• Domestic disputes
  arbitrating property disputes between parties from the Czech Republic

• Other disputes
  arbitrating property disputes where at least one party is from abroad.

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Pursuant to Section 2(1) of Act No. 216/1994 Coll., on Arbitration Proceedings and Enforcement of Arbitral Awards, only disputes of a proprietary (pecuniary) nature may be decided in arbitration proceedings. Therefore, the Arbitration Court does not have jurisdiction to decide criminal, administrative, personal status, or family law matters.

 

What is considered a proprietary dispute?

 

A proprietary dispute is not to be understood as merely a dispute concerning the payment of a specified monetary sum, but also any disputes that impact the proprietary sphere of the parties and involve their subjective rights, which they can freely manage.

 

The term "proprietary disputes" under the Act on Arbitration Proceedings is to be interpreted broadly. It encompasses all disputes that affect the proprietary sphere of the parties to a legal relationship; specifically, disputes the subject matter of which can be expressed in monetary terms, i.e., where the value in question can be assessed and quantified.

 

Examples of disputes that can be resolved in an arbitration proceeding are:

 

1. Disputes arising from sales contracts

 

Disputes arising from sales contracts, particularly those concerning the payment of the purchase price, including contractual penalties and default interest, represent one of the most frequently adjudicated types of cases in arbitration proceedings. In addition to claims for payment of the purchase price, arbitration commonly addresses issues such as defective performance (i.e., defects in the purchased item) or disputes regarding the release of the item in the event of non-payment of the purchase price.

 

2. Disputes arising from lease agreements (such as payment of rent, eviction of the property, or the validity of a notice of termination)

 

Disputes arising from lease agreements are commonly resolved in arbitration proceedings. These typically include disputes concerning the payment of outstanding rent or service charges related to the use of an apartment or house, as well as disputes over the obligation to vacate the property or the determination of the invalidity of a notice of termination of the lease agreement.

 

The possibility of resolving disputes concerning the obligation to evict the property or the determination of the invalidity of a legal act through arbitration has been confirmed in past case law of the Supreme Court (for example, the Ruling of the Supreme Court from 23 September 2010, case no. 20 Cdo 476/2009, or its Decision from 5 April 2017, case no. 23 Cdo 2741/2016).

 

Practice of the Arbitration Court shows that parties often choose the form of online arbitration for these types of disputes, in which the decision is made by a sole arbitrator solely on the merit of the submitted documents. Online arbitration is generally very quick (on average around 2 months), which is highly valued by the parties, particularly in disputes concerning the eviction of property.

 

3. Disputes arising from contracts for work (such as payment for the work performed, or defective performance)

 

Disputes arising from contracts for work are among the most frequently adjudicated types of disputes before the Arbitration Court. Parties to such disputes often opt for a panel of arbitrators to resolve their dispute, as they appreciate the possibility of appointing experts in the relevant field to decide the dispute if it is of a specialized nature (the panel of arbitrators can consist of both lawyers and, for example, construction engineers).

 

4. Disputes concerning the protection of personal data (such as disputes between data controllers and processors, joint controllers, etc.)

 

In the past, the Arbitration Court established a cooperation with the Association for the Protection of Personal Data (hereinafter referred to as the "Association") in resolving disputes in the field of personal data protection. The Association is the largest and oldest (founded in 2014) Czech organization gathering data protection officers and other professionals engaged in the processing of personal data.

 

Arbitration proceedings, due to their nature, speed, and non-public nature, may be suitable for certain disputes concerning the processing of personal data, particularly in disputes between data controllers and processors or joint controllers. The confidentiality of arbitration proceedings is especially valued in such cases, as it ensures the protection of the rights of the affected data subjects.

 

The Association lists arbitrators recommended for resolving disputes in the field of personal data processing on its website.

 

5. Disputes concerning the breach of statutory obligations

 

The Supreme Court of the Czech Republic has previously ruled that an arbitration agreement may also be concluded for the case of a breach of statutory (not only contractual) obligations (see Decision of the Supreme Court from 19 July 2023, case no. 23 Cdo 476/2023).

                                                                                   

In arbitration proceedings, it is thus possible, according to the aforementioned judgment, to adjudicate disputes concerning, for example, protection against unfair competition or other disputes arising from the breach of statutory obligations, provided they are of a proprietary nature.

 

6. Other

 

Arbitration proceedings may also be used to resolve other disputes not listed above, including disputes arising from named contracts (e.g., credit agreements, loan for use agreements, bank guarantees) as well as unnamed contracts (e.g., leasing agreements, cooperation agreements).

 

Arbitration proceedings commonly address, for example, disputes concerning the determination of ownership rights to property, claims for unjust enrichment, compensation for damages, or bills of exchange disputes. It is also possible to adjudicate disputes relating to proprietary rights over third-party property (such as pledge and lien rights, easements, etc.), the determination of the validity or invalidity of legal acts (such as the validity of a contract, withdrawal from a contract, etc.), the substitution of a declaration of intent, or other non-monetary obligations of a proprietary nature.

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