Act No. 216 / 1994 Coll.

Law on arbitration and enforcement of arbitration

Valid Law Effective from 01.01.1995
216
THE LAW
of 1 November 1994
on arbitration and enforcement of arbitration findings
Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

§ 1
This law governs
(a) decisions of property disputes by independent and impartial arbitrators;
(b) decision-making of disputed matters belonging to the Federal Government by the arbitration panel of the Association pursuant to the Civil Code (7); and
(c) performance of arbitration findings.
Arbitration Agreement
§ 2
(1) The Parties may agree that property disputes between them, with the exception of disputes arising from contracts concluded by a consumer by an entrepreneur, disputes arising in connection with the enforcement of decisions and incident disputes which would otherwise be the subject of jurisdiction of the court or which are provided for in a special law, are to be decided by one or more arbitrators or by a permanent arbitration tribunal (arbitration agreement).
(2) An arbitration agreement may be concluded in force if the parties could conclude conciliation on the subject of the dispute (1)
(3) The arbitration agreement may cover:
(a) an individual dispute already arising (arbitration agreement); or
(b) any dispute which would arise in the future from a particular legal relationship or a defined area of legal relations (arbitration clause).
(4) Unless otherwise specified in the arbitration agreement, the rights arising from legal relations shall be covered both by the law directly and by the question of the legal validity of such legal relations and by the rights relating thereto.
(5) The arbitration agreement shall also bind the parties' legal successors, unless the parties expressly exclude this from the agreement.
§ 3
(1) The arbitration agreement must be concluded in writing, otherwise it shall be void. The written form shall be retained even if the arbitration agreement is negotiated by telegraph, telex or electronic means, which allow the recording of their content and the identification of the persons who negotiated the arbitration agreement.
(2) However, if the arbitration clause forms part of the terms and conditions governing the main agreement to which the arbitration clause refers, the arbitration clause shall be valid even if the written draft of the main agreement with the arbitration clause has been accepted by the other party in a manner which shows its agreement with the content of the arbitration agreement.

