How to Start Litigation in the Czech Republic as a Thai Business: What You Need to Know

When your Thai company encounters a contract dispute with a Czech partner, understanding local legal proceedings is critical. Thai business owners often assume Czech procedures mirror their own, but the reality is different. These differences can determine success or failure before the case even reaches trial.

Understanding the Czech legal system and how it differs from Thai law

The Czech Republic operates under a civil law system, which differs fundamentally from the hybrid legal traditions of Thailand. While Thailand blends civil law with common law elements and customary practices, the Czech legal framework is built entirely on codified civil law principles established by the Czech Civil Code and the Code of Civil Procedure. For Thai business owners accustomed to Thai courts, this distinction creates practical challenges that extend far beyond simple language translation.

One of the most critical differences is the approach to evidence and the principle of "concentration of proceedings" (koncentrace řízení). Unlike American litigation or certain Thai civil proceedings where parties can demand extensive document disclosure and witness depositions throughout a long discovery phase, Czech courts generally require parties to present all decisive facts and evidence by the end of the first hearing.

This means you, as the claimant, should gather and present your key evidence ideally when you file your claim—or at the latest before the first hearing concludes.

Evidence submitted later is typically disregarded by the court. The burden of proof rests entirely with you to prove every element of your claim through properly organized, documented evidence. This procedural requirement creates significant practical consequences. Many Thai companies maintain business records informally or rely on email correspondence without formal documentation of key agreements.

In Czech litigation, this casual approach becomes a major liability. The court expects all relevant evidence to be organized logically, properly translated into Czech, and submitted with your initial claim documents. Filing a claim with incomplete or disorganized evidence risks that the court will apply the concentration principle strictly, potentially dismissing late-submitted evidence regardless of the actual merits of your dispute.

The second major difference involves court structure and appeal processes. The Czech Republic has a hierarchical court system with district courts (okresní soudy) at the first instance level, regional courts (krajský soud) handling appeals, high courts (vrchní soud) deciding appeals from regional courts, and the Supreme Court (Nejvyšší soud) addressing extraordinary legal matters.

Thai companies must understand this structure because filing in the wrong court or missing appeal deadlines by even a single day results in permanent loss of rights and potential dismissal of your entire claim.

How Czech jurisdiction works for foreign companies

Before filing any lawsuit, you must determine whether Czech courts have jurisdiction over your dispute. The Czech Republic applies the Brussels I Recast Regulation for defendants domiciled in EU member states, and the Czech Act on Private International Law for disputes involving non-EU parties. For Thai companies suing a Czech business partner, jurisdiction is typically established if the defendant is domiciled in the Czech Republic, if the contract specifies Czech jurisdiction, or if the place of performance of the contract is in the Czech Republic.

This means that even if you never explicitly agreed to Czech jurisdiction, you may find yourself in Czech courts simply because performance took place there or the defendant resides there. The practical implication is straightforward: Thai companies doing business in the Czech Republic must assume from the outset that they may end up litigating in Czech courts, regardless of their preferences. This reality makes it essential to understand the full scope of Czech litigation procedures before entering into contracts with Czech partners.

microFAQ – Legal tips on Czech court jurisdiction

1. Can a Thai company sue in Czech courts if both parties are foreign?
Yes, provided certain conditions are met. If the contract was performed in the Czech Republic or the defendant has significant assets or a branch there, Czech courts may accept jurisdiction under the Act on Private International Law. However, you should verify this with local counsel before filing. Contact us at office@arws.cz if you need guidance on whether Czech courts will hear your case.

2. What happens if our contract doesn't specify which country's courts will handle disputes?
The Czech court will apply jurisdictional rules from the Brussels I Recast Regulation or Czech private international law to determine whether it has jurisdiction. This assessment requires detailed legal analysis of your specific contract terms and the location of performance. Write to office@arws.cz to have your contract reviewed.

3. If we lose in Czech courts, can we appeal the decision?
Yes, but strict deadlines apply. You must file an appeal ( odvolání ) within 15 days of the delivery of the written judgment. Missing this deadline by even one day eliminates your right to appeal and makes the judgment final (pravomocný). This is why proper representation from the beginning is critical.

The critical pre-litigation demand letter: Your first legal step

Before filing any lawsuit in the Czech Republic, Czech law (§ 142a of the Code of Civil Procedure) requires that you send a formal pre-litigation demand letter, known as the předžalobní výzva . While failure to send this letter does not technically prevent you from filing a lawsuit, it carries severe financial consequences that most foreign companies do not anticipate. If you win your lawsuit on the merits but never sent the required demand letter, the court will generally refuse to award you reimbursement of your court fees and legal costs—even though you prevailed.

