How to Pursue Legal Action in the Czech Republic as a Serbian Business: Practical Litigation Guide

When your Czech business partner stops paying, breaches a key contract, or disputes your commercial terms, Czech civil litigation can be a fast, enforceable route to recovery—but only if you understand the procedural differences and file your claim strategically from day one. This guide explains what Serbian companies typically overlook about Czech court proceedings, how to navigate them successfully, and when to involve specialized legal expertise to protect your interests.

Understanding the Czech court system and your options

The Czech judiciary operates differently from what you might expect from Serbian legal traditions. Rather than the inquisitorial approach you may be familiar with, Czech courts follow a civil law system where parties bear the primary responsibility for presenting evidence and proving their claims.

The system is organized into tiers, with district courts (okresní soudy) handling the vast majority of commercial disputes as courts of first instance. Regional courts (krajské soudy) primarily serve as appellate bodies for district court decisions, though they act as first-instance courts for specific complex matters. High courts (vrchní soudy) and the Supreme Court (Nejvyšší soud) manage appellate reviews.

Importantly, there are no juries in Czech civil proceedings—your case will be decided by professional judges who evaluate evidence according to the principle of free assessment. This means they have discretion in weighing how convincing each piece of evidence is.

For Serbian businesses operating in the Czech Republic, understanding this structure matters because it determines where you file, what evidence you need to prepare beforehand, and how quickly you can expect resolution.

The most critical insight is that Czech litigation is heavily front-loaded: parties must present their case with clarity and supporting evidence from the beginning. The court will not conduct extensive investigations to build your case for you. This means your initial filing must be strategically constructed with complete evidence architecture in place.

ARROWS Law Firm has extensive experience representing foreign businesses from across Europe and regularly handles litigation matters for Serbian companies operating in the Czech Republic.

Pre-litigation strategy

Before you even consider filing in court, Czech law requires a specific procedural step that directly affects your right to recover legal costs later. You must send a formal pre-action warning letter (called a "předžalobní výzva") to your debtor at least seven days before initiating court proceedings.

If omitted, the court may refuse to award you reimbursement for your legal fees and court costs, even if you win the dispute completely on its merits. This is not a suggestion or best practice—it is a legal requirement under the Civil Procedure Code.

This requirement seems straightforward until you consider the practical complexities. The warning letter must be properly documented, correctly addressed to the debtor's registered seat, and comply with Czech formal requirements. It should give the debtor a reasonable timeframe to respond or pay—typically seven to fourteen days is standard practice.

However, Czech courts view this step as essential to the dispute resolution process, and skipping it is one of the most costly mistakes foreign claimants make. In your experience as a Serbian business, this might feel like an unnecessary formality before "real" legal action begins.

The broader strategy here involves assessing whether litigation is truly your best path forward. Experience shows that a significant number of commercial debt cases in the Czech Republic are resolved successfully without ever entering a courtroom through well-executed pre-litigation strategies.

Many Serbian companies find that a professionally drafted warning letter, sent by local counsel, signals seriousness and often prompts payment or settlement discussions before formal litigation becomes necessary.

Choosing between accelerated procedures and traditional litigation

Once you understand the pre-litigation requirements, your next critical decision involves selecting the right procedural path. For undisputed monetary claims, Czech law offers accelerated options that can deliver enforceable titles far more quickly than traditional litigation.

The most commonly used is the Electronic Payment Order (elektronický platební rozkaz), where a judge reviews your application and supporting documents without holding a formal hearing. This is a fast-track judicial process that issues a binding payment order.

The Electronic Payment Order works like this: you file an electronic application with the competent district court, providing strong documentary evidence (contracts, invoices, delivery confirmations). This procedure is capped at claims up to CZK 1,000,000. The court typically issues the order within weeks, which is then served on the debtor.

If the debtor files an objection, the payment order is automatically cancelled, and the case converts into a standard civil lawsuit. The debtor has exactly 15 days from receipt to either pay in full or file a formal objection (odpor).

