How to Start Legal Action in the Czech Republic as a Danish Company:

Facing a commercial dispute in the Czech Republic can feel complex and uncertain for any Danish company. This guide provides specific, practical answers on navigating the entire process, from establishing jurisdiction and understanding court procedures to managing costs and enforcing judgments. Our expert English-speaking lawyers at ARROWS, a leading Czech law firm in Prague, EU, specialize in guiding foreign clients through litigation in the Czech Republic, ensuring you have the clarity and confidence to protect your business interests.

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 legal framework: How EU law connects Danish and Czech courts

When a commercial dispute arises between a Danish and a Czech company, the first critical question is: which country’s courts will hear the case? The answer lies in a powerful piece of European legislation that creates a unified framework for judicial cooperation across the continent.

Understanding the brussels I bis regulation

The primary legal instrument governing jurisdiction and the enforcement of judgments in civil and commercial matters within the EU is Regulation (EU) No 1215/2012, commonly known as the Brussels I bis Regulation. Its core purpose is to create a seamless legal area, ensuring that a business in one Member State can confidently engage with the legal system of another.

The default rule under this regulation is straightforward: a defendant, whether an individual or a company, must generally be sued in the courts of the Member State where they are domiciled.3 This means if your dispute is with a company registered and operating in the Czech Republic, the starting point for legal action will almost always be the Czech courts.

Denmark's special status: A key detail for Danish businesses

Experienced international businesses know that Denmark has a unique position regarding certain EU justice and home affairs policies. While Denmark initially opted out of the original regulation, it is crucial for Danish companies to understand that this does not leave them outside the system.

Through a separate, parallel agreement with the European Union, Denmark has officially implemented the provisions of the Brussels I bis Regulation. This is not merely a legal technicality; it is a vital piece of information. Misunderstanding Denmark's participation could lead a counterparty to make flawed jurisdictional challenges, causing unnecessary delays and costs. Knowing the precise nature of this agreement demonstrates a level of cross-border expertise necessary to prevent such tactical errors from the outset.

Important exceptions to the domicile rule

While the defendant's domicile is the general rule, the Brussels I bis Regulation includes several important exceptions that are highly relevant for commercial contracts:

• Place of Performance: In matters relating to a contract, you can sue in the courts for the place where the contractual obligation was, or should have been, performed. For a contract for services, this would be where the services were provided.
• Exclusive Jurisdiction Clauses: Businesses can, and often should, include a clause in their contracts that specifies which country's courts will have exclusive jurisdiction to hear any disputes. This provides certainty and is a powerful tool for risk management that ARROWS lawyers can help you draft effectively.

Initiating your claim: A step-by-step guide to Czech civil procedure

Once jurisdiction in the Czech Republic is established, the process of formally starting a legal claim begins. The Czech system is structured and methodical, with clear steps that, when understood, can be navigated efficiently.

The pre-litigation phase: The strategic first move

Before filing a lawsuit, the standard professional practice in the Czech Republic is to send a formal pre-action demand letter (předžalobní výzva). While not always a strict legal requirement in commercial disputes, unlike certain debt collection cases in Denmark, this step is strategically vital. It demonstrates good faith to the court and often serves as a final, powerful catalyst for settlement, potentially resolving the dispute without the need for litigation.

Filing the Lawsuit (Žaloba)

If the pre-litigation demand does not resolve the issue, the next step is to file a formal statement of claim (žaloba) with the appropriate Czech court. This document is the foundation of your entire case and must be meticulously prepared. According to the Czech Code of Civil Procedure, it must clearly state:

• The identities of the claimant and the defendant.
• A clear and concise description of the relevant facts of the case.
• The evidence you intend to rely on (e.g., contracts, invoices, correspondence).
• Precisely what you are asking the court to order (the petitum), such as payment of a specific sum or performance of a contractual duty.

The court's initial actions and the electronic payment order

After the lawsuit is filed, the court reviews it for formal correctness and serves it on the defendant. For straightforward monetary claims, Czech courts frequently use an expedited procedure called an Electronic Payment Order (elektronický platební rozkaz).

This is a court order demanding payment that is issued without a hearing. The defendant then has a strict 15-day deadline to either pay the amount or file a formal objection (odpor). If they do neither, the payment order becomes a final and legally enforceable judgment. The existence of this rapid mechanism can be a significant advantage, turning the threat of litigation into a tangible and immediate risk for the defendant, which can be leveraged in settlement negotiations.