The předžalobní výzva is not a casual reminder or informal notice. It must be a formal, legally compliant document that identifies your claim with precision, specifies the exact amount owed, sets a concrete deadline for payment, and explicitly warns that you intend to pursue legal action if payment is not received. The letter must be sent via registered mail or, if the debtor has one, through the Czech data box system (datová schránka).

You must send the letter at least seven days before filing your lawsuit. Many Thai business owners attempt to shortcut this requirement by using their company's standard English-language demand template translated into Czech. This approach creates a critical legal trap. Czech demand letters must comply with specific formal requirements established in Czech civil procedure law, and a poorly drafted letter may not satisfy the statutory requirement.

The experienced solicitors at ARROWS Law Firm will draft your demand letter to ensure complete compliance with all formal requirements, protecting your right to recover costs regardless of the litigation outcome.

What the demand letter must contain

The předžalobní výzva must clearly identify all parties to the dispute, specify the legal basis for your claim, quantify the amount claimed with absolute precision, and include the specific deadline for payment. If your claim involves ongoing payment obligations, you should state this explicitly in the letter and calculate the total amount due as of the letter's date.

The letter must also include a warning that explicitly states you intend to pursue legal action if payment is not received by the specified deadline. An often-overlooked detail is the method of delivery. Sending the demand letter via ordinary post or email without a certified electronic signature does not provide the documented proof of delivery that Czech courts require. The safest approaches are registered mail with a delivery receipt (dodejka) or the Czech data box system (datová schránka).

microFAQ – Legal tips on the pre-litigation demand letter

1. What if the Czech company refuses to accept delivery of the demand letter?
If the letter is sent to the registered address listed in the Commercial Register or to the company's data box, it is generally considered delivered under the fiction of service rules, even if they refuse it or fail to pick it up. The receipt showing attempted delivery or the data box delivery confirmation is sufficient evidence. Consult ARROWS Law Firm at office@arws.cz if complex delivery issues arise.

2. Can we send the demand letter in English, or must it be in Czech?
While Czech is preferable to ensure the court accepts it as a valid notice, an English-language letter may be acceptable if the language of the contract was English and the recipient clearly understands it. However, to guarantee cost recovery under § 142a OSŘ, ARROWS Law Firm strongly recommends sending a professionally drafted Czech-language version to eliminate any dispute.

3. How long should we wait after sending the demand letter before filing our lawsuit?
At least seven days is required by law. However, you may file immediately after the seven-day period expires. If you file before seven days have passed, your demand letter does not provide the required pre-litigation notice and you may lose the right to recover costs.

Filing your claim: The written statement and procedural requirements

Once you have sent the pre-litigation demand letter and waited the mandatory seven-day period, you are ready to file your claim (žaloba) in the appropriate Czech court. This is the moment when many Thai business owners encounter their first serious procedural trap. The Czech court system requires a claim to be a formally structured legal document, not a narrative explanation of your dispute.

The claim must contain precise identification of the parties, a statement of the facts, the legal basis for your claim, the specific relief you are seeking, and identification of all evidence supporting each factual allegation.

This formality requirement is not a mere technicality. Czech judges assess the quality and seriousness of your case based on how you present it in your initial written claim. Unlike American litigation, where evidence develops through discovery, the Czech court forms its first and most critical impression based on your written claim and attached documents.

The challenge of language and translation

All documents submitted to a Czech court must be presented in the Czech language. If you have original contracts, invoices, correspondence, or other evidence in Thai or English, every single document must be translated into Czech. For key evidence, the translation must be officially certified by a court-appointed translator (soudní tlumočník).

The practical implications are significant. Obtaining certified translations for all relevant business records requires time and expense. ARROWS Law Firm specialists understand which documents absolutely must be translated and which can be presented in their original form with summary translations, reducing unnecessary translation costs while maintaining legal compliance.

Electronic filing and court fees

The Czech court system permits filing claims electronically, which is standard for legal professionals. You may file electronically via email with a recognized qualified electronic signature or through the Czech data box system (datová schránka). If you submit via ordinary email without the required qualified signature, you have three days to confirm the submission with a hard copy or qualified electronic filing.

If you do not pay the required court fee when filing, the court will notify you and set a deadline for payment. Court fees are mandatory and must be paid when you file your claim. The fee amount is calculated based on the amount you are claiming and follows a statutory tariff established in Act No. 549/1991 on court fees. For monetary claims, the fee structure is tiered based on the value of the dispute.

ARROWS Law Firm solicitors handle court fee calculations and electronic filing procedures routinely for foreign clients, eliminating the risk of filing errors that could result in dismissal or delay.

