ADVANGATES OF THE ARBITRATION PROCEDURE
 conducted before the ad-hoc arbitrators associated at the Arbitration Court of the Czech Republic

   

   The Arbitration Procedure is an off-court way of settling property disputes, the basic
   stipulations of which are contained in Act No. 216/1994 Coll., on Arbitration Procedure and
   Execution of Arbitration Awards, as amended.

   In accordance with the provisions of Section 30 of the quoted law, the legal relations in the
   area of the arbitration procedure are governed secondarily (supportably) by the provisions of
   the general process-law regulation in the area of the process law, which is Act No. 99/1963
   Coll., on the Civil Court Procedure (Civil Court Rules of Procedure) as amended. The quoted
   Act, the process provisions of which stipulating the procedure of the court in the conduct of
   the legal process are followed also by the arbitrators in the maintenance of the arbitration
   procedure is available for download here.

   The enforcement of the arbitration award, which is the so-called execution title in the Czech
   legislation, which means, that the entity succeeding before the arbitrator, may enforce
   directly the execution of the award, may be implemented at court, or through private executors
   operating on the basis of Act No. 120/2001 Coll. on Court Executors and Execution Activity
   (Execution Rules of Procedure) and on change of other laws (available for download here). The
   Arbitration Court of the Czech Republic is based on a request of the dispute party, which
   succeeded fully in the matter, able to mediate the execution of the decision by a court or a
   private executor performing at the Chamber of Court Executors, which is an autonomous
   professional organization of the court executors.

   

   The essence of the arbitration procedure before an ad-hoc arbitrator is an agreement of the
   disputing parties on their dispute being settled just in the form of an arbitration procedure
   before the ad-hoc arbitrator or before the board of ad-hoc arbitrators associated at the
   Arbitration Court of the Czech Republic. The agreement of the contractual parties may either
   take a form of an arbitration agreement or arbitration clause. The result of the arbitration
   procedure is an arbitration award, that is a decision, which has effects of a final judgment
   and is thus a proper execution title.

   

     o Speed - whereas the legal process is usually a question of many years, the arbitration
       procedure maintained before the Arbitration Court of the Czech Republic is a matter of no
       more than a few weeks. The Arbitrator proceeds in the procedure without useless
       formalities, which enables him or her to understand better the standpoints of both parties
       and thus lead them often to a peaceful solution.
     o Non-public nature of the procedure - provides both participants of the procedure with a
       certainty, that the facts forming the subject of the dispute will not be presented
       publicly. Whereas the judgment of the general court must be declared publicly and during
       the procedure, it is possible to exclude the public only in exceptional cases, the
       arbitration award is issued only before the disputing parties.
     o Lower costs - settlement of the disputes before the ad-hoc arbitrators associated at the
       Arbitration Court of the Czech Republic is cheaper than a standard legal process
       implemented by the courts of the general judicial system, in principle by 50%. It is also
       cheaper than for instance a procedure before the Arbitration Court at the Economic Chamber
       of the Czech Republic and the Agrarian Chamber of the Czech Republic, or before the
       Arbitration Court at the Czech-Moravian Commodity Exchange.
     o Broad enforceability - the arbitration award issued by the arbitrator, which is delivered
       to the disputing parties, becomes effective as a final court judgment. It is thus a proper
       execution title and on its basis, it is possible to start immediately to enforce the
       decision. A great advantage is also a broad enforceability of the arbitration award in
       foreign countries – in this respect, it is a farther better execution title than a court
       judgment, which is considered abroad a decision of a foreign state power and its
       enforceability is thus recognized very unlikely.
     o Technical Background - ad-hoc arbitrators associated at the Arbitration Court of the Czech
       Republic may utilize in the procedure the perfect technical and personnel background. The
       computer equipment, copying equipment, internet, notary services are available together
       with the Czech Post Office as well as a foreign express postal services.

   

    Other Benefits of the Arbitration Procedure:

     o Quality - the disputes are settled by professionals from the field of legal theory as well
       as legal practice and economic sciences having at their disposal an ensemble of the legal,
       economic and financial advisors, a possibility to consult the legal problems readily with
       the leading experts active in the judicial system, banking as well as financial and
       business sphere, at universities and in scientific institutions.
     o Credibility - the disputes are decided by arbitrators on which the parties agreed in
       advance – they have a confidence of all involved parties.
     o Informality - the arbitration procedure is much more informal than the procedure before
       the courts, the strict compliance with the process regulations is however guaranteed
     o Single Instance - the decision of the arbitrators in the form of the arbitration procedure
       is final and its delivery to the parties is legitimate, then enforceable and no remedy may
       be filed against the arbitration award, the court may cancel the arbitration award for
       reasons not stated in the Act. However, this gives no space for non-compliance with the
       laws
     o Option of Entering into an Amicable Solution – the arbitration procedure does not have to
       end always by a legitimate, final arbitration award, as with regards to its informality,
       it provides a much greater space for coming to a peaceful arrangement

   

   Equity (Justice) - the principle „ex aequo et bono“) regardless of sometimes controversial
   provisions of the valid material law – if the contractual parties agree in advance, the
   arbitrator may follow the principle of equity (justice) in its decision-making even beyond the
   frame of the applicable law, - this enables the arbitrators to utilize more the experience
   from the economic as well as legal practice and to reach a just decision.