How do court fees work and when can you get exemption from them?

Why do we pay court fees?

Court fees are primarily regulated by the Court Fees Act. This Act sets out who must pay court fees, when they must pay them, how much they must pay and what penalties a person faces if they fail to pay. The main reason why we have to pay for court proceedings is to contribute to the costs of running the court system. However, court fees also have an incentive function – if someone wants to bring a manifestly unfounded action, the fees may deter them from doing so.

Each fee has a different deadline for payment. While some are already due when the action, appeal or application for initiation of proceedings is filed, the law specifies other situations where the time limit may vary. You will also find in the Court Fees Act cases where a litigant may be exempted from court fees. If you are not sure whether this applies to you, please contact our legal advice service.

Court fees vary according to the type of proceedings

Each type of court proceedings may require the payment of a certain fee. This varies depending on the type and value of the dispute.

The most common type is a court filing fee. Its amount depends on the type of action and the amount of money at stake. For example, in property disputes, the amount of the fee is set as a percentage of the value of the amount sued. If the plaintiff fails to pay the fee, the court will dismiss the proceedings, so that the case will not be heard further.

Another specific case is the court fee for an appeal. An appeal is an extraordinary appeal against a decision of the Court of Appeal. Due to its exceptional nature, a special court fee is associated with this remedy. If the appellant fails to pay the fee, the court will dismiss the appeal. It is thus literally impossible to appeal without money.

If you decide to withdraw your action, the filing fee may be reduced or partially refunded if you withdraw the action before the court decides the merits of the case. Again, the rules for the refund of fees depend mainly on the stage of the proceedings at which the action was withdrawn, and are governed by the Court Fees Act.

How much is normally paid for a trial?

People often ask, for example, about the fee for a divorce petition. The fee is CZK 2,000. This fee is paid by the person who files for divorce with the court. If you are also dealing with the division of the matrimonial property as part of the divorce, you may have to pay additional fees. This is because there may be further court proceedings which again require the payment of court fees and potentially legal and expert witness costs.

The most common court fee rates:

• A fee of CZK 1,000 is payable for an application to commence civil court proceedings involving a monetary benefit of up to CZK 20,000.
• If the subject matter of the proceedings is a monetary benefit exceeding CZK 20,000 up to CZK 40,000,000, the fee is 5% of that amount.
• For a pecuniary transaction exceeding CZK 40 000 000 , the fee is CZK 2 000 000 and 1 % of the amount exceeding CZK 40 000 000 (the amount exceeding CZK 250 000 000 is not included).
• A fee of CZK 2,000 is payable for the application for dissolution and division of the matrimonial property.
• The fee for an application for enforcement of a judgment by eviction is CZK 3 000.

Other examples of court fees

• The fee for the appointment of a court expert or interpreter, including registration in the list, is CZK 1,000.
• An action against a decision of an administrative authority costs CZK 3 000.
• An appeal to the Supreme Administrative Court costs CZK 5,000.

If it is not possible to determine the basis of the fee, it is based on CZK 20 000. The fee base is rounded down to the nearest hundred crowns and the fee itself is rounded up to the nearest ten crowns. These fees shall be paid either to the court or by stamps (up to CZK 5 000).

Exemption from court fees: when the court will waive payment

Fee waivers are a system designed to give access to judicial protection to those who could not otherwise afford court proceedings. Such a person may be exempted from the fees either completely or at least partially. It all depends on the financial situation of the applicant and the circumstances of the particular case. In practice, for example, the court has addressed the question of whether an appeal fee can be waived where the applicant can show that paying it would severely restrict the living needs of himself and his family. The court held that in such cases, the applicant may be granted a full exemption as there are compelling reasons for the applicant to do so.

The conditions for exemption are set out in the Court Fees Act and also depend on the decision of the court concerned. If a legal entity is in a difficult financial situation, the court may grant exemption to it as well. In the case of natural persons, it can generally be said that any natural person who does not have sufficient financial resources to pay the court fees can apply for exemption from court fees. The court will assess the application for exemption, taking into account the applicant’s overall financial situation, such as income, expenses, number of dependants and other relevant circumstances.

Thus, when applying for exemption, you must provide the court with evidence of your financial situation together with your application for exemption. This includes bank statements, receipts, proof of regular payments and any other documents you consider relevant to support your claim that you cannot afford to pay for the court.

The decision to grant the exemption is then solely within the discretion of the court It may grant, refuse or only partially grant your application. If denied, you have the option to appeal to a higher court. It is also worth noting at this point that the exemption from fees does not cover the costs of legal representation, which each party must pay for themselves.

What are the risks if you do not pay the fees?

If you ignore the court’s decision and do not pay the fees, you run the risk of not getting your problem resolved in the first place. If you, as the plaintiff, do not pay the court fee within the statutory time limit, the court will dismiss the proceedings so that your claim will not even be heard. You will lose the possibility of pursuing your rights through the courts if, for example, the claim is time-barred.

Summary

Court fees are an important aspect of court proceedings that can affect the course and outcome of a dispute. For many people, court fees can be a significant financial burden, which is why there are options in the Czech Republic for getting rid of court fees. If you are in a situation where you are considering bringing an action or appeal, or have been asked to pay court fees, it is advisable to consult a lawyer. He or she can help you not only with the drafting of your application for exemption from court fees, but also with your overall litigation strategy. A qualified professional will give you valuable advice and ensure that your rights are protected during the court proceedings. At the same time, he or she will take care of the administrative formalities and the effective pursuit of your claims.