The Czech Republic v Diag Human SE & Anor

The Czech Republic v Diag Human SE & Anor

The award in favour of Mr Stava is severable and stands independently of the award in favour of Diag Human SE. The tribunal had jurisdiction over Mr Stava's claim, and the setting aside of Diag SE's award does not affect Mr Stava's entitlement. The court confirmed Mr Stava's award, set aside Diag SE's award, and maintained the costs orders as to Mr Stava. Undertakings against double recovery are effective and sufficient.

Parties
Claimant/respondent/appellant: The Czech Republic; Defendant/appellant/respondent: Diag Human SE; Defendant/appellant/respondent: Josef Stava
Jurisdiction
England and Wales
Judgment Date
28 July 2025
Procedural Posture
Civil Appeal (arbitration) / Court of Appeal Judgment on Appeals From High Court
Outcome
First and Second Appeals dismissed; Third Appeal allowed; Award in favour of Diag Human SE set aside; Award in favour of Mr Stava confirmed; costs orders as to Mr Stava maintained; further costs issues adjourned.
Legal Topics
Jurisdiction Under Arbitration Act 1996 S.67 and S.68, Bilateral Investment Treaty (bit) Arbitration, Severability of Arbitral Awards, Double Recovery, Costs in Arbitration
Arbitration International Investment Law Commercial Law Jurisdiction Under Arbitration Act 1996 S.67 and S.68 Bilateral Investment Treaty (bit) Arbitration Severability of Arbitral Awards Double Recovery Costs in Arbitration

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Parties

The Czech Republic

Claimant/respondent/appellant

Diag Human SE

Defendant/appellant/respondent

Josef Stava

Defendant/appellant/respondent

Procedural Posture

Civil Appeal (arbitration) / Court of Appeal Judgment on Appeals From High Court

Legal Issues

  1. 1 Whether the setting aside of the award in favour of Diag Human SE requires the award in favour of Mr Stava also to be set aside
  2. 2 Whether the arbitral tribunal's award of damages to Mr Stava is severable from that to Diag Human SE
  3. 3 Effect of undertakings to prevent double recovery

Ratio Decidendi

The award in favour of Mr Stava is severable and stands independently of the award in favour of Diag Human SE. The tribunal had jurisdiction over Mr Stava's claim, and the setting aside of Diag SE's award does not affect Mr Stava's entitlement. The court confirmed Mr Stava's award, set aside Diag SE's award, and maintained the costs orders as to Mr Stava. Undertakings against double recovery are effective and sufficient.

Court Disposition

First and Second Appeals dismissed; Third Appeal allowed; Award in favour of Diag Human SE set aside; Award in favour of Mr Stava confirmed; costs orders as to Mr Stava maintained; further costs issues adjourned.

Orders

  • The First Appeal is dismissed.
  • The Second Appeal is dismissed.