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Case Details

Case Details
National ID IV. ÚS 4709/12
Member State Czech Republic
Common Name link
Decision type Other
Decision date 06/03/2013
Court The Constitutional Court of the Czech Republic
Subject
Plaintiff Mirek D´Albert
Defendant Regional Court in Prague
Keywords case law, credit agreement, enforcement, financial services, good faith, imbalance between the rights of the parties, unfair terms

Unfair Contract Terms Directive, link

Regional court is not only allowed to assess the arbitral award, but it is even necessary to protect consumers from obligations created by unfair contract terms according to the legislation of the EU and decisions of the European Court of Justice. Based on this reason the regional courts have to assess the arbitral award even in the phase of execution, in case it is necessary to protect consumers.
The plaintiff challanged the decision of the defendant (Regional Court in Prague). In that decision the court stated, that the court is not authorised to asses the legality of an arbitral award, which is already in the phase of execution. The plaintiff argued, that his right to a fair trial was infringed.
The Constitutional Court of the Czech Republic agreed with the argumentation of the plaintiff. The Constitutional Court especially supported the opinion, that it´s necessary to follow the legislation of the EU and the decisions of the European Court of Justice and protect the customers from obligations created by unfair contract terms as much as possible. That means, that courts may assess the arbitral awards even in the phase of execution, if there is assumption of an obligation created by unfair contract terms.
Is the regional court allowed to assess the legality of an arbitral award, which is already in the phase of execution, in case of a contract including unfair contract terms?
Full Text: Full Text
Member State National ID Common Name Directive Articles Decision Date
European Union C-40/08 Asturcom Telecomunicaciones SL v. Cristina Rodríguez Nogueira Unfair Contract Terms Directive, Article 6, 1. Unfair Contract Terms Directive, Article 7 06/10/2009
European Union C 76/10 Pohotovosť s. r. o. v Iveta Korčkovská Unfair Contract Terms Directive, Article 1, 1. Unfair Contract Terms Directive, Article 6, 1. Unfair Contract Terms Directive, Article 7 16/11/2010

No results available

The Constitutional Court of the Czech Republic canceled the decision of the Regional Court in Prague and confirmed that the right of the plaintiff to a fair trial was infringed.