For businesses in a dispute with a business partner
We negotiate on your behalf with your business partner to reach a settlement that can end the dispute before it reaches court, or prevent it altogether. At the same time, we prepare the documents so that they would stand up in court. You go into negotiations with a case that is ready, and if no settlement is reached, we can follow up with a lawsuit without unnecessary delay.
Dispute handled by
Theodor Klán, attorney-at-law · Czech Bar Association reg. no. 15738 · 608 758 625
By out-of-court dispute resolution we mean here an agreement between the parties that ends the dispute without a judgment: a settlement agreement (narovnání, Section 1903 of the Civil Code), an acknowledgement of debt with instalments, or a settlement approved by a court without a lawsuit in conciliation proceedings. Without a further lawsuit, it is enforceable as a court-approved settlement or as a notarial deed with consent to enforceability. The limitation period stops running only once an agreement on out-of-court negotiations is concluded (§ 647 Civil Code), not with the first phone call.
Court proceedings give you the certainty of a decision, but they cost money, time and often the business relationship. A settlement tends to be faster, and you decide the outcome together with the other party. Comparison for a typical commercial dispute over money:
| Court proceedings | Settlement | |
|---|---|---|
| Court fee | The claimant pays 5% of the principal claimed in advance (for claims over CZK 20,000 up to CZK 40 million; a claim of CZK 2 million = CZK 100,000). If successful, the claimant recovers it as part of the costs of proceedings. | None for the settlement itself. Settlement approved by a court without a lawsuit: 2% of the monetary amount, max. CZK 30,000 (only CZK 500 for amounts up to CZK 25,000). Notarial deed: the notary's fee. |
| Who decides | The court, based on the evidence and the law | You and the other party together. The solution may include instalments, a discount or further orders. |
| Public access | Court hearings are public; the public may be excluded only in exceptional cases, e.g. to protect trade secrets (§ 116 Civil Procedure Code) | Negotiations take place between the parties. Confidentiality can be agreed by contract. We word offers so that they weaken your position as little as possible if the dispute does reach court. |
| Business relationship | A court dispute often damages it | It can be preserved and the cooperation can continue |
| Enforceability | Final judgment | Enforceable without a lawsuit only as a court-approved settlement or a notarial deed with consent to enforceability |
Fees under items 1 and 9 of the fee schedule to Act No. 549/1991 Coll.; settlement in conciliation proceedings under §§ 67, 69 and 99 Civil Procedure Code.
For claims up to CZK 50,000, the reimbursement of costs tends to be lower (Section 14b of the Attorneys' Tariff), and for an electronic payment order the court fee is also lower.
Reimbursement of the claimant's attorney costs under the Attorneys' Tariff (Decree No. 177/1996 Coll.): we assume 4 acts of legal service, as is usual (taking on the case, demand for payment, lawsuit, one hearing; 3 without a hearing), plus a flat-rate CZK 450 per act and 21% VAT, provided the claimant is represented by an attorney who is a VAT payer and succeeds in full. Appeals, further hearings, expert witnesses and your own attorney's fees are extra. If you lose as the claimant, the court fee is not refunded and you pay the defendant's attorney costs. This is an indicative calculation, not an estimate for a specific dispute.
Many business owners worry that offering a settlement will look like weakness. But when the offer comes from an attorney, the other party receives a clearly defined claim, evidence and a deadline. They see that the dispute is ready for court and may conclude that a settlement is better for them. That is why it is easier to negotiate a settlement when you have a lawsuit ready to file.
The cases are anonymised, generalised and simplified. Every dispute is different, and past results do not guarantee the same outcome in your matter.
A customer is not paying, keeps making promises or disputes part of the performance. Sometimes an instalment agreement with a written acknowledgement of debt is enough.
Debt collectionA dispute between contractor and client over defects, deadlines, variations (extra work) or retention money. Typically in the middle of a construction project that is already under way.
Goods not delivered or defective, contractual penalties, termination of a framework agreement. A relationship worth preserving.
Disagreement over running the company, a shareholder leaving, settlement of a business share. A dispute that could paralyse the company if it went to court.
The other party is threatening to sue. Now is a good time to offer negotiations: we will assess what they have and respond on your behalf.
You are no longer talking to each other, or you are going round in circles. An attorney as a new negotiator can move even a deadlocked dispute forward.
Once you accept our quote, we review the contract, correspondence and evidence. We will tell you openly how strong your position is, what court proceedings would cost and what happens if you do not reach agreement. Only then do you know what settlement is good for you.
Negotiations alone do not reliably stop the limitation period. The limitation period stops running only once an agreement on out-of-court negotiations is concluded (Section 647 of the Civil Code). That is why we propose right at the start that the other party confirm the agreement to negotiate in writing. If they refuse and the period is nearing its end, we will recommend filing a lawsuit.
