How Bosnian Firms Can Pursue Disputes in the Czech Republic: Practical Guidance for Litigation

For Bosnian companies dealing with commercial disputes in the Czech Republic, securing professional legal representation is the only way to effectively protect assets and recover debts. As a leading Czech law firm in Prague, EU, ARROWS provides the cross-border expertise necessary to navigate the complexities of international litigation and enforcement.

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.

Why Litigation in the Czech Republic is Different for Bosnian Firms

The trade relationship between Bosnia and Herzegovina and the Czech Republic is strong, yet when business deals turn into disputes, the legal reality changes sharply. Because Bosnia is not yet a member of the European Union, the simplified enforcement regulations applicable between EU member states do not automatically apply. This places Bosnian plaintiffs in a specific position governed by the Czech Act on Private International Law and specific bilateral treaties.

Many foreign investors assume they can simply translate a lawsuit filed in Sarajevo and submit it in Prague. This is a critical mistake. The procedural rules regarding jurisdiction, service of documents, and evidence admissibility are strictly formalistic in the Czech Republic. A minor administrative error can lead to the dismissal of a claim before the merits are even heard.

Navigating these procedural hurdles requires a law firm based in Prague, European Union, that understands both the local environment and the specific needs of non-EU clients.

Establishing Jurisdiction and Applicable Law

The first hurdle is determining where the lawsuit must be filed. Generally, you must sue the defendant in the court of their domicile (seat of the company). If your debtor is a Czech company, you must litigate in Czech courts, usually under Czech procedural law.

However, the governing law of the contract—the actual rules deciding who is right or wrong—might be Czech law, Bosnian law, or even a neutral law like Swiss law, depending on what was agreed in your contract. Applying foreign law in Czech courts is possible, but it requires expert legal argumentation to prove the content of that foreign law to the judge.

If you are unsure which court has jurisdiction or which law applies, do not guess; contact us immediately at office@arws.cz.

Why You Cannot "Do It Yourself"

While it might be tempting to handle initial debt collection attempts internally, the Czech legal system is notoriously complex regarding formalities. Steps that appear simple—like sending a pre-litigation demand letter—have strict statutory requirements. If the demand letter is not drafted correctly, you may lose your right to claim reimbursement for legal costs later in court.

Furthermore, Czech courts communicate primarily through a mandatory electronic system known as "Data Boxes" (datové schránky). Most Bosnian entities do not have access to this system, meaning you effectively cannot communicate with the court without a local representative.

ARROWS handles this agenda daily, ensuring that no deadline is missed due to technical barriers, significantly reducing your risk and saving time.

Jurisdiction and Initial Filing

Risks and penalties	How ARROWS helps (office@arws.cz)
Dismissal for Lack of Jurisdiction Filing in the wrong court leads to immediate dismissal and loss of court fees.	Jurisdictional Analysis We determine the correct forum before you spend a single Euro.
Cost of Proceedings Loss Failing to send a specialized "pre-suit notice" means you pay your own legal fees even if you win.	Pre-litigation Services We draft compliant demand letters to secure your right to cost reimbursement.
Language Barrier Czech courts conduct proceedings strictly in the Czech language. Documents in Bosnian are inadmissible without certified translation.	Certified Translation & Representation We manage all necessary translations and represent you natively in court.

FAQ – Legal tips about Starting a Lawsuit

• Do I have to travel to Prague for every hearing?
  No. In commercial disputes, parties are rarely required to appear in person if they are represented by counsel. Our lawyers can represent you fully based on a power of attorney – email us at office@arws.cz.
• Can I get my money back quickly without a full trial?
  A: Yes, via a "Payment Order" (platební rozkaz). If the court issues this and the debtor does not object within 15 days, it becomes a binding judgment. However, strict evidence rules apply; let us assess your claim at office@arws.cz.

Securing Your Assets Before the Judgment

Litigation can take time. A common risk is that a debtor, realizing they will lose, starts stripping assets from their company. By the time a Bosnian firm gets a judgment, the Czech entity might be an empty shell.

To prevent this, we often recommend applying for interim measures (předběžné opatření). This allows the court to freeze the debtor's bank accounts or real estate assets while the lawsuit is pending. Drafting a successful motion for interim measures is one of the most difficult tasks in civil procedure and requires precise evidence of immediate danger.

ARROWS is an international law firm operating from Prague, European Union, with the experience to act swiftly in these urgent situations.

Enforcement and Asset Protection

Risks and penalties	How ARROWS helps (office@arws.cz)
Asset Dissipation The debtor transfers property to relatives or offshore companies during the lawsuit.	Interim Measures We petition the court to freeze assets immediately.
Unenforceable Judgment A judgment obtained in Bosnia may be refused recognition in CZ if specific defense rights were violated.	Exequatur Proceedings We ensure your Bosnian judgment meets criteria for recognition in the EU.
Statute of Limitations Waiting too long to sue can make a valid debt legally unrecoverable (often just 3 years).	Urgent Filing We file lawsuits immediately to stop the limitation clock.

Why Choose ARROWS Law Firm?

We are a safe European harbour for your legal matters. Our firm is not just a local office; we operate globally in 90 countries and support over 150 joint-stock companies and 250 limited liability companies. We understand the pressure on CEOs and legal departments to resolve disputes efficiently.

We are insured for damages up to CZK 500 million, providing you with a level of security that smaller boutique firms cannot offer.

We also recognize that litigation is an investment. We always analyze the debtor’s financial health before advising you to sue. We are here to solve problems, not just bill hours. If the reader does not want to risk procedural errors, damages, or fines, they can safely leave the whole matter to ARROWS.

Our lawyers are ready to assist you – email us at office@arws.cz.

FAQ – Most common legal questions about Litigation in CZ

1. Can I use a Bosnian lawyer to represent me in a Czech court?
No. While your in-house counsel can collaborate with us, only a lawyer admitted to the Czech Bar Association can represent you in Czech civil proceedings. We regularly partner with corporate lawyers from abroad. For professional representation, write to us at office@arws.cz.

2. How long does a commercial lawsuit take in the Czech Republic?
A simple electronic payment order can be resolved in weeks. A complex dispute with hearings and evidence usually takes 1–3 years. Speed often depends on the quality of the initial filing. To speed up your process, contact us at office@arws.cz.

3. If I win, does the other side pay my legal fees?
Generally, yes. The "loser pays" principle applies, but the amount is calculated based on statutory tariffs, not necessarily your actual bill. We will calculate your potential recovery in advance. Get a cost estimate by writing to office@arws.cz.

4. Is it possible to settle out of court?
Absolutely. We often negotiate settlements after filing the lawsuit but before the hearing, as this puts pressure on the debtor. We are skilled negotiators. For negotiation support, contact our firm – office@arws.cz.

5. What documents do I need to start?
We need the contract, invoices, delivery notes, and any correspondence (emails) where the debtor acknowledged the debt or disputed it. Send your documents for a preliminary review to office@arws.cz.