How can an Australian company litigate in the Czech Republic

Mgr. Vojtěch Sucharda
Mgr. Vojtěch Sucharda
10.4.2026 | ARROWS law firm

When your Czech customer stops paying, your supplier breaches a critical contract, or a business partner refuses to perform their obligations, Czech civil litigation can offer a fast and enforceable route to recovery. You must understand the procedural rules unique to the Czech system and file your claim in the right court with proper evidence from the beginning. This guide explains litigating in the Czech Republic as an Australian company, from jurisdiction to enforcement, based on the legal environment in 2026.

Photo shows a lawyer explaining Czech civil litigation.

Quick summary

  • Jurisdiction matters: Czech courts generally have jurisdiction based on the defendant's domicile. You must file in the correct court (locally competent court) or risk wasting months on transfers. Forum selection agreements are binding if properly drafted, but conflicts between international commercial terms often complicate this.
  • Pre-litigation demands are mandatory for cost recovery: Sending a formal demand letter (předžalobní výzva) at least seven days before filing is a statutory prerequisite for cost recovery. Without it, you will generally lose the right to recover your legal costs (court fees and attorney fees) even if you win the case on the merits.
  • Evidence should be ready before filing: Unlike Australian litigation, Czech courts have no broad discovery process. The principle of "concentration of proceedings" means you generally must present your key evidence by the end of the first hearing. Ideally, all documentary evidence should be attached to the initial claim to speed up the process.
  • Enforcement requires a separate proceeding: Obtaining a favorable judgment is only half the battle. After your judgment becomes final and enforceable, you must file a separate motion for execution, typically with a private bailiff (soudní exekutor), to actually seize assets and collect your money.

When an Australian company decides to pursue litigation in the Czech Republic, the first challenge is recognizing that the Czech legal system operates on fundamentally different principles than Australia's common law system. The Czech Republic belongs to the continental civil law tradition, which means the entire procedural logic differs significantly from what Australian business owners expect.

These differences are not minor technicalities—they profoundly affect how your case will develop, what evidence you can introduce, and how quickly the court will reach a decision.

Many Australian companies underestimate this learning curve and assume that litigation in the Czech Republic will follow the same procedural pathway they know from home. This assumption leads to costly mistakes, particularly regarding the concept of pre-trial discovery.

The Czech Civil Procedure Code (Občanský soudní řád) contains no broad mechanism for exchanging documents before trial, meaning you cannot fish for evidence during the proceedings. If you do not have your evidence ready, you may fail to meet the burden of proof.

The lawyers at ARROWS Law Firm regularly encounter Australian clients who arrive expecting to develop evidence through cross-examination, only to discover that the Czech system requires a completely different strategic approach based on written evidence submitted early.

Common law vs. civil law foundations

The Czech Republic's civil law system is built on written codes and statutes, whereas Australian common law relies heavily on judicial precedent. In practical terms, this means Czech judges interpret and apply the written law (statutes) directly.

While established case law (judikatura) from supreme courts is highly influential, there is no strict "stare decisis" doctrine binding a judge to every lower court decision.

Furthermore, in a civil law system, the judge takes a more active role in managing the proceedings and questioning witnesses. This contrasts with common law courts, where the adversarial system places more responsibility on the parties' lawyers to develop evidence through cross-examination.

This procedural philosophy also affects cost recovery. Czech courts operate under the "loser pays" principle, which means the party who loses the case typically reimburses the successful party for the costs of the proceedings.

However, there is an important caveat: under Section 142a of the Civil Procedure Code, if you fail to send the required pre-litigation demand letter (předžalobní výzva) at least 7 days before filing, the court will generally deny your request for cost recovery.

The role of evidence in Czech courts

In Australian litigation, discovery is a major procedural phase, but Czech procedure provides no direct equivalent. Instead, the written nature of Czech civil litigation means that each party must prepare a legally structured written claim (žaloba) that essentially tells the whole story.

While you are technically allowed to submit evidence until the "concentration of proceedings" (typically the end of the first court hearing), strategic best practice is to attach all key documentary evidence to your initial lawsuit.

This difference creates a fundamentally different strategic challenge. You cannot rely on discovery to compel the opposing party to produce internal documents that damage their case, nor can you conduct depositions to lock in testimony months before trial.

