Arbitral Proceedings

Arbitral proceedings are governed by Act No. 216/94 Coll. and are an accelerated form of dispute resolution. The proceedings are governed by the principle of informality and simplicity, which means the arbitrator's performance is not too restricted by a formal procedure and the successful party receives the arbitration award, which is a writ of execution serving as a basis for distraint against the debtor, in a very short time.

On the other hand, arbitration is usually not applied to complex legal relations, mostly due to the fact that an arbitration award does not usually allow appeal.

A failure of the other party to meet its obligations is a typical reason for arbitral proceedings.

However, the arbitral proceedings presume a previous agreement of the parties providing for the possibility of the dispute being resolved by an arbitrator instead of a court. Such an agreement is usually made in the form of an arbitration clause included in the text of the contract entered into by the parties, which establishes the power and jurisdiction of the arbitrator in case of a future dispute.

The crucial points of the arbitrator's activities include the ability to respond quickly, the quality and effectiveness of management and decision-making, and the utmost abandonment of formalities since these are the most important elements appreciated by the parties to the dispute.

The proceedings are described in the arbitration rules stated below, where the usual period does not exceed three months.

A draft arbitration service agreement is presented to the potential client. After the contract is concluded, the arbitrator is obliged to resolve disputes between the parties arising from the contracts that include an arbitration clause in the name of the arbitrator. Possible wording of the arbitration clause is available on the website.

The costs of the arbitral proceedings are generally the same as the costs of judicial proceedings; an individual discount may be agreed for a larger volume of expected arbitral actions, which will also have a positive effect on the amount of costs imposed on the unsuccessful party.

However, consumer disputes may not be resolved in arbitral proceedings.

Arbitration Clause, Rules of Procedure and Fees

The Parties stipulate that any property disputes arising from the ............. Agreement of ........... or in relation thereto, with the exclusion of the jurisdiction of courts of general jurisdiction, shall be resolved by a single arbitrator; the place of the arbitral proceedings is Brno, Příkop 6.

The sole arbitrator is JUDr. Radim Kuchta, Company identification No.: 66203813, Attorney-at-Law, with the registered office in Brno, Příkop 6.

Řízení je zahájeno okamžikem doručení rozhodčí žaloby rozhodci. Obě smluvní strany berou na vědomí, že rozhodčí řízení je neveřejné. Nepožádá-li žalovaný o nařízení ústního jednání a ani rozhodce neshledá důvody zvláštního zřetele hodné, bude řízení pouze písemné. Nevyjádří-li se žalovaný do patnácti kalendářních dnů ode dne, kdy mu byla doručena žaloba, jsou skutečnosti vyjádřené v žalobě považovány za nesporné. Veškeré písemnosti jsou doručovány přiměřeně dle občanského soudního řádu. Rozhodčí nález je doručován do vlastních rukou. Pravomocný rozhodčí nález je vykonatelný.

The proceedings shall commence upon the delivery of the arbitral action to the arbitrator. Both parties acknowledge the arbitral proceedings are not public. Unless the defendant applies for oral hearing and the arbitrator finds reasons worthy of special consideration, the proceedings shall be solely in writing. Unless the defendant gives a statement within fifteen calendar days from the date of the action delivery, the facts expressed in the action shall be considered uncontested. Any and all documents shall be delivered adequately in accordance with the Civil Procedure Code. The arbitration award shall be delivered as restricted mail. A final arbitration award is enforceable.

The payment and compensation of the costs of proceedings shall be governed by the applicable provisions of the Act on Court Fees and the Civil Procedure Code; the arbitration fee amounting to 5% of the claimed amount, however, no less than CZK 1,000 + VAT. The Parties acknowledge the unsuccessful Party shall generally be obliged to compensate the costs incurred by the other Party, including but not limited to legal representation, payment of the arbitration fee and cash expenditure, including but not limited to expert's fees. The rules of their award are governed by the Civil Procedure Code and subsequent regulations.