How Maltese Firms Can Protect Their Rights in the Czech Republic: Options for Litigation

Navigating a legal dispute in a foreign jurisdiction can be daunting, but for Maltese companies operating in the Czech Republic, the path to justice is clearer than it seems. This article outlines your litigation options, from fast-track payment orders to full-scale court battles, and explains how to secure your assets in the heart of the European Union.

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 "Civil Law" Reality Check

Maltese companies often face a culture shock when entering the Czech legal environment. While Malta utilizes a hybrid legal system with strong Common Law influences, the Czech Republic operates on a strict continental Civil Law system. This means there is no broad "pre-trial discovery" phase where you can fish for evidence from the other side. In Prague, you must have your evidence ready before you file. A robust evidence portfolio is the foundation of success.

Furthermore, Czech courts rely heavily on formal written submissions rather than oral arguments. A brilliant courtroom speech rarely saves a poorly documented case. This is where the difference between a general practitioner and a specialized local counsel becomes critical.

Key Legal Concept: Lis Pendens – If a lawsuit is filed in one EU country, courts in other countries generally pause proceedings on the same issue. Acting first is often decisive.

Procedural Traps

Risks and penalties	How ARROWS helps (office@arws.cz)
Missed Pre-Litigation Notice – If you fail to send a formal předžalobní výzva (pre-suit notice) at least 7 days before filing, you may lose your right to reimbursement of legal costs, even if you win.	Drafting Pre-Suit Notices – We ensure all formalities are met so you remain eligible for cost compensation.
Language Barrier – Czech courts conduct proceedings strictly in Czech. Submitting contracts in English without a certified translation can lead to immediate rejection of evidence.	Certified Translations & Representation – We handle all certified translations and represent you natively in court.
Strict Limitation Periods – Commercial claims generally expire after 3 years. Waiting too long to "negotiate" can result in your claim being totally unenforceable.	Statute of Limitations Review – We analyze your claim immediately to stop the clock.

Fast-Track Solutions: The Platební Rozkaz

For many Maltese creditors, a full trial is unnecessary. If you are owed a clear debt (e.g., unpaid invoices), we often utilize the Electronic Payment Order (elektronický platební rozkaz). This is a purely written procedure where the court issues a judgment without a hearing, often within a few weeks.

The debtor then has only 15 days to pay or file a formal objection (odpor). If they stay silent, the order becomes as enforceable as a final court judgment. However, this tool is strictly formal; a single error in the electronic form invalidates the entire process.

FAQ – Legal tips about Payment Orders

• Can we use the European Payment Order (EOP) instead?
  Yes, the EOP is valid and effective. However, the domestic Czech payment order is often faster and allows for higher caps on claimed legal costs in certain scenarios. We analyze which route is more profitable for you. For immediate assistance, write to us at office@arws.cz. 
• What if the debtor objects?
  The payment order is cancelled, and the case automatically transforms into standard litigation. This is why you need a strategy for the "long game" before you even file. Need a strategy assessment? Contact us at office@arws.cz.

Enforcement of Maltese Judgments

Thanks to the Brussels I bis Regulation, a judgment obtained in Malta is automatically recognized in the Czech Republic without the need for a complex Exequatur procedure. You do not need to re-litigate the case.

However, "recognition" is not the same as "actual payment." You still need to initiate enforcement proceedings (exekuce) in the Czech Republic to seize bank accounts, real estate, or other assets. ARROWS handles this agenda daily, working with reliable bailiffs to freeze debtor assets before they can be hidden.

Enforcement & Costs

Risks and penalties	How ARROWS helps (office@arws.cz)
"Loser Pays" Principle – In the Czech Republic, the losing party typically pays the winner's legal costs. If you lose, you pay twice—your fees and theirs.	Cost-Benefit Analysis – We assess the probability of success and the debtor's solvency before you spend a Euro.
Hidden Asset Transfers – Debtors often try to transfer assets to relatives or shell companies once litigation starts.	Asset Tracing & Interim Measures – We can petition for preliminary injunctions to freeze assets during the trial.
Invalid Power of Attorney – Foreign companies often provide PoAs that fail to meet Czech verification standards (apostille/superlegalization requirements).	Corporate Documentation Support – We guide you through the exact requirements for Maltese firms.

Why Choose ARROWS Law Firm?

Litigating across borders carries risks that go beyond the courtroom. You need a partner who understands both the local landscape and the international stakes. ARROWS is an international law firm operating from Prague, European Union, providing a safe harbour for your legal interests.

• Financial Safety: We are insured for damages up to CZK 500 million, providing you with peace of mind for even the largest commercial disputes.
• Scale: We support over 150 joint-stock companies and 250 limited liability companies, giving us the commercial awareness that purely academic lawyers lack.
• Global Reach: As part of the ARROWS International network, we operate in 90 countries, meaning we can often connect you with partners or opportunities beyond the dispute itself.

Don't risk procedural errors that could cost you your claim. Litigation in the Czech Republic is complex, strict, and unforgiving of mistakes. It is safer, faster, and more effective to leave the entire matter to the professionals. Protect your business today. Contact ARROWS Law Firm at office@arws.cz.

FAQ – Most common legal questions about Litigation in CZ

1. Do I need to physically travel to Prague for the trial?
In most commercial cases, no. Your ARROWS attorney represents you based on a Power of Attorney. You can remain in Malta while we handle the hearings. Our lawyers are ready to assist you – email us at office@arws.cz.

2. How long does a commercial lawsuit take in the Czech Republic?
A standard first-instance trial can take 12–18 months. However, accelerated procedures like the Payment Order can resolve clear debts in 2–3 months. Get a timeline estimate by writing to office@arws.cz.

3. Can I claim interest on the unpaid debt?
Yes, you are generally entitled to statutory late payment interest (repo rate + 8%) or contractual interest. This can significantly increase the final sum recovered. Calculate your claim value – contact office@arws.cz.

4.What documents does a Maltese company need to sue?
You need a current extract from the Maltese Business Registry (translated), the contract/invoices, and proof of debt delivery. We help coordinate the certified translations. Need legal help? Contact us at office@arws.cz.

5. Is mediation mandatory before court?
No, mediation is generally voluntary in commercial disputes. However, the pre-litigation notice is mandatory to recover costs. Do not hesitate to contact our firm – office@arws.cz.