How can a Norwegian company litigate in the Czech Republic

For any Norwegian company operating in the Czech Republic, a commercial dispute can seem like a daunting prospect. This guide provides clear, practical answers to your most pressing legal concerns, from determining which country’s courts have jurisdiction to enforcing a final judgment. As a leading law firm based in Prague, European Union, with extensive experience assisting foreign clients, ARROWS provides the expertise you need to navigate the Czech legal system with confidence.

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 first hurdle: Establishing jurisdiction in a Czech-Norwegian dispute

The first and most critical question in any cross-border dispute is determining which country's courts have the authority to hear the case. Fortunately, for Norwegian companies, litigation involving a Czech partner is not governed by a patchwork of unpredictable national laws. Instead, it operates under a clear and stable international framework that provides significant legal certainty.

The lugano convention (2007): Your rulebook for cross-border disputes

Litigation between the Czech Republic, an EU member state, and Norway, a member of the European Free Trade Association (EFTA), is governed by the 2007 Lugano Convention. This international treaty is designed to create a harmonized and predictable judicial area, effectively extending the EU's internal rules on jurisdiction and enforcement of judgments to key partners like Norway, Iceland, and Switzerland.

For Norwegian businesses, this framework transforms the complex landscape of international jurisdiction into a manageable and predictable environment. This legal certainty is not merely a procedural convenience; it is a powerful de-risking instrument that fosters the confidence needed for successful cross-border trade and investment. It ensures that the rules of engagement are clear from the outset, preventing costly and time-consuming battles over where a lawsuit should be heard.

The general rule: Suing at the defendant's home court

The foundational principle of the Lugano Convention is straightforward: a defendant should be sued in the courts of the country where they are domiciled. This principle, known in legal terms as actor sequitur forum rei, means the plaintiff follows the court of the defendant.

For a company, domicile is generally its registered office, central administration, or principal place of business. Therefore, if your Norwegian company has a claim against a Czech business partner, the default venue for the lawsuit is the Czech Republic. Conversely, if a Czech company sues your Norwegian firm, the case would typically be heard in Norway.

Crucial exceptions for business: Special jurisdiction

While the general rule provides a clear baseline, the Lugano Convention recognizes that commercial activities often span multiple countries. It therefore provides several important exceptions, known as "special jurisdiction," which offer strategic alternatives that are highly relevant for business disputes.

Contract disputes

In matters relating to a contract, a company can be sued in the courts for the "place of performance of the obligation in question". For the sale of goods, this is the place where the goods were delivered or should have been delivered. For services, it is the place where the services were provided or should have been provided. This rule gives a claimant a valuable strategic choice, allowing them to initiate legal action in a jurisdiction that may be more convenient or favorable.

Torts and non-contractual claims

For non-contractual claims—such as those involving unfair competition, intellectual property infringement, or negligence—a lawsuit can be filed in the courts for the "place where the harmful event occurred or may occur". This allows a company to sue either where the damaging act was committed or where the negative consequences were felt, providing significant flexibility in choosing a venue.

The ultimate strategic tool: The choice-of-court agreement

The most powerful tool for managing cross-border litigation risk is a choice-of-court agreement, also known as a jurisdiction clause, included in your commercial contracts. The Lugano Convention gives strong legal effect to these agreements. If the parties have agreed that the courts of a particular country will have jurisdiction, those courts will generally have precedence over all others.

Proactively including a well-drafted jurisdiction clause provides certainty and control, preventing future disputes over where a case should be heard. ARROWS lawyers excel at drafting and reviewing international commercial contracts to include robust, enforceable jurisdiction clauses that protect your interests. For assistance, contact us at office@arws.cz.

The Czech litigation roadmap: A step-by-step guide for Norwegian companies

Once jurisdiction is established in the Czech Republic, the lawsuit proceeds according to the Czech Code of Civil Procedure (Act No. 99/1963 Coll.). Understanding these local rules is essential for success. The process is methodical and structured, with formal "gates" that prioritize efficiency and create opportunities for settlement. A successful strategy must be comprehensive and prepared from the very beginning.

Contact our experts:

The pre-litigation phase: A critical first step

Before a lawsuit is filed, Czech law requires a crucial preliminary step: the pre-action notice (předžalobní výzva). Under Section 142a of the Code of Civil Procedure, a claimant who is ultimately successful in court is only entitled to reimbursement of their legal costs if they sent the defendant this formal notice at least seven days before filing the claim.

This notice serves as a final formal warning and gives the debtor one last chance to settle the claim without incurring court and legal fees. Overlooking this step can have significant financial consequences; you could win your case but be forced to bear your own legal costs. ARROWS provides expert drafting of pre-action notices to ensure full compliance. Get tailored legal solutions by writing to office@arws.cz.

