How to handle legal disputes in the Czech Republic as an American company: Steps for starting court proceedings

Are you an American business owner facing payment issues, contract breaches, or disputes with Czech partners? This comprehensive guide provides specific answers to the critical procedural and strategic questions American companies must understand when initiating legal disputes before Czech courts, avoiding costly procedural pitfalls that foreign businesses typically overlook.

Understanding why Czech courts might be your best option for dispute resolution

Many American companies delay taking action because they assume that European court systems move slowly and cost a fortune. In practice, Czech courts can be remarkably effective—particularly when your claim is well-documented and your legal strategy is specifically designed for Czech procedure rather than mirroring U.S. expectations.

The key question is not "Can we sue?" but rather "Can we prove our case under Czech procedural rules, in Czech language, with enforceable output that we can actually collect?"

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. This is provided you file the right claim in the right court with the right evidence from day one.

American companies operating in the Czech Republic increasingly recognize that the Czech judicial system, while fundamentally different from U.S. courts, delivers results efficiently when approached strategically. The Czech Republic consistently ranks among the reasonably fast-resolving jurisdictions in the European Union for commercial disputes.

ARROWS Law Firm has spent over a decade representing American companies in Czech business disputes, and our experience reveals that American executives and in-house counsel typically underestimate several critical procedural requirements and timing considerations.

The difference between success and failure often comes down to decisions made weeks or months before you ever step into a courtroom—decisions about jurisdiction, defendant identification, and evidence gathering.

The fundamental difference: Czech procedure is not American procedure

Before discussing the mechanics of filing a claim, you need to understand that Czech civil procedure operates on fundamentally different principles than American litigation. The Czech system is built around a written, fact-intensive approach where the court takes an active role in managing evidence.

The most common mistake American businesses make is treating Czech procedure as if it functions like U.S. federal court or state court, where extensive pre-trial discovery, depositions, and cross-examination form the backbone of case development.

Czech civil litigation does not include U.S.-style discovery. There are no mandatory document disclosures, no depositions of opposing parties before trial, and no interrogatories. This means that the burden falls entirely on you as the claimant to identify, gather, and present your evidence before filing.

Czech courts operate under the principle of free evaluation of evidence, meaning judges assess evidence based on their own judgment rather than following rigid evidentiary rules.

The written nature of Czech procedure means that your initial claim document—the žaloba (statement of claim)—must be a legally structured submission that matches Czech procedural logic rather than a narrative explanation of your grievances.

ARROWS Law Firm's lawyers specialize in translating American business disputes into Czech procedural format and developing evidence strategies that work within the Czech system.

Why American companies face unique procedural challenges in Czech courts

The procedural gap between American and Czech law creates practical problems that even experienced in-house counsel may not anticipate. Czech courts impose strict deadlines that allow no exceptions for "reasonable" delays—missing a procedural deadline by one day typically means losing the right to pursue that procedural step entirely.

There is no concept of excusable neglect that applies to statutory deadlines in the Czech system.

Additionally, all court proceedings are conducted exclusively in Czech, and any evidence submitted in English—regardless of the defendant's English fluency—is typically required to be officially translated. For American companies, this means that attempting to manage Czech court proceedings without local legal counsel creates legal jeopardy.

Your power of attorney must be notarized and, in many cases, apostilled (or superlegalized) according to international treaties.

Another critical difference relates to costs and fee recovery. American litigation is governed by the "American rule," where each party bears its own legal fees unless the contract or statute provides otherwise. Czech courts operate under the "loser pays" principle.

However, if you fail to send the required pre-litigation demand letter (the předžalobní výzva ), even if you win your case on the merits, the court will likely deny your request for cost recovery.

microFAQ – Legal tips on Czech vs. American court procedures

1. Do Czech courts allow discovery like American courts?
No. Czech courts do not have discovery. You must gather and present all your evidence before filing. If you rely on obtaining evidence from the other side during litigation, you will likely fail.

2. Can I conduct my Czech lawsuit in English?
No. All court proceedings must be conducted in Czech. Documents in other languages require official translation at your expense.

3. If I win my case, will the other side pay my attorney fees?
Likely yes, provided you sent the required pre-litigation demand letter and were fully successful. However, recovery is limited to statutory amounts set by the Regulation on Advocates' Tariff, which may not cover your actual legal spend.

Determining whether your dispute belongs in Czech court

The first strategic question you must answer before investing time and money in litigation is whether a Czech court even has jurisdiction to hear your dispute. This sounds simple but it is genuinely complex in cross-border situations. Jurisdiction involves two separate concepts: subject matter jurisdiction and territorial jurisdiction.

