How to Defend or File a Lawsuit in the Czech Republic as a Lithuanian Business: A Practical Litigation Guide

When your Lithuanian company faces a commercial dispute with a Czech partner, supplier, or debtor, understanding how to navigate the Czech court system can be the difference between protecting your business interests and suffering significant financial losses. This comprehensive guide provides specific answers to the critical procedural questions that Lithuanian businesses must understand when defending against a lawsuit or pursuing their claims in Czech courts. As a leading Czech law firm in Prague, European Union, ARROWS combines deep local knowledge with extensive experience representing international clients from Lithuania and across the Baltic region, ensuring your case is handled with precision and strategic insight.

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.

Why Lithuanian Companies End Up in Czech Courts

Czech courts have jurisdiction over cross-border disputes involving Lithuanian businesses under several circumstances defined by EU law. The Brussels I bis Regulation (Regulation EU No 1215/2012) governs jurisdiction in civil and commercial matters across all EU member states, including Lithuania and the Czech Republic. The general rule is straightforward: a defendant domiciled in the Czech Republic should be sued in Czech courts. However, Lithuanian businesses can also find themselves as defendants in Czech proceedings, particularly when contracts specify Czech jurisdiction or when the place of performance is in the Czech Republic.

Many Lithuanian companies doing business in the Czech Republic face litigation stemming from unpaid invoices, breach of distribution agreements, intellectual property disputes, or partnership conflicts. The automatic recognition and enforcement of judgments within the EU means that a Czech court decision against your Lithuanian company will be enforceable in Lithuania without requiring a separate recognition procedure. This makes it critical to defend vigorously from the outset rather than ignoring Czech proceedings. For immediate assistance with jurisdiction questions, write to us at office@arws.cz. 

FAQ – Legal Tips about Cross-Border Jurisdiction

1. Can a Czech court have jurisdiction over my Lithuanian company if we never signed a contract?
Yes, Czech courts can have jurisdiction based on several grounds beyond contractual relationships, including where the harmful event occurred (for tort claims) or where services were provided. The Brussels I bis Regulation provides multiple jurisdictional bases. Our lawyers at ARROWS can analyze your specific situation – contact us at office@arws.cz. 

2. We have a choice of law clause specifying Lithuanian law. Does that mean Lithuanian courts have exclusive jurisdiction?
No, choice of law and choice of forum are distinct concepts. Even if your contract specifies Lithuanian law, Czech courts may still have jurisdiction under the Brussels I bis Regulation unless you have an exclusive jurisdiction clause. Need legal help? Contact us at office@arws.cz. 

3. What happens if we ignore a lawsuit filed against us in a Czech court?
The Czech court can issue a default judgment against your company, which will be automatically enforceable throughout the EU, including in Lithuania. This is a catastrophic mistake that can lead to asset seizure and bank account freezing.

The Critical Role of the Czech Data Box System

One of the most significant procedural traps for foreign companies is the Czech data box (datová schránka) system, a mandatory electronic communication channel for all legal entities registered in the Czech Commercial Register. All Czech legal entities, including branches of foreign companies registered in the Czech Republic, are automatically assigned a data box. This electronic mailbox is used by Czech courts to deliver official documents, including lawsuits, judgments, and procedural orders.

The fiction of delivery creates severe risks for Lithuanian businesses. If a document is delivered to your data box and you do not log in within 10 days from the day of delivery, the document is deemed to have been delivered on the last day of that period, even if you never actually accessed it. This means you could miss critical deadlines for filing a defense without ever knowing a lawsuit was initiated against you. Lithuanian companies with branches or subsidiaries registered in the Czech Republic must actively monitor their data boxes at least weekly.

For Lithuanian parent companies not directly registered in the Czech Republic but doing business through Czech entities, ensuring proper access to the data box is essential. ARROWS provides comprehensive data box monitoring services for foreign clients, ensuring no critical deadline is ever missed. For immediate assistance setting up proper data box access protocols, write to us at office@arws.cz. 

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Missing lawsuit notification due to unmonitored data box, leading to default judgment	We provide data box monitoring services and immediate alerts for all court communications
Failure to respond within mandatory deadlines (typically 30 days for defense) resulting in automatic loss	Preparation of timely and comprehensive defense strategies, ensuring all procedural requirements are met.
Invalid service of documents in English, causing delays and additional costs	Certified translations and proper service of all legal documents in Czech, eliminating procedural defects

When Legal Representation is Mandatory in Czech Courts

Unlike some jurisdictions where companies can represent themselves, Czech procedural law imposes strict requirements on legal representation, particularly for foreign entities. In Czech appellate courts (Regional Courts hearing appeals and the Supreme Court), legal representation by a licensed Czech attorney is mandatory for all parties. At the first-instance level (District and Regional Courts as courts of first instance), representation is generally not mandatory for legal entities.