ČÁST DRUHÁ

Arbitrators
§ 4
(1) An arbitrator may be a citizen of the Czech Republic who is mature, upstanding and fully arbitrary, except as otherwise provided in the Special Regulation (2).
(2) The condition of integrity referred to in paragraph 1 shall not be met by those who have been convicted of a criminal offence in a final manner if they are not looked at as if they had not been convicted.
§ 5
(1) No one shall be obliged to accept the function of arbitrator. However, if he accepts this function, he shall be obliged to exercise it in accordance with this law and other provisions.
(2) Acceptance of an arbitrator shall be in writing.
(3) An arbitrator may give up his office only for serious reasons or with the agreement of the Parties.
§ 6
(1) Arbitrators are required to maintain confidentiality regarding the facts which they have become aware of in connection with the performance of the functions of the arbitrator, unless they have been relieved of that obligation.
(2) The arbitrators may waive the confidentiality of the parties. If the parties to the arbitration do not waive confidentiality, the arbitrator shall, for serious reasons, decide on the waiver of confidentiality by the President of the district court in whose jurisdiction the arbitrator is resident. If the arbitrator does not have a permanent residence in the Czech Republic or cannot be established, the President of the District Court, in whose district the arbitration panel has been issued, shall decide on the confidentiality. If the place of issue of the finding cannot be ascertained or if the finding has not been issued in the Czech Republic, the President of the District Court for Prague 1 shall decide.
Designation, appointment and exclusion of arbitrators
§ 7
(1) As a general rule, the arbitration agreement is to determine the number and persons of the arbitrators or the manner in which the number and persons of the arbitrators are to be determined. The arbitrator may also be designated by the Parties by an agreed person or in the manner specified in the rules for arbitration pursuant to Paragraph 19 (4). The final number of arbitrators must always be odd.
(2) Unless the arbitration agreement has provisions in accordance with paragraph 1, each Party shall appoint one arbitrator and those arbitrators shall elect the chairperson of the arbitrator.
§ 8
(1) An arbitrator shall be excluded from the hearing and decision of the case if, in view of his or her relationship with the case, the participants or their representatives, there is reason to doubt his or her bias.
(2) He who is to be or has been designated or has been appointed as an arbitrator shall, without delay, notify the parties or the court of any circumstances which might raise legitimate doubts as to his unbiased nature and for which he is excluded as an arbitrator.
§ 9
(1) If the Party to appoint an arbitrator does not do so within 30 days of receipt of the request from the other Party, or if the designated arbitrators cannot agree on the person holding the arbitrator within the same time limit, the arbitrator or arbitrator shall be appointed by the court, unless the Parties have agreed otherwise. An application may be made to the court by either Party or by each of the arbitrators already appointed.
(2) Unless otherwise agreed by the Parties, the court shall appoint a new arbitrator, on a proposal from either Party or an arbitrator, if the designated arbitrator renounces the function of arbitrator or is unable to exercise the activities of the arbitrator.
§ 10
(1) When appointing an arbitrator or a presiding arbitrator pursuant to Paragraph 9, the court shall take into account the assumptions for its independent and impartial decision-making.
(2) Paragraph 5 applies mutatis mutandis.
§ 11
If that law does not provide for other grounds, the designated or appointed arbitrator shall be excluded from hearing the case if the circumstances referred to in paragraph 8 are subsequently disclosed.
§ 12
(1) An arbitrator already designated or appointed, in respect of which the circumstances referred to in Article 11 have become apparent, is obliged to renounce the function of arbitrator.
(2) If the arbitrator does not resign, the Parties may agree on a procedure for its exclusion. Either Party may make an application for suspension by a court.
§ 13
Permanent arbitration courts
(1) Permanent arbitration courts may be established only by another law or only if their establishment is expressly permitted by another law.
(2) Standing arbitration courts may issue their statutes and regulations which must be published in the Trade Bulletin; (3) These statutes and regulations may determine the manner in which arbitrators may be appointed, their number, and may make the selection of arbitrators subject to a list drawn up in a standing arbitration panel. Statutes and regulations may also determine the manner of management and decision-making and other matters relating to the activities of the permanent arbitration panel and arbitrators, including rules on costs of proceedings and the remuneration of arbitrators.
(3) If the Parties have agreed on the jurisdiction of a particular standing arbitration panel and have not otherwise agreed in the arbitration agreement, they shall be subject to the provisions referred to in paragraph 2 in force at the time of the initiation of the proceedings before the standing arbitration panel.
(4) No one is entitled to use a designation in the course of his activity which gives rise to a delusion that it is a permanent arbitration tribunal under this law unless it is entitled to use such a designation under another law or international agreement which is part of the legal order.

