Arbitration is an out-of-court method of discussing and deciding property disputes between parties. In the Czech Republic, this procedure is regulated by Act No. 216/1994 Coll., on arbitration proceedings and enforcement of arbitration awards, as amended. Based on it, the parties can agree that their disputes will not be resolved by the courts, but by an independent private law entity enshrined in the arbitration agreement. It also follows from the law that arbitration makes it possible to resolve virtually all property disputes from various legal areas. Cases related to bankruptcy or enforcement are an exception.

The decision of the dispute by the arbitrator has basically the same legal effects as a final court decision and is also legally enforceable.

YOU WILL NORMALLY RECEIVE THE ARBITRATION'S FINDING WITHIN THREE MONTHS OF FILING YOUR CLAIM.

An enforceable title in arbitration proceedings, unlike court proceedings, can be obtained within three months of the filing of the claim. After the start of the proceedings, the arbitrator proceeds in such a way that the matter is discussed and decided as quickly as possible. At the same time, he always strives to resolve the dispute amicably. With the consent of the parties, he is entitled to decide the dispute according to the principles of justice.

Arbitration brings significant advantages to the parties to the dispute compared to settlement before the court:

Arbitration is mainly:

 faster - usually completed within three months. Its procedural provisions prevent obstruction or evasion of justice. Proceedings according to the recommended wording of the arbitration clause will always be initiated immediately after the filing of the claim.
cheaper - e.g. because arbitrators always strive to decide disputes primarily based on written evidence. This eliminates oral negotiations and expensive representation by a legal representative.
fairer - the law allows the arbitrator (if the parties agree) to decide according to the principles of justice. The consequence is greater contractual freedom. Here, the arbitrator assesses the actual state of affairs. It looks at contracts according to what the parties intended them to be, not in what form they ended up concluding them.
non-public - there is no risk of media exposure and disclosure of sensitive business information to the public. The arbitrator is bound by absolute confidentiality, which can only be released by the parties to the dispute or the court.
informal - the emphasis is on the content, not on the form of the actions performed.