M&A in health care

As of 30/9/2019, we succeeded to complete an M&A transaction in which our clients sold a clinic for the purchase price of 700 mil. CZK (app. 27 mil. EUR).Our law firm represented the sellers and provided them with all legal services.

Real estate transfer tax

The Supreme Administrative Court stated in its decision No. 3 Afs 106/2017-90 dated 30 May 2019 that the real estate transfer tax consists of the value of the transferred real estate and the financial profit from the sale of the real estate transferred by the transferor. The Court also mentioned that the statutory VAT on the purchase price of the real estate cannot be considered as part of the transferor’s profit. According to these statements, the Supreme Administrative Court decided that the inclusion of

Entitlement to an existing contractual penalty in case of termination by a termination clause

The Supreme Court of the Czech Republic stated in its decision no. 23 Cdo 2615/2018, dated 29.05.2019, that if and contract is terminated by a termination clause, the existing right to a contractual penalty does not expire.

Delivery in case of dismissal from a managerial post

One of the legal prerequisities for the validity of the dismissal of managing employees is, according to §334 (1) od Act No. 262/2006 Coll., Labour Code, the delivery of the dismissal of the managing employee into his own hands.

Severance pay for fixed-term and permanent contracts

The question whether discrimination constitutes a higher severance pay for permanent employees than for fixed-term employees has been referred to the Court of Justice of the European Union by the Spanish Supreme Court.

The European Court of Justice came to the conclusion that a higher severance pay to workers with permanent contract does not constitute discrimination. He justified it solely by the fact that permanent employees don’t expect any termination of their employment contract, while fixed-term empl

Mediation

The Supreme Court of the Czech Republic stated in its decision of 23 April 2019, file no. 32 Cdo 594/2019, in connection with an ordered mediation, that if the parties are ordered to have their first meeting with a registered mediator and they participate at this first meeting at the same time, the mediation itself has not yet started. The mediation begins only when a mediation agreement is signed. This agreement is usually signed at the first meeting with the mediator. Therefore the first meeting with a me

Co-ownership

The plaintiff sued the defendant about the settlement of their co-ownership. Both parties owned an ideal half of the property, which consisted of a house with land. According to the legal diction, co-ownership shall be settled either by dividing the property, by selling the property freely or in a public auction, or by transferring the ownership right to one or more co-owners by compensating the former co-owner.

Amendment to the Insolvency Act

On the 1^st June 2019 and amendment to Act No. 182/2006 Coll on bankruptcy and methods of its solution (hereinafter referred to as “Insolvency act”) came into force, which mainly concerns the change in the conditions of debt relief of natural persons.

Competition clause

On 2 May 2019, the Constitutional Court ruled by judgment file no. II. ÚS 3101/18 on a constitutional complaint in a case where a company sued a former employee for a breach of a negotiated competition clause. The employee had to refrain from work for a period of one year from the termination of his employment, which would be competitive for the former employer. Subsequently, the former employee violated the competition clause by working for 4 days by an employer, which has been a direct competitor to the complaining former employer.

Lease termination

The landlord has given the tenant notice of lease pursuant to §2288 par. 1 letter (a) of Act No. 82/2012 Coll. Civil Code (hereinafter only “Civil code”) due to gross violation of the obligations set in the lease contract, which consisted in the tenant not living in the flat and leaving it to other persons without the landlords approval. Those other person as well negatively interfered with other residents.