How Greek Companies Can Litigate in the Czech Republic

Need advice on this topic? Contact the ARROWS law firm by email consultation@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

Your business dispute: Navigating the Czech legal system

When a Czech business partner breaches a contract or a commercial dispute arises, foreign executives face a significant challenge. The problem is not just the dispute itself; it is the anxiety of facing an unfamiliar legal system in a different language.

ARROWS is uniquely positioned to be your partner. We work with multinational corporations, foreign investors, family businesses, and SMEs expanding in the European Union. Our lawyers do not just translate language; we translate legal culture. We understand the commercial mindset of our Greek clients and know how to frame your objectives effectively for a Czech court.

First, where will your case be heard? (Jurisdiction in the EU)

For two EU member states like Greece and the Czech Republic, the primary rulebook is Regulation (EU) No 1215/2012, commonly known as the "Brussels I-bis Regulation". This regulation ensures a unified and predictable system for cross-border litigation.

The general rule is simple: you must sue a company in the EU country where it is "domiciled," which means its registered office. If your dispute is with a Czech company, the primary venue will be the Czech courts.

However, the Regulation provides crucial exceptions, known as "special jurisdiction," which are vital for commercial claims:

• Breach of Contract: A case can be heard in the courts for the "place of performance" of the obligation. If your Czech partner was required to deliver goods or make a payment to you in Prague, the Czech courts have jurisdiction.
• Non-Contractual Matters (Torts): A case can be heard in the "place where the harmful event took place". If your company’s reputation was damaged by an act of unfair competition in the Czech market, you can file your claim here.

The first step is a strategic analysis. ARROWS provides a legal opinion to determine the best and most cost-effective jurisdiction for your case. Need to know your options? Contact us at consultation@arws.cz.

What are the key differences from Greek litigation?

Understanding the unique features of the Czech legal system is not just academic; it is essential to prevent critical, and often costly, mistakes. Foreign companies that assume the process is "the same as back home" face significant risks.

The "Civil law" system: No US/UK-Style "discovery"

The Czech Republic is a "Civil Law" jurisdiction. This means there is no broad, pre-trial "discovery" or "disclosure" phase common in Common Law systems.

This is a critical trap. A company cannot file a general claim and then hope to use the court process to "discover" evidence, emails, and documents from the other side.

In the Czech system, the burden of proof is on the plaintiff (the one suing) from the very beginning. The Czech Code of Civil Procedure requires you to state all decisive facts and submit or identify all supporting evidence in your initial lawsuit, known as the žaloba. You must build your complete case before you file, not during.

ARROWS’ legal consultations focus on building this "front-loaded" evidentiary strategy before filing the žaloba, ensuring your case is robust from day one.

The 'Datová schránka' (Data Box): A critical digital mailbox

This is the single greatest procedural risk for a foreign company operating in the Czech Republic.

The Datová Schránka (Data Box) is not a simple email inbox. It is a mandatory, secure, state-run digital mailbox for all legal entities registered in the Czech Republic, including foreign-owned ones.

All official documents from Czech courts and public authorities—including lawsuits, court summons, and fines—are sent only to this Data Box. The system operates on a 10-day "deemed delivery" rule.

If a lawsuit is delivered to your company's Data Box, it is considered legally served after 10 days, even if you never open it. The court will then proceed, and you could lose the entire case by a default judgment without ever knowing you were being sued.

As part of our representation before public authorities, ARROWS manages and monitors our clients' Data Boxes. This is an essential service to ensure no deadline is ever missed. For help securing your Data Box, email us at consultation@arws.cz.

Critical procedural risks for foreign companies

What does the Czech commercial lawsuit process look like?

Understanding the stages of litigation can help you manage your expectations regarding timeline and cost.

A. Filing the Lawsuit (Žaloba)

The process officially begins when the plaintiff files a formal lawsuit, or žaloba, with the competent court. As noted, this document must be procedurally flawless and include all key facts, legal arguments, and supporting evidence from the start.