For cross-border claims involving Serbian businesses and Czech debtors where the claim has cross-border implications within the EU context, or for amounts exceeding the domestic electronic limit, there is the European Order for Payment (EOP).

If they do not contest the claim, the resulting order is automatically recognized and enforceable throughout the EU without requiring a separate declaration of enforceability. This standardized EU procedure allows you to file a form with a Czech court, and the debtor has 30 days to lodge a statement of opposition.

The complexity here is more subtle than it initially appears. While payment orders are faster and cheaper, they are not appropriate for every claim. If your dispute involves contested facts, then a payment order may fail because the debtor will likely object.

ARROWS Law Firm regularly advises Serbian businesses on this strategic choice and can assess your claim to determine whether an accelerated procedure is viable.

microFAQ – Legal tips on choosing the right litigation path

1. If I have an unsigned contract but email confirmations from the debtor, can I use the payment order procedure?
   Possibly, but it involves risk. Czech courts require clear evidence to issue a payment order. While emails are admissible, if the debtor files an objection, the order is cancelled, and you proceed to a full hearing where the weight of email evidence will be tested. For the electronic payment order, the standard of proof is high. ARROWS Law Firm can review your evidence to assess viability. (office@arws.cz)
2. Is the European Order for Payment faster than the Czech payment order procedure?
   They are comparable in speed regarding issuance, but the timelines for debtor response differ (15 days for Czech order vs. 30 days for EOP). The Czech Electronic Payment Order is often the fastest route for claims under CZK 1 million against Czech entities. The EOP is advantageous for cross-border enforcement within the EU. (office@arws.cz)
3. If the debtor objects to my payment order, how long will the full lawsuit take?
   Once the objection is filed, the case converts into standard civil proceedings. A first-instance judgment typically takes 6 to 18 months depending on the court's workload and case complexity. Complex commercial disputes with appeals can take 2-3 years. Strategic selection of the initial procedure matters—if your evidence is weak, starting with a payment order may just delay the inevitable hearing. (office@arws.cz)

Filing your claim and procedural requirements

Once you have decided that litigation is necessary, the actual filing process becomes your first major test. A Czech statement of claim (žaloba) is a legally structured submission that must match the specific requirements of the Civil Procedure Code.

The court expects the claim to specify exactly what you are claiming, the legal basis, and crucially, the factual allegations and the specific evidence to prove each allegation. The claim must be filed with the competent court.

Jurisdiction is determined by statutory rules, but it can also be controlled by a prorogation clause (choice-of-court agreement) if your contract includes one. Filing in the wrong court causes delays as the case must be transferred. For Serbian businesses, ensuring the correct Czech court is identified is a key initial step.

Filing is best done electronically. Czech law mandates electronic communication via the Data Box system (datová schránka) for entities that have one, and allows it for others. This speeds up the process significantly, though it requires valid electronic signatures or sending via an authorized Data Box.

Court fees

Court fees in Czech civil cases are prepaid. For an Electronic Payment Order (claims up to CZK 1M), the fee is 4% of the claimed amount. For a standard lawsuit or European Order for Payment, the fee is generally 5% of the claim value.

Example: A claim for CZK 1,000,000 via Electronic Payment Order requires a fee of CZK 40,000, whereas via a standard lawsuit, it is CZK 50,000. These fees must be paid upon filing or shortly after upon court request.

Failure to pay them within the deadline results in the discontinuance (zastavení řízení) of the proceedings.

Beyond court fees, you must budget for legal representation. While representation is not mandatory for the first instance (district or regional court), it is highly technical. Legal fees are often calculated based on hourly rates or a fixed fee, though for the purpose of cost reimbursement awarded by the court, they are calculated according to a statutory attorney tariff.

ARROWS Law Firm can provide you with a detailed cost estimate.

Evidence strategy and preparation

The most critical aspect of preparing your Czech litigation is evidence strategy. Czech courts operate under a principle of free evaluation of evidence, but the burden of proof is strictly on you. The court will not "fish" for evidence on your behalf.