The lawyers at ARROWS Law Firm have extensive experience adapting the strategies Australian companies use in their home jurisdiction to the procedural realities of Czech litigation.

Jurisdiction and where to file your claim

Determining which court has jurisdiction is governed by the Civil Procedure Code and, for international disputes, the Act on Private International Law (Zákon o mezinárodním právu soukromém). Filing in the wrong court can result in the court declaring lack of competence and transferring the case, causing delays of months.

General jurisdiction rules

The general rule of jurisdiction is based on the defendant's domicile. If your Czech customer is a company registered in the Czech Republic, the district court (okresní soud) in the district where the defendant has its registered seat has jurisdiction.

For amounts exceeding certain thresholds or specific types of commercial disputes (e.g., IP disputes, corporate status disputes), the Regional Court (krajský soud) may be the court of first instance.

It is crucial to verify the defendant's registered seat in the Czech Commercial Register (Obchodní rejstřík) immediately before filing. If the defendant has moved its registered office to a different district, you must file in the new location.

The lawyers at ARROWS Law Firm will conduct a thorough jurisdictional analysis to ensure your claim is filed in the correct court from the beginning.

Forum selection agreements

Most commercial contracts between Australian companies and Czech business partners include a forum selection clause (prorogation clause). Under Czech law and international private law rules, a written agreement specifying the jurisdiction is generally binding.

A common issue arises when contracts contain conflicting jurisdiction clauses (e.g., one in the main contract, another in the General Terms and Conditions).

Czech courts may find such contradictory clauses invalid, reverting jurisdiction to the general rule (defendant's domicile). Furthermore, for the choice of court to be valid, it must be in writing or evidenced in writing.

The lawyers at ARROWS Law Firm regularly review international commercial contracts to advise on whether your forum selection clause will hold up in a Czech court.

1. If our contract specifies that disputes will be resolved in Australian courts, can we still sue in the Czech Republic?
Generally, if the clause is valid and exclusive, the Czech court should respect it and may reject jurisdiction. However, if the defendant appears in the Czech court and does not object to jurisdiction at the very first act, the Czech court can establish jurisdiction by submission. Often, it is more practical to sue a Czech debtor in the Czech Republic to avoid the complex process of recognizing and enforcing an Australian judgment later.

2. Our Czech customer is a subsidiary of a larger multinational company. Do we sue the subsidiary or the parent company?
You sue the specific legal entity you contracted with (typically the subsidiary). The parent company is a separate legal entity and is generally not liable for the subsidiary's debts unless they have issued a specific guarantee.

3. Can we file our claim in a district court even though the defendant operates in multiple regions?
You must file in the court where the defendant has its registered seat (general court). An exception exists for claims for damages, which can also be filed in the court where the damaging event occurred, or where the damage arose (Section 87 of the Civil Procedure Code).

Filing a claim in the Czech Republic

Once jurisdiction is established, the next phase is preparing the lawsuit. The written claim (žaloba) is a structured legal document that must comply with Section 79 of the Civil Procedure Code.

Pre-litigation requirements and the formal demand letter

Before filing, you must send a "pre-litigation call to perform" (předžalobní výzva) pursuant to Section 142a of the Civil Procedure Code. This letter must be sent to the defendant's address (usually the registered seat) at least seven days before the lawsuit is filed.

While failing to send this letter does not invalid the lawsuit itself, it has severe financial consequences: the court will likely refuse to award you reimbursement of legal costs (attorney fees and court fees) even if you win.

In a system where the "loser pays," losing the right to cost recovery can effectively cost you thousands of euros. The demand letter is also a tactical tool, often signaling to the debtor that you are serious.

Drafting your statement of claim (žaloba)

The claim must identify the court, the parties (including ID numbers for companies), the facts of the case, the evidence invoked, and the specific relief requested (petit). Unlike some common law pleadings which can be vague, Czech claims must be substantiated.

You should link factual allegations to specific evidence, such as invoices, contracts, and delivery notes.

A highly effective tool for Australian creditors is the Payment Order (platební rozkaz). If your claim is for a specific sum of money and your right to payment clearly follows from the attached facts and evidence, the court can issue a Payment Order without a hearing.

