense against objections and representation in enforcement dispute proceedings
Loss of enforcement priority due to delayed filing	Immediate enforcement action upon obtaining enforceable title to secure priority over other creditors
Cross-border asset tracing difficulties	Coordination with ARROWS International network across 90 countries to locate and attach debtor assets abroad.

What Are the Hidden Complexities of Evidence Gathering?

Czech civil procedure follows a primarily written procedure, with oral hearings focused on witness examination and final arguments rather than extensive presentation of new evidence. The judge plays an active role in managing the proceedings and questioning witnesses, which differs significantly from adversarial models. This inquisitorial element means that presenting your case clearly and comprehensively in written submissions is even more critical.

For Montenegrin companies, evidence gathering presents several challenges. All evidence must be submitted in Czech translation. Witness statements, expert reports, contracts, invoices, email correspondence, and any other documentary evidence must be translated by court-certified translators.

If evidence is located in Montenegro, you may need to obtain it through formal channels. While EU Member States benefit from the EU Evidence Regulation, which allows courts to request evidence from other EU countries efficiently, Montenegro is not covered by this regulation. This means that obtaining evidence from Montenegro may require consular legalization or apostille authentication, depending on whether Montenegro is a party to the Hague Apostille Convention.

ARROWS coordinates cross-border evidence gathering and ensures that all documents meet Czech court requirements for authentication and translation. This includes liaising with Montenegrin notaries, translators, and authorities to obtain properly authenticated documents. For immediate assistance, write to us at office@arws.cz.

Can You Obtain Preliminary Injunctions to Protect Your Position?

In urgent situations where there is a risk that enforcement of a final judgment could be jeopardized, or where provisional regulation of the parties' relationship is necessary, Czech courts can issue preliminary injunctions (předběžné opatření).

Preliminary injunctions in the Czech Republic are decided ex parte, meaning without hearing or even notifying the defendant. This makes the process unusually fast. Czech courts must decide preliminary injunction applications within seven calendar days – including weekends and public holidays. This timeline compares exceptionally favorably with other major litigation jurisdictions.

To obtain a preliminary injunction, you must demonstrate that the situation urgently requires preliminary intervention and that there is a reasonable probability that your underlying claim is justified. Before or on the day of filing an application for a preliminary injunction, you must pay a returnable security of CZK 50,000 (approximately EUR 1,800) to cover any loss caused by the injunction.

Preliminary injunctions are a powerful tool, but they require precise strategic judgment and immediate action. ARROWS regularly obtains preliminary injunctions for clients in commercial disputes, including freezing debtor assets, preventing disposal of property, and securing contractual performance. Do not hesitate to contact our firm – office@arws.cz.

FAQ – Legal Tips About Enforcement and Judgments

• Can we enforce a Montenegrin arbitral award in the Czech Republic?
  Yes. The Czech Republic is a party to the New York Convention on the Recognition and Enforcement of Arbitral Awards. Montenegrin arbitral awards can be enforced in the Czech Republic under this Convention, which generally provides for more streamlined enforcement than court judgments. The enforceability of arbitral awards in practically every place of the world is guaranteed by the New York Convention, signed by over 140 countries including the Czech Republic and Montenegro. Need legal help? Contact us at office@arws.cz.
• What if the Czech debtor has no assets in the Czech Republic?
  If the debtor has moved assets abroad, enforcement becomes more complex and requires coordination with foreign enforcement authorities. ARROWS leverages its international network across 90 countries to locate and attach debtor assets through coordinated cross-border enforcement strategies. For immediate assistance, write to us at office@arws.cz.

Why ARROWS Is Your Strategic Partner for Czech Litigation

ARROWS is a leading Czech law firm based in Prague, European Union, with a proven track record of representing foreign clients in complex commercial litigation. The firm's lawyers combine deep knowledge of both local and foreign markets and the legal differences between the Czech Republic and other jurisdictions.

