Arbitration, a type of alternative dispute resolution (ADR), is a cost-effective method used to resolve disputes outside the courts by appointing an impartial and independent arbitrator. This procedure is commonly used as a substitute for civil proceedings in resolving property disputes.

Arbitration in the Czech Republic is regulated by Act No. 216/1994 Coll., On Arbitration and the Enforcement of Arbitration Awards, as amended, which entered into force on 1 January 1995. Arbitration resolves all disputes of a material nature, with the exception of disputes arising in connection with the enforcement of decisions and incidental disputes.

The traditional focus of dispute resolution through arbitration is commerce, specifically in relation to domestic and foreign trade. Arbitration may consist of proceedings before one or more arbitrators, who are appointed by stakeholders in a particular dispute ("ad hoc" proceedings). Eventually, arbitration may take the form of proceedings before a statutory institutional arbitral tribunal (institutional arbitration).

What do we decide?

  • Property disputes. Arbitration of property disputes between entities based in the Czech Republic.
  • Other disputes. Arbitration of property disputes between entities, of which at least one entity is foreign.

Advantages of arbitration proceedings before the Arbitration court:

  • is single instance, speedy and less formal. Arbitration is not public, so its speed and lower costs compared to the ordinary court proceedings, are considered to be its greatest advantage. The duration of arbitration proceedings is often only few months or even few weeks. Upon delivery of a decision to the participants in the dispute, the arbitration award becomes final and enforceable.
  • good enforceability of arbitration awards. The New York convention of 1958 offers the possibility of recognition and enforcement of arbitration awards in all states that have ratified the treaty.
  • reasonable costs of arbitration proceedings. The arbitration fee is 3 % of the value of the dispute, but not less than 5.000 EUR. In the event that one of the participants to the dispute has their registered office outside the territory of the Czech Republic, the reward is increased by 100 %.

Arbitration proceedings may be initiated through the Commerce Chamber and the Agrarian Chamber of the Czech Republic or directly by filing a legal action and signing the Arbitrator's arbitration clause.

Arbitration clause

  1. Participants agree that all disputes arising out of, or in connection with, this Agreement, as well as any disputes that might arise out of, or in connection with, this Agreement, including violations of this Agreement (hereinafter referred to as “dispute”), will be decided in arbitration proceeding in accordance with Act No. 216/1994 Coll., on Arbitration and Enforcement of Arbitral Awards, as amended (hereinafter referred to as “ZOR”).
  2. Pursuant to § 7 para. 1 ZOR, the contracting parties expressly authorize the executives of the Law Office Zaripov & Partners s.r.o., with its registered office at Václavské náměstí 775/8, 110 00 Praha 1 - Nové Město, IČ 080 08 647, namely Mgr. Sergei Zaripov, lawyer, ev. No. ČAK 18682, who is also on the list of arbitrators at the Arbitration Court at the Chamber of Economic of the Czech Republic and the Chamber of Agriculture of the Czech Republic, to become an arbitrator and resolve all disputes related to this Agreement and the arbitration clause.
  3. Contracting parties agree that the dispute will be settled without an oral hearing, on the basis of documentary evidence submitted by participants, in accordance with the principles of fairness of the Arbitration Rules issued by the Arbitrator. Contracting parties expressly declare that, before signing the arbitration agreement, they have had the opportunity to get acquainted with the Rules of Procedure for Arbitration, which are publicly located on the website, that they have done so and consider the documents an integral part of this agreement. The arbitral award does not have to contain a statement of reasons. The arbitral award is 3% of the value of the dispute, but at least EUR 5,000. In the event that one of participants to the dispute has its registered office outside the territory of the Czech Republic, legal fees increase by 100%.

Rozhodčí doložka rozhodčího soudu

Všechny spory vznikající z této smlouvy a v souvislosti s ní budou rozhodovány s konečnou platností u Rozhodčího soudu při Hospodářské komoře České republiky a Agrární komoře České republiky podle jeho řádu jedním rozhodcem Mgr. Sergeyem Zaripovem.

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