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Results: 4 Answers
International Arbitration
8.
The tribunal
8.1
How is the tribunal appointed?
 
Czech Republic
The arbitration agreement should usually specify the number of arbitrators and who will serve as arbitrators, or the way in which these issues will be determined. There must be an odd number of arbitrators.

Unless the arbitration agreement states otherwise, each party shall appoint one arbitrator and these arbitrators shall elect the presiding arbitrator.

If a party fails to appoint an arbitrator within 30 days of delivery of the other party’s request to do so, or if the appointed arbitrators fail to agree on the presiding arbitrator, the arbitrators or presiding arbitrator shall be appointed by the court, unless the parties have agreed otherwise. The application to court may be filed by any party or by any of the appointed arbitrators.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.2
Are there any requirements as to the number or qualification of arbitrators in your jurisdiction?
 
Czech Republic
The Czech legislation includes no requirements as to the number of arbitrators; the arbitration agreement shall determine the number of arbitrators to be appointed. As regards other requirements, arbitrators must be over 18 years old, have full legal capacity and have no criminal convictions.

Arbitrators must accept their appointment in writing and may resign only for important reasons or with the consent of the parties.

Arbitrators must also be independent and impartial.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.3
Can an arbitrator be challenged in your jurisdiction? If so, on what basis? Are there any restrictions on the challenge of an arbitrator?
 
Czech Republic
An arbitrator may be challenged because of his or her relationship to the parties, to their representatives or to the matter in dispute. An arbitrator who has already been appointed must resign from the position if such circumstances are disclosed.

Unless the arbitrator resigns, the parties may agree on the procedure for his or her exclusion. Any party may ask the court for the exclusion of an arbitrator.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.4
If a challenge is successful, how is the arbitrator replaced?
 
Czech Republic
Where an arbitrator is excluded, a replacement must be appointed so that the tribunal has the full complement of arbitrators specified in the arbitration agreement. The new arbitrator is appointed in the same way as his or her predecessor (if the first arbitrator was appointed by one of the parties, that party has the right to appoint the new arbitrator).

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.5
What duties are imposed on arbitrators? Are these all imposed by legislation?
 
Czech Republic
The Arbitration Act requires an arbitrator to keep the proceedings confidential and to inform the parties of any grounds to doubt his or her impartiality. Some duties arise from the Arbitration Act, such as the duty to proceed in compliance with the arbitration agreement.

An arbitrator is also bound by the Civil Procedure Code. According to the code, an arbitrator has a duty to inform the parties if the factual basis has not been fully established or if the parties have not yet presented relevant evidence, as well as the consequences of ignoring this call. The Civil Procedure Code also imposes a duty to release a predictable judgment in compliance with substantive law.

Other obligations may be imposed by the arbitration agreement.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.6
What powers does an arbitrator have in relation to: (a) procedure, including evidence; (b) interim relief; (c) parties which do not comply with its orders; (d) issuing partial final awards; (e) the remedies it can grant in a final award and (f) interest?
 
Czech Republic
(a) Procedure, including evidence?

The arbitrators may hear witnesses, experts and parties only if they agree and voluntarily provide a statement. Other evidence may be examined only if it has been provided to the arbitrators. Procedural measures that the arbitrators are unable to carry out themselves may be carried out by the court on the arbitrators’ request. The court shall satisfy this request unless the requested measure is inadmissible according to law. In doing so, the court shall issue all decisions necessary to realise the request.

(b) Interim relief?

The Arbitration Act does not give the arbitrators the power to order preliminary measures or to grant injunctions. If it becomes clear during the proceedings, or even before their commencement, that enforcement of the arbitration may be jeopardised, the court may order preliminary measures upon the request of a party.

(c) Parties which do not comply with its orders?

The arbitrators may hear parties only if they agree and voluntarily provide a statement. Parties cannot be forced to participate in arbitration proceedings.

(d) Issuing partial final awards?

The Arbitration Act does not regulate this issue. However, pursuant to the Civil Procedure Code, a court may issue a partial final decision, so this could also apply to arbitration proceedings.

Pursuant to the Civil Procedure Code, a judgment should deal with the whole case. However, where this is useful, the court may first issue a judgment dealing with only part of the case or with the basis thereof.

(e) The remedies it can grant in a final award?

The parties may agree to have the arbitral award reviewed by other arbitrators, but only if they have expressly agreed to this in the arbitration agreement.

(f) Interest?

The arbitral tribunal can, if requested, include interest on the principal amount awarded in the decision on the merits. The amount of interest that may be included is regulated by Czech law.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.7
How may a tribunal seated in your jurisdiction proceed if a party does not participate in the arbitration?
 
Czech Republic
If any of the parties does not take part in the proceedings, either fully or partially, through no fault of its own, or fails to perform any legal act necessary to exercise its right through no fault of its own, the arbitrators shall take appropriate measures to allow the party to make up for this.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
8.8
Are arbitrators immune from liability?
 
Czech Republic
The Arbitration Act contains no express provisions governing the liability of the arbitrators. In relation to institutional arbitration, Czech case law states that an award made by arbitrators in proceedings conducted under the auspices of an arbitration institution is deemed to have been issued on behalf of that institution. Therefore, the arbitration institution is held directly liable, rather than the individual arbitrators.

In ad hoc arbitration, it is advisable to address the liability of the arbitrators in the agreement between the parties and the arbitrators. In addition, the liability of arbitrators cannot be excluded if the general conditions for liability under the Czech Civil Code are met.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law