Arbitral Digest

Matter

Diag Human SE and Josef Stava v Czech Republic - PCA Case No. 2018-20

PCA treaty arbitration over DIAG HUMAN and Josef Stava's claims against the Czech Republic, with an award, English challenges, and German enforcement proceedings.

  • Investor-state arbitration
  • Setting aside arbitral awards
  • Recognition and enforcement of arbitral awards
  • Jurisdiction and arbitration agreements
  • Interim measures
  • Parallel proceedings

Aliases: Diag Human SE and Josef Stava v Czech Republic

Case no.
PCA Case No. 2018-20
Seat
United Kingdom
Applicable rules
UNCITRAL Arbitration Rules 2010
Commencement year
2017

Procedural record

  1. 18 May 2022United Kingdom

    18 May 2022United Kingdom

    Final Award in Diag Human SE and Josef Stava v Czech Republic dated 18 May 2022

    Permanent Court of Arbitration

    Award no.
    PCA Case No. 2018-20
    Decision summary
    The tribunal found treaty breaches connected with the 1992 Bojar Letter and state conduct in the commercial and review proceedings, awarded the claimants approximately CZK 15.5 billion as at May 2022, and rejected the remaining claims.

    Participants

    Permanent Court of Arbitration

    Authorities cited

    3
    • Switzerland-Czechoslovakia Bilateral Investment Treaty (Agreement between the Czech and Slovak Federal Republic and the Swiss Confederation on the Promotion and Reciprocal Protection of Investments, signed 5 October 1990, in force 7 August 1991, Articles 1-9)
      treaty
    • UNCITRAL Arbitration Rules 2010 (UNCITRAL Arbitration Rules as revised in 2010)
      rules
    • Vienna Convention on the Law of Treaties, 23 May 1969, Articles 31-32
      international law

    1 year, 1 month and 24 days later · 420 days

  2. 12 July 2023United Kingdom

    12 July 2023United Kingdom

    Judgment of the England and Wales Commercial Court in Czech Republic v Diag Human SE and Stava dated 12 July 2023

    High Court of Justice, Commercial Court

    Citation
    [2023] EWHC 1691 (Comm)
    Decision summary
    The court dismissed the claimants' application for security under Section 70(7) of the Arbitration Act 1996 and refused summary dismissal of the Czech Republic's challenges to the PCA award.

    Authorities cited

    2
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 67, 68, 70(7), and 73)
      statute
    • UNCITRAL Arbitration Rules 2010 (UNCITRAL Arbitration Rules as revised in 2010)
      rules

    5 months and 9 days later · 162 days

  3. 21 December 2023United Kingdom

    21 December 2023United Kingdom

    Judgment of the England and Wales Court of Appeal in Czech Republic v Diag Human SE and Stava dated 21 December 2023

    Court of Appeal (Civil Division)

    Case no.
    CA-2023-001486
    Citation
    [2023] EWCA Civ 1518
    Decision summary
    The court dismissed the appeal and upheld the refusal to secure the award debt or summarily dismiss the Czech Republic's challenges.

    Authorities cited

    2
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 67, 68, and 70(7))
      statute
    • UNCITRAL Arbitration Rules 2010 (UNCITRAL Arbitration Rules as revised in 2010)
      rules

    2 months and 16 days later · 78 days

  4. 8 March 2024United Kingdom

    8 March 2024United Kingdom

    Judgment of the England and Wales Commercial Court in Czech Republic v Diag Human SE and Stava dated 8 March 2024

    High Court of Justice, Commercial Court

    Case no.
    CA-2024-000977 and CA-2024-000986
    Citation
    [2024] EWHC 503 (Comm)
    Decision summary
    The court held that several Section 67 objections were barred by Section 73, classified the remaining challenges, and allowed one serious-irregularity challenge under Section 68(2)(d) while rejecting the other Section 68 grounds.

    Authorities cited

    4
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 30, 67, 68, 70, and 73)
      statute
    • Vienna Convention on the Law of Treaties, 23 May 1969, Articles 31-32
      international law
    • Halliburton Co v Chubb Bermuda Insurance Ltd ([2020] UKSC 48)
      case
    • Gold Reserve Inc v Bolivarian Republic of Venezuela ([2016] EWHC 153 (Comm))
      case

    19 days later · 19 days

  5. 27 March 2024United Kingdom

    27 March 2024United Kingdom

    Judgment of the England and Wales Commercial Court in Czech Republic v Diag Human SE and Stava dated 27 March 2024

    High Court of Justice, Commercial Court

    Citation
    [2024] EWHC 673 (Comm)
    Decision summary
    The court refused permission to add a dominant-and-effective-nationality ground because the Czech Republic had not met the statutory diligence and time requirements.

    Authorities cited

    2
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 30, 67, 70(2), and 73)
      statute
    • Vienna Convention on the Law of Treaties, 23 May 1969, Articles 31-32
      international law

    4 months and 13 days later · 135 days

  6. 9 August 2024United Kingdom

    9 August 2024United Kingdom

    Judgment of the England and Wales Commercial Court in Czech Republic v Diag Human SE and Stava dated 9 August 2024

    High Court of Justice, Commercial Court

    Case no.
    CA-2024-002663
    Citation
    [2024] EWHC 2102 (Comm)
    Decision summary
    The court found that Josef Stava retained de facto control of Diag Human SE after the 2011 trust arrangements, so Diag Human SE remained a qualifying Swiss investor under the treaty.

