How Canadian firms can pursue court actions in the Czech Republic: Effective paths to litigation

This guide helps Canadian companies navigate the Czech legal system during disputes like unpaid invoices or contract breaches. It explains the core differences between common law and civil law while providing practical steps for taking legal action. You will learn how to win a court judgment and, more importantly, how to ensure you actually receive the payment. It is an essential resource for securing your business interests in the Czech Republic.

Understanding the Czech court system and why it matters for Canadian companies

The Czech Republic operates a civil law system fundamentally different from Canadian common law traditions. While Canadian litigation relies heavily on pre-trial discovery, oral depositions, and courtroom cross-examination, Czech procedure emphasizes written submissions and documentary evidence presented before the court issues judgment. This distinction is critical because it changes how you must prepare your case from the very beginning.

Most commercial disputes begin in district courts based on territorial jurisdiction rules, and understanding which court has jurisdiction over your case is the first strategic decision you must make. The Czech civil court structure consists of district courts ( okresní soud ) as the first instance, regional courts ( krajský soud ) as appellate courts (and first instance for certain specific commercial matters), and the Supreme Court ( Nejvyšší soud ) for exceptional reviews of points of law.

As a Canadian company pursuing a Czech defendant, you should be aware that while the European Union's Brussels I Recast Regulation governs jurisdiction over defendants domiciled in the EU, the simplified mechanisms for recognizing judgments apply only between EU member states. For a Canadian plaintiff, your rights regarding the applicable law and recognition of judgments depend largely on the Czech Act on Private International Law and the existence of a valid choice-of-court clause.

However, CETA does not establish automatic recognition of Canadian court judgments in Czech commercial disputes, meaning many Canadian companies are better served by pursuing disputes in Czech courts. The legal landscape for Canadian firms operating in the Czech Republic is shaped by the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). Any judgment you obtain in Canada will need to satisfy strict Czech recognition standards.

The firm's experience with cross-border disputes means that time spent consulting with experienced Czech lawyers at the outset often prevents expensive procedural errors. ARROWS Law Firm regularly advises Canadian companies on litigation strategy in the Czech Republic and specializes in helping foreign investors navigate the complexities of Czech civil procedure.

Jurisdiction: Can you actually sue in Czech courts?

Before filing any claim, you must establish that a Czech court has jurisdiction to hear your dispute. Under Czech procedural rules and the Act on Private International Law, jurisdiction is determined by several connecting factors.

The general rule is that a defendant domiciled in the Czech Republic may be sued in Czech courts. This means if your Czech counterparty has its registered seat or place of business in the Czech Republic, Czech courts will almost certainly have jurisdiction. However, issues arise if the dispute involves real property located outside the Czech Republic or if an exclusive choice-of-court clause points elsewhere.

The most reliable way to predetermine jurisdiction is to include a valid choice-of-court clause in your contract designating Czech courts. While the Hague Convention of 2005 on Choice of Court Agreements applies between the EU and other contracting states, Canada is not currently a full party to this specific convention regarding commercial disputes in the same capacity. Therefore, the validity of your jurisdiction clause will be assessed under Czech national law.

However, if you are trying to sue a non-Czech entity in Prague based on where the damage occurred or where the contract was performed, you will need to demonstrate a specific connecting factor. If your contract lacks a jurisdiction clause, Czech courts will generally accept jurisdiction if the defendant is a Czech entity.

What many Canadian companies do not realize is that even if a Czech court accepts jurisdiction, enforcing a judgment against a defendant outside the Czech Republic requires separate recognition procedures. This creates a strategic choice between pursuing a Czech defendant in Czech courts or pursuing enforcement through more complex international mechanisms.

FAQ – Legal tips on establishing jurisdiction in Czech courts

1. If our Czech supplier breaches a contract but the goods were delivered in Canada, can we still sue in Czech courts?
Yes, if the defendant's registered seat is in the Czech Republic. The defendant's domicile is the primary basis for jurisdiction. If the contract specifies performance in Czech territory, this further strengthens the jurisdictional argument, though the defendant's seat is usually sufficient. Write to office@arws.cz if you need guidance on your specific contract language.

2. We have a Canadian judgment against a Czech company. Will it be automatically recognized in the Czech Republic?
No. Canadian judgments are not automatically recognized in Czech courts. You must apply for recognition under the Czech Act on Private International Law. The Czech court will verify, among other things, that the Canadian court's jurisdiction was based on criteria similar to Czech law and that the defendant was not deprived of their right to defense. Contact office@arws.cz to discuss your enforcement options.