Thanks to a bilateral treaty on legal assistance, public documents issued in Serbia are exempt from legalization or apostille requirements in the Czech Republic. Unlike many other jurisdictions, documents issued in Serbia do not generally require an Apostille.

However, they must be accompanied by a certified translation into the Czech language prepared by an officially recognized translator.

What counts as evidence? Documentary evidence such as contracts, invoices, delivery notes, and acceptance protocols are the gold standard. Witness testimony is permitted, but you must identify witnesses and what they will prove. Expert opinions are essential for technical disputes.

Informal communications like WhatsApp or unverified emails are admissible but hold less weight than formal documentation. If your dispute relies heavily on informal chats, you will need corroborating evidence.

ARROWS Law Firm manages the technical aspects of evidence preparation, including arranging certified translations that meet Czech legal standards.

microFAQ – Legal tips on evidence and procedural requirements

1. I have a contract with my Czech debtor, but there are email exchanges where they acknowledged modifications. Will Czech courts recognize these?
   Czech courts can recognize email modifications, but only if the original contract did not strictly require written amendments (with signatures) for validity. If your contract has a "written form only" clause for amendments, informal email changes may be invalid. ARROWS Law Firm can analyze your contract's "change management" clauses to advise on the validity of email evidence. (office@arws.cz)
2. Do I really not need an Apostille for Serbian documents?
   Generally, yes. Under the bilateral legal aid treaty, public documents from Serbia are accepted in the Czech Republic without an Apostille (super-legalization). You only need a certified translation into Czech. This saves significant time and administrative costs compared to other jurisdictions. (office@arws.cz)

Risk assessment

How Czech courts proceed after filing

Once your claim is filed, the court will issue a summons. If you filed a standard lawsuit (not a payment order), the court may order a "preparatory hearing" or proceed to a first oral hearing. In the courtroom, the procedure is judge-led.

The presiding judge controls the hearing, asks the substantive questions, and dictates the protocol. Parties (via lawyers) present arguments and can ask supplementary questions to witnesses with the judge's permission.

If you claim a debt exists, you must prove the contract and performance. If the defendant claims the goods were defective, they bear the burden of proving the defect.

Timeline wise, a Payment Order is issued in weeks and becomes final in about one month if no objection is filed. A standard litigation first instance judgment takes 6–18 months. Complex or appealed cases can take 2–3 years.

ARROWS Law Firm represents clients through all hearing phases, ensuring your arguments are presented effectively within the specific etiquette and procedural rules of Czech courts.

Appeals and extraordinary remedies

If the district court rules against you, you can file an ordinary appeal (odvolání) within 15 days of receiving the written judgment. This is a strict deadline. The appeal is heard by the Regional Court or High Court, depending on the first instance.

The appellate court reviews facts and law but generally does not accept new evidence that could have been presented earlier. An extraordinary appeal (dovolání) to the Supreme Court is available only for specific questions of law and is highly restricted. Representation by a lawyer is mandatory for this step.

The general statute of limitations for commercial rights is three years. Parties can agree to extend this (up to 15 years) or shorten it (min. 1 year). It is vital to file before this period expires.

Enforcement of judgments

A judgment is only useful if you can collect. The enforcement phase (exekuce) is distinct from litigation. Once you have a final judgment or valid payment order, you file an enforcement proposal, and a private bailiff (soudní exekutor) is appointed.

Czech bailiffs have broad powers to freeze and seize bank accounts (often the fastest method), seize movable and immovable property, or garnish receivables (money owed to your debtor by others).

If your Czech debtor has assets in other EU states, your Czech judgment is automatically enforceable there under the Brussels I bis Regulation. You do not need a new lawsuit; you proceed directly to enforcement in that country (e.g., Germany, Slovakia).