ČÁST TŘETÍ

Arbitration procedure
§ 14
(1) Arbitration proceedings shall be initiated by an action and shall begin on the date on which the action was brought to the permanent arbitration panel or arbitrator referred to in paragraph 2. The application has the same legal effects as if an action has been brought before a court in this case.
(2) If the action is not brought to a permanent arbitration panel, it shall be lodged with the President of the arbitration panel if it is designated or appointed; If the President of the arbitrator is not yet designated or appointed, the action shall be brought to any designated or appointed arbitrator.
(3) The Permanent Arbitration Court and the Arbitrator referred to in paragraph 2 shall indicate on the application the date on which it has run out.
§ 15
(1) The arbitrators are entitled to examine their competence. If they conclude that, under the arbitration agreement which has been submitted to them, their power to decide is not conferred on them, they shall decide by a resolution.
(2) An objection to a lack of competence based on the absence, invalidity or termination of an arbitration agreement, if not for annulment on the ground that the arbitration agreement could not be concluded in the case, may be raised by the Party at the latest at the first action in the proceedings relating to the substance of the matter.
§ 16
(1) Where a Party applies its claim before an arbitrator within a period of time of limitation or limitation, and the arbitrators decide that their jurisdiction is not given, the effects of the action shall be maintained if the party resubmits an action before a court, a competent arbitrator or a standing arbitrator, or another competent authority within 30 days of the date on which the decision on lack of competence was served.
(2) The effects of the action in question are maintained even if the party, following the annulment of the arbitration finding, has brought an action before the relevant arbitrators or a standing arbitration tribunal or another competent authority, or an application to continue the proceedings within 30 days of the date on which the decision of the court which annulled the arbitration has become final.
§ 17
The arbitration procedure shall be held in a place agreed by the Parties. If the place is not so designated, it shall be held at a place designated by the arbitrator, taking into account the legitimate interests of the parties.
§ 18
The Parties shall have an equal position in arbitration and shall be given full opportunity to exercise their rights.
§ 19
(1) The Parties may agree on the procedure to be followed by the arbitrators. Questions may be decided by the chairperson of the arbitration panel if they have been empowered to do so by the parties or by all the arbitrators.
(2) Where the agreement referred to in paragraph 1 is not concluded or the procedure referred to in paragraph 4 is not determined, the arbitrators shall proceed in the procedure in the manner deemed appropriate. They shall conduct arbitration proceedings in such a way that, without unnecessary formalities and giving all parties the same opportunity to exercise their rights, the facts of the case necessary for the decision of the dispute are established.
(3) Unless otherwise assessed by the Parties, the proceedings before the arbitrators shall be oral. This procedure is always private.
(4) The Parties may also determine the procedure in the rules governing arbitration where such rules are annexed to the arbitration agreement. This shall not affect the application of the rules of the permanent arbitration panel.
§ 19a
Address for delivery
The arbitrator shall deliver the document to the address of the data box; If it is not possible to deliver the document to the data box, it shall deliver the document to an electronic address communicated by the addressee to the arbitrator or designated as being served in the arbitration agreement. If it is not possible to service the document to the addresses mentioned above, the arbitrator shall deliver the document to the address communicated by the addressee to the arbitrator or the address specified in the arbitration agreement.
§ 20
(1) Arbitrators may question witnesses, experts and parties only if they voluntarily appear and give notice. Other evidence may also be provided only if provided.
(2) Proceedings which the arbitrators cannot carry out themselves shall be carried out by a court at their request; the court is obliged to comply with the request if the procedural action is not legally inadmissible. In doing so, the Tribunal shall take all the decisions necessary to make the request.
(3) The costs of the proceedings which have been incurred by the Court in carrying out the procedural acts referred to in paragraph 2 shall be borne by the Permanent Arbitration Court or the Arbitrators.
§ 21
If, pending the completion of the arbitration finding, a Party has not, in whole or in part, taken part in the proceedings or has not carried out, without its fault, any action necessary to exercise its right, the arbitrators shall take appropriate measures to propose a proposal in order to enable the Party to carry out what it has missed subsequently.
§ 22
If, in the course of the arbitration procedure or even before the arbitration procedure is initiated, it appears that the execution of the arbitration award may be jeopardised, the court may, on application by either party, order interim measures.
Decision
§ 23
The arbitration procedure shall end:
(a) the legal power of the arbitration finding; or
(b) service of the order in cases where an arbitration finding is not issued; the order must be signed, reasoned and served as an arbitration finding; If an application lodged before a standing arbitration panel is withdrawn before the establishment of a Chamber or the appointment of an arbitrator, the President of a standing arbitral tribunal shall issue and sign an order suspending the proceedings.
§ 24
(1) The arbitrators shall act on the parties during the proceedings to agree on a friendly settlement of the dispute.
(2) At the request of the Parties, reconciliation may be concluded in the form of an arbitration finding.
§ 25
(1) The arbitration panel shall be approved by a majority of the arbitrators, drawn up in writing and at least by a majority of the arbitrators. The verdict of the umpire must be certain.
(2) The arbitration panel shall contain a statement of reasons unless the Parties agree that there is no need for a statement of reasons; This also applies to the arbitration award issued pursuant to Paragraph 24 (2).
(3) In deciding, the arbitrators shall comply with the substantive law applicable to the dispute; However, they may decide on the basis of the principles of justice, but only if they have been specifically mandated by the Parties.
§ 26
Errors in writing or in numbers and other obvious errors occurring in the arbitration finding shall be corrected by the arbitrators or a standing arbitration tribunal at any time at the request of either Party. Such repair must be ordered, signed and delivered as an arbitration finding.
§ 27
The Parties may agree in an arbitration agreement that the arbitration finding may be reviewed by other arbitrators on the request of either of them or both. Unless otherwise provided for in the arbitration agreement, the request for review shall be sent to the other Party within 30 days of the date on which the request for review was received. The examination of the arbitration finding is part of the arbitration procedure and is subject to the provisions of this law.
§ 28
(1) The written copy of the arbitration finding must be served on the parties and, upon service, must be accompanied by a clause of legal authority.
(2) An arbitration finding that cannot be reviewed pursuant to Paragraph 27 or for which the period for the submission of an application for review pursuant to paragraph 27 has expired in vain shall take effect on the date of service of the final judgment and shall be enforceable.
§ 29
(1) The Permanent Arbitration Courts shall, for a period of 20 years from the legal power of the Arbitration finding, keep the Arbitration finding provided by the Clause on Legal Power and all documents proving the conduct of the Arbitration Procedure.
(2) Arbitrators shall be required to submit within 30 days of the legal power of the arbitration panel to the custody of the district court in whose territory the arbitration panel has been issued, the arbitration finding provided for in the rule of law and all documents proving the conduct of the arbitration procedure; If the arbitration award has been issued outside the territory of the Czech Republic, it shall not be transferred to the custody of the court.
(3) The Parties may consult and make extracts and copies of the documents referred to in paragraphs 1 and 2.
§ 30
Use of the Civil Code
Save as otherwise provided in the law, the provisions of the Civil Code shall apply to proceedings before the arbitrators mutatis mutandis.