However, for foreign companies, attempting to navigate Czech civil procedure without a local attorney is a strategic disaster. The procedural system is fundamentally different from common law jurisdictions and even from other civil law systems in the Baltic region. All court proceedings are conducted exclusively in Czech, and any evidence submitted in English, Lithuanian, or any other foreign language is legally worthless until accompanied by an officially certified translation (soudní překlad). A Lithuanian company that files documents in English will see them ignored by the court, and critical deadlines will pass.

The Czech legal system follows a "front-loaded" burden of proof approach, meaning all evidence and legal arguments must be presented comprehensively at the outset of litigation. Unlike adversarial systems with extensive discovery phases, Czech procedure requires parties to submit their complete case with the initial pleadings. Missing evidence or arguments at this stage can be fatal to your case. As an international law firm operating from Prague, European Union, ARROWS excels at bridging these legal and cultural gaps between Lithuanian and Czech legal systems. Our lawyers are fluent in English and work daily with clients from the Baltic states. For immediate legal representation, contact us at office@arws.cz. 

Understanding Czech Court Filing Fees and Litigation Costs

Czech court fees are calculated based on the value of the disputed claim and are substantially lower than in many Western European jurisdictions. For monetary claims up to CZK 20,000 (approximately EUR 800), the filing fee is CZK 1,000 (approximately EUR 40). For claims between CZK 20,000 and CZK 40,000,000 (approximately EUR 1.6 million), the fee is 5% of the disputed amount. For claims exceeding CZK 40,000,000, the fee is CZK 2,000,000 plus 1% of the amount exceeding CZK 40,000,000, capped at CZK 4,100,000 (approximately EUR 150,000) for claims over CZK 250,000,000.

The court fee must be paid when the lawsuit is filed, and failure to pay results in the court setting a deadline for payment. If the fee is not paid within the specified deadline, the court will dismiss the lawsuit. For Lithuanian companies defending against a claim, the good news is that if you successfully defend and the plaintiff's claim is dismissed, the plaintiff will typically be ordered to reimburse your litigation costs, including your attorney's fees.

However, the reimbursement of attorney's fees is capped according to the statutory advocacy tariff, which often covers only a portion of the actual legal costs incurred by foreign companies. This means that even a successful defense can be expensive. The Czech legal system does not follow the American "each party bears its own costs" rule; rather, the losing party generally must reimburse the winner's costs, but only up to the statutory limits. For strategic advice on cost management in Czech litigation, contact ARROWS at office@arws.cz. 

How to File a Lawsuit in the Czech Republic as a Lithuanian Company

If your Lithuanian company needs to pursue a Czech debtor or enforce a contractual obligation, understanding the proper procedure for initiating a lawsuit is critical. The lawsuit (žaloba) must be filed in writing, in Czech, and must contain specific mandatory elements defined in the Czech Code of Civil Procedure. These include precise identification of the parties, a clear statement of the factual and legal basis for the claim, the specific relief sought, and designation of evidence supporting each factual allegation.

Lithuanian companies must also decide which Czech court has territorial jurisdiction. For contractual disputes, jurisdiction is typically determined by the defendant's domicile or the place of performance of the contract. The Brussels I bis Regulation provides specific rules for determining the "place of performance" for different types of contracts, particularly distinguishing between sale of goods (place of delivery) and provision of services (place where services were provided). Choosing the wrong court will result in the case being transferred, causing delays and additional costs.

Once the lawsuit is filed and the court fee paid, the Czech court will serve the lawsuit on the defendant using the EU Service Regulation (Regulation EU 2020/1784). This process typically takes 30-60 days for cross-border service within the EU. The defendant then has 30 days from service to file a defense (vyjádření k žalobě). ARROWS provides comprehensive litigation services for Lithuanian companies pursuing claims in Czech courts, including drafting pleadings, engaging expert witnesses, and managing all procedural requirements. Get tailored legal solutions by writing to office@arws.cz. 

