How can a Spanish company litigate in the Czech Republic

Entering the Czech market brings significant opportunities, but it also carries the risk of commercial disputes. If your Spanish company faces litigation in the Czech Republic, navigating a foreign legal system can be daunting. This guide provides clear answers on the Czech court process, evidence requirements for Spanish documents, cost implications, and the enforcement of judgments, showing you how to protect your business interests effectively.

Do you 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.

Understanding the Czech Legal Landscape for Commercial Disputes

When a commercial dispute arises, understanding the environment is the first step toward a successful strategy. The Czech legal system is a "continental" system with Germanic roots, meaning it is based on codified law rather than judicial precedent. This can be a significant departure for businesses accustomed to common law jurisdictions.

Commercial disputes are typically heard in the first instance by Regional Courts, which are equipped to handle complex business matters. However, companies should be aware that Czech court proceedings are often perceived as slow and can be protracted, sometimes taking years to reach a final resolution. This makes having an efficient and proactive legal strategy paramount from day one.

At ARROWS, we specialize in representing foreign corporations in the Czech courts. Our deep understanding of the local legal culture and procedural nuances allows us to build a robust case strategy tailored to the specific challenges of cross-border litigation.

How Is a Lawsuit Initiated and Conducted?

The Czech civil litigation process follows a structured, formal path. It begins when the claimant files a "statement of claim" with the competent court. This document must outline the facts of the case, the evidence being relied upon, and precisely what the claimant is seeking.

Once the claim is filed, the court serves it on the defendant (your company), who is then given a deadline to submit a "statement of defense". This is a critical stage where you must formally respond to the allegations. Following this initial exchange, there may be further written submissions before the court schedules an oral hearing, which is the main part of the proceedings where evidence is presented and examined.

FAQ – Legal Tips for Initial Proceedings

1. What is the first step if we receive a court summons from the Czech Republic?
   Immediately contact a Czech law firm. Procedural deadlines are strict, and a failure to respond can result in a default judgment against your company. For urgent assistance with your case, contact ARROWS at office@arws.cz.
2. Can proceedings be conducted in Spanish or English?
   The official language of Czech courts is Czech. All official documents must be submitted with a certified Czech translation, and an interpreter is required for any non-Czech speakers at hearings. ARROWS provides bilingual legal experts to manage all communications seamlessly, ensuring you are fully informed at every stage. Need representation in your language? Email us at office@arws.cz.

Evidence from Spain: The Apostille and Certified Translations

For a Spanish document to be admissible as evidence in a Czech court, it must be properly authenticated. Since both Spain and the Czech Republic are signatories to the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents, the process is streamlined but must be followed precisely.

Any public document from Spain—such as an extract from the commercial register, a notarial deed, or a court document—must be affixed with an Apostille. This is an official certificate issued by a designated Spanish authority that validates the document's authenticity. Once apostilled, the document and the Apostille itself must be translated into Czech by a court-certified translator registered in the Czech Republic.

Failing to provide a correctly apostilled and translated document can lead to that piece of evidence being rejected by the court, potentially weakening your entire case. Our team at ARROWS routinely manages the authentication and translation process for our international clients, ensuring all evidence meets the strict formal requirements of the Czech courts.Key Risks in Czech Litigation

Risks & Sanctions	How ARROWS Helps
Missing strict procedural deadlines: This can lead to a default judgment or the inability to submit key evidence.	Proactive Case Management: We manage your case timeline meticulously, ensuring all submissions are filed correctly and on time. Need to meet a critical deadline? Contact us at office@arws.cz.
Navigating a slow and protracted process: Lengthy proceedings increase costs and business uncertainty.	Driving Efficiency: We push for efficient case management, leverage procedural tools to expedite the process, and explore strategic settlement options where appropriate. Looking for an efficient resolution? Write to office@arws.cz.
Misunderstanding cultural and legal nuances: The continental legal system has different expectations for presenting evidence and arguments compared to other jurisdictions.	Local Expertise: Our experienced litigators understand how to frame arguments that resonate with Czech judges and build a compelling case within the local legal framework. Want a robust legal strategy? Email us at office@arws.cz.

Who Pays? Understanding Costs and Attorney Fees

The Czech Republic follows the "loser pays" principle in civil litigation. This means the unsuccessful party is generally ordered by the court to reimburse the successful party for the costs of the proceedings. These recoverable costs typically include the court fee, cash expenses, and the costs of legal representation.

However, there is a crucial detail to understand. The amount awarded for legal representation is not based on the actual fee agreement you have with your lawyer. Instead, it is calculated according to a statutory regulation known as the Barrister's Tariff, which sets fixed rates based on the value of the dispute. In practice, this means the awarded amount is often only a fraction of the actual legal fees incurred.

It is therefore vital to have a transparent fee agreement with your law firm and a clear understanding of which costs are recoverable. ARROWS is committed to providing clear and predictable fee structures so you can effectively budget for the costs of litigation.

Your Judgment Is Won. How to Enforce It Across Borders?