ČÁST ČTVRTÁ

Termination of the arbitration panel by a court and suspension of enforcement
§ 31
The arbitration panel shall, on application by either Party, withdraw the arbitration finding if:
(a) has been issued in a case which cannot be concluded by a valid arbitration agreement;
(b) the arbitration agreement is invalid for other reasons or has been revoked or does not apply to the agreed matter;
(c) in the case, the arbitrator who has neither been called upon to take a decision under the arbitration agreement nor had the capacity to be an arbitrator has participated;
(d) the arbitration finding has not been sedated by a majority of the arbitrators,
(e) the party has not been given the opportunity to discuss the matter before the arbitrator;
(f) the arbitration finding condemns a party to a transaction which has not been applied for or to be carried out under domestic law to an impossible or illegal party;
(g) it shall be established that the reasons for which a retrial may be applied for in civil proceedings are given.
§ 32
(1) An application for annulment of an arbitration award by a court must be filed within three months of the receipt of the arbitration award to the party seeking the annulment of the arbitration award, unless otherwise provided for in this law.
(2) The application referred to in paragraph 1 shall not have suspensory effect on the enforceability of the arbitration finding. However, at the request of the debtor, the court may defer the enforceability of the arbitration finding if the immediate execution of the arbitration finding would be likely to cause serious harm or if the application for revocation of the arbitration finding could be considered justified.
§ 33
The Court of First Instance shall reject an application for annulment of an arbitration finding based on the grounds set out in Paragraph 31 (b) or (c), if the party seeking annulment of an arbitration finding did not, although it may, apply such a ground in the arbitration procedure at the latest before it began to act on the substance.
§ 34
(1) If the Court of First Instance abolishes the arbitration finding for the reasons set out in Article 31 (a) or (b), it shall proceed to the application by one of the parties, after having given legal power, of the judgment in the substance of the case and shall decide that matter. The matter can no longer be discussed in arbitration proceedings.
(2) If the court withdraws an arbitration finding on the grounds set out in paragraphs 31 (c) to (g), the application of one of the parties to the arbitration procedure under the arbitration agreement shall be continued. Unless otherwise assessed by the Parties, the arbitrators involved in an arbitration finding which has been cancelled for the reasons set out in Paragraph 31 (c) shall, however, be excluded from reconsideration and decision-making. Unless otherwise assessed by the Parties, new arbitrators shall be appointed in the manner originally specified in the arbitration agreement or in support of the provisions of this Law.
§ 35
(1) Even if it has not lodged an application for annulment of an arbitration finding by a court, the party against whom the court has been ordered to execute an arbitration finding, irrespective of the time limit laid down in Paragraph 32 (1), may apply for the cessation of the enforcement of a judgment in addition to the reasons set out in the special regulation (5) if:
(a) the arbitration finding is affected by a defect referred to in § 31 (a), (d) or (f);
(b) the party who has to have a legal representative has not been represented in the proceedings and its actions have not been subsequently approved;
(c) he who acted in arbitration proceedings on behalf of the Party or its legal representative has not been empowered to do so and his actions have not been subsequently approved.
(2) Where an application pursuant to paragraph 1 is made, the court executing the arbitration award shall suspend the enforcement procedure and require the debtor to submit an application to the competent court within 30 days for the annulment of the arbitration award. If the application is not lodged within that period, the court shall continue the proceedings for the enforcement of the arbitration finding.
(3) If the arbitration finding is cancelled, the parties may then proceed mutatis mutandis in accordance with Paragraph 34.

