Incident disputes (in insolvency proceedings)

Incident disputes are litigation brought about by insolvency proceedings. The basic purpose of insolvency proceedings is to satisfy fairly the interests of all parties involved. On the one hand stand creditors who demand repayment of debts, on the other side stand the debtor and other persons after whom the issuance of property is demanded to satisfy these creditors.

Insolvency proceedings are a complex discipline, and procedural actions of the court often have irreversible consequences. Within this complex process, the need often arises to solve specific issues, which for their detail are dealt with outside the main branch of insolvency proceedings, where so-called incidental disputes in insolvency proceedings also arise. Insolvency law is particularly familiar with these incidental disputes

· disputes over the invalidity of acts or ineffectiveness of acts (counterparty actions),

· Disputes concerning the authenticity, amount or order of claims filed (opposition actions),

· disputes concerning the exclusion of things or property values from the property substance (excindation disputes),

· an action for the issuance of a property benefit from the performance of the function of a member of the statutory body that contributed to the bankruptcy of the corporation (action for replenishment of liabilities).

For incidental disputes, similar rules apply to other civil disputes, with some peculiarities:

· Incidental disputes are heard by regional courts, often directly by a judge appointed to hear the main branch of insolvency proceedings;

· incidental disputes are led on behalf of the debtor by the insolvency administrator (often represented by a lawyer);

· The insolvency administrator may also enter into a settlement. Unlike the normal procedure, the settlement must also be approved by the Creditors' Committee, which is the body representing the interests of creditors;

· Incidental disputes also usually have a different amount of the court fee that must be paid for the initiation of a dispute or the filing of an appeal.

Current cases

In the area of incidental disputes, we are currently dealing with the situation of (former) clients of Energeický holding Malina a.s. (insolvency proceedings sp. zn. MSPH 79 INS 7166/2023).

The insolvency administrator, Insolvenční byrå v.o.s., contends in the opposing actions that Malina unlawfully returned to some clients the advances already paid, thereby favouring these former clients over other creditors. Accordingly, the opposing action seeks the release of these advances into the property.

In our opinion, the claim is not nearly as unequivocal as it might seem, as we describe in more detail in our topicality

If you are dealing with a similar problem, do not hesitate to contact us. We will consult your case with you free of charge and collect effective defense options.

časté otázky

Co je dobré vědět o této oblasti?

What is maladministration?

The definition of “maladministration” is quite broad, but in general it can be described as a violation of binding rules prescribed by legal norms for the conduct of a public authority in its activities, to which it is obliged and authorized on the basis of generally binding legislation. However, in the case of maladministration, this is not an illegal decision, but the procedure of the authority, which was subsequently reflected in its decision. It is often an unreasonable length of proceedings, where, although the decision given is legal in itself, the time until it is issued is contrary to procedural rules or reasonableness and the parties are therefore entitled to compensation for delays in the proceedings.

What is an illegal decision of the authority?

The right to compensation for damage caused by an unlawful decision has the parties (including omissions) in which a decision was issued, as a result of which they suffered property or non-property damage. However, it is not enough just to disagree with the decision or to seek its annulment or to declare it incorrect at the next instance. Compensation can only be claimed if the decision has been annulled or changed for illegality after it has become legal (or if the decision is non-final but enforceable).

Should I oppose the lawsuit if I recognize the claim?

Even if you accept the claim, it is better to prevent a court decision on it, for example, by paying the debt earlier or by agreeing with the claimant, as the court will usually also impose an obligation on you to pay the costs of the plaintiff's proceedings. However, the plaintiff often has the will to agree to withdraw the action in exchange for at least partial or earlier payment of the debt. It always makes sense to at least attempt an extrajudicial action.

How to claim damage caused by the state?

A claim for compensation for damage caused by the state is applied in a different procedure than a normal claim. The first step is to apply for compensation to the competent authority, often the ministry. If the Office does not grant compensation within 6 months of the submission of the application, judicial enforcement may be initiated. In such proceedings, the injured party is partially advantaged, for example, by a reduced court fee and substantially lower costs in the event of failure.

Where do I file a lawsuit? And where's the appeal?

To file an action, it is necessary to designate a court of substantive and local jurisdiction. The district court (district court in Prague) is usually competent in the case. Local jurisdiction is usually determined according to the defendant's place of residence or domicile in the case of a legal entity.

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JUDr. Vít Kučera, MBA
Vít has extensive experience in representing clients before domestic and foreign courts, especially in commercial disputes. He specializes in preliminary measures, which he also deals with in his publishing activities. Since 2013 he also serves as an arbitrator of the Football Association of the Czech Republic.
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Mgr. Martin Tůma, Ph.D.
Martin mainly deals with commercial cases, including disputes arising from unfair competition, damages or insurance claims. He likes to look for simple solutions to (seemingly) complex problems. He also deals with construction law, in connection with which he represents clients in negotiations with administrative authorities and before the courts.
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Mgr. Kateřina Obertová
Kateřina has been involved in litigation since the beginning of her long legal practice, during which she dealt mainly with disputes arising from civil and commercial law contracts, as well as cases concerning family law or property ownership. In advocacy, he bases himself on clarity and empathy, with which he tries to offer functional and practical solutions to clients.
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JUDr. Ing. Vít Švestka
Vít is a lawyer specializing in solving problems in the field of tax law before the tax authorities and the courts. He also acts as a tax advisor and thus can provide additional valuable advice and experience on how to reduce the risk of initiating proceedings at all. Vít also deals with corporate disputes. In addition to his legal education, he also holds a degree from the University of Economics in Prague, where he also participates in teaching and publishing activities.
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Mgr. Marie Timoščuková
Marie is an expert in labor law. Therefore, he also has extensive experience in representation in labor disputes in the field of labor law, from both sides of the “barricade”, that is, on the part of both employers and employees. Thus, it has not only successfully defended the validity of the dismissal, but also obtained many illegally withheld bonuses to employees.
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Mgr. Vojtěch Adámek
Vojtěch is an experienced lawyer specializing mainly in disputes over claims arising from contracts, including settlement of parties after termination of contracts, debt collection and disputes over compensation for damage (damages). He considers understanding the client's needs and finding effective and pragmatic solutions together, including extrajudicial termination of disputes, as the key to success.
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