Initiating the lawsuit: Filing the žaloba

A lawsuit is formally initiated by filing a statement of claim (žaloba) with the competent court. This document is the foundation of the entire case and must clearly state:

• The identification of the parties.
• A detailed description of the relevant facts.
• The evidence being relied upon to support the facts.
• Precisely what the plaintiff is demanding from the defendant (the "petition").

A court fee, typically calculated as a percentage of the amount being claimed, must be paid upon filing the žaloba.

Which court hears your case?

The Czech court system has four tiers, but for the initiation of most commercial disputes, two are relevant: District Courts (okresní soudy) and Regional Courts (krajské soudy). While District Courts handle general civil matters, more complex and significant commercial cases—including disputes related to corporate law, intellectual property, and unfair competition—are heard at first instance by the Regional Courts. This ensures that your case is handled from the outset by judges with specialized experience in commercial law.

The court process unfolded

After the žaloba is filed, the process typically follows these steps:

1. Service and Response: The court serves the claim on the defendant, who is given a deadline (often 30 days) to file a written statement of defense.

2. Preparatory Stage: The court may order a further exchange of written statements or schedule a preliminary hearing (přípravné jednání). This hearing is used to clarify the issues in dispute, discuss the possibility of a settlement, and plan the main hearing.

3. Main Oral Hearing: The main hearing (jednání) is where the parties present their arguments and evidence directly to the court. The court’s final decision will be based on the evidence and arguments presented during this hearing.

FAQ – Legal tips about Czech court procedure

• How long does it typically take to get to trial in the Czech Republic?
  While timelines vary, it can take several months from filing a claim to the main hearing. The complexity of the case and the court's schedule are key factors. For a precise estimate based on your situation, contact our litigation team at office@arws.cz.
• Can I get an urgent protective measure, like freezing an asset?
  Yes, Czech courts can grant interim measures (předběžné opatření) quickly, sometimes without hearing the other party, to prevent irreparable harm or secure a future judgment. For immediate assistance with obtaining an interim measure, write to us at office@arws.cz.

Navigating the differences: Czech vs. Norwegian legal practices

While both the Czech and Norwegian legal systems are part of the civil law tradition, there are crucial differences in legal philosophy and court practice. A legal strategy that is effective in Oslo could be ineffective in Prague. Success requires not just translating documents, but translating the entire legal approach to align with the expectations of a Czech court.

Source of law: Codified statutes vs. precedent

The Czech legal system is rooted in the continental European (Germanic) tradition, where the primary source of law is codified statutes, such as the Czech Civil Code. Judges prioritize the strict interpretation of this written law. While previous court decisions (judikatura) are considered persuasive, they are not strictly binding precedents as they are in common law systems.

In contrast, while Norway is also a civil law country, its legal interpretation relies more heavily on legislative preparatory works and Supreme Court precedent, giving case law a stronger guiding role. A Norwegian company might assume that building a case around precedent is the best strategy, but in a Czech court, arguments must first and foremost be grounded in the text of the relevant statutes.

Evidence and language: The translation imperative

A critical and non-negotiable procedural requirement in Czech courts is the handling of foreign-language documents. All documents and written evidence submitted to the court in a language other than Czech must be accompanied by a certified translation into Czech. This translation must be performed by an official translator appointed by a Czech court.

Failing to meet this requirement will result in the evidence being deemed inadmissible, which can fatally weaken a case. Similarly, if a witness needs to testify in a foreign language, a court-appointed interpreter is required. This logistical and financial reality must be factored into any litigation strategy from the very beginning.

The role of the judge: An active adjudicator

The Czech court process contains inquisitorial features, meaning the judge takes an active role in the proceedings. While the parties have the primary responsibility to present facts and evidence (the burden of proof), the judge is not a passive referee. The court has a duty to ensure the facts of the case are reliably established and may ask questions or even, in some circumstances, seek evidence on its own initiative. There is no jury in Czech civil proceedings; the case is decided by a professional judge or a panel of judges.

Contact our experts:

Discovery: No fishing expeditions

The Czech legal system does not have a broad, US-style "discovery" process where parties can demand wide-ranging access to each other's documents. While a court can order a party or a third party to produce a specific, relevant document, this tool cannot be used for "fishing expeditions" to search for evidence. Parties are expected to build their case on the evidence they already possess or can specifically identify.

Managing litigation risks: Common pitfalls and how ARROWS helps

Operating in a foreign legal environment inevitably carries risks. Certain features of Czech commercial law can create "asymmetric risks" for foreign parties who may be unaware of their severity. A poorly drafted contract or a missed deadline can have disproportionate financial consequences. Understanding these pitfalls is the first step to avoiding them.