If you need to enforce a Czech judgment against a debtor's assets in Serbia, you must go through a recognition procedure in Serbian courts. While the bilateral treaty facilitates this, it is an extra step compared to intra-EU enforcement.

microFAQ – Legal tips on enforcement and recovery

1. How quickly can a bailiff freeze an account?
   Once appointed by the court, a bailiff can issue a freeze order on bank accounts almost immediately electronically. This is often the most effective pressure point. (office@arws.cz)
2. My Czech debtor moved assets to Germany. Is my Czech judgment valid there?
   Yes. Under EU regulations, the Czech judgment is valid in Germany without a declaration of enforceability (exequatur). You can apply directly to German enforcement authorities using the standard EU certificate issued by the Czech court. (office@arws.cz)

Strategic considerations for Serbian businesses

Serbian businesses benefit from specific favorable conditions when litigating in Czechia. Firstly, the bilateral treaty simplifies documentation by exempting Apostille requirements. Secondly, winning in Czech courts grants you an EU-wide enforceable title.

Under the Brussels I bis Regulation, you generally sue where the defendant is domiciled. However, check your contract for a "Choice of Court" clause. A valid clause naming Czech courts cements jurisdiction here.

Service of documents between Czechia and Serbia is regulated by the bilateral treaty and international conventions. Service can take time if the debtor is in Serbia.

If the debtor is in Czechia, the Data Box system makes service instant.

Alternative dispute resolution

Mediation: Czech courts can encourage mediation. It is voluntary, confidential, and the statute of limitations is paused during mediation. It is often faster and preserves business relationships.

If your contract has an arbitration clause, you cannot go to state court; you must go to the specified arbitration body. Arbitration (e.g., the Arbitration Court attached to the Czech Chamber of Commerce) is private and results in a final award which is enforceable internationally under the New York Convention.

ARROWS Law Firm can review your contracts to see if arbitration or state court litigation is required.

Executive summary for management

• Procedural Pre-requisites: You must send a pre-action warning letter at least 7 days before filing to safeguard your right to cost recovery. Missing this is a direct financial loss.
• Timeline & Costs: The Electronic Payment Order (Claims < 1M CZK) costs 4% and takes weeks/months. Standard Litigation costs 5% and takes 12+ months.
• Evidence: Serbian public documents generally do not need an Apostille, only certified translation. Gather all contracts and proofs before filing.
• Enforcement: A Czech judgment opens the door to assets across the entire EU. Enforcement in Serbia requires an additional recognition step.
• Asset Check: Always verify if the debtor has assets before suing. A judgment against an empty shell company is a pyrrhic victory.

Conclusion

Czech litigation offers Serbian businesses a predictable, structured route to recovery. The system is effective, provided you respect its formal requirements—specifically the front-loaded nature of evidence and the pre-litigation warning duties.

Whether via a swift Electronic Payment Order or complex litigation, we ensure your claim is filed correctly, your costs are protected, and your enforcement options are maximized. ARROWS Law Firm has deep experience representing Serbian and international clients in Czech courts. We bridge the gap between Serbian business expectations and Czech procedural reality.

If you are facing a commercial dispute with a Czech partner, contact us at office@arws.cz for a preliminary assessment of your case.

FAQ – Frequently asked legal questions about pursuing legal action in the Czech Republic as a Serbian business

1. Do I need to have a Czech company to sue in Czech courts?
   No. A Serbian company has full standing to sue in Czech courts. You do not need a local branch. office@arws.cz
2. Can I enforce a Czech judgment in Serbia?
   Yes, but it requires a recognition process before a Serbian court, governed by the bilateral treaty between the two countries. It is not automatic like inside the EU, but it is a standard legal procedure. office@arws.cz
3. What if the debtor counterclaims?
   Counterclaims are common. If the debtor sues you back, the court will hear both claims together. This can delay the final payment. We assess this risk before filing. office@arws.cz
4. How much are the court fees?
   Generally 5% of the amount claimed (4% for Electronic Payment Orders). These are recoverable from the debtor if you win and followed pre-litigation rules.office@arws.cz
5. Can I settle after filing?
   Yes. You can settle at any stage. If settled, the court proceedings are stopped, and you may even get a partial refund of court fees depending on when the settlement occurs. office@arws.cz
6. What is the deadline to sue?
   Typically 3 years from the breach/due date. Do not wait too long, or the claim will be time-barred. office@arws.cz

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.