CZECH REPUBLIC Law and Practice Contributed by: Martin Řanda, Jan Lexa, Vít Fišer and Adam Vopelka, act legal
on company/individual history of adhering to envi- ronmental requirements. Usually, they rely on precise loan structuring that can limit the lender’s liability and overall risk management.
has been officially approved: in that scenario, only a claim for financial compensation is available. 10.2 Exemplary or Punitive Damages In Czech law, exemplary or punitive damages are gen- erally not possible, as stated in many decisions of the Czech Supreme Court. However, when determining compensation in the most serious cases, the courts may consider circumstances that intensify the severity of the injury to the injured party, such as intentional injury or injury caused by deceit or threats. 10.3 Class or Group Actions Class or group actions are only available in consumer- related claims. There is no statutory basis for such actions in environmental civil litigation. Environmental associations and other stakeholders must therefore rely on individual procedural routes. These include bringing actions in their own name where they are able to establish standing under constitutional or civil law provisions. 10.4 Landmark Cases So far, there have been relatively few significant dis- putes in the Czech jurisdiction concerning civil law claims for environmental damage. A notable case is the litigation between Lesy České republiky (the State- owned forest management company) and ČEZ (the country’s largest electricity trader), which concerned compensation for damage to forest stands caused by industrial emissions from the operation of power plants. The outcome, confirmed by the Constitutional Court, was the imposition of liability for damage to forest ecosystems and the articulation of criteria for the quantification of environmental harm. 11. Contractual Agreements 11.1 Transferring or Apportioning Liability Liability for environmental damage is governed under Czech law primarily by Act No 167/2008 Coll, on the Prevention and Remedying of Environmental Damage. This Act introduces strict (objective) liability of opera- tors of certain high-risk activities, which is character- ised by the fact that it does not require proof of fault or unlawfulness. Establishing liability requires only proof of a causal link between an operational activity listed
10. Civil Liability 10.1 Civil Claims
If environmental damage or other harm occurs (ie, a harm is suffered as a result of a violation of the right to a favourable environment), a liability relationship is triggered (see 5.3 Key Defences ). The civil liability for environmental damage is gov- erned primarily by Act No 89/2012 Coll, which sets out both general and specific liability regimes. The right to live in a favourable environment is protect- ed under Section 81 of Act No 89/2012 Coll. Where this right is infringed, the injured party may seek the following civil law remedies: • an order to refrain from further interference; • removal of the consequences of the harmful con- duct; and • monetary compensation. These remedies are available where the following con- ditions are met: • unauthorised interference with the right to a favour- able environment; • demonstrable harm suffered by the affected per- son, including its quantification where monetary compensation is sought; and • a causal link between the interference and the harm. In practice, actions for protection against so-called “immissions” under Section 1031 of Act No 89/2012 Coll are frequently used. These cover pollution of air, water or soil originating from neighbouring land. In such cases, claimants may seek cessation of further interference, removal of its consequences and finan- cial compensation. An exception applies where the immissions originate from a facility whose operation
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