The arbitration may be characterized as a procedure in which an arbitration court, pursuant to legal regulations, tries and resolves disputes between parties to proceedings whereas a jurisdiction is, following the voluntary consent thereof expressed in arbitration agreement, vested from general court to arbitration court.
The essence of the arbitration consists in out of court disputes resolution. The arbitration constitutes an alternative to court proceedings whereas its considerable advantages are flexibility, speed, informality and lower costs of proceedings.
The arbitration is governed by Act No. 244/2002 Coll. on arbitration as amended (hereinafter referred to as „ZoRK“).
The arbitration court shall have a jurisdiction to try disputes that are capable subject of settlement agreement, including the disputes on determination of the right or legal relation existence.
The following disputes may not be resolved in arbitration:
- disputes regarding the creation, change or extinction of ownership title or other rights in rem to real estate,
- disputes regarding personal status,
- disputes regarding enforcement of judgments,
- disputes arising out of bankruptcy and restructuring proceedings,
- disputes arising out of consumer contract or relating to consumer contract.
In arbitration the disputes are resolved by one or more arbitrators appointed in way as agreed by parties to proceedings in arbitration agreement.
An arbitration agreement is an agreement between the parties to proceedings that all or some of their disputes which have arisen or may arise between them during the specific or another legal relation thereof shall be resolved through arbitration. Should parties not exclude such possibility, the arbitration agreement shall be binding also for legal successors thereof.
An arbitration agreement shall be made in writing otherwise it is invalid. An arbitration agreement may be contained in a stand-alone agreement or in an arbitration clause in contract; i.e. it may be included in legal act (contract) creating the legal relation.
The arbitration in principle constitutes the single-instance proceedings.
A judgment issued in the course of arbitration and served on parties to arbitration shall have the same effects as a binding judgment of a general court. An arbitration judgment, after lapse of time period in which the party may voluntarily comply thereto, constitutes an enforcement title (title to execution) pursuant to § 41 Section 2 Letter d) Act No. 223/1995 Coll. on court enforcement agents and execution (Execution Act) as amended.