Liability for damage arising from the management of property entrusted to Prague municipalities
In a decision (file no. 25 CDO 5764 / 2017) on 13 November 2019, the Czech Supreme Court considered the liability of municipalities of the city of Prague. The municipalities’ broad power to manage the city‘s assets with which they are entrusted also implies a duty to comply with asset management systems to prevent any harm to health, property, nature and the environment. There is therefore no reason to waive the municipalities’ liability if […]
Requirements for the reasoning of general court decisions
In a recent ruling (II. ÚS 1852/19), the Constitutional Court considered the reasoning that is required in the decisions of general courts including the Supreme Court. According to the Constitutional Court, mere reference to the legal literature or to a Constitutional Court decision will not suffice when justifying a general court decision. Constitutional rules are […]
Dealing with buildings that occupy a small area of another party’s land
According to a Czech Supreme Court decision (file no. 22 CDO 5968/2017) dated 26 November 2019, when dealing with buildings which extend onto only a small area of another party‘s land and were constructed under the Civil Code or before it took effect, courts must first decide whether to apply the encroachment provisions under section 3059 together with section 1087 of the Civil Code. To the extent possible, the court takes the following position on the legal assessment of these buildings. As the […]
Validity of a contractual penalty clause tied to a creditor’s withdrawal
A Czech Supreme Court decision (file no. 23 CDO 1192 / 2019) dated 30 September 2019 considers the validity of a contractual penalty clause arising from a breach of duty and contractual withdrawal. According to the Supreme Court, there is no prohibition against an agreement between two parties which ties a contractual penalty to another legal fact such as a creditor’s withdrawal […]
Metro structures as objects of property; the relationship between an occupancy permit and the creation of a structure
According to a Czech Supreme Court judgment (file no. 22 Cdo 217/2019) on 10 December 2005, a metro structure becomes an object of property (i.e. an object in the legal sense) when it can be seen as the result of human construction leading to a distinct, mostly underground structure whose interior carves out a space […]
Failure to annul the resolution of a joint stock company’s general meeting
In a desicion on 17 December 2019, 27 787/ 2018 Civil Code, the Czech Supreme Court ruled on the question of the failure to annul the resolution of joint stock company’s general meeting. Under Section 260 (2) of the Civil Code, it is clear than in cases where a joint stock company adopts a resolution that […]
Czech Supreme Court comments on executive directors’ duties when delegating their powers
According to a Supreme Court decision (file no. 27 Cdo 90/2019) dated 30 September 2019, an executive director, as a statutory body member in a limited liability company, does not need to have all the professional knowledge, abilities or skills required to perform the activities that come under the body’s remit. If, however, an executive […]
Karolína Svatošová joins Achour & Partners
Karolína Svatošová joins Achour & Partners as office manager. Karolína is responsible for office management and marketing. Karolína has extensive experience in corporate governance and strategic marketing. Karolína also has a significant background in project management incorporating both development and infrastructure projects. Before joining the firm, she was the director of a major Czech real […]
A tenant’s pre-emptive right to buy a condominium unit under Section 1187 of the Civil Code
Under a Czech Supreme Court judgment (file no. 33 Cdo 1850/2017) handed down on 30 May 2019, tenants whose leases have terminated may not exercise their statutory pre-emptive right to buy a unit in a condominium on its initial sale under Section 1187 (1) of the Czech Civil Code. This is the case even if […]
Formal Requirements for an Invitation to a Joint Stock Company’s General Meeting
In a decision handed down on 27 March 2019 (file no. 27 Cdo 3885/2017), the Czech Supreme Court considered the statutory formalities to be met when sending an invitation to a joint stock company’s general meeting. The court looked especially at the justifications to be given when proposing a resolution for adoption at the meeting. […]