Comparative Guides

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4. Results: Answers
International Arbitration
10.
Costs
10.1
How will the tribunal approach the issue of costs?
Czech Republic

Answer ... The Arbitration Act does not include any definition of fees and expenses relating to arbitral proceedings; neither does it provide for the apportionment of costs. Thus, in ad hoc arbitration, the parties and the arbitral tribunal should determine the arbitral tribunal’s fees, expenses and rules for reimbursement of costs by agreement between themselves.

In institutional arbitration, the issue of costs is governed by the rules set forth by the relevant institution. Under the rules of the Czech Arbitration Court, the arbitral tribunal’s fees and the court’s administrative fee are calculated as a percentage of the value of the dispute and must be paid by the claimant. Apart from these fees, the parties may need to make an advance payment in an amount stated by the court to cover extra costs, such as the costs of taking evidence or translation costs. As a rule, the losing party shall reimburse these costs to a fully successful party. If a party is only partially successful, the costs will be awarded partially in proportion to its actual success. The tribunal can also decide that neither party is entitled to reimbursement of costs. The costs of legal representation are reimbursed only up to an amount calculated in accordance with Decree of the Ministry of Justice 177/1996 Coll; in practice, the actual costs of legal representation will be higher than those reimbursed. The tribunal’s decision on costs is included in the award.

For more information about this answer please contact: Vladimír Čížek from Schoenherr Attorneys at Law
10.2
Are there any restrictions on what the parties can agree in terms of costs in an arbitration seated in your jurisdiction?
Czech Republic

Answer ... No. However, there is a rule that the parties must have equal standing in the arbitration proceedings and must have a full opportunity to assert their rights.

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