Which court will hear your case?

In the Czech Republic, civil and commercial cases are typically heard in one of two types of courts at the first instance. Most standard commercial disputes begin in the District Courts (okresní soudy). However, more complex or specialized matters, such as disputes involving intellectual property, unfair competition, or certain corporate law issues, are handled by the Regional Courts (krajské soudy), which have specialized judicial panels.

FAQ – Legal tips about starting a lawsuit in the Czech Republic

1. What is the most important document to start a lawsuit?
The statement of claim, or žaloba, is the foundational document. It must be comprehensive and precisely drafted, as it frames the entire legal dispute. Our lawyers are ready to assist you – email us at office@arws.cz.

2. Can I file a claim in English?
No, all official court proceedings and filings in the Czech Republic must be in the Czech language. ARROWS provides comprehensive services, including certified translations and full representation in Czech. Get tailored legal solutions by writing to office@arws.cz.

3. How quickly must the other party respond?
If the court issues an Electronic Payment Order, the defendant has only 15 days to object. In a standard proceeding, the court will set a reasonable deadline for the defendant to file their statement of defense. For immediate assistance, write to us at office@arws.cz.

Navigating the courtroom: Key differences between Czech and Danish litigation

For a Danish company, understanding the procedural and cultural differences between the two legal systems is key to developing a successful litigation strategy. What is standard practice in a Copenhagen courtroom may not be in Prague, and being aware of these distinctions can prevent critical errors.

Digital vs. traditional procedures

The Danish court system is highly digitized, with civil cases managed almost entirely online through the minretssag.dk portal. While the Czech system is modernizing, it still retains more traditional, paper-based elements. Foreign clients should be prepared for a process that may involve more formal written submissions and less digital interaction than they are accustomed to in Denmark.

The role of legal representation

In Denmark, attorneys-at-law (Advokat) are generally the only professionals permitted to represent clients in court. The Czech system is slightly different. While legal representation is not strictly mandatory in all first-instance proceedings, it is overwhelmingly advisable for any commercial dispute of significance. Furthermore, representation by a licensed lawyer becomes mandatory for certain advanced stages, such as filing an extraordinary appeal (dovolání) to the Supreme Court.

Evidence and hearings: A fundamental mindset shift

This is perhaps the most significant difference. The Danish system is built on the principle of negotiation (forhandlingsprincippet), which is fundamentally adversarial. The court is a passive arbiter and can only base its decision on the arguments and evidence the parties choose to present.

The Czech civil procedure, while primarily adversarial, retains some inquisitorial features from its civil law heritage. This means that while the parties are responsible for bringing evidence, the judge has the power to take a more active role. A Czech court can, if it deems it necessary to ascertain the true facts of the case, consider evidence that neither party has formally proposed. This requires a strategic shift: you must build a comprehensive case from the start and cannot assume the court will only consider a narrow set of facts presented by the parties.

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The emphasis on written vs. oral proceedings

In Danish litigation, the final oral hearing is the central event where the case is argued and evidence is presented live. In the Czech Republic, while the oral hearing is also critical, there is often a greater emphasis on the exchange of detailed written submissions throughout the proceedings. The hearing then serves to clarify these written arguments, hear witness testimony, and allow for final pleadings.

Risks and penalties	How ARROWS helps
Assuming a passive court: Relying on a purely adversarial strategy and failing to present all relevant facts and evidence upfront. This can lead to the court disallowing crucial evidence later or drawing unfavorable conclusions.	Case Strategy & Evidence Preparation: We build a comprehensive case from the outset, tailored to the active role of the Czech courts. Need help? Email office@arws.cz.
Misunderstanding strict deadlines: The Czech legal system has absolute deadlines, such as the 15-day period for appealing an administrative fine. Missing a deadline can mean forfeiting your right to appeal entirely.	Deadline Management & Representation: Our team meticulously tracks and manages all critical deadlines to protect your legal rights at every stage. For immediate assistance, write to us at office@arws.cz.
Navigating a less-digitized system: Attempting to manage filings and communications from abroad without local support can result in procedural errors, missed notices, and costly delays.	Local Court Representation: As a leading Czech law firm in Prague, EU, our team handles all court filings and communications efficiently, acting as your seamless local presence. Contact us at office@arws.cz.