ČÁST SEDMÁ

PROCEEDINGS BEFORE THE COMMISSION DECIDE TO SPOLE
§ 40e
This Act shall also apply to decisions of the disputed matters belonging to the Federal Authority in proceedings before the arbitration panel of the Association ("the Commission ') under the Civil Code, unless otherwise provided for in this Part. The provisions on standing arbitration courts shall not apply to decisions before the panel.
§ 40f
(1) The proceedings before the panel shall be opened on the day on which the application is lodged at the address indicated in the statutes of the association. If such an address is not given in the statutes, the action shall be served on the Commission at the address of the association's seat.
(2) The parties have an equal position in the proceedings and must be given full opportunity to exercise their rights. By way of derogation from this law, the statutes, internal regulations in the statutes expressly indicated or in writing by the parties may provide for the procedure whereby the Commission is to conduct proceedings.
§ 40g
(1) The Commission may discuss the matter and decide only in the presence of a majority of its members, but not less than 3.
(2) If the number of members of the Commission who are competent to decide the matter falls below the minimum number of members required for decision-making by this law or by the statutes, the committee shall stop the proceedings; It doesn't prevent the court from deciding. Paragraphs 9 and 10 shall not apply.
(3) Where the Commission is members in accordance with the Statutes of the Chambers and the Board of the Board decides, paragraphs 1 and 2 shall apply mutatis mutandis to that Chamber.
§ 40h
If, within three months, the Commission does not decide on the substance of the case, the Party may exercise its right in court. The statutes, internal regulations in the statutes expressly indicated or in writing concluded by the Parties may extend the period referred to in the first sentence, but no longer than 9 months.
§ 40i
A member of the commission in respect of which the circumstances referred to in Paragraph 11 have become apparent shall be obliged to exclude himself from the hearing. Unless a member of the Commission is excluded, the party's proposal to exclude it shall be decided.
§ 40j
(1) The Court of First Instance, acting on a proposal from the Party, abolishes an arbitration award issued by the Commission even if the panel has decided to dispute in a manifest violation of good manners or public policy. Paragraph 242 of the Civil Code is without prejudice to this.
(2) Even if it has not lodged an application for the annulment of an arbitration finding by a court, the party against whom the court has been ordered to execute the arbitration finding, irrespective of the time limit laid down in paragraph 32 (1), may apply for the termination of the ordered enforcement of a judgment, in addition to the reasons set out in a separate regulation, even if the grounds for its annulment are given in accordance with paragraphs 31 (a) to (f), or if the grounds for its annulment referred to in paragraph 1 are given, and the arbitration finding does not contain any instruction as to the right to bring an action for its annulment. Paragraphs 35 (1) (c) and (d) and 35 (2) and (3) shall apply mutatis mutandis.
§ 40k
Paragraph 25 (2) of the second sentence of the second and Paragraph 32 (3) shall apply to proceedings before the panel if a member of the association submits a motion to cancel the arbitration.