    Authorities cited

    9
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 30, 67, 70, and 73)
      statute
    • Switzerland-Czechoslovakia Bilateral Investment Treaty (Agreement between the Czech and Slovak Federal Republic and the Swiss Confederation on the Promotion and Reciprocal Protection of Investments, signed 5 October 1990, in force 7 August 1991, Articles 1, 2, 3-9, and Protocol)
      treaty
    • Vienna Convention on the Law of Treaties, 23 May 1969, Articles 31-32
      international law
    • MSC Mediterranean Shipping Co SA v Stolt Tank Containers BV ([2023] EWCA Civ 1007)
      case
    • Moohan v Lord Advocate ([2014] UKSC 67)
      case
    • Gold Reserve Inc v Bolivarian Republic of Venezuela ([2016] EWHC 153 (Comm))
      case
    • PAO Tatneft v Ukraine ([2018] EWHC 1797 (Comm))
      case
    • The Republic of Korea v Dayyani and Others ([2019] EWHC 3580 (Comm))
      case
    • Swissbourgh Diamond Mines (Pty) Ltd v Kingdom of Lesotho ([2018] SGCA 81)
      case

    8 months and 28 days later · 271 days

  7. 7 May 2025United Kingdom

    7 May 2025United Kingdom

    Judgment of the England and Wales Court of Appeal in Czech Republic v Diag Human SE and Stava dated 7 May 2025

    Court of Appeal (Civil Division)

    Case no.
    CA-2024-000977, CA-2024-000986, and CA-2024-002663
    Citation
    [2025] EWCA Civ 588
    Decision summary
    The court confirmed the award in favour of Josef Stava and set aside the award in favour of Diag Human SE for lack of substantive jurisdiction.

    Authorities cited

    6
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 30, 31, 67, 68, 70, and 73)
      statute
    • Switzerland-Czechoslovakia Bilateral Investment Treaty (Agreement between the Czech and Slovak Federal Republic and the Swiss Confederation on the Promotion and Reciprocal Protection of Investments, signed 5 October 1990, in force 7 August 1991, Articles 1, 2, and 9 and Protocol)
      treaty
    • Vienna Convention on the Law of Treaties, 23 May 1969, Articles 31-32
      international law
    • UNCITRAL Arbitration Rules 2010 (UNCITRAL Arbitration Rules as revised in 2010)
      rules
    • Halliburton Co v Chubb Bermuda Insurance Ltd ([2020] UKSC 48)
      case
    • Gold Reserve Inc v Bolivarian Republic of Venezuela ([2016] EWHC 153 (Comm))
      case

    2 months and 21 days later · 82 days

  8. 28 July 2025United Kingdom

    28 July 2025United Kingdom

    Order of the England and Wales Court of Appeal in Czech Republic v Diag Human SE and Stava dated 28 July 2025

    Court of Appeal (Civil Division)

    Case no.
    CA-2024-000977, CA-2024-000986, and CA-2024-002663
    Citation
    [2025] EWCA Civ 998
    Decision summary
    The court dismissed the first and second appeals, allowed the third appeal, confirmed the award in favour of Josef Stava, set aside the award in favour of Diag Human SE, varied the award, and limited aggregate recovery through undertakings.

    Authorities cited

    3
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 67, 68, and 70(7))
      statute
    • Switzerland-Czechoslovakia Bilateral Investment Treaty (Agreement between the Czech and Slovak Federal Republic and the Swiss Confederation on the Promotion and Reciprocal Protection of Investments, signed 5 October 1990, in force 7 August 1991)
      treaty
    • UNCITRAL Arbitration Rules 2010 (UNCITRAL Arbitration Rules as revised in 2010)
      rules

    11 months and 3 days later · 338 days

  9. 1 July 2026Germany

    1 July 2026Germany

    Decision of the Higher Regional Court of Frankfurt am Main in the case 32 Sch 13/25 dated 1 July 2026

    Higher Regional Court of Frankfurt am Main

    Case no.
    32 Sch 13/25
    Citation
    ECLI:DE:OLGHE:2026:0701.32SCH13.25.00
    Decision summary
    The court upheld the statutory cost reminder and annulled the additional EUR 128,038 cost assessment for securing enforcement of the arbitral award under Section 1063(3), first alternative, of the German Code of Civil Procedure.

    Authorities cited

    3
    • German Court Costs Act, Section 66
      statute
    • German Court Costs Act Schedule of Costs (German Court Costs Act, Schedule of Costs, no. 1626)
      statute
    • German Code of Civil Procedure, Section 1063(3)
      statute
  10. Date not availableUnited Kingdom

    Date not availableUnited Kingdom

    Remittal Award in PCA Case No. 2018-20

    Permanent Court of Arbitration

    Award no.
    PCA Case No. 2018-20
    Decision summary
    The tribunal held that damages should not be reduced because of the assignment to Jiri Orsula, leaving the Czech Republic liable for 100% of the amount granted in the 18 May 2022 award.

    Participants

    Permanent Court of Arbitration

    Authorities cited

    2
    • Switzerland-Czechoslovakia Bilateral Investment Treaty (Agreement between the Czech and Slovak Federal Republic and the Swiss Confederation on the Promotion and Reciprocal Protection of Investments, signed 5 October 1990, in force 7 August 1991)
      treaty
    • United Kingdom Arbitration Act 1996 (Arbitration Act 1996, Sections 67 and 68)
      statute

Matter record

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Diag Human SE and Josef Stava v Czech Republic - PCA Case No. 2018-20 · Matter