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Filing lawsuit in wrong court, causing transfer delays and doubled fees	Precise determination of jurisdiction and venue, ensuring your case is filed correctly from day one.
Defective pleadings lacking mandatory elements, resulting in dismissal	Professional drafting of all court pleadings in Czech, meeting all procedural requirements
Missing evidence or insufficient proof at the initial filing stage	Strategic case development with comprehensive evidence gathering before filing, ensuring your claim is strong from the outset

Defending Against a Czech Lawsuit: Strategic Considerations

When your Lithuanian company is sued in a Czech court, the first critical step is filing a comprehensive defense within 30 days of proper service. The defense must not only deny the plaintiff's allegations but must also present all of your affirmative defenses and counterclaims with complete supporting evidence. Czech procedure does not permit "wait and see" strategies where you hold back evidence or arguments for later stages.

The Czech court system follows a primarily written procedure, with oral hearings focused on witness examination and final arguments rather than extensive presentation of new evidence. The judge plays an active role in managing the proceedings and questioning witnesses, which differs significantly from the adversarial model familiar to many Baltic businesses. This inquisitorial element means that presenting your case clearly and comprehensively in written submissions is even more critical.

Lithuanian companies must also be aware of the limited grounds for excluding evidence in Czech procedure. Unlike common law systems with extensive rules on admissibility, Czech courts will generally consider all evidence submitted by the parties, provided it was submitted in a timely manner and is relevant to the dispute. This means you cannot rely on technical objections to exclude harmful evidence; instead, your strategy must focus on providing stronger contrary evidence and persuasive legal arguments.

As a law firm based in Prague, European Union, ARROWS has defended hundreds of international companies in Czech courts. Our litigation team includes former judges and prosecutors who understand how Czech courts think and what arguments resonate with Czech judges. We combine this insider perspective with fluency in international business practices to provide Lithuanian clients with defense strategies that work. Do not hesitate to contact our firm – office@arws.cz. 

FAQ – Legal Tips about Defending Lawsuits in Czech Courts

1. Can we negotiate a settlement even after a lawsuit has been filed?
Yes, absolutely. Czech courts actively encourage settlement and will often suspend proceedings to allow parties to negotiate. Settlement agreements approved by the court (soudní smír) have the same enforceability as judgments. Our lawyers at ARROWS are experienced negotiators – contact us at office@arws.cz. 

2. What happens if we need to obtain evidence located in Lithuania?
Czech courts can use the EU Evidence Regulation (Regulation EU 2020/1783) to request Lithuanian courts to take evidence on their behalf, including deposing witnesses or obtaining documents. We coordinate cross-border evidence gathering.

3. Can we appeal a Czech first-instance judgment?
Yes, appeals must be filed within 15 days of service of the written judgment. Representation by a licensed Czech attorney is mandatory at the appellate level. 

Enforcement of Lithuanian Judgments in the Czech Republic

If your Lithuanian company has already obtained a judgment from a Lithuanian court against a Czech defendant, enforcement in the Czech Republic is streamlined by EU law. Under the Brussels I bis Regulation, Lithuanian judgments are automatically recognized in the Czech Republic without requiring a separate recognition procedure. This is a fundamental change from pre-EU systems where foreign judgments required lengthy exequatur proceedings.

To enforce a Lithuanian judgment, you must apply directly to the Czech enforcement authorities (exekutor) with a copy of the judgment, a certificate from the Lithuanian court (using the standard EU form), and a certified translation into Czech. The Czech enforcement officer cannot review the substance of the Lithuanian judgment; enforcement can only be refused on very limited grounds such as irreconcilable conflicting judgments or violation of Czech public policy.

However, practical enforcement can still be challenging if the Czech debtor has hidden assets or transferred property to avoid payment. Czech enforcement law provides extensive tools for asset discovery and seizure, but navigating this process requires local expertise and often involves coordinating with banks, land registries, and business registers. ARROWS provides comprehensive enforcement services for Lithuanian creditors, including asset tracing, negotiating payment plans, and coordinating with Czech enforcement officers. 

Alternative Dispute Resolution: Czech Arbitration for Lithuanian Businesses

Many Lithuanian companies include arbitration clauses in their contracts with Czech partners, viewing arbitration as a faster and more confidential alternative to court litigation. The Czech Arbitration Court attached to the Czech Chamber of Commerce and the Agricultural Chamber is the leading arbitration institution in the Czech Republic and regularly handles international commercial disputes. The Czech Arbitration Act (Act No. 216/1994 Coll.) provides a modern framework for both institutional and ad hoc arbitration.

Czech arbitration offers several advantages for Lithuanian businesses. Arbitral proceedings are confidential, unlike court proceedings which are generally public. The parties can select arbitrators with specific expertise in the industry or subject matter of the dispute. Arbitral awards are final and binding, with very limited grounds for appeal, meaning disputes are resolved faster than in the court system. Additionally, arbitral awards benefit from the New York Convention, making them enforceable in over 160 countries worldwide.

