Prague/London - The Commercial Court in London today dismissed Diag Human´s claims and imposed on it the duty to pay a security for the costs of the proceedings that exceed nine million crowns to the Czech Republic, Czech Health Ministry spokesman Jan Stoll has told CTK.
Diag Human has long been in dispute with the Czech Republic over the compensation worth many billion crowns for an allegedly marred blood plasma deal from the early 1990s.
Diag Human has announced that it will make a decision on whether it will appeal against the verdict after it studies today´s verdict.
"The London court analysed in detail the arguments of both sides its 40-pages verdict and it has concluded that the arbitration award, which Diag Human has been presenting for several years to foreign courts as the final and enforceable decision, has not yet become binding nor enforceable," Stoll said.
That is why the court complied with the Czech state´s request and abolished the judicial directive, which originally ordered the enforcement of the arbitration award issued in the arbitration between Diag Human and the Czech Republic in 2008.
According to this award, the firm is entitled to eight billion crowns plus interests for the allegedly marred deal. The Czech Republic appealed against the decision.
In a press release that CTK has at its disposal, Diag Human has said the London court today recognised that it had gradually won five arbitrations against the Czech state.
The firm said based on "procedural circumstances," the court decided that before the arbitration award may be recognised in the United Kingdom, it is necessary to wait for the last procedural steps in the "review hearing" being taken in the Czech Republic.
"This result is naturally unpleasant for Diag Human," the firm conceded. It said the situation is due to a large extent to the absence of its legal expert who had to be suddenly hospitalised before leaving for London.
The Czech Health Ministry says the arbitration still continues, but Diag Human claims that it has ended. The firm has also unsuccessfully turned to courts in Austria, Switzerland and France in the past.