ARROWS provides comprehensive legal services, including:

• Contract drafting and review to prevent disputes and secure favorable jurisdiction and choice of law clauses
• Preparation of internal company policies and legally required documentation to ensure compliance with Czech law
• Legal consultations to prevent inspections, penalties, and litigation
• Litigation representation in all Czech courts, including District Courts, Regional Courts, High Courts, the Supreme Court, and the Constitutional Court
• Arbitration representation before domestic and international arbitration institutions, including the Arbitration Court attached to the Economic Chamber of the Czech Republic and the ICC in Paris
• Enforcement and debt recovery through the exekuce process, including coordination with exekutors and cross-border asset tracing
• Recognition and enforcement of foreign judgments under bilateral treaties and Czech domestic law
• Professional training for employees or management with certificates on Czech legal compliance

ARROWS supports over 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions. The firm operates in 90 countries globally and is known for speed and high quality. ARROWS is also able to connect clients with one another when business or investment interests align and welcomes innovative business ideas and investment opportunities.

Importantly, ARROWS is insured for damages up to CZK 500 million, providing additional security and peace of mind for clients entrusting complex litigation matters to the firm. For tailored legal solutions, write to office@arws.cz.

Strategic and Procedural Risks

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Unfavorable jurisdiction due to poorly drafted contracts	Contract drafting with strategic jurisdiction and choice of law clauses tailored to your commercial interests.
Miscalculation of litigation costs and court fees	Transparent cost estimates and strategic litigation planning to manage legal expenses
Language barriers and misunderstandings in court proceedings	Complete English-language client service with full translation and interpretation support
Loss of commercial opportunities during protracted litigation	Strategic settlement negotiations and alternative dispute resolution to resolve disputes efficiently
Damage to business reputation due to public court proceedings	Confidential arbitration representation and settlement negotiations to protect business reputation.

FAQ – Most Common Legal Questions About Montenegrin-Czech Litigation

1. Do we absolutely need a Czech lawyer to file a lawsuit?
While not always mandatory in first-instance courts for some types of claims, it is practically essential. The proceedings are conducted entirely in Czech, all documents must be translated and authenticated, and the procedural rules are complex and unforgiving. Representation by a licensed Czech attorney is mandatory at the appellate level. Attempting to self-represent is a high-risk strategy that regularly results in procedural dismissals and wasted costs. Our lawyers are ready to assist you – email us at office@arws.cz.

2. How much will litigation cost?
Costs include court fees (typically 5% of the claimed amount), certified translation costs, potential expert witness fees, and legal representation fees. For a claim of CZK 1,000,000, the court fee alone is CZK 50,000. ARROWS provides transparent cost estimates at the outset so you can budget effectively and make informed strategic decisions. For immediate assistance, write to us at office@arws.cz.

3. Can we include arbitration clauses in contracts with Czech partners?
Yes, and this is often strategically advantageous. Arbitration can be faster and more confidential than court litigation. ARROWS regularly drafts arbitration clauses designating institutions such as the Arbitration Court attached to the Economic Chamber of the Czech Republic or international institutions like the ICC in Paris. Arbitral awards are enforceable under the New York Convention, which often provides more streamlined enforcement than court judgments. Need legal help? Contact us at office@arws.cz.

4. What happens if our Czech debtor declares insolvency?
If the debtor enters insolvency proceedings (insolvenční řízení), your enforcement proceedings may be stayed, and your claim becomes part of the insolvency estate. ARROWS represents creditors in Czech insolvency proceedings, including filing and defending claims, participating in creditors' committees, and negotiating restructuring plans. Get tailored legal solutions by writing to office@arws.cz.

5. Can ARROWS coordinate litigation in multiple countries simultaneously?
Yes. ARROWS International network spans 90 countries, allowing the firm to coordinate multi-jurisdictional litigation and enforcement strategies from a single point of contact in Prague. This is particularly valuable when debtors have moved assets across borders or when parallel proceedings are necessary in multiple jurisdictions. For immediate assistance, write to us at office@arws.cz.

6. How do you bridge the legal and cultural differences between Montenegro and the Czech Republic?ARROWS has extensive experience representing clients from non-EU jurisdictions and understands the challenges of navigating different legal systems and business cultures. The firm provides intercultural advice and acts as a trusted bridge, ensuring that your Montenegrin company's interests are protected and that cultural and procedural differences do not derail your litigation strategy. Do not hesitate to contact our firm – office@arws.cz.