As members of the European Union, Spanish and Czech companies benefit from a unified framework for cross-border legal matters. The key legislation governing the recognition and enforcement of judgments is the Brussels I bis Regulation.

Under this regulation, a final judgment issued by a Czech court is automatically recognized in Spain (and vice-versa) without any special procedure. More importantly, the cumbersome "exequatur" process has been abolished. To enforce a Czech judgment against assets in Spain, you simply need to provide the Spanish enforcement authority with a copy of the judgment and a standard certificate issued by the Czech court.

Through our ARROWS International network, we have long-standing relationships with partner firms across Europe. We can seamlessly coordinate the enforcement of a Czech judgment in Spain or any other EU member state, ensuring you can collect on your successful claim.

Is There a Faster Alternative? The Case for Arbitration

Given that court litigation can be slow, arbitration presents a powerful and often preferable alternative for resolving international commercial disputes. Arbitration in the Czech Republic is a well-established practice, offering several key advantages over court proceedings.

The most prominent institution is the Arbitration Court attached to the Economic Chamber of the Czech Republic and the Agricultural Chamber of the Czech Republic, which has extensive experience with international cases.

Key advantages of arbitration include:

• Speed: Proceedings are significantly faster, often concluding within a year.
• Flexibility: Parties can agree on the rules of procedure, the language of the proceedings, and choose arbitrators with specific industry expertise.
• Confidentiality: Unlike public court hearings, arbitration proceedings are private.
• Enforceability: Arbitral awards are enforceable in over 160 countries worldwide, including Spain, under the New York Convention.

Risks in Document and Evidence Management

Risks & Sanctions	How ARROWS Helps
Submitting a Spanish document without an Apostille: The document will be considered invalid and rejected by the court.	Document Legalization Services: We coordinate with Spanish authorities and our network partners to secure the necessary Apostille for all your public documents. Need help with document authentication? Email office@arws.cz.
Using a standard translation instead of a certified one: The court will not accept the document as official evidence.	Certified Translation Management: We work exclusively with court-certified translators to ensure every document meets the court's strict formal requirements. Need a certified translation? Contact us at office@arws.cz.
Evidence being deemed irrelevant or inadmissible: Submitting evidence that doesn't properly support your legal arguments can weaken your position.	Strategic Evidence Review: Our legal team meticulously reviews all potential evidence to build a compelling and admissible case that directly supports your legal strategy. Want to ensure your evidence counts? Write to office@arws.cz.

Secure Your Position with an Expert Local Partner

Facing a dispute in the Czech Republic requires more than just legal knowledge; it demands a trusted local partner who can navigate the system's complexities on your behalf. The rules are specific, the process can be slow, and mistakes can be costly. However, with expert guidance, litigation is entirely manageable.

The team at ARROWS combines deep local expertise with an international perspective. Our bilingual lawyers have a proven track record of representing foreign corporations in Czech courts and arbitration proceedings. Through our ARROWS International network, we provide seamless cross-border legal support tailored to your business needs.

Don't let a commercial dispute disrupt your business operations. For a confidential consultation on your case, contact us today at office@arws.cz.

FAQ – Common Legal Questions for Spanish Companies

1. How long does a typical commercial lawsuit take in the Czech Republic?
   Commercial litigation can be lengthy. A first-instance proceeding often takes 12 to 24 months, and an appeal can add another 12 to 18 months. Arbitration is generally much faster, often concluding within a year. If you are facing a dispute, contact us at office@arws.czfor a strategic assessment.
2. Are judgments from Spain enforceable in the Czech Republic?
   Yes. Under the EU's Brussels I bis Regulation, a final judgment from a Spanish court is automatically recognized and is directly enforceable in the Czech Republic without needing a separate declaration of enforceability ('exequatur'). For assistance with cross-border enforcement, email us at office@arws.cz.
3. What is an Apostille and why do I need it for my documents?
   An Apostille is an international certificate that authenticates the origin of a public document (e.g., a corporate registration extract). Under the Hague Convention, it is mandatory for public documents issued in Spain to be accepted as valid by Czech courts. If you need help with document legalization, contact us at office@arws.cz.
4. If we win the case, will the other party pay all our legal fees?
   The losing party will be ordered to pay your legal costs, but the reimbursed amount is calculated based on a statutory tariff, not your actual fee agreement with your lawyers. This means the recoverable amount may be significantly lower than your total legal expenses. For a clear explanation of litigation costs, write to us at office@arws.cz.
5. Is arbitration a better option than litigation for my company?
   It often is for international commercial disputes. Arbitration is generally faster, confidential, more flexible, and the final award is widely enforceable internationally. It allows you to avoid the potential delays of the national court system. To discuss whether arbitration is right for your case, contact our experts at office@arws.cz.
6. Can ARROWS represent our Spanish company even if we have no office in the Czech Republic?
   Absolutely. We specialize in representing international clients in Czech legal proceedings. Our team can handle all aspects of your case, communicating with you in English and acting as your dedicated local representative. To discuss your situation, please contact us at office@arws.cz.