Situation:
Our client, ABC s.r.o., an established business providing services to consumers, faces the threat of a collective action brought by a group of consumers or their legal representative. ABC s.r.o. is concerned about significant costs associated with the obligation to pay a large number of consumers with whom it has historically concluded contracts. It also fears negative impacts on its reputation and existing relationships with its clients.
Client’s Request:
ABC s.r.o. approached us for comprehensive legal representation in the collective court proceedings with the aim to:
- Ensure an effective legal defence against the claims raised,
- Minimise the reputational and financial impacts of the proceedings,
- Examine options for a potential out-of-court settlement.
Our Solution:
We approached the case systematically in four key steps:
1. Legal analysis and strategy
We conducted a detailed legal analysis of the statement of claim, including an assessment of the merits of individual claims and the procedural aspects of collective proceedings under Act No. 629/2023 Coll., on Collective Civil Proceedings.
We identified risks associated with the court’s admitting the action, in particular issues of the plaintiff’s standing, the homogeneity of claims, and procedural capacity, so that we could argue effectively already in the first, so-called certification phase of the collective proceedings.
We proposed a defence strategy encompassing both procedural objections and arguments on the merits to each point of the claim.
2. Procedural representation and communication with the court
We represented the client at all stages of the proceedings, including written submissions, preparation of evidence motions, and attendance at hearings.
We used available procedural tools to challenge the admissibility of the collective action, including a motion to dismiss it for failure to meet statutory requirements.
We actively communicated with the court and the opposing party to ensure a transparent and efficient course of the proceedings.
3. Out-of-court negotiations and reputation management
In parallel, we conducted out-of-court negotiations aimed at reaching an amicable settlement that would be advantageous for both parties and minimise costs and reputational risks.
We prepared a communications strategy for the public and the media that highlighted the client’s customer-oriented approach and its willingness to resolve disputes fairly and in compliance with the law.
4. Compliance and prevention
Beyond the requested defence and court representation, based on our findings we recommended that the client review its internal processes, particularly in the area of consumer communications and the matters that were the subject of the disputes leading to the collective action.
We proposed preventive measures, including employee training, revisions to template documentation, and the introduction of control mechanisms to ensure compliance with legal regulations.
Result:
Thanks to our legal support, the claim against the client was dismissed by a final and binding decision, and the client is not facing further lawsuits based on similar customer claims. The client did not have to expend a significant portion of its financial resources and was very satisfied with our services—particularly grateful for the review of established processes and existing contractual documentation to minimise further disputes and expenditures. The client greatly appreciated our professionalism and efficiency and plans to continue working with us on additional legal matters.