3. Our contract says "disputes shall be resolved according to English law in London courts." Can we still sue the Czech company in the Czech Republic?
Generally, no, if the clause is exclusive. If your contract contains a valid exclusive choice-of-court clause designating English courts, Czech courts will likely decline jurisdiction if the defendant raises this objection. If you want to change your jurisdiction clause before disputes arise, contact office@arws.cz to discuss amending your agreements.

Service of process and the Hague Convention: A procedural minefield

Once you have established that a Czech court has jurisdiction and you are ready to file your claim, you must properly serve the Czech defendant with your lawsuit. This sounds straightforward but contains hidden complexity. Improper service is a primary ground for refusing recognition of judgments later.

If you are filing directly in a Czech court against a Czech defendant, the court will handle service domestically via the data box system ( datová schránka ) or registered mail. The Czech Republic is a party to the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (1965). If you are initiating a lawsuit in Canada to enforce in the Czech Republic later, you must strictly follow this Convention.

The critical issue arises when you submit documents from Canada (such as evidence or powers of attorney). Czech courts conduct proceedings in the Czech language. While the court itself serves the lawsuit, all documents submitted to the court must be in Czech. If you submit a lawsuit or key evidence in English without a certified translation, the court will require you to remedy this defect.

Therefore, translation is mandatory for valid service in the Czech Republic if you want to avoid the defendant rightfully refusing to accept the documents. Under the Convention, the Czech Republic has exercised its right to object to the service of documents that are not written in or translated into Czech.

Czech courts are particularly strict about procedural rights. If a defendant can prove they were not properly served or that they could not understand the document due to lack of translation, the proceedings can be nullified.

The "front-loaded" evidence problem: Why gathering evidence before filing is critical

This is perhaps the most important insight for Canadian companies approaching Czech litigation: Czech procedure does not permit US-style "discovery." You cannot force the other side to hand over broad categories of internal documents to help you find a "smoking gun." You must largely have your evidence ready before you file.

Under the "principle of concentration" in Czech civil procedure, you are generally required to present all decisive facts and evidence by the end of the first hearing. The burden of proof ( důkazní břemeno ) rests entirely on you as the claimant. Evidence submitted later can be rejected if the deadline set by the judge is missed.

The types of evidence that Czech courts accept are specific. Documentary evidence—contracts, invoices, delivery notes, email correspondence, and payment records—forms the foundation. Czech courts give substantial weight to written records. Affidavits, common in Canada, are generally treated merely as the party's assertion rather than independent proof.

You cannot use witness examination to "fish" for information; you must know what the witness will likely say to support your specific factual allegations. If your case depends on witness testimony, the judge conducts the examination. While attorneys can suggest questions or ask them with the judge's permission, there is no cross-examination in the dramatic common law style.

ARROWS Law Firm structures its engagement with Canadian clients by beginning with comprehensive evidence gathering and analysis to ensure the claim can withstand the strict substantiation requirements. What this means in practical terms is that preparing a lawsuit for Czech court requires substantial upfront work. You must gather, organize, translate, and authenticate all evidence before filing.

FAQ – Legal tips on evidence preparation for Czech litigation

1. We have emails, invoices, and contract documents proving our claim. Is that enough?
Likely yes, provided they are legible, translated into Czech, and clearly link the defendant to the obligation. However, simple photocopies can be challenged. In some cases, electronic evidence (emails) must be carefully preserved to prove authenticity. Contact office@arws.cz to discuss how to format your evidence.

2. Can we rely on our accountant's testimony to establish that our invoices are accurate?
You can propose your accountant as a witness, but their testimony is secondary to the underlying documents (invoices, contracts, proof of delivery). If the matter requires complex financial assessment, the court may appoint an independent expert witness ( soudní znalec ), not rely solely on your employee.

3. If we do not have all the evidence now, can we gather it during the lawsuit?
Generally, no, due to the absence of discovery. If the opponent has a specific document, you can ask the court to order its production (Section 129 of the Code of Civil Procedure), but you must identify the document precisely and prove it exists.

Choosing your path: Payment order or full civil procedure

For many commercial disputes involving monetary claims, the Czech Republic offers efficient fast-track procedures.

The Electronic Payment Order ( elektronický platební rozkaz or EPR) is a highly efficient tool applicable for claims up to 1,000,000 CZK. You file a dedicated electronic form, pay a reduced court fee, and if the court finds the claim substantiated by the attached documents, it issues the order without a hearing.

