In November 2020 the Supreme Court issued a decision significantly affecting the review of arbitration clauses by the Czech courts. The court touched on situations when an arbitration clause leaves the appointment of arbitrators to an independent appointing authority (private arbitration centres).(1)
Facts
The case concerned an arbitration clause which stated that all disputes arising from the contract would be resolved by a single arbitrator appointed by the agent of a specified limited liability company. The first-instance court nevertheless refused to refer to arbitration a dispute based on the underlying contract, stating that appointing authorities such as private arbitration centres cannot be considered independent. Unlike permanent arbitration courts, these centres organise arbitration hearings