Case study 5 - commercial law - responsibility - Czech Republic

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

Case A – National situation: A heating equipment manufacturer delivers a heater to an installer. The installer on-sells (and installs) the heater to a customer to equip his/her house. The house catches fire shortly thereafter. Every participant (heating equipment manufacturer, installer, end-customer) is insured. The origin of the fire is contested. Nobody wants to compensate the customer.

The customer decides to sue for full compensation the heating equipment manufacturer, the heating equipment installer and the insurance companies.

Case B – Transnational situation: A heating equipment manufacturer in a Member State B delivers heater to an installer in a Member State C. The installer on-sells the heater (and installs) the heater to a customer in Member State A to equip his/her house. The house catches fire shortly thereafter. Each participant (heating equipment manufacturer, installer, end-customer) is insured by an insurance company in its own Member State. The origin of the fire is contested. Nobody wants to compensate the customer.

The customer decides to sue in Member State A for full compensation the heating equipment manufacturer, the heating equipment installer and the insurance companies in Member State A.


Costs of proceedings


Costs in Czech Republic

Costs of 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 (insurance requested)

Not applicable (N/A)

No.

4% of the amount

Not applicable (N/A)

No.

Yes (not obligatory)

Contractual (usually 1000 CZK per hour, 3 hours)

Case B

4% of the amount (insurance requested

Not applicable (N/A)

No.

4% of the amount

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 or 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

If interim measure is requested.

50,000 CZK

-

-

Case B

Yes. The actual amount of expenses incurred is paid.

Differs in each situation

If interim measure is requested

50,000 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 organisation?

Case A

Centres for consumer protection, other NGOs

-

Yes.

Depends on circumstances of the case.

All costs can be reimbursed.

No.

Case B

See directive on legal aid in cross-border disputes; also European consumer centre

-

-

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: 07/06/2019