B. Which Court? District vs. Regional

The Czech Republic has a two-tier "first instance" system for commercial cases.

• District Courts (okresní soudy): These courts handle most general civil and commercial matters.
• Regional Courts (krajské soudy): These higher courts handle more complex or specialized commercial cases at the first instance. This includes disputes concerning intellectual property, unfair competition, and most corporate law matters (like disputes between a company and its executives).

Part of our initial legal analysis is ensuring the žaloba is filed at the correct court. Filing in the wrong venue is a common error that can cause months of delays.

C. How much will it cost?

There are two main types of costs to consider:

1. Court Fees: These are fixed by law. For monetary claims, the court fee is typically 5% of the amount in dispute (for claims up to CZK 40 million). This fee must be paid by the plaintiff upon filing.

2. Attorneys' Fees & The "Loser Pays" Rule: The Czech Republic follows a "loser pays" principle. However, the amount the losing party must reimburse is not based on your actual hourly attorney bill. It is calculated based on a fixed "lawyer's tariff" (a decree from the Ministry of Justice). This reimbursed amount may be less than your actual legal costs.

ARROWS provides clear, transparent fee agreements and offers legal consultations to realistically estimate both the potential costs and the potential for recovery before you commit.

D. How long will it take?

While some complex court proceedings in the Czech Republic have a reputation for being long, a routine commercial case at the first instance can often be resolved "within a year, often even faster".

Our firm is known for "speed and high quality". As an international law firm operating from Prague, European Union, we are structured to resolve disputes efficiently, whether through litigation or strategic international arbitration.

You won in a Greek court. How do you enforce the judgment in Prague?

This is a common scenario where our international clients need help. You have already won your case in Athens or Thessaloniki and now need to collect from the debtor’s assets in the Czech Republic.

The process is much simpler than many believe. Thanks to the Brussels I-bis Regulation, the old, slow process of having a foreign judgment "recognized" (exequatur) has been abolished between EU members.

A final, enforceable judgment from a Greek court is directly enforceable in the Czech Republic as if it were a domestic Czech judgment.

The "Golden Ticket": The annex I certificate

The practical steps are straightforward:

1. Your Greek lawyer must ask the Greek court that issued the judgment to also issue a standard form called the "Annex I certificate".

2. This certificate, along with a copy of the judgment itself, is the "golden ticket" for enforcement.

A key practical trap, however, is translation. While EU regulations suggest only the certificate may need translation, Czech enforcement practice is stricter. Local courts and bailiffs routinely demand a certified translation (soudní překlad) of the entire foreign judgment into Czech.

While some may argue this point with the court, this only causes delays and gives the debtor time to move assets. Our pragmatic approach is to prepare the drafting of all legally required documentation, including the certified translation, in advance to ensure enforcement is immediate.

We then provide full representation before public authorities by filing your documents with the competent Czech court bailiff (soudní exekutor) to begin seizing assets.

Failures in enforcing foreign judgments

How ARROWS becomes your essential partner in the Czech Republic

While EU regulations provide a common framework, success in the Czech courts depends on expert local execution.

As a law firm based in Prague, European Union, we provide the deep local knowledge you need to win. Through our ARROWS International network, built over 10 years and operating in 90 countries, we manage complex cross-border matters seamlessly.

Our firm is built for "speed and high quality". Our experts support over 150 joint-stock companies and 250 limited liability companies, and we are ready to protect your interests at every stage.

Our services for your Greek company include:

• Legal consultations to assess your case and develop a litigation strategy.
• Contract drafting or review to prevent future disputes.
• Full representation in court and before all Czech public authorities.
• Drafting all legally required documentation, from the initial žaloba to the final enforcement application.
• Professional training for your employees on Czech compliance to prevent future fines or legal risks.

Do not navigate the Czech legal system alone. Protect your investment and ensure your rights are enforced.Our lawyers are ready to assist you – email us at consultation@arws.cz.