Czech Republic - Attachment of Assets

Author(s):

Hedvika Hartmanová

Arthur Braun

Page Count:

12 pages

Media Description:

1 PDF Download

Jurisdictions:

Practice Areas:

Judicial Assistance in Procedural Matters,

Enforcement of Arbitral Awards,

Parties,

Third Parties in Arbitral Proceedings,

Practice & Procedure

Author Detail:

Hedvika Hartmanova, Associate bpv Braun Partners

Arthur Braun, Partner bpv Braun Partners

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Description:

Originally from Attachment of Assets

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1. What is the general nature and effect of judicial measures

available for Plaintiffs to obtain provisional relief affecting

property of debtors to obtain security for judgments to be

obtained (“attachments”)? Freezing property in place? Placing

it in the custody of a third party, such as a court official, sheriff

or marshal?

According to Sections 74 et seq. of the Czech Civil Procedural Code

“Obcansky soudni rad” (hereinafter “CCPO”) before or within a

court procedure, the Plaintiff “zalobce” may demand the court to issue

a preliminary injunction “predbezne opatreni” The debtor can be

obligated to fulfill one of many options: to give money or property in

court custody, not to dispose with his property or rights, do something

(facere), not do anything (omitere), or withhold (pati).

An injunction may be ordered both before the start of court

proceedings, in the matter itself, as well as during existing court

proceedings (sections 74, 102 CCPO). The injunction may be filed by

the Plaintiff should the legal relations between the participants of the

proceedings require such injunctions, in particular in order to avoid any

further worsening of the situation of the debtor, in particular should the

execution of the court decision be threatened by such worsening. Other

important features for granting an injunction are its timeliness,

adequacy and actuality. In practice, these features are often

underestimated by courts when deciding on such applications.

In 2005, Act no. 59/2005 Coll. (hereafter the “Amendment”) has

become effective. The Amendment introduced a significant change in

the CCPO, changing substantially the conditions of awarding a

preliminary injunction and scope of legal effects caused by preliminary

injunctions. The Plaintiff has to pay a security in the amount of CZK

10,000, or CZK 50,000 in commercial matters, in the account of the

respective court before an application for a preliminary injunction is

filed. The security is deposited in the account of the respective court in

order to secure damages or other compensation of loss caused by the

preliminary injunction. If more petitioners file an application for

preliminary injunction, they are obliged to deposit the security jointly
and severally.