Category: Slovakia

  • Andrea Cupelova Makes Partner at Taylor Wessing

    Former Senior Associate Andrea Cupelova, Co-Head of the Employment Law department at Taylor Wessing, has been promoted to Partner.

    Specializing in employment, Cupelova joined Taylor Wessing in 2018. Before that, she spent over seven years with DLA Piper, and prior to that almost four and a half years with Soukenik – Strpka.

    “From the very beginning of our cooperation, I felt that this was the best place for me to work, especially with regard to the values and work focus of our office,” comments Cupelova. “I am very happy that our synergy has been mutual from the beginning and from the partners of the firm, and I look forward with respect and gratitude to my next, I believe equally successful, tenure at Taylor Wessing as a partner.”

    “Andrea is an attorney with tremendous professional and human potential,” adds Managing Partner Andrey Leontiev. “That is why we are particularly pleased that Andrea has accepted the challenge to co-create our firm’s vision as an inclusive, modern, and gender-just firm.”

  • Stanislav Durica To Lead Dentons’ Employment and Labor Practice in Bratislava as Partner

    Former Squire Patton Boggs Of Counsel Stanislav Durica has joined Dentons as a Partner in Bratislava and will lead the office’s Employment and Labor practice.

    Durica focuses on employment, general corporate, litigation and arbitration matters, data protection, as well as intellectual property.

    Prior to his Dentons move in January 2022, Durica was an Of Counsel with Squire Patton Boggs for six years. Earlier, he spent nine years at Ruzicka Csekes (associated with CMS at the time), having first joined as an Associate in 2007, later promoted to Managing Associate in 2012.

    “We are delighted that Dentons remains attractive to top legal talent and we welcome Stanislav … to our team,” Managing Partner Peter Kubina commented. “This recruitment is part of our strategy to be a top firm in CEE and to invest in the development of key practice areas in the region.”

  • Deal 5: Jaromir Krejcar Society Director Martin Zaicek on Protecting Cultural Heritage

    On October 5, 2021, CEE Legal Matters reported that Dentons had provided pro bono advice to the non-profit organization Spolocnost Jaromira Krejcara to protect the cultural heritage site of the former Machnac spa house in Trencianske Teplice, Slovakia. CEE In-House Matters spoke with Martin Zaicek, Director at Jaromir Krejcar Society, to learn more about the matter.

    CEEIHM: To start, please tell us a bit about Spolocnost Jaromira Krejcara and its mission.

    Martin: Jaromir Krejcar Society is a non-profit organization named in honor of the prominent architect from Prague Jaromir Krejcar (1895 – 1950). We initiated the establishment of the Jaromir Krejcar Society after the art group Abandoned (re)creation (established in 2011) tried to save the Machnac Sanatorium for about 10 years