For most commercial disputes involving American companies and Czech defendants, the default rule under international private law is that a defendant domiciled in the Czech Republic should be sued in the Czech Republic courts.

The Brussels I Recast Regulation, which governs jurisdiction across EU member states, establishes that the courts of the member state where the defendant is domiciled have jurisdiction. If your Czech customer or business partner is registered in the Czech Republic and operates there, Czech courts will almost certainly have jurisdiction.

However, your contract may include a jurisdictional choice clause that designates a different forum—perhaps a Czech court in Prague specifically, or potentially a court in another jurisdiction.

If such a clause exists, both you and the defendant are generally bound by it. American companies sometimes assume they can ignore a Czech jurisdictional clause and file instead in American courts, but this creates serious practical problems. Czech courts will not automatically recognize an American judgment.

Conversely, if you file in a Czech court as permitted by your contract, and you obtain a judgment, that judgment becomes enforceable throughout the European Union through streamlined procedures.

The choice of which Czech court to file in matters significantly. The Czech Republic has over 80 district courts ( okresní soudy ), several regional courts ( krajské soudy ), and high courts ( vrchní soudy ) for appeals. Most commercial disputes begin in district courts based on territorial jurisdiction rules.

ARROWS Law Firm provides jurisdiction analysis before disputes arise, helping American clients structure their contracts and understand where they will need to litigate if problems develop.

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The critical pre-litigation step: The formal demand letter

Before you file any lawsuit in the Czech Republic, professional practice and statutory rules require that you send a formal pre-litigation demand letter, called the předžalobní výzva . While failure to send it does not prevent you from suing, it carries substantial financial consequences.

If you win your lawsuit on the merits but never sent the demand letter, the court will generally refuse to award you the reimbursement of your legal costs and court fees.

The předžalobní výzva is not a casual reminder. It must be a formal, legally compliant document that clearly identifies your claim, specifies the exact amount owed (if monetary), sets a concrete deadline for payment, and explicitly warns that you intend to pursue legal action if payment is not received.

The letter should be sent via registered mail or through the Czech data box system ( datová schránka ), with proof of delivery preserved.

American business executives sometimes assume that a standard demand letter they use in the United States, translated into Czech, will satisfy this requirement. This assumption creates a costly trap. Czech demand letters must comply with specific formal requirements established in Czech civil procedure law.

The timing of the demand letter is also important. You must send the demand letter at least seven days before filing your lawsuit. This waiting period demonstrates to the court that you acted in good faith and gave the other side a genuine opportunity to resolve the dispute without litigation.

For American companies without in-house expertise in Czech procedure, the demand letter should be drafted by Czech counsel to ensure compliance with all formal requirements.

microFAQ – Legal tips on the pre-litigation demand letter

1. What happens if I skip the demand letter and file directly in court?
You risk losing the right to recover your legal and court costs even if you win the case. This can transform a legal victory into a financial loss.

2. Does an email demand satisfy the requirement?
Generally no, unless you can prove delivery and content indisputably. The safest method is sending via registered mail or the Czech data box system with proof of delivery.

3. How long should I wait after sending the demand letter before filing?
At least seven days is required by law.

Gathering and organizing your evidence: The foundation of your entire case

A critical reality that American companies underestimate is that Czech civil litigation is won or lost surprisingly early—often before the first hearing occurs—because Czech courts expect clarity and evidence discipline from the outset.

This is perhaps the most important procedural principle to understand: the court will form initial impressions of your case based on your written claim and supporting documents. In American litigation, you expect to develop your evidence through discovery, depositions, and trial preparation. In Czech litigation, you must have your evidence organized, documented, and ready before you file. The burden of proof ( důkazní břemeno ) rests on you as the claimant.

For commercial disputes, the most critical evidence typically includes: executed contracts with signatures and dates, invoices clearly showing what was provided, and delivery notes. Evidence must be organized logically to tell a clear story. Czech courts expect you to identify each piece of evidence and explain how it proves the specific facts you are alleging. Judges do not have time to piece together a confusing collection of documents.

If your contracts, invoices, and other business records were created in the United States and exist in English, they must be translated into Czech by a certified translator ( soudní tlumočník ).

For certain types of evidence—particularly official documents like power of attorney—the signature must be notarized and the document apostilled according to the Hague Apostille Convention.

ARROWS Law Firm handles this task for American clients, analyzing documentary evidence, identifying gaps, and ensuring that translations comply with Czech requirements.