The defendant then has 15 days from delivery to either pay the full amount plus costs or file an "opposition" (odpor), which cancels the order.

Court fees and financial considerations

Czech civil litigation requires payment of a court fee upon filing. Under the Act on Court Fees (Zákon o soudních poplatcích), specific rates apply based on the type of filing.

  • For electronic Payment Orders (filed via data box) for sums up to CZK 40,000,000, the fee is 4% of the claimed amount.
  • For standard lawsuits or claims where the electronic payment order procedure is not used, the fee is 5% of the claimed amount (for amounts over CZK 20,000).
  • The minimum fee is CZK 1,000.

Fees must be paid before the court proceeds. Additionally, you must budget for translation costs , as all documents submitted to Czech courts must be in the Czech language.

Documents in English must be accompanied by a certified translation (soudní překlad) prepared by a translator registered with the Ministry of Justice.

Attorney fees are typically charged on an hourly basis or a fixed fee. If you win, the court awards you "reimbursement of legal representation costs," but note that this is calculated based on a fixed "Attorney Tariff."

1. Our contract is written in English. Do we need to translate it?
Yes. Section 18 of the Civil Procedure Code requires proceedings to be in Czech. You must submit the original English contract along with a certified Czech translation. ARROWS Law Firm coordinates these certified translations to ensure legal accuracy.

2. Can we file our claim electronically?
Yes, and it is the standard for law firms. We file via the official "Data Box" (Datová schránka) system, which is secure and provides instant proof of delivery to the court.

3. If we claim interest, how is it calculated?
You can claim contractual interest if agreed. If not, you claim statutory default interest (zákonný úrok z prodlení). The rate is set by government regulation and is calculated as the Czech National Bank's repo rate (valid on the first day of the calendar half-year in which the default occurred) increased by 8 percentage points .

Procedural differences in Czech civil litigation

There are several key procedural distinctions that Australian entities must prepare for, specifically regarding how evidence is handled and how trials are structured.

Evidence presentation and burden of proof

The burden of proof lies with the plaintiff (Section 120 of the Civil Procedure Code). You must prove both the existence of the obligation and the breach. The court evaluates evidence according to the principle of "free evaluation of evidence," meaning the judge assigns weight to evidence based on their discretion.

A critical concept is the "concentration of proceedings" (Section 118b), where the court typically rules that parties must submit all facts and evidence by a certain deadline, usually the end of the first hearing.

Evidence submitted after this deadline is generally rejected (with minor exceptions). This makes the "wait and see" strategy dangerous, as you may be precluded from introducing vital proof later in the case.

Court hearings and trial structure

If a Payment Order is opposed or not issued, the court schedules a hearing. The judge leads the hearing, questions the parties, and dictates the protocol. There is no jury in commercial or civil cases.

Hearings can be adjourned for additional evidence, but once the court is satisfied, it closes the hearing and issues a judgment.

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Enforcement of judgments

A judgment becomes "final and legally effective" (pravomocný) when it can no longer be appealed (e.g., the 15-day appeal deadline has passed without an appeal). It becomes "enforceable" (vykonatelný) once the deadline for performance specified in the judgment (parition period) has expired.

The execution phase (exekuce)

In the Czech Republic, enforcement is primarily carried out by judicial bailiffs (soudní exekutoři). These are private individuals vested with state authority who can effectively seize assets.

To enforce a judgment, you must file a motion to commence execution, after which the bailiff requests authorization from the execution court.

Once authorized, the bailiff issues a notice to the debtor to pay within 30 days (with reduced costs) or face full execution. Bailiffs have powerful tools under the Execution Code, including freezing bank accounts and garnishing wages.

As of 2026, the choice of bailiff largely remains with the creditor, allowing you to choose an aggressive and efficient bailiff office.

While you can technically represent yourself in a District Court, it is practically impossible for a non-Czech speaker. For appeals to the Supreme Court, legal representation by an attorney (advokát) is mandatory by law.

Given the strict procedural deadlines (e.g., 15 days for appeal) and the requirement for Czech language, local counsel is essential.

Language and translation requirements

The official language of the court is Czech. If a party does not understand Czech, they have the right to an interpreter at hearings, but the costs must be advanced. Written submissions must be in Czech.