The financial realities: Comparing legal costs and timelines

For any business, the critical questions of "how much will this cost?" and "how long will this take?" are paramount. The cost structures and timelines for litigation in the Czech Republic and Denmark have important differences that can significantly impact your budget and strategy.

The "loser pays" principle and what it really means

Both the Czech Republic and Denmark operate on the "loser pays" principle, where the unsuccessful party is typically ordered to reimburse the successful party's legal costs. However, the crucial detail lies in how much of those costs are actually recoverable. This is where the two systems diverge significantly.

A breakdown of litigation costs

Court fees:

• Czech Republic: Court fees are calculated as a percentage of the value of the claim. For monetary claims over CZK 20,000, the fee is 5% of the amount, up to a claim value of CZK 40 million. This makes the initial cost of filing directly proportional to the amount at stake.
• Denmark: The system involves a smaller initial filing fee (e.g., DKK 1,500 for claims over DKK 100,000) followed by a larger, tiered hearing fee that is also based on the case value but is capped.

Attorney's fees and the "recovery gap":

This is the most critical financial distinction for a foreign company to understand.

• Denmark: A Danish court has the discretion to order the losing party to pay the winner's costs, based on what it considers reasonable and necessary for the proper conduct of the case. While not always a 100% recovery, the amount awarded is linked to the actual legal work performed.
• Czech Republic: The amount of attorney's fees that a court will award for reimbursement is not based on your actual agreement with your lawyer. Instead, it is calculated according to a statutory fee schedule known as the "lawyer's tariff" (Decree No. 177/1996 Coll.). This tariff often results in a recoverable amount that is significantly lower than the actual fees charged by a law firm for complex international work. This creates a "recovery gap"—a portion of your legal spend that you will not get back, even if you win the case completely.

Expected timelines

Managing business expectations regarding the duration of a dispute is essential. In the Czech Republic, the average length of a first-instance civil proceeding is around 281 days. However, this is just an average. More complex commercial disputes heard at the Regional Court level can take 4.5 years to reach a final conclusion if an appeal is filed. Planning for these potential timelines is a key part of any sound litigation strategy.

Risks and penalties	How ARROWS helps
The "Recovery Gap": Winning your case but being unable to recover a significant portion of your actual legal fees due to the limitations of the Czech lawyer's tariff.	Legal Cost Analysis: We provide transparent budgets from the start, clearly explaining the potential recovery gap so you can make informed financial decisions. Get tailored legal solutions by writing to office@arws.cz.
Protracted litigation: A complex case dragging on for years, leading to escalating legal costs, significant management distraction, and prolonged financial uncertainty.	Efficient Case Management: Our deep experience with the Czech courts allows us to streamline the process, avoid unnecessary delays, and push for the most efficient resolution possible. Our lawyers are ready to assist you – email us at office@arws.cz.
Underestimating total costs: Failing to budget for necessary expenses beyond attorney's fees, such as court-appointed expert witnesses, certified translations, and other disbursements.	Comprehensive Litigation Budgeting: We help you anticipate all potential costs associated with the dispute, providing a realistic and complete financial picture. Need legal help? Contact us at office@arws.cz.

From judgment to enforcement: Making your legal victory count

Winning a judgment in court is only half the battle; the final step is ensuring that judgment is enforced and you receive what you are owed. Thanks to the EU's integrated legal system, this process is now remarkably streamlined between the Czech Republic and Denmark.

Enforcement within the Czech Republic

If the losing party has assets in the Czech Republic, a favorable judgment can be enforced through a powerful domestic process known as exekuce. This is carried out by a court-appointed executor and can involve decisive actions like freezing bank accounts, seizing property, and garnishing receivables to satisfy the debt.

Cross-Border Enforcement: A Seamless EU Process

The true power of the Brussels I bis Regulation becomes apparent at the enforcement stage. A judgment issued by a Czech court is automatically recognized and enforceable in Denmark without needing to go through any intermediate proceedings or obtaining a declaration of enforceability (exequatur).

This eliminates what was once a major hurdle in cross-border litigation. The process is now primarily administrative:

1. Obtain the final judgment from the Czech court.
2. Request the court to issue a standard EU form known as the Annex I certificate, which confirms the judgment is enforceable.
3. Present the judgment and the certificate to the appropriate enforcement authority in Denmark.

The Danish authorities are then obligated to enforce the Czech judgment as if it were one of their own.