However, arbitration in the Czech Republic has faced increased judicial scrutiny following past abuses in consumer arbitration. Czech courts now carefully review arbitration clauses to ensure they were validly agreed and are not unconscionable. For B2B commercial disputes between Lithuanian and Czech companies, arbitration remains highly enforceable, but the arbitration clause must be properly drafted. As an international law firm operating from Prague, European Union, ARROWS drafts arbitration clauses that withstand judicial challenge and provides full representation in arbitral proceedings before the Czech Arbitration Court and other international institutions. For legal help drafting enforceable arbitration clauses, contact us at office@arws.cz. 

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Invalid or unenforceable arbitration clause, forcing litigation instead	Drafting of robust arbitration clauses that comply with Czech and EU law.
Costly arbitration with high administrative fees and arbitrator costs	Strategic advice on whether arbitration or court litigation is more cost-effective for your specific dispute
Difficulty enforcing arbitral awards against Czech parties hiding assets	Full enforcement services including asset tracing and coordination with Czech enforcement authorities

The Hidden Complexity: Why You Need Local Czech Legal Expertise

Throughout this guide, we have highlighted specific procedural requirements and strategic considerations for Lithuanian businesses involved in Czech litigation. But the reality is even more complex than this article can fully convey. Czech civil procedure contains numerous exceptions, special provisions for different types of claims, and procedural traps that laypeople—even those familiar with other EU legal systems—simply cannot see.

For example, the calculation of deadlines in Czech procedure follows specific rules about when time periods begin to run, whether weekends and holidays are included, and what constitutes timely filing. The rules on service of documents vary depending on whether service is domestic or international, whether the recipient is an individual or a legal entity, and whether alternative service methods are required. The consequences of missing a single procedural deadline can include dismissal of your claim, default judgment against you, or waiver of critical defenses.

Moreover, Czech courts have their own institutional culture and unwritten expectations about how arguments should be framed, how evidence should be presented, and what level of formality is required. A defense strategy that works brilliantly in Vilnius may fall flat in Prague if it does not account for these cultural and professional norms. Lithuanian lawyers, no matter how skilled, cannot provide effective representation in Czech courts without partnering with licensed local counsel who understand these nuances.

ARROWS handles cross-border litigation matters daily, which means we can significantly reduce your time investment and minimize the risk of costly errors. Our team includes Czech attorneys with decades of courtroom experience combined with international lawyers who understand the Lithuanian business environment. We are insured for damages up to CZK 500,000,000 (approximately EUR 20 million), providing you with the security that if we make a mistake, you are fully protected. We are regular partners of in-house legal departments at Lithuanian companies for handling specialized Czech litigation matters. For immediate assistance, write to us at office@arws.cz. 

Leveraging the ARROWS International Network for Cross-Border Success

Czech-Lithuanian business disputes often involve multi-jurisdictional elements, such as witnesses located in third countries, evidence scattered across multiple EU states, or related proceedings in other courts. ARROWS is not just a Czech law firm; we are part of ARROWS International, a network built over more than 10 years spanning 90 countries worldwide. This means that when your case requires coordination with Lithuanian counsel, obtaining evidence from Germany, or enforcing a judgment in Poland, you have a single point of contact in Prague that coordinates everything.

For Lithuanian companies, this integrated approach saves tremendous time and cost. Instead of managing separate law firms in each jurisdiction—each with different billing practices, communication styles, and strategic approaches—you work with one ARROWS attorney who orchestrates the entire matter. We ensure that procedural steps in the Czech Republic are properly coordinated with parallel actions in Lithuania, that evidence is gathered efficiently across borders, and that enforcement strategies account for the defendant's assets wherever they are located.

Our experience representing foreign clients includes supporting over 150 joint-stock companies, 250 limited liability companies, and operating in 90 countries globally. We are known for speed and high quality, combining the personalized service of a boutique firm with the resources and reach of an international network. Whether your dispute involves a straightforward unpaid invoice or a complex multi-million euro breach of contract claim, ARROWS provides the legal firepower you need. Spojte se s námi na office@arws.cz a získejte právní řešení na míru.

ARROWS Unique Value for Lithuanian Businesses: Beyond Legal Services

At ARROWS, we understand that legal disputes are not isolated problems—they are part of your broader business strategy. Our client base includes many Lithuanian companies that initially came to us for litigation but stayed because we help them identify new business opportunities, connect them with potential partners, and provide strategic advice beyond the courtroom. We actively facilitate business connections between our clients when we see opportunities for mutually beneficial investments, joint ventures, or commercial partnerships.