Gathering evidence: The foundation of your case

In Czech litigation, evidence strategy must be developed before you file your claim. This is due to the principle of "concentration of proceedings," which bars the introduction of new facts or evidence after the first court hearing. The Czech court will generally not instruct parties to produce documents or exchange information as the case develops in the same way as common law "discovery."

Czech judges expect this evidence to be presented in logical, chronological order, with clear cross-references explaining how each document proves the specific facts you are alleging.

Witness testimony exists in Czech litigation, but it functions differently than in Thai or American courts. The judge, not your lawyer, primarily controls witness questioning. When a witness testifies, they must answer the judge's detailed questions directly. Contradictions between witness testimony and written documents are immediately apparent to the judge and severely damage credibility.

Expert evidence and technical analysis

For disputes involving technical, financial, or specialized knowledge, expert evidence becomes essential. Czech courts appoint experts from a list maintained by the Ministry of Justice, and the expert's report carries significant weight. If your claim involves calculation of damages, evaluation of product defects, or assessment of contractual performance, you should plan from the outset to request expert evidence.

ARROWS Law Firm lawyers work regularly with court-appointed experts across various fields and understand which matters require expert analysis to succeed in Czech courts. The solicitors at ARROWS Law Firm can advise you on whether your specific dispute requires expert evidence and can identify and coordinate with qualified experts to support your case.

Understanding the court procedure: From filing to judgment

After you file your claim and the court verifies that your filing is complete and correct, the court will serve a copy of your claim on the defendant. The defendant is typically ordered to file a written defense (vyjádření k žalobě), usually within 30 days. This phase is handled purely through written submissions.

By the end of this hearing, all decisive facts and evidence must be presented. If the case proceeds, the court will conduct evidence taking (witness interrogation, review of documents). Simple cases might be resolved in a single hearing. Complex cases involving multiple witnesses and expert testimony may require multiple hearings scheduled weeks or months apart.

Even for relatively straightforward commercial disputes, the period from filing to final judgment at first instance commonly extends to 12–24 months, and longer if either party pursues appeals.

Burden of proof and court discretion

In Czech litigation, each party bears the burden of proving the facts alleged in support of its position (důkazní břemeno). The judge applies the principle of "free evaluation of evidence" (volné hodnocení důkazů), meaning the judge assesses evidence based on their own professional judgment rather than following rigid evidentiary rules. This discretionary power makes the organization and persuasiveness of your initial evidence package vital.

Procedural pitfalls in Czech litigation

Risks and penalties	How ARROWS helps (office@arws.cz)
Failure to send pre-litigation demand letter: Court denies reimbursement of court fees and legal costs even if you win, potentially converting victory into financial loss	Pre-litigation demand letter drafting: ARROWS Law Firm drafts formal, legally compliant demand letters meeting all Czech procedural requirements, protecting your right to recover costs
Filing claim in wrong Czech court: Wastes months with improper filing; claim must be transferred or dismissed, delaying resolution	Jurisdiction analysis: ARROWS Law Firm determines correct court based on defendant's domicile, contract terms, and place of performance, eliminating venue risk
Failure to submit evidence before concentration: Court rejects late evidence; gaps in documentation provide defendant advantage	Evidence organization and filing strategy: ARROWS Law Firm organizes all documentary evidence logically and ensures submission before the procedural cut-off point
Missing procedural deadline (appeal, response to defendant motion): Eliminates right to pursue deadline-dependent action regardless of merits; can result in dismissal	Deadline tracking and compliance: ARROWS Law Firm maintains detailed procedural calendars, monitors all statutory deadlines, and ensures timely submission of all required documents
Untranslated or improperly certified translations: Documents are disregarded by court entirely; evidence gaps undermine claim	Professional translation and certification: ARROWS Law Firm coordinates certified Czech translations of all business records and provides certification documentation meeting court requirements

Alternative procedures for faster resolution: Payment orders and European procedures

The Czech legal system offers accelerated procedures for certain categories of claims, which can result in enforceable judgments within weeks. Thai companies facing straightforward claims should evaluate whether these faster procedures are available.

The electronic payment order (Elektronický platební rozkaz)

The most efficient Czech procedure is the electronic payment order (elektronický platební rozkaz or EPR), available for monetary claims up to CZK 1,000,000. You submit a standardized electronic form with your electronic signature. If the judge is convinced that your claim is justified based on the evidence provided, the court issues a payment order without a hearing.

The EPR is typically used because it is faster and cheaper, provided the claim is under the 1 million CZK cap. If the defendant does not pay or file a formal objection (odpor) within 15 days of service, the payment order becomes a final and legally enforceable judgment. If they file an objection, the payment order is cancelled, and the case automatically converts to standard litigation.