The ARROWS International advantage

While the legal framework is simple, practical challenges can still arise, such as locating the debtor's assets in another country. This is where our global reach becomes your advantage. As an international law firm operating from Prague, European Union, ARROWS has spent over 10 years building its ARROWS International network, with trusted legal partners in 90 countries worldwide. If enforcement issues arise in Denmark, we can seamlessly coordinate with our local counterparts to ensure your judgment is executed quickly and effectively.

Risks and penalties	How ARROWS helps
Debtor hiding assets: The losing party attempts to move or conceal assets in Denmark to frustrate collection efforts, turning your legal victory into a hollow one.	Cross-Border asset tracing: Through our ARROWS International network, we can coordinate with local experts to help identify and secure assets for enforcement. Do not hesitate to contact our firm – office@arws.cz.
Incorrect documentation: Submitting improperly prepared EU enforcement forms or certificates to the Danish authorities, leading to rejection and significant delays in payment.	Drafting legally required documentation: Our lawyers ensure that all necessary certificates and forms are meticulously prepared to meet all cross-border requirements for seamless enforcement. Get tailored legal solutions by writing to office@arws.cz.
Local enforcement challenges: The debtor raises unexpected procedural objections or legal challenges within the Danish enforcement system, requiring a local legal response.	International network representation: We liaise directly with our trusted Danish legal partners to handle any local challenges swiftly, protecting your interests without you needing to find new counsel. For immediate assistance, write to us at office@arws.cz.

Your strategic partner in Prague: Why ARROWS is the right choice

Navigating a commercial dispute in the Czech Republic requires more than just legal knowledge; it demands a partner who understands the nuances of both the local legal culture and the expectations of a foreign business. The challenges are clear: a different procedural mindset, a unique cost recovery system, and the practicalities of cross-border execution.

ARROWS is uniquely positioned to be that partner. Our strength lies in combining deep, specialized knowledge of Czech law with a sophisticated understanding of international business and foreign legal systems. We have a proven track record, supporting over 150 joint-stock companies and 250 limited liability companies in their operations.

Our ARROWS International network, built over a decade and spanning 90 countries, provides the global reach necessary to handle complex cross-border matters effectively. From our base in Prague, we serve as a legal anchor for international clients operating in Central Europe, offering a full suite of services, from initial legal opinions and contract review to full representation in court and robust assistance with international enforcement.

Don't navigate Czech commercial litigation alone. Let our experience be your advantage. For a confidential consultation on your specific situation, contact our team of experts today at office@arws.cz.

FAQ – Most common legal questions about Czech-Danish Litigation

1. What language will the Czech court proceedings be in?
All official court proceedings, including all written filings and oral hearings, are conducted exclusively in the Czech language. We provide comprehensive legal representation that includes managing all translation and interpretation needs. Need legal help? Contact us at office@arws.cz.

2. Can a Czech court issue an interim measure to freeze assets before a final judgment?
Yes. If there is a demonstrable risk that the future enforcement of a judgment could be jeopardized, a party can apply for an interim measure (předběžné opatření) to freeze the defendant's assets pending the outcome of the case. Our lawyers are ready to assist you – email us at office@arws.cz.

3. Is a contract signed electronically in Denmark valid in a Czech court?
Yes, under the EU's eIDAS Regulation, electronic signatures have legal effect and are admissible as evidence in legal proceedings across all member states, including the Czech Republic. We can provide a legal opinion on the validity of specific contractual arrangements. Get tailored legal solutions by writing to office@arws.cz.

4. How long do I have to file a claim in the Czech Republic (statute of limitations)?
The general statute of limitations (promlčecí lhůta) for commercial claims in the Czech Republic is three years from the date the right could be exercised for the first time. However, specific types of claims can have shorter periods, so it is crucial to seek legal advice promptly. Do not hesitate to contact our firm – office@arws.cz.

5. Can we choose to use arbitration instead of the Czech courts?
Yes. If both parties agree, either in the original contract or after a dispute arises, you can use arbitration to resolve the matter. Arbitration awards are also readily enforceable across the EU. ARROWS provides full representation in both domestic and international arbitration proceedings. For immediate assistance, write to us at office@arws.cz.

6. What happens if the defendant is an individual, not a company?
The principles of jurisdiction and enforcement under the Brussels I bis Regulation apply equally to individuals and companies. The main rule of suing the defendant in the country of their domicile still applies. Our firm can advise on the specifics of litigating against individuals. Need legal help? Contact us at office@arws.cz.

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