March 20, 2008

Arbitration Court rejected the suit filed by Praga against Tatra

The arbitration suit filed by the Praga company, claiming compensation for damage allegedly caused to them by Tatra in connection with supplies of components intended for production of T810 middle off-road trucks for the Czech Republic Army, was, on March 18, rejected by the Senate of the Arbitration Court at the Chamber of Commerce and Agrarian Chamber of the Czech Republic in Prague. According to the arbitrators’ sentence, the Praga’s suit was without merit.

„Responding to the arbitrators’ decision, Ronald Adams, the Tatra CEO, said: “During the ATS project, Tatra has been always acting strictly in accordance with its commitments both towards the Czech Republic Army and towards their suppliers. We are glad the arbitrators’ sentence has confirmed that it is true”.

The Arbitration Court judged the suit filed by the Praga company last summer and subsequently supplemented several times by Praga, repeatedly changing both the issue of the suit and its legal argumentation. During the arbitration proceeding Praga strived to prove that the replacement of supplier of axles for the ATS project had caused damage to them and asked, therefore, the Arbitration Court to decree that Tatra would have to compensate the alleged damage as a consequence of that.

The Arbitration Court reached the conclusion that the Praga’s suit did not have merit and rejected it completely.