According to the Judgment of the Supreme Court of the Czech Republic, file no. 33 ICdo 40/2018 dated 24/01/2019, if an arbitration agreement (clause) specifies rules for the parties to determine the number and identity of arbitrators or specifies the way in which the number and identity of arbitrators are to be determined, Section 7 (1) of Act no. 216/1994 Coll. must be applicable to all possible arbitrators. In other words, each ad hoc arbitrator invited by the parties to decide an economic dispute must be appointed in a transparent manner. Lack of a transparent appointment of even some ad hoc arbitrators causes (absolute) invalidity of the entire arbitration agreement (clause), even if the parties agree in the manner foreseen in Section 7 (1) of Act no. 216/1994 Coll. (effective until 29/02/2012) on the names of one or more arbitrators.