ČÁST OSMÁ

Jurisdiction of the courts
§ 41
The Regional Court is competent at first instance for the nullity of the arbitration agreement and for the annulment of the arbitration finding pursuant to Part Four of this Act. The other proceedings under this law are at first instance the jurisdiction of the court which would have jurisdiction to bring proceedings under a special rule, 6) had it not been for an arbitration agreement.
§ 42
(1) The acts referred to in Article 20 (2) give rise to the substantive and local jurisdiction of the district court in whose territory the requested action is to be carried out.
(2) Where the action required under paragraph 1 is to be carried out abroad, the territorial and substantive jurisdiction of the District Court shall be given, within the perimeter of which the arbitration procedure shall be held.
§ 43
The local jurisdiction of the court in whose district the arbitration procedure is held or was held, if this place is domestic, shall be the subject of proceedings under this law. Otherwise, there is a local competent court which would be competent locally if it were not for an arbitration agreement. In addition, the local jurisdiction of the court according to the registered office or residence of the appellant or the defendant shall be given to the proceedings provided for in Articles 9 and 12 (2), provided that the local jurisdiction of the court cannot be established in the domestic territory.
§ 44
Save as otherwise provided in this law, the provisions of the Civil Code shall apply mutatis mutandis to legal proceedings under this law.

ČÁST DEVÁTÁ

AMENDMENT AND IMPLEMENTATION OF THE CIVIL COURT OF JUSTICE
§ 45
Act No. 99 / 1963 Coll., Civil Code, as amended by Act No. 36 / 1967 Coll., Act No. 158 / 1969 Coll., Act No. 49 / 1973 Coll., Act No. 20 / 1975 Coll., Act No. 133 / 1982 Coll., Act No. 180 / 1990 Coll., Act No. 328 / 1991 Coll., Act No. 519 / 1991 Coll., Act No. 263 / 1992 Coll., Act No. 24 / 1993 Coll., Act No. 171 / 1993 Coll., Act No. 117 / 1994 Coll., and Act No. 152 / 1994 Coll., is amended as follows:
1. in Paragraph 9 (3) (c) (k), including footnote 23, shall be deleted;
2. in Article 36b (1), point (f) shall be deleted;
3. Paragraph 88 (2) is deleted; at the same time the numbering of the paragraphs is deleted.
4. In Article 120 (2), the words "in the proceedings for the appointment of an arbitrator or a presiding arbitrator 'shall be inserted after the words" on adoption'.

ČÁST DESÁTÁ

Transitional and final provisions
§ 46
Disputes concerning the nullity of arbitration agreements and the revocation of arbitral findings issued by arbitrators on the basis of an arbitral agreement in which proceedings have been initiated and no final decision has been taken by the date of entry into force of this Law, shall be discussed and completed by the courts responsible for the proceedings by the date of application of that law.
§ 47
The provisions of this Act shall apply only if they do not provide for any other international treaty which the Czech Republic is bound by and which has been published in the Collection of Laws and International Treaties or in a previous similar collection.
§ 48
The provisions of this Act shall apply in cases where the arbitration agreement was concluded after the entry into force of this Act. In other cases, the procedure shall be followed according to the existing rules.
§ 49
They shall be deleted:
1. Act No. 98 / 1963 Coll., on arbitration in international trade and on the enforcement of arbitration findings.
2. § 30 paragraphs 2, 4, 5 and 6 of Act No 214 / 1992 Coll., on the Stock Exchange.
3. § 28 paragraphs 2, 4, 5, 6, 7 and 8 of Act No. 229 / 1992 Coll., on Commodity Exchange.

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Regulation Information

CitationAct No. 216 / 1994 Coll., on Arbitration and Enforcement of Arbitration Findings
Regulation TypeLaw
Author-
CollectionCode of Laws
Date of Promulgation30.11.1994
Effective from01.01.1995
Effective until-
Status Valid
The regulation text is for informational purposes only.
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