We start with a factual letter, a meeting or a pre-action demand letter. The demand for payment must be sent at least 7 days before the lawsuit is filed; otherwise, even if you win, you may not be awarded the costs of proceedings (§ 142a Civil Procedure Code). We negotiate on your behalf, or prepare you for the negotiations and attend them with you. We look for what really matters to the other party: money, time, reputation, further orders. From that we put together options they can accept.
We draft the settlement so that it is clear and as easy to enforce as possible – usually as a settlement of disputed rights (Section 1903 of the Civil Code) or an acknowledgement of debt with an instalment schedule. Without a further lawsuit, however, it is generally enforceable only as a notarial deed with consent to enforceability or as a settlement approved by a court in conciliation proceedings (§§ 67 and 69 Civil Procedure Code).
Our documents are prepared as for court, so we can follow up with a lawsuit without unnecessary delay. You can still settle during the proceedings: a court settlement has the effects of a final judgment, and the court refunds part of the court fee.
Template agreement on out-of-court negotiations – free download (in Czech)
A registered mediator (Act No. 202/2012 Coll.) is neutral and does not represent the interests of either party. We are attorneys and represent only you. But we have taken from mediation what works: we listen to what really concerns the other party, separate interests from entrenched positions and propose solutions that the other side can also accept. The aim is a settlement that is good for you, not a compromise at any cost.
If your dispute needs a neutral intermediary, for example between shareholders, we will recommend a registered mediator and accompany you through the mediation.
Not every dispute is worth negotiating. If the other party is only buying time, the limitation period is about to expire or there is a risk that the debtor will transfer assets, we will recommend a quick lawsuit or, where appropriate, an application for an interim measure (předběžné opatření) (§ 74 Civil Procedure Code). If this is already apparent from your description, we will point it out in our proposed approach.
Deadline approaching? Call 608 758 625 or request a call back. We will get back to you the same business day; after 16:00, at weekends and on public holidays, the next business day. A call-back request does not in itself stop any time limit.
Frequently asked questions
No. We are not registered mediators under the Mediation Act and do not act as a neutral third party. We are attorneys and represent only you. In negotiations, however, we use methods that have proved effective in mediation: we separate interests from positions and look for a solution that the other side can also accept. If your dispute needs a neutral mediator, we will tell you and accompany you through the mediation.
Yes, until you conclude an agreement on out-of-court negotiations with each other. Only from that point does the limitation period stop running. It starts running again when one party expressly refuses to continue the negotiations, or when the parties agree to end them – even tacitly, when both stop negotiating and the circumstances make it clear that they want to end the negotiations (§ 647 Civil Code; Supreme Court 23 Cdo 431/2024). The period then does not expire earlier than six months later (§ 652 Civil Code). The Supreme Court has accepted that an agreement to negotiate may also arise from the negotiations themselves, provided it is beyond doubt that both parties want to negotiate about the same claim (judgment of 27 May 2025, case no. 23 Cdo 431/2024). That is why we propose confirming the agreement in writing and do not let negotiations fizzle out.
Template agreement on out-of-court negotiations – download (in Czech)
Yes, it is a contract. To make it enforceable without another court case, it is drawn up as a notarial deed with consent to enforceability, or approved by a court as a settlement in conciliation proceedings. Both are enforceable titles (§ 40 Enforcement Code). An approved settlement has the effects of a final judgment (§ 69 and § 99(3) Civil Procedure Code).
They will then receive a pre-action demand letter with a specific deadline. If they do not respond to that either, we can file a lawsuit; we have the documents ready from the negotiations. If the debtor gets in touch and acknowledges the debt in writing, the claim becomes time-barred only ten years after the acknowledgement or, where applicable, after the last day of the period the debtor set for payment (§ 639 Civil Code).
Yes. The court itself seeks a settlement (§ 99 Civil Procedure Code) and may order the parties to attend a first meeting with a registered mediator (§ 100(2) Civil Procedure Code). If the court approves a settlement before it decides the case, it refunds the court fee paid by the claimant, reduced by 20%, but by at least CZK 1,000 (Section 10(7) of the Court Fees Act).
When the other party is only buying time, the limitation period is about to expire or there is a risk that the debtor will transfer assets. A quick lawsuit is then appropriate or, where needed, an application for an interim measure (předběžné opatření) (§ 74 Civil Procedure Code). You can still negotiate afterwards.
We charge either by the hour (CZK 4,300/hour excl. VAT for businesses) or as a percentage of the value of the dispute. We will propose the method that suits your dispute in our quote. The initial 10-minute consultation and the proposed approach with a cost estimate for each stage are free of charge and non-binding. For comparison: the court fee for a lawsuit claiming CZK 2 million is CZK 100,000, plus attorneys' costs and time.
We explain these terms in our legal glossary: mediation (in Czech), mediation agreement (in Czech), limitation (in Czech), compensation for damage (in Czech).
Case law and guides
Who will handle your matter
Attorney-at-law, Partner
I help people and businesses find their way around the law so that it supports them rather than stands in their way.
The initial 10-minute consultation is free, in person in Prague 1 or by video call. Within 2 business days we will then send you a proposed approach with a cost estimate.
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