The smluvní pokuta: A contractual penalty with teeth

One of the most significant risks for foreign companies is the Czech contractual penalty (smluvní pokuta). Unlike penalty clauses in many other jurisdictions, the smluvní pokuta is often punitive in nature. Crucially, it is enforceable even if the other party suffered no actual financial damage from the breach. A short, ten-day delay in payment could trigger a penalty equivalent to a substantial percentage of the entire contract value, potentially erasing a project's profitability.

Statutes of limitation: A ticking clock

The time limits for bringing a legal claim (statutes of limitation) in the Czech Republic can be shorter than those in Norway for certain types of commercial claims. An Italian company, for example, might assume it has ten years to pursue a claim, only to discover too late that the Czech limit was three years. Once the deadline passes, the legal right to sue is permanently extinguished. Acting promptly is therefore essential.

The validity trap: The peril of informal agreements

While business relationships are often built on trust and informal understandings, Czech law imposes strict formal requirements for certain types of contracts. For example, an agency agreement is legally void unless it is executed in writing. A verbal agreement or an exchange of emails that might create a binding relationship in other countries could be deemed legally non-existent by a Czech court, leaving a company with no legal recourse.

Jurisdictional and Procedural Dangers

Risks and Penalties	How ARROWS Helps
Filing in the Wrong Court: Case dismissal, wasted time and legal fees, and the risk of your claim becoming time-barred.	Legal Opinion: We provide a definitive analysis of the correct jurisdiction under the Lugano Convention. Need to confirm where to file? Email us at office@arws.cz.
Ignoring the Pre-Action Notice: Winning your case but being denied reimbursement for your legal costs, resulting in a significant financial loss.	Drafting Legally Required Documentation: We ensure your pre-litigation notice meets all requirements of the Czech Code of Civil Procedure. Get tailored legal solutions by writing to office@arws.cz.
Submitting Untranslated Evidence: Key documents being rejected by the court, fatally weakening your case and leading to a negative judgment.	Litigation Support: We manage the entire process of court-certified translations, ensuring all your evidence is admissible. Our lawyers are ready to assist you – email us at office@arws.cz.
Missing a Procedural Deadline: The court may disregard late submissions or, in severe cases, issue a default judgment against you.	Representation Before Public Authorities: We manage your case timeline meticulously, ensuring all deadlines are met. For immediate assistance, write to us at office@arws.cz.

Financial and Contractual Traps in Czech Disputes

Risks and Penalties	How ARROWS Helps
Disproportionate Contractual Penalty (Smluvní Pokuta): Being forced to pay a crippling penalty for a minor breach, even if it caused no damage.	Contract Drafting or Review: We identify and renegotiate unfair penalty clauses before you sign. Need a contract reviewed? Contact us at office@arws.cz.
Expired Claim (Statute of Limitations): Losing your right to sue entirely because you were unaware of the shorter Czech limitation periods.	Legal Consultations: We assess your claim's viability and ensure timely action is taken to protect your rights. Want to understand your legal options? Email us at office@arws.cz.
Void Verbal Agreement: Discovering that your crucial business agreement is legally non-existent in the Czech Republic because it wasn't in writing.	Drafting Documentation to Prevent Fines: We ensure your commercial agreements comply with Czech formal requirements, making them fully enforceable. Get your agreements secured by writing to office@arws.cz.
Losing Party Pays Costs: Facing an order to pay not only your own legal fees but also the successful opponent's, doubling the financial impact of a loss.	Representation in Court: Our experienced litigators build the strongest possible case to maximize your chances of success. Need legal representation? Write to office@arws.cz.

From verdict to victory: Enforcing judgments across borders

A primary concern in any foreign litigation is whether a favorable judgment can actually be enforced. After investing time and resources into winning a case, you need assurance that the verdict is more than just a piece of paper. The legal framework connecting the Czech Republic and Norway provides this crucial assurance.

Enforcement within the Czech Republic

If a judgment is awarded in your favor by a Czech court and the opposing party fails to comply voluntarily, the decision can be enforced through a powerful state-sanctioned process. Enforcement is typically carried out by licensed enforcement agents (soudní exekutor), who have the authority to freeze bank accounts, seize movable property and real estate, and garnish receivables to satisfy the debt.

Enforcing a Czech judgment in Norway (and Vice Versa)

The same Lugano Convention that governs jurisdiction also ensures the "free movement of judgments" between the Czech Republic and Norway.1 This means a final and enforceable judgment obtained from a Czech court will be recognized and enforced by Norwegian courts without any review of the case's substance.

