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DEMONSTRABLE DAMAGES – COVID Measures

Measures Taken by the Czech Government – COVID 19 – Demonstrating Amount of Damages Incurred

For over a year, Czech companies and the economy have been affected by the measures taken by the Czech government aimed at reducing the spread of COVID-19. These measures have had, and continue to have, a significant impact on the operation of companies focused mainly on tourism, restaurant establishments and retail.

In connection with the measures taken during 2020, several companies applied for damages with the relevant ministry/Office of the Government of the Czech Republic. If their applications were rejected, they were given the opportunity to seek compensation for damages in court proceedings. At the same time, they have enough time to process and file the relevant legal action.

Furthermore, following the relevant deadlines, it is possible to apply to the relevant ministry for damages incurred as a result of the measures taken during 2021.

The clients applying for damages are typically doing so as a result of lost profits, i.e. companies file for damages since they were prevented from generating the standard profit from their business activities. This area is not covered by any governmental compensation programs which usually compensate for part of the costs.

In our experience, clients have different strategies – for the purposes of filing an application with a ministry, it is not necessary to have an expert opinion; consultation or preparation of less formal outputs in cooperation with an expert may increase the transparency of the application for damages incurred, and it provides for a logical continuity in potential court proceedings, including the sustenance of a stable line of arguments for the submitted expert opinion necessary for the purposes of the court proceedings.

RSM CZ a.s. has been providing services focused on assessing damages, including the subsequent explanation of expert opinions in court proceedings. If you are considering applying for damages incurred as a result of the government measures or are already in the process of taking legal action, we will provide you or an authorised lawyer with consultation on the manner of the assessment of the relevant damages and their critical parameters. We are also ready to perform the relevant calculations/provide less formal valuation outputs in the form of an expert letter or expert opinion prepared in accordance with the provisions of Section 127a of the Code of Civil Procedure which may be submitted as documentary evidence in court proceedings.

We usually offer an initial informal consultation free of charge.

Feel free to contact us. We are here for you.

Contact persons

Rudolf Hájek

Senior Manager

+420 226 219 000

rudolf.hajek@rsm.cz

Jiří Skotnica

Senior Manager

+420 226 219 000

jiri.skotnica@rsm.cz

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