For claims exceeding 1,000,000 CZK or where an EPR cannot be used, the court can still issue a standard Payment Order ( platební rozkaz ) provided the plaintiff's right to payment follows clearly from the facts alleged. There is no monetary limit for the standard payment order, but the court fee is higher.

If they file an opposition, the payment order is cancelled, and the case converts to a standard civil proceeding. In both cases, the defendant has 15 days from service to either pay or file a statement of opposition ( odpor ). If they remain silent, the order becomes a final, enforceable judgment.

Canadian companies often attempt to use these procedures for complex disputes. If the defendant is likely to dispute the quality of goods or raise counterclaims, the payment order will likely be opposed, and you will end up in full litigation anyway. However, for clear-cut debt collection, this is the fastest route.

Court fees and the financial reality of Czech litigation

Court fees in the Czech Republic are mandatory upon filing. Failure to pay leads to the termination of proceedings. The fee for a standard civil proceeding is 5% of the claimed amount, while the Electronic Payment Order is 4% of the claimed amount.

In the Czech Republic, the winning party is entitled to reimbursement of legal costs from the losing party, calculated based on a statutory tariff. However, this reimbursement is not based on your actual legal bills. In complex international cases, your actual legal costs may exceed the "tariff" costs you recover.

ARROWS Law Firm provides transparent cost estimates and explains the likely recovery ratio before you proceed. This "loser pays" principle is a double-edged sword: it discourages frivolous defenses, but it also means you may not recover 100% of your legal spend even if you win.

Filing your claim: The critical first steps

Before filing, you are legally required to send a pre-litigation call to perform ( předžalobní výzva ) to the defendant's last known address at least 7 days before filing the lawsuit. Failing to do so does not dismiss the claim, but it prevents you from recovering your legal costs even if you win.

The claim itself ( žaloba ) must strictly comply with Section 79 of the Code of Civil Procedure, identifying the parties, narrating the decisive facts, and clearly stating the relief sought. Vague claims are rejected. Electronic filing via the data box system is the standard for law firms in the Czech Republic.

Once filed and fees paid, the court examines the claim. If a payment order is not issued (or is opposed), the court serves the claim on the defendant for a defense statement ( vyjádření ).

FAQ – Legal tips on filing your claim in Czech courts

1. How long does it take from filing to the first reaction?
If applying for an Electronic Payment Order, it can be issued within weeks. For standard claims, service on the defendant and the deadline for their defense usually takes 2-4 months depending on the court's workload.

2. Can we amend our claim later?
Yes, but with limitations. Under the principle of concentration, substantial changes or new facts should be presented early. Late amendments can be disallowed if they delay proceedings.

3. We submitted our claim in English. What happens?
The court will ask you to remove the defect (provide a translation) within a short deadline. If you miss it, the proceedings stop. Always file in Czech.

The trial phase: Hearings, evidence, and witness examination

If the case proceeds to a hearing ( jednání ), the judge leads the process. The judge questions the parties and witnesses first. Lawyers play a vital role in proposing evidence, raising legal objections, and framing the arguments, but they do not "control" the room as in North American TV dramas.

The court often appoints an independent expert from an official registry rather than relying on party-hired experts. Witnesses must testify in person (or via videoconference in specific circumstances). Expert witnesses are crucial for technical disputes, such as construction defects or machinery failure.

The court issues a judgment ( rozsudek ) after closing arguments. This judgment is usually delivered in writing some weeks after the final hearing.

Contact our experts:

JUDr. Jakub Dohnal, Ph.D., LL.M.

associate, managing partner

• dohnal@arws.cz

Mgr. Vojtěch Sucharda

associate, partner

• sucharda@arws.cz

Enforcement: Getting paid after you win

A judgment is only paper until enforced. If the defendant does not pay voluntarily, you must initiate enforcement proceedings ( exekuce ). The Czech Republic utilizes private judicial bailiffs ( soudní exekutoři ). You select a bailiff and file a motion.

The court authorizes the bailiff, who then has extensive powers to freeze bank accounts, garnish wages, or seize property. They can also suspend the debtor's driver's license in specific cases. The costs of enforcement are primarily borne by the debtor, provided they are solvent.

However, if the debtor is insolvent, you may bear the bailiff's minimum costs. It is essential to verify the debtor's assets before proceeding to enforcement to avoid throwing good money after bad.

