ČR sued for CZK 13.5 billion in 11 arbitration lawsuits
18. 7. 2008 16:00
Some hefty lawsuits were already won by state though
Arbitration lawsuits of the Czech Republic
Investmart 250 million EUR
R. Binder 2.3 billion CZK
InterTrade 87 million EUR and interests
Gromann Not calculated
G. Nepolsky 970 million CZK
EMV 45 milion
Figae Invest Not calculated
Czechoslonor 240 million CZK
Phoenix 41 million USD
ZIPimex 26 million CZK
Frontier 20 million USDinfo
Prague - The Czech Republic is involved in eleven international arbitration cases. If the Czech Republic were to lose all of them, the state would have to pay CZK 13.5 billion (EUR 0.56 billion).
Up until recently, the possible sum was much bigger. For example, the Czech Republic was sued by ArcelorMittal - in two separate cases, the company claimed CZK 26 billion (more than EUR 1 billion) and 7 billion.
At the same time, was sued by Nomura over the fall of IPB bank and by Petrcíle.
The state won all of these major cases.
Read more: ČR fights off ArcelorMittal's lawsuit
Aktuálně.cz has a list of arbitration court cases that are still ongoing. The main case has been filed by a Dutch company called Investmart, in connection with the bankruptcy of Union Bank. The case is being heard in London by the same arbitration court that already ruled the Czech Republic guilty of harming Japanese company Nomura.
The prosecutor of estimated the possible loss in the current case at EUR 250 million (CZK 6 billion).
Recent exchange rate developments that favored the Czech crown and depreciate the US dollar decreased sums that the Czech Republic is being sued for. For example, the sum Investmart asks for used to be as much as CZK 10 billion. Or, in the case of EMV sueing ČR over TV3 license, the for CZK one billion - now, the sum is only slightly above CZK 600 million.
According to Finance Ministry, this case may soon be resolved with a conciliation as in the case of Mittal.
There are two other arbitration lawsuit that may cost the state more than CZK 1 billion. These are case of German entrepreneur Binder who is sueing the state for CZK 2.3 billion and the case of InterTrade company which is asking for EUR 87 million as compensation. The first case concerns customs mistreatment, the second is conncected with contracts of state foresting company Lesy ČR.
In addition to arbitration lawsuits that fall under the jurisdiction of international investment protection treaties, there are other court cases that concern the Czech Republic, such as lawsuits filed by Diag Human or ČSOB.
autor: Adam Junek