If your Lithuanian company is seeking Czech business partners, investors, or acquisition targets, we can leverage our extensive network to make introductions. If you are facing financing challenges or looking for capital to expand into the Czech market, we welcome those discussions. Our philosophy is that excellent legal representation should not just resolve today's problems; it should position you for tomorrow's opportunities.

Additionally, ARROWS offers business advisory services beyond litigation, including contract negotiation, regulatory compliance, tax structuring, and corporate governance. Many Lithuanian companies that initially engaged us to defend a single lawsuit have become long-term clients because they value having a trusted advisor in the Czech Republic who understands both local law and international business. For immediate assistance with any legal matter in the Czech Republic, write to us at office@arws.cz. 

FAQ – Most Common Legal Questions about Czech Litigation for Lithuanian Businesses

1. How long does a typical commercial lawsuit take in Czech courts?
First-instance proceedings typically take 12-24 months, depending on case complexity and court workload. Appeals add another 12-18 months. Czech courts have significantly improved efficiency in recent years. If you need a faster resolution, consider arbitration. For strategic advice on timeline management, contact ARROWS at office@arws.cz. 

2. Can we conduct court proceedings in English or must everything be in Czech?
All court proceedings, pleadings, and evidence must be in Czech. Certified translations are required for all foreign-language documents. ARROWS provides comprehensive translation services and handles all Czech-language filings.

3. What is the success rate for foreign companies in Czech courts?
Czech courts are impartial and apply the law regardless of the parties' nationality. Success depends on the strength of your case and quality of representation, not on whether you are foreign or domestic. Our experience shows that well-prepared cases with strong evidence succeed regardless of the client's origin. Contact us at – office@arws.cz. 

4. Can Czech courts freeze assets of a Lithuanian defendant before judgment?
Yes, Czech courts can issue preliminary injunctions (předběžné opatření) to freeze assets, prevent transfer of property, or prohibit certain actions pending the final judgment. The court fee for a preliminary injunction is CZK 1,000 and requires posting a security deposit. We assist with obtaining urgent interim relief.

5. What happens if the Czech defendant declares bankruptcy during our lawsuit?
If the defendant enters insolvency proceedings, your claim must be filed with the insolvency administrator and will compete with other creditors. Civil litigation is automatically suspended. We represent creditors in Czech insolvency proceedings to maximize recovery – contact ARROWS at office@arws.cz. 

6. Are there any special considerations for disputes involving Czech state-owned entities?
Disputes with Czech state-owned companies are generally subject to the same rules as disputes with private companies. However, enforcement against state assets may face additional restrictions. We have extensive experience representing foreign clients against Czech government entities and state enterprises. For immediate assistance, email us at office@arws.cz. 

Your Strategic Partner for Czech Litigation: Why Lithuanian Companies Choose ARROWS

When Lithuanian businesses face the complexity, cost, and stress of litigation in the Czech Republic, they need more than just a lawyer—they need a strategic partner who understands both the legal battlefield and the business stakes. At ARROWS, we have built our reputation on delivering results for international clients in Czech courts, combining aggressive advocacy with practical business sense.

Our litigation team includes attorneys who previously served as judges and prosecutors in the Czech court system, giving us unparalleled insight into how Czech judges evaluate evidence and make decisions. We combine this insider perspective with international sophistication, fluency in English, and deep understanding of Baltic business culture. This unique combination means we can translate not just the language but the entire legal and strategic mindset between Lithuanian and Czech legal systems.

ARROWS is insured for damages up to CZK 500,000,000, providing you with maximum security and peace of mind. We are also regular partners of in-house legal departments at large Lithuanian corporations for handling specialized Czech matters, because we combine deep expertise with modern technology and efficient project management.

If you do not want to risk errors, financial losses, or adverse judgments that will follow your Lithuanian company throughout the EU, trust the entire matter to the experts at ARROWS. Our lawyers handle Czech litigation daily and know exactly how to protect your interests, minimize costs, and maximize your chances of success. 

Whether you need to defend against a Czech lawsuit threatening your business, pursue a Czech debtor who refuses to pay, or enforce a Lithuanian judgment against Czech assets, ARROWS is ready to provide the sophisticated, aggressive, and cost-effective representation you need. Contact our Prague office today at office@arws.cz and let us show you why Lithuanian companies across industries trust ARROWS as their Czech litigation partner.

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