The European order for payment (Evropský platební rozkaz)

For cross-border disputes where at least one party is domiciled in an EU member state different from the court's location, the European Order for Payment (EOP) is available under EU Regulation 1896/2006. Unlike the electronic payment order, the EOP does not have a financial limit on the claim amount. It is available for uncontested cross-border pecuniary claims.

If no opposition is filed, the order becomes automatically enforceable throughout the EU without requiring a separate recognition procedure (exequatur).

You file a standardized form, and if the court approves it, it issues the Order. The defendant has 30 days to lodge a statement of opposition. Note that there is also a "European Small Claims Procedure" for claims under €5,000, but the EOP is generally preferred for undisputed business debts of any size. ARROWS Law Firm can advise whether your specific claim qualifies.

When these procedures are not available

These accelerated procedures require that your claim be for money and that the court can decide based solely on the documents provided. If the defendant contests your claim by filing an objection ( odpor ), the fast-track status ends, and you must pursue ordinary litigation.

Enforcement: Converting judgment into payment

Many Thai business owners make a critical error in their litigation planning: they assume that obtaining a favorable judgment automatically results in payment. In reality, a Czech judgment is only as valuable as the enforcement mechanism that follows. After your judgment becomes final, you must initiate enforcement proceedings (exekuce) to collect the money.

The preferred method is executor enforcement carried out by private court-appointed bailiffs (soudní exekutoři). To initiate this, you file a motion providing the enforceable judgment. The court authorizes the executor to proceed. The executor can then take various measures including freezing bank accounts, garnishing wages, seizing movable property, and selling real estate.

Before seizing assets, the executor must provide the debtor with a 30-day period for voluntary payment at a reduced cost rate. The entire enforcement process can be complex. Asset identification and seizure can take several months or even years. If the debtor fails to pay during the voluntary period, the executor proceeds with asset seizure.

ARROWS Law Firm specialists have extensive experience with enforcement proceedings and understand how to maximize recovery speed.

The challenge of cross-border asset recovery

For Thai companies seeking to enforce Czech judgments, note that Czech law permits enforcement only against assets located in the Czech Republic. If the debtor has assets in Thailand, you must initiate separate enforcement proceedings there. Since Thailand does not have a bilateral treaty with the Czech Republic on the recognition of judgments, Thai courts will likely require you to prove the case again or undergo a strict recognition process.

EU law provides automatic recognition of Czech judgments throughout EU member states under the Brussels I Recast Regulation, making enforcement in other EU countries straightforward.

microFAQ – Legal tips on enforcement and asset recovery

1. How quickly can we freeze a Czech debtor's bank account after judgment?
Once the executor is authorized by the court, they can issue an order to freeze bank accounts almost immediately electronically. However, the funds are usually only released to you after the 30-day voluntary payment period expires and the order becomes final.

2. What if the debtor has no accessible assets in the Czech Republic?
The executor will conduct a search of registers (property, vehicles, bank accounts). If no assets are found, enforcement may be stopped for insolvency. Pre-litigation asset checks are therefore crucial.

3. Can we enforce a Czech judgment in Thailand?
Not automatically. Thai courts do not typically recognize foreign judgments directly without a treaty. You may need to file a new lawsuit in Thailand using the Czech judgment as evidentiary support. Write to office@arws.cz for advice on international enforcement strategy.

Appeals and higher court review

If the trial court judgment is unfavorable, you have a strictly limited time to appeal. An appeal (odvolání) must be filed within 15 days of the delivery of the written judgment. The appellate court conducts a review but often defers to the trial court's factual findings unless they are manifestly incorrect.

A second extraordinary appeal (dovolání) to the Supreme Court is possible but only for questions of law where the decision depends on resolving a legal question that has not been resolved by the Supreme Court, or is being resolved differently. It must be filed within two months of the appellate decision. Representation by a qualified attorney is mandatory for Supreme Court proceedings.

Practical considerations for Thai companies: Cost, timeline, and resource commitment

Czech litigation is financially and strategically demanding. Beyond the court fees (ranging from CZK 1,000 to 5% of the claim, capped at CZK 5 million for extremely large claims), you must budget for attorney fees, certified translations, and potential expert evidence.

Ordinary litigation typically requires 12–36 months from filing to final judgment depending on complexity and appeals. The timeline is equally important. Thai company managers should plan for extended duration and regular communication with Czech counsel.

ARROWS Law Firm lawyers manage this complexity routinely for international clients, structuring representation to minimize the burden on your company's management.