1. Can we conduct our case in English?
No. The judge will require Czech.

2. What happens if we hire an Australian lawyer?
They cannot represent you in Czech court. They can advise you on Australian aspects, but you need a Czech Bar-admitted attorney for the litigation.

3. How much will legal representation cost?
It varies. ARROWS Law Firm offers transparent fee structures. Recoverable costs are capped by the tariff, so in complex cases, your actual costs may exceed what you recover from the defendant.

Risks and Sanctions

How ARROWS Law Firm (office@arws.cz) Helps

Missing the 7-day pre-litigation deadline: Failure to send a formal demand letter (Section 142a OSŘ) at least 7 days before filing usually results in loss of cost recovery rights even if you win.

Strategic demand letter preparation: We draft formal demand letters that meet statutory requirements and serve as a strong negotiation tool.

Filing in the wrong court: Filing in a court without jurisdiction leads to transfer proceedings that can delay the case by months.

Jurisdictional analysis: We verify the defendant's current registered seat and determine the competent court before filing.

Late evidence submission: Due to the "concentration of proceedings," evidence submitted after the first hearing is often rejected.

Evidence organization: We ensure all crucial evidence is gathered and attached to the initial lawsuit to secure your position.

Improper translations: Using plain translations instead of certified translations for key evidence leads to rejection by the court.

Certified translation coordination: We manage the process with registered court translators to ensure admissibility.

Missing the 15-day appeal/opposition deadline: Deadlines in Czech law are strict. Missing the 15-day window to appeal a judgment or oppose a payment order is usually fatal to the case.

Deadline management: We maintain a rigorous deadline tracking system to ensure no procedural rights are forfeited.

Executive summary for management

Czech civil litigation offers Australian companies a structured mechanism for debt recovery. While it lacks the discovery phase of common law, it offers the Payment Order system, which can be faster than Australian litigation for undisputed debts.

The key is strict adherence to formalities: sending the pre-litigation notice, filing in the competent court, and having certified translations of evidence ready immediately.

ARROWS Law Firm specializes in representing foreign companies in Czech commercial litigation. Our experience allows us to navigate the Civil Procedure Code efficiently, ensuring you meet all statutory requirements for cost recovery and enforcement.

We are a leading Czech law firm based in Prague, European Union, with deep expertise in cross-border disputes and are fully insured for professional liability up to CZK 400,000,000.

Conclusion of the article

Litigating in the Czech Republic as an Australian company requires a shift in mindset from common law to civil law. The absence of discovery and the emphasis on written submissions mean you must be prepared before you file.

However, with the right legal partner, the Czech system provides effective tools like the Payment Order and strong enforcement via private bailiffs.

The risks of navigating this alone are substantial—from lost cost recovery due to missing a simple letter, to having evidence rejected for late submission. By engaging ARROWS Law Firm, you ensure that your claim is professionally managed according to the latest 2026 regulations.

If you are considering litigation in the Czech Republic, contact ARROWS Law Firm at office@arws.cz, and we will review your documentation and provide a clear roadmap for recovery.

FAQ – Frequently asked legal questions about Australian companies litigating in the Czech Republic

1. How long does a typical Czech civil case take?
A Payment Order can be issued within weeks. If the defendant objects, a standard trial at the first instance typically takes 6 to 12 months. If appealed, add another 6 to 12 months. Enforcement can take additional months depending on asset liquidity.

2. Can we recover our attorney fees?
Yes, if you win, the court awards reimbursement. However, this is calculated based on the statutory "Attorney Tariff," which may be lower than your actual legal spend. You must have sent the pre-litigation demand letter to qualify.

3. What is a Payment Order (platební rozkaz)?
It is a simplified judgment issued without a hearing based solely on the documents provided. It is the fastest way to get an enforceable title. It requires the defendant to pay or object within 15 days.

4. Can we pursue the parent company?
Only if they guaranteed the debt. Otherwise, liability is limited to the subsidiary you contracted with.

5. Is arbitration an option?
Yes, if your contract contains a valid arbitration clause. The Arbitration Court attached to the Czech Chamber of Commerce is a common venue. Arbitration is generally faster but more expensive than court litigation.

6. Can we recover compensation for management time?
Generally, no. Czech law compensates for legal representation costs and court fees, not for the internal time your management spends on the dispute.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (office@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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