Case study 4 - commercial law - contract - Czech Republic

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In this case study on commercial law – contract, Member States were asked to advise the seller on litigation costs in order to consider the following situations:

Case A – National situation: A company delivered goods worth 20.000 euros. The seller has not been paid because the buyer considers that the goods do not conform to what was agreed.

The seller decides to sue to obtain the full payment of the price.

Case B – Transnational situation: A company whose head office is located in Member State B delivers goods worth 20.000 euros to buyer in Member State A. The contract is subject to Member State B’s law and written in Member State B’s language. This seller has not been paid because the buyer located in Member State A considers that the goods do not conform to what was agreed. The seller decides to sue in Member State A to obtain full payment of the price as provided under the contract with the buyer.


Costs of proceedings


Costs in Czech Republic

Costs for court, appeals and alternative dispute resolution


Case Study

Court

Appeals

ADR

Initial court fees

Transcription fees

Other fees

Initial court fees

Transcription fees

Other fees

Is this option open for this type of case?

Costs

Case A

4% of the amount (equivalent of 800€ in CZK)

Not applicable (N/A)

No.

4% of the amount (equivalent of 800€ in CZK)

Not applicable (N/A)

No.

Yes (not obligatory)

Contractual (usually 1000 CZK per hour, 3 hours)

Case B

4% of the amount (equivalent of 800€ in CZK)

Not applicable (N/A)

No.

4% of the amount (equivalent of 800€ in CZK)

Not applicable (N/A)

No.

Yes (not obligatory)

Contractual



Costs for lawyer, bailiff and expert


Case Study

Lawyer

Bailiff

Expert

Is representation compulsory?

Average costs

Is representation compulsory?

Pre-judgement costs

Post-judgement costs

Is use compulsory?

Cost

Case A

No.

Contractual

No.

-

-

No.

Contractual (min. CZK 350 per hour)

Case B

No.

Contractual

No.

-

-

No.

Contractual (min. CZK 350 per hour)



Costs for witness compensation, pledge of security and other relevant fees


Case

Study

Witness compensation

Pledge or security

Other fees

Are witnesses compensated?

Cost

Does this exist and when and how is it used?

Cost

Description

Cost

Case A

Yes. The actual amount of expenses incurred is paid.

Differs in each situation

In commercial matters when requesting interim measure.

100,000 CZK

-

-

Case B

Yes. The actual amount of expenses incurred is paid.

Differs in each situation

In commercial matters when requesting interim measure.

100,000 CZK

-

-



Costs for legal aid and other reimbursement



Case

study

Legal Aid

Reimbursement

When and under what conditions is it applicable?

When is support total?

Conditions?

Can the winning party obtain reimbursement of litigation costs?

If reimbursement is not total what is percentage in general?

What costs are never reimbursed?

Are there instances when legal aid should be reimbursed to the legal aid organization?

Case A

Only NGO

-

-

Yes.

Depends on circumstances of the case.

All costs can be reimbursed.

No.

Case B

See directive on legal aid in cross-border disputes

-

-

Yes.

Depends on circumstances of the case.

All costs can be reimbursed.

No.



Costs for translation and interpretation


Case

study

Translation

Interpretation

When and under what conditions is it necessary?

Approximate cost?

When and under what conditions is it necessary?

Approximate cost?

Case A

Original documents in foreign language, necessary for proceedings

A minimum of CZK 350 per page

-

-

Case B

Original documents in foreign language, necessary for proceedings

A minimum of CZK 350 per page

When a party or witness is foreign or does not understand Czech

CZK 350 per hour



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Last update: 02/11/2020