The process is streamlined and designed to be quasi-automatic. The grounds for a Norwegian court to refuse enforcement are extremely narrow and limited to exceptional circumstances, such as a violation of fundamental public policy or a failure to properly notify the defendant of the original proceedings. This efficient, cross-border enforcement mechanism is a cornerstone of the European judicial area, ensuring that a victory in a Czech court translates into a tangible, enforceable asset back in Norway.

Your partner in Prague: Why ARROWS is the right choice for your case

Navigating a commercial dispute in a foreign country requires more than just a lawyer; it requires a strategic partner who understands both the local legal landscape and the challenges faced by international businesses. ARROWS is uniquely positioned to be that partner for Norwegian companies operating in the Czech Republic.

Deep cross-border expertise

Our team combines deep, nuanced knowledge of Czech procedural and substantive law with decades of experience representing foreign clients. We understand the "assumption mismatch" risks that Norwegian companies face and are experts at translating not just language, but legal strategy, to ensure it is effective in a Czech courtroom. As an international law firm operating from Prague, European Union, we bridge the legal and cultural gap.

A global network at your service

Through our ARROWS International network, built over more than 10 years and active in 90 countries, we have the global reach and resources to handle the most complex multi-jurisdictional disputes. This network allows us to coordinate legal strategies seamlessly across borders, providing our clients with a comprehensive and integrated solution.

A full suite of litigation and prevention services

Our value proposition extends beyond the courtroom. We act as comprehensive risk management partners, offering services that span the entire lifecycle of a potential dispute. This includes proactive contract drafting and preparation of internal company policies to prevent conflicts before they arise, as well as providing definitive legal opinions to inform strategic decisions. When litigation is unavoidable, we provide robust representation in court and before public authorities. We also offer professional training for employees to ensure compliance and minimize legal exposure.

With a proven track record supporting over 150 joint-stock companies and 250 limited liability companies, ARROWS is known for its speed, quality, and unwavering commitment to achieving the best possible outcomes for our clients.

Conclusion: Your next step to a successful resolution

While cross-border litigation presents unique challenges, it is entirely manageable with the right expert guidance. The Czech Republic, as a stable and integrated member of the European judicial area, offers a safe and predictable legal environment for Norwegian businesses. Success depends on partnering with a firm that possesses deep local expertise and a genuine understanding of the foreign client's perspective.

Navigating a commercial dispute in the Czech Republic requires more than just legal knowledge; it requires a partner who understands your perspective. As a leading Czech law firm in Prague, EU, we specialize in bridging that gap. To discuss your specific situation and learn how we can protect your interests, do not hesitate to contact our firm – office@arws.cz.

FAQ – Most common legal questions about Czech-Norwegian litigation

1. Do I absolutely need a Czech lawyer, or can my Norwegian counsel handle the case?
While your Norwegian counsel provides valuable insight, representation in Czech courts requires a lawyer admitted to the Czech Bar. More importantly, success depends on a deep understanding of local procedure, language, and legal culture, which is our specialty. To get expert local representation, contact us at office@arws.cz.

2. What are the typical costs of commercial litigation in the Czech Republic?
Costs include court fees (a percentage of the claimed amount) and legal fees. In the Czech Republic, the losing party is generally ordered to pay the winning party's reasonable legal costs, making a strong case essential. For a tailored cost estimate, get in touch with our team at office@arws.cz.

3. Is arbitration a better alternative to litigation in the Czech Republic?
Arbitration can be an excellent option, offering confidentiality and flexibility. The Czech Republic is a party to the New York Convention, making arbitral awards widely enforceable. We can advise if arbitration is the right strategy for your dispute. Need legal help? Contact us at office@arws.cz.

4. My contract says nothing about jurisdiction. What happens now?
If your contract is silent, the Lugano Convention's default rules will apply, which usually means suing the defendant in their home country. This may or may not be to your advantage. For an urgent analysis of your jurisdictional options, email us at office@arws.cz.

5. Can a Czech court decision affect my company's assets in Norway?
Yes. Thanks to the Lugano Convention, a final judgment from a Czech court is enforceable in Norway against your assets there. This makes resolving any Czech legal matters a high priority. Our lawyers are ready to assist you – email us at office@arws.cz.

6. We had a verbal agreement with our Czech partner. Is it enforceable?
It depends. While some verbal agreements are valid, Czech law requires certain contracts (like agency agreements) to be in writing to be enforceable. This is a major risk for foreign companies. To assess the validity of your agreement, write to us at office@arws.cz.

Don't want to deal with this problem yourself? More than 2,000 clients trust us, and we have been named Law Firm of the Year 2024. Take a look HERE at our references.