Financial and procedural risks in Czech litigation

Risks and penalties	How ARROWS helps (office@arws.cz)
Underestimating total litigation costs: Initial court fee estimates prove inadequate; unexpected translation costs and expert fees exceed budget	Cost analysis and budget planning: ARROWS Law Firm provides detailed cost estimates for your specific dispute based on case complexity and anticipated procedural steps
Mismanaging cash flow due to extended timeline: Capital tied up for 18+ months awaiting judgment	Timeline management: ARROWS Law Firm establishes realistic procedural timelines and identifies critical milestones
Judgment obtained but enforcement fails: Debtor insolvency or asset concealment	Asset investigation: ARROWS Law Firm advises on pre-judgment asset investigation to assess recovery prospects before you spend money on litigation
Cross-border enforcement complications: Czech judgment unenforceable in Thailand	International strategy: ARROWS Law Firm advises on arbitration alternatives which are enforceable in both countries under the New York Convention

When arbitration makes more sense: Evaluating your options

For many Thai businesses operating in the Czech Republic, arbitration may be superior to court litigation. An arbitral award is final, binding, and enforceable across more than 170 countries under the New York Convention, including both the Czech Republic and Thailand.

While arbitrator fees can be higher than court fees, the process is often faster and the award is easier to enforce in Thailand than a Czech court judgment. Arbitration allows you to select an arbitrator with specific expertise, choose the language (e.g., English), and maintain confidentiality. The decision between litigation and arbitration should be made early, ideally in your contract negotiation. ARROWS Law Firm lawyers can help you draft effective dispute resolution clauses.

Executive summary for management

• Procedural rigidity creates risk: Czech courts operate under strict principles like "concentration of proceedings." Evidence must be submitted early; late evidence is rejected.
• Costs and Timeline: Budget for 12–36 months and fees including court fees (approx. 5% of claim) and legal costs.
• Accelerated procedures: Use the Electronic Payment Order (up to 1M CZK) or European Order for Payment (no limit) for undisputed claims to save time.
• Enforcement is key: A judgment is useless without assets. Check the debtor's solvency first.
• Arbitration advantage: Consider arbitration for easier enforcement in Thailand and confidentiality.

Conclusion

Initiating litigation in the Czech Republic as a Thai business requires navigating a strict civil law system that penalizes delay and informality. From the mandatory pre-litigation demand letter to the concentration of evidence, every step requires precise legal compliance. ARROWS Law Firm solicitors bring extensive experience representing Thai and other foreign companies in Czech litigation.

We have guided countless business owners through Czech court proceedings, managed payment orders, and coordinated enforcement.

The experienced lawyers at ARROWS Law Firm will handle every aspect of your Czech litigation—from drafting the pre-litigation demand letter and filing your claim, through managing trial proceedings, to executing enforcement. Whether you are facing an unpaid invoice or a breach of contract, ARROWS Law Firm provides the legal expertise to protect your interests.

Contact the experienced solicitors at ARROWS Law Firm at office@arws.cz to discuss your dispute.

FAQ – Frequently asked legal questions about starting litigation in the Czech Republic as a Thai business

1. Do we need to hire a Czech lawyer, or can we represent ourselves in Czech court?
While self-representation is theoretically possible in district courts, it is practically impossible for a foreign entity due to language requirements, electronic communication standards (data boxes), and complex procedural rules. Representation by an attorney is mandatory for the Supreme Court. Professional representation through ARROWS Law Firm is highly advisable to avoid procedural dismissal. Contact office@arws.cz.

2. How much will Czech litigation cost?
Court fees are generally 5% of the claimed amount (for claims over 20,000 CZK). Attorney fees are usually hourly or based on the statutory tariff. Additional costs include translations (approx. 400-600 CZK/page) and enforcement fees. ARROWS Law Firm provides specific cost estimates upon case review.

3. What is the fastest way to recover a debt?
The Electronic Payment Order (elektronický platební rozkaz) is fastest for undisputed claims up to CZK 1,000,000. For larger undisputed cross-border claims, the European Order for Payment is effective.

4. If we win in Czech court, are we guaranteed to receive payment?
No. You need to enforce the judgment. If the debtor has no assets, recovery is impossible. We recommend asset checks before suing.

5. Can we enforce a Czech court judgment in Thailand?
Not directly. You would likely need to file a new action in Thailand. Arbitration awards are generally easier to enforce in Thailand than foreign court judgments.

6. What is the difference between Czech court litigation and arbitration?
Litigation is public, local, and appealable. Arbitration is private, final (limited appeal), and internationally enforceable under the New York Convention. ARROWS Law Firm can advise which is better for your contract.

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.