Following the entry into force of recent amendments to the Code of Civil Procedure and the new Civil Code, certain new concepts have been introduced into the Czech legal system, including actions for protection from disturbed possession. This new type of litigation partially replaces the legal instrument of protection of a peaceful state contained in the previous Civil Code.
The Czech Republic is a member of the European Union and a signatory to many multilateral and bilateral international treaties and conventions on the recognition and enforcement of foreign judgments. As a result, the origin of a judgment has an effect on the applicable law. A number of changes have recently been made to Czech law that relate to the recognition and enforcement of foreign judgments.
Following the introduction of the new Civil Code, the Civil Procedure Code is one of the statutes that must be amended to correspond to the new environment, leading to changes in the way in which civil proceedings are conducted. The existing Civil Procedure Code will be amended and non-contentious proceedings will be regulated by a new law – the Act on Special Court Proceedings.
The Constitutional Court recently cancelled a decree that had specified the flat fees to be paid to an attorney at law or notary representing a party to a civil proceeding, declaring it inconsistent with the constitutional order. A similar norm - the attorney's tariff - has been suggested as a replacement, but at present its use is permitted only in exceptional circumstances.
The Supreme Court recently ruled that a creditor may have standing to sue for a declaration that a transfer of its debtor’s shares to a new sole shareholder is invalid. The judgment aims to provide a new remedy for dishonest debtors, but at the same time may have an unwanted side effect.
In a recent case the Supreme Court ruled that although a real estate lease lasting 100 years is a valid arrangement, it does not qualify as a contract for a definite period of time. The reasoning behind the ruling was the fact that such a long period of time exceeds the average human lifespan.
Due to a conflict with a Czech constitutional order, the Constitutional Court has repealed part of the Courts and Judges Act. The repealed section allowed the president to remove judges from their positions as chairpersons and vice chairpersons of courts.
On April 1 2005 a new amendment to the Civil Procedure Code modifying the regulation of preliminary injunctions in civil proceedings came into force. A claimant requesting a preliminary injunction is now obliged to pay an advance payment of Kr50,000 (or Kr100,000 in commercial disputes) as security for potential damages which the preliminary injunction may cause the defendant.
The European Court of Human Rights has issued a decision relating to an application lodged with the court by a Czech citizen against the Czech Republic. The court adjudicated on the appropriate length of two judicial proceedings before the Czech courts to which the claimant was a party.
A shareholder in a joint stock company whose stake reaches or exceeds a certain threshold may request the board of directors to convene a general meeting and include certain items on the agenda. The Supreme Court has ruled that this right is not extinguished if the shareholder's stake subsequently drops below this threshold, as long as the shortfall is made up before the meeting is convened.
In a controversial ruling the Czech Constitutional Court has abolished a large part of the Civil Procedure Code governing the judicial review of administrative acts. The ruling takes effect on December 31 2002.
The new Act on Executors aims to take pressure off the courts and expedite common judicial proceedings.
Including: Court System; First Instance Proceedings; Appellate Proceedings; Extraordinary Remedies; Execution of Decisions
The Czech parliament has failed to approve bills prepared by the Ministry of Justice that were intended to modify radically the court structure and the procedures applied in criminal proceedings. This signals a search for new ways of implementing a rapid and efficient reorganization of the Czech court system.