Understanding the role of witnesses and expert opinions

In American litigation, witness testimony often provides the bulk of case development, particularly through depositions. Czech procedure works differently. Witnesses can testify in Czech courts, but witness examination is primarily controlled by the judge rather than conducted through aggressive cross-examination as in American trials.

For American companies, this means that witness testimony is available but should not be relied upon as your primary evidence if documentary evidence is lacking.

Expert opinions can also be part of Czech litigation, particularly in technical disputes, contract interpretation disputes, or damages calculations. However, experts must be qualified and their opinions must be specific.

Filing your claim: The mechanics of actually starting court proceedings

Once you have gathered your evidence, sent your pre-litigation demand letter, and waited the required period, you are ready to file your žaloba (statement of claim). Czech law permits filing both electronically and in paper form.

For American companies managing disputes remotely from the United States, electronic filing offers significant advantages.

Electronic claims can be submitted via the Czech data box system ( datová schránka ). The data box is an electronic communication system that the Czech government uses for official business communication. Obtaining a data box is mandatory for all Czech companies.

The statement of claim must contain specific mandatory elements established in the Czech Code of Civil Procedure, including precise identification of the claimant and defendant.

The statement of claim is not an opportunity for narrative storytelling or persuasive writing in the American sense. It is a legally structured document that must precisely identify facts, reference supporting evidence, and connect those facts to specific legal obligations.

Court fees

Your statement of claim will also identify which court you are filing in and explain why that court has jurisdiction. The claim will specify the court fee you are paying. In the Czech Republic, court fees are calculated based on the monetary value of your claim rather than being flat fees.

According to the Act on Court Fees ( Zákon o soudních poplatcích ), the fee structure for electronic and standard filings is generally as follows:

• For claims up to CZK 20,000, the fee is CZK 1,000.
• For claims between CZK 20,000 and CZK 40,000,000, the court fee is 5% of the claimed amount.
• For larger claims (over CZK 40,000,000), the fee is CZK 2,000,000 plus 1% of the amount exceeding CZK 40,000,000.

If you fail to pay the fee after the court requests payment and sets a deadline, the court will discontinue your proceedings entirely.

Common Filing Mistakes and Their Consequences

Risks and Sanctions	How ARROWS (office@arws.cz) helps
Defective service of process : Filing the claim but failing to properly serve the defendant through Czech procedures, making the judgment unenforceable.	Strategic service coordination : ARROWS ensures proper service of documents using the EU Service Regulation or domestic rules, preserving the validity of your claim.
Non-compliance with filing formalities : Submitting claims without proper certification, omitting mandatory information, or failing to identify evidence correctly.	Complete claim package preparation : ARROWS drafts the full claim structure including contract analysis and evidence organization, ensuring compliance with Czech procedural requirements.
Failure to pay court fee on time : Missing the deadline to pay the court fee after notification, causing the court to dismiss your entire claim.	Fee management and timely processing : ARROWS monitors all court deadlines and ensures payment occurs within required timeframes.
Wrong court identified : Filing in a district court that lacks territorial jurisdiction, resulting in transfer to the correct court and loss of time.	Jurisdiction analysis : ARROWS identifies the correct court based on defendant domicile and contractual provisions, ensuring your claim is filed in the proper forum.

Understanding court fees, timeline, and what happens after filing

The question most American companies ask early in the dispute resolution process is: "How long will this take?" The honest answer is that Czech commercial litigation typically takes between twelve and twenty-four months from initial filing to first-instance judgment, depending on case complexity and court workload.

After you file your claim and pay the court fee, the Czech court will review the claim for formal correctness and then serve it on the defendant.

After the defendant files a defense (or fails to file one), the court may schedule a preliminary hearing ( přípravné jednání ). At this hearing, the judge informs both parties about the procedural requirements and timeline, and the court assesses whether the case appears suitable for settlement.

If the case proceeds past the preliminary hearing, the court will schedule a trial hearing where evidence will be presented.

After the trial hearing (or sometimes after multiple hearings if the case is complex), the court will issue a written judgment. The judgment must contain findings of fact, legal reasoning, and a decision specifying what the defendant must do or pay.

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The payment order alternative: Speed when your claim is undisputed

Not every commercial dispute requires going through the full trial process. For straightforward monetary claims where the defendant is simply refusing to pay but the claim is clear, the Czech Republic offers an accelerated procedure called the platební rozkaz (payment order procedure).

This fast-track mechanism can result in an enforceable judgment within weeks or a few months.

The payment order procedure works as follows: you submit a formal application to the competent district court, including your claim and supporting documentary evidence. If the judge is convinced that your claim is justified based on the evidence provided, the court issues a payment order without a hearing.

