Proceedings before the International Arbitration Court in Prague are single-instance. The award is final and enforceable, internationally recognised under the New York Convention. Standard proceedings or expedited proceedings with an award within 2 or 4 months under Art. 40 of the Rules.
Including this clause in a contract establishes the jurisdiction of PRIAC to decide all disputes arising under that contract. We recommend including the clause in all newly concluded contracts; for contracts already in force, it may be added by amendment.
„All disputes arising out of or in connection with this contract shall be finally decided under the Rules of the International Arbitration Court in Prague at the Czech-Moravian Commodity Exchange Kladno, which is a permanent arbitration court under § 13 of Act No. 216/1994 Coll. on Arbitration Proceedings and on the Enforcement of Arbitral Awards, by one or three arbitrators appointed in accordance with the said Rules.“
In addition to the general clause, we recommend the following arbitration clause variants for specific sectors. The clause texts are prepared in accordance with the 2023 PRIAC Rules and the Rules on Costs of Arbitration.
„All disputes arising out of this contract for the supply of [electricity / natural gas / EU ETS emission allowances / guarantees of origin] or in connection with this contract, including disputes concerning its validity, interpretation, performance, termination, or claims of unjust enrichment, shall be finally decided under the Rules of the International Arbitration Court in Prague at the Czech-Moravian Commodity Exchange Kladno, which is a permanent arbitration court under § 13 of Act No. 216/1994 Coll. Disputes up to CZK 5,000,000 shall be decided by a sole arbitrator; disputes exceeding this amount shall be decided by a three-member arbitral panel. The language of the proceedings shall be Czech; in disputes with an international element, the parties may agree in writing on English. The PRIAC Rules on Costs of Arbitration shall apply to the determination of the fee and the lump sum for administrative costs.“
„All disputes arising out of this contract for [timber harvesting / purchase or sale of timber / wood processing / timber transport] or in connection with this contract, including disputes regarding quality, quantity, assortment or place of performance, shall be finally decided under the Rules of the International Arbitration Court in Prague at the Czech-Moravian Commodity Exchange Kladno, which is a permanent arbitration court under § 13 of Act No. 216/1994 Coll., by a sole arbitrator appointed in accordance with the said Rules. The parties agree that the dispute shall be conducted under the expedited regime pursuant to Art. 40(1)(b) of the PRIAC Rules with an award issued within 4 months from the transfer of the case file to the arbitrator. The PRIAC Rules on Costs of Arbitration shall apply to the determination of the fee and the lump sum for administrative costs.“
„All disputes arising out of this contract for the purchase or sale of [grains / oilseeds / sugar beet / hops / potatoes / other agricultural commodity] or in connection with this contract, including disputes regarding quality, quantity, place and time of performance, shall be finally decided under the Rules of the International Arbitration Court in Prague at the Czech-Moravian Commodity Exchange Kladno, which is a permanent arbitration court under § 13 of Act No. 216/1994 Coll., by a sole arbitrator appointed in accordance with the said Rules. The parties agree that the dispute shall be conducted under the expedited regime pursuant to Art. 40(1)(b) of the PRIAC Rules with an award issued within 4 months from the transfer of the case file to the arbitrator. The PRIAC Rules on Costs of Arbitration shall apply to the determination of the fee and the lump sum for administrative costs.“
„All disputes arising out of this contract for the supply of [metals and metallurgical products / construction materials / chemicals / industrial raw materials] or in connection with this contract, including disputes regarding quality, quantity or place of performance, shall be finally decided under the Rules of the International Arbitration Court in Prague at the Czech-Moravian Commodity Exchange Kladno, which is a permanent arbitration court under § 13 of Act No. 216/1994 Coll., by one or three arbitrators appointed in accordance with the said Rules. The PRIAC Rules on Costs of Arbitration shall apply to the determination of the fee and the lump sum for administrative costs.“
„All disputes arising out of this contract for the [transfer of EU ETS emission allowances (EUAs) / certified emission reductions (CERs) / voluntary carbon credits (VCS, Gold Standard)] or in connection with this contract, including disputes concerning transfer in the Union Registry, double counting of credits, integrity of the verification process, or claims of unauthorised possession, shall be finally decided under the Rules of the International Arbitration Court in Prague at the Czech-Moravian Commodity Exchange Kladno, which is a permanent arbitration court under § 13 of Act No. 216/1994 Coll., by a sole arbitrator specialising in energy or environmental law, appointed in accordance with the said Rules. The law applicable to the dispute shall be Czech law, unless the contract provides otherwise. The PRIAC Rules on Costs of Arbitration shall apply to the determination of the fee and the lump sum for administrative costs.“
In the contract or in a subsequent arrangement, the parties may in particular agree that:
PRIAC's jurisdiction is established by an arbitration clause in the contract (ex ante) or by a separate arbitration agreement concluded after the dispute has arisen (ex post, § 2(3) of the Arbitration Act).
Statement of claim under Art. 24 of the Rules — identification of the parties, subject matter of the dispute, factual and legal circumstances, value of the matter in dispute, name of the arbitrator or a request for the chairman's appointment.
After delivery of the statement of claim, the registrar assesses the fee and the lump sum for administrative costs under the Rules on Costs. The time limit for payment is at least 14 days (Art. 26 of the Rules). The calculation is available in the calculator below.
A sole arbitrator or a three-member panel. The parties appoint arbitrators from the List of Arbitrators; the chairman of the panel is elected by the panel members. If the parties remain inactive, the arbitrator is appointed by the chairman of the Court (Art. 6 of the Rules).
Non-public hearing at the seat of the Court in Prague (Art. 10 of the Rules). The hearing may also be conducted via videoconference (Art. 37(8) of the Rules). Simplified proceedings without an oral hearing are available under Art. 39 of the Rules.
Final upon delivery. An enforcement title in the Czech Republic, internationally enforceable under the New York Convention. Setting aside is possible only in court proceedings on the grounds set out in § 31 of the Arbitration Act.
Calculation under the Rules on Costs of Arbitration. In addition to the arbitration fee, a lump sum for the Court's administrative costs is charged.
This calculation is for informational purposes only. A binding calculation of the fee is made by the Secretariat of the Arbitration Court after delivery of the statement of claim. With more than two parties, the fee increases by 15% for each additional party (§ 5(1) of the Rules).
The PRIAC Rules offer two regimes of expedited proceedings (Art. 40 of the Rules), an institute rarely seen in Czech arbitration practice. The specific time limit for issuing the award runs from the transfer of the case file to the arbitrators after all arbitrators have been appointed and the fee has been paid.
Time limits for expedited proceedings shall not run during the resolution of an objection of lack of jurisdiction, an objection against an arbitrator, expert or interpreter, or during the procedure under § 20(2) of the Arbitration Act (Art. 40(5) of the Rules). Failure to comply with procedural duties by the party that requested the expedited proceedings does not count toward the overall time limit extension.
The statement of claim is filed in writing with the Registrar of the Arbitration Court. The claim is submitted in copies for all parties and arbitrators, or electronically via data box or with a qualified electronic signature.