Why the payment order procedure is often faster than you expect

If your claim is eligible for the Electronic Payment Order or a standard Payment Order, you might secure an enforceable title in 2-4 months. This is significantly faster than the 18+ months for a contested trial. The key is the quality of your pre-filing documentation. If the invoices, delivery notes, and demand letters are impeccable, the court issues the order quickly, and the defendant often pays to avoid the escalating costs of enforcement.

Appeals and the extraordinary appeal process

The losing party can appeal ( odvolání ) to the Regional Court within 15 days of judgment delivery. The appeal reviews errors of law or fact, though introducing new facts is strictly limited. Representation by a lawyer is not mandatory for the appeal filing itself but is highly recommended.

For an extraordinary appeal ( dovolání ) to the Supreme Court, representation by an attorney or notary is mandatory. The Supreme Court only reviews questions of law of fundamental importance and does not re-examine facts.

The international element: Why service and recognition matter

For Canadian firms, the distinction between suing in Canada vs. the Czech Republic is crucial. Suing in Canada requires serving the Czech defendant via Hague Convention channels, which is slow. Then, if they don't pay, you must bring the Canadian judgment to a Czech court for recognition.

Suing directly in the Czech Republic skips the recognition phase, as the judgment is immediately enforceable by Czech bailiffs. Given that the Agreement Between Canada and the Czech Republic for the Promotion and Protection of Investments applies primarily to state-investor disputes, utilizing the Czech court system directly is often the most pragmatic route for commercial recovery.

Executive summary for management

• Jurisdiction: Do not assume you can sue in Canada. Unless you have a specific asset to target in Canada, suing where the defendant has assets (Czech Republic) is usually more effective.
• Evidence First: You cannot rely on discovery. Gather all documents and translate key pieces before filing.
• Speed vs. Cost: Use the Payment Order procedure for undisputed debts. It is faster and cheaper.
• Enforcement: Czech bailiffs are powerful and effective, but you cannot get blood from a stone. Check the debtor's solvency first.
• Representation: Czech civil procedure is formalistic. Mistakes in service, form, or deadlines are often fatal to the case. Professional local counsel is essential.

Conclusion of the article

Canadian companies can successfully navigate the Czech court system if they respect its procedural distinctiveness. The system is logical and, in recent years, increasingly efficient, especially for debt collection via payment orders. However, the absence of discovery and the strict formal requirements for pleadings and evidence mean that preparation is key.

ARROWS Law Firm regularly represents international clients in Czech litigation, bridging the gap between common law expectations and civil law reality. By verifying jurisdiction, managing the mandatory pre-litigation steps, and aggressively pursuing enforcement, we turn legal claims into paid invoices.

If you are a Canadian company considering litigation in the Czech Republic, contact ARROWS Law Firm. We provide the local expertise necessary to navigate the courts in Prague, Brno, or anywhere in the country. Contact office@arws.cz for a preliminary assessment of your case.

FAQ – Frequently asked legal questions about how Canadian firms can pursue court actions in the Czech Republic

1. If our Czech customer refuses to pay an invoice, how long will it take to get a judgment?
For an undisputed Payment Order, approximately 2-4 months. For a contested civil lawsuit, 12-18 months is a realistic estimate for the first instance.

2. We have a Canadian judgment against a Czech company. Can we enforce it directly?
No. You must first go through a recognition proceeding ( uznání cizího rozhodnutí ) under the Act on Private International Law. This adds time and cost. Suing directly in the Czech Republic is often preferred unless the Canadian judgment is already final and high-value.

3. Our contract does not specify a court. Where do we sue?
If the defendant is a Czech company, the competent court is the District Court where the company has its registered seat.

4. Can we recover attorney fees?
Yes, if you win. However, the recovery is capped by the statutory tariff, which may be lower than your actual hourly legal costs.

5. Can we sue if the debtor has disappeared?
You can sue, but service will be an issue. The court may appoint a guardian for a defendant whose whereabouts are unknown, but enforcement will be impossible if no assets can be found. Solvency checks are vital.

6. Do we need to be physically present in court?
Not necessarily. Your Czech attorney represents you. However, if your testimony is required, you may need to appear, or in some cases, video testimony can be arranged.

Disclaimer: The information contained in this article is for general informational purposes only and reflects the legal state as of 2026. Laws and regulations change. To verify the current application to your specific situation, contact ARROWS Law Firm directly (office@arws.cz). We accept no responsibility for actions taken based solely on this article without individual legal consultation.