Once the court issues the payment order, it is served on the debtor, who typically has fifteen days from the date of personal delivery to either pay or file a formal objection.

If the debtor files an objection within this period, the payment order is cancelled in its entirety and the case is transferred to standard civil litigation. However, if the debtor fails to pay or file an objection within the fifteen-day period, the payment order becomes a final and legally enforceable judgment.

A related expedited procedure uses electronic payment orders ( elektronický platební rozkaz - EPR). These are submitted entirely through electronic means. Unlike standard payment orders, the EPR has a monetary limit; it is currently available for claims not exceeding CZK 1,000,000.

The European Payment Order (EOP) is another tool available for cross-border cases within the EU, which is automatically recognized and enforceable throughout the EU.

ARROWS Law Firm advises American clients on whether the payment order procedure or traditional litigation is appropriate for their particular dispute.

microFAQ – Legal tips on the payment order procedure

1. What is the difference between a payment order and a regular lawsuit?
A payment order is issued without a hearing based on documents. If approved and not opposed, it creates an enforceable judgment quickly. A regular lawsuit implies a full trial process.

2. Can the defendant stop a payment order?
Yes, by filing a simple objection ( odpor ) within fifteen days. This cancels the order and starts a standard trial.

3. How quickly can I collect if the payment order is approved?
If the debtor does not object, the payment order becomes a final judgment immediately after the deadline passes, and you can begin enforcement proceedings.

Cross-border considerations: Serving American companies and European enforcement

When a Czech company is suing an American company, or when an American company needs to serve documents on parties outside the Czech Republic, international treaties apply. For service between the CR and USA, the Hague Service Convention is the controlling legal framework.

Serving an American defendant with Czech judicial documents requires compliance with the Hague Service Convention; you cannot simply email documents.

Conversely, if you obtain a Czech judgment against an American company and wish to enforce it in the United States, you face different challenges. A Czech judgment is not automatically enforceable in American courts. You must file a separate action in U.S. court to recognize the Czech judgment.

For American companies holding Czech judgments and seeking to collect against European assets, the situation is much simpler as Czech judgments are automatically recognized throughout the European Union.

Legal representation requirements and cost structure

The question of whether legal representation is mandatory varies depending on the stage of proceedings. At the first-instance level (district courts and regional courts hearing cases as courts of first instance), legal representation is not technically mandatory for corporate parties in most civil cases.

However, for American companies managing Czech litigation remotely, attempting to represent themselves is practically impossible due to language barriers and procedural strictness.

At the appellate level ( odvolání ), legal representation is not strictly mandatory by statute, but it is highly advisable. However, for extraordinary appeals to the Supreme Court ( dovolání ), legal representation by a licensed Czech attorney is mandatory by law.

The "loser pays" rule means that if you win, the court will order the defendant to pay you "costs of legal representation."

Note that these costs are calculated based on the statutory tariff, not your actual legal bills. For high-value claims, the reimbursement can be significant, but it may not cover 100% of the fees paid to your attorney if you agreed on a high hourly rate.

ARROWS Law Firm has experience representing American companies and we discuss fee arrangements transparently to ensure litigation remains commercially proportionate to the dispute value.

Evidence admissibility and what Czech courts will actually accept

American companies sometimes find that evidence they consider absolutely conclusive in American litigation is treated differently by Czech courts. For example, American contracts often contain detailed recitations about the parties' intentions.

Czech courts look at what the contract explicitly states and then apply the detailed framework of the Czech Civil Code to fill in gaps.

Documentary evidence is the foundation of Czech litigation. Contracts, invoices, delivery notes, email correspondence, and payment records are typically given substantial weight. Unlike in the US, affidavits (sworn statements) are generally not considered as strong evidence and cannot replace direct testimony or documents.

One particular challenge for American companies involves business records, which Czech courts will accept only if they are authenticated, properly translated, and presented in organized form.

What happens when you prevail: The enforcement stage

Obtaining a favorable judgment is only half the battle. The judgment is only as good as your ability to enforce it. A Czech judgment ordering a defendant to pay money does not automatically result in payment.

Czech law provides for enforcement primarily through private bailiffs ( soudní exekutoři ), who are state-authorized individuals licensed to conduct enforcement.

If the debtor does not pay voluntarily after the judgment becomes final, you file a motion to commence execution. The bailiff then searches for assets using government registers.

The creditor usually does not pay a 5% court fee to start enforcement via a private bailiff; instead, the costs of enforcement are primarily recovered from the debtor.

Enforcement proceedings cannot begin until your judgment is final ( pravomocné ) and enforceable ( vykonatelné ).

ARROWS Law Firm assists American creditors in developing enforcement strategies, helping identify likely asset locations and coordinating with private bailiffs to maximize your recovery prospects.

Appeals and extraordinary appeals: When the case continues after first instance

If either party disagrees with the first-instance judgment, appeals are available within strict deadlines. An appeal must be filed within fifteen days of the delivery of the written judgment. Missing this deadline typically results in the judgment becoming final.

Appeals are heard by regional courts (or high courts), which review both factual and legal issues, though they are bound by the factual record established in the first instance to a large extent.

After an appellate decision is issued, extraordinary appeals ( dovolání ) are available in limited circumstances to the Supreme Court, but only on grounds of specific legal errors. Extraordinary appeals have very restrictive admissibility requirements.

Executive summary for management

Critical Decision Points for American Companies Evaluating Czech Litigation:

• Jurisdiction and forum selection are permanent decisions : Whether your dispute lands in a Czech court or American court determines the procedural rules and enforcement mechanisms.
• Procedural formalities are not negotiable : Czech courts operate under a rigid procedural system. Missing a deadline or failing to send the required předžalobní výzva can result in cost forfeiture or dismissal.
• Evidence must be gathered before filing : Unlike American litigation, Czech procedure provides no discovery. You must identify and reference your evidence before filing your initial claim.
• Professional legal representation is essential : While representation is not mandatory at first instance, navigating Czech litigation in English is practically impossible. Representation by ARROWS Law Firm reduces risk and ensures compliance.
• Enforcement is a separate phase : A favorable judgment does not equal payment. Enforcement via private bailiffs is effective but requires a separate motion after the judgment is final.

Conclusion of the article

Handling legal disputes in the Czech Republic as an American company requires understanding that Czech courts operate under fundamentally different procedural rules than U.S. courts. The key to successful Czech litigation is recognizing early that the systems are different and planning accordingly.

ARROWS Law Firm has spent over a decade helping American companies navigate Czech commercial disputes.

We specialize in translating American business problems into Czech procedural format, ensuring compliance with formalities, and developing evidence strategies that work within Czech judicial culture.

We assist American clients with comprehensive litigation services including representation in all court proceedings, preparation of claim documentation, evidence gathering strategies, and enforcement coordination.

Whether you face a payment dispute with a Czech customer, a breach of contract by a Czech supplier, or a disagreement with a Czech business partner, the procedural complexity makes professional legal guidance essential.

Contact ARROWS Law Firm at office@arws.cz to discuss your specific situation. Our lawyers will assess whether Czech litigation makes business sense for your dispute, explain realistic timelines and costs, and develop a strategy that protects your interests.

FAQ – Frequently Asked Legal Questions About How to Handle Legal Disputes in the Czech Republic as an American company

1. How long does Czech litigation typically take?
First-instance Czech civil litigation typically takes twelve to twenty-four months, depending on case complexity. Appeals can add another year or more. However, Czech judgments are automatically enforceable throughout the EU, which often makes it a better option than US litigation for European disputes.

2. Do I need a Czech lawyer, or can I manage my Czech court case through American counsel?
While legal representation is not technically mandatory at the first-instance level, you effectively need a Czech lawyer. Proceedings are in Czech, and deadlines are strict. American counsel cannot represent you in Czech court. For the Supreme Court, Czech legal representation is mandatory by law.

3. What evidence is most important in Czech court?
Documentary evidence—contracts, invoices, delivery notes, and correspondence—forms the foundation. Czech courts do not have US-style discovery, so you must have your evidence ready before filing.

4. What is the payment order procedure?
The payment order ( platební rozkaz ) is an expedited process for undisputed monetary claims. If the judge approves your evidence, an order is issued without a hearing. If the debtor does not object within 15 days, it becomes a final judgment. Electronic payment orders (EPR) are limited to claims up to 1,000,000 CZK.

5. What must I do before filing a lawsuit to protect my right to recover my legal costs?
You must send a formal pre-litigation demand letter ( předžalobní výzva ) at least 7 days before filing. Failure to do so generally means the court will not award you reimbursement of legal costs even if you win.

6. What happens after I obtain a Czech judgment?
You must pursue separate enforcement proceedings. Once the judgment is final, you can file a motion for execution with a private bailiff ( soudní exekutor ), who can seize assets, freeze accounts, and garnish wages.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we strive for maximum accuracy in the content, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS Law Firm directly (office@arws.cz). We accept no responsibility for any damage or complications arising from the independent use of the information in this article without our prior individual legal consultation and expert assessment. Each case requires a tailor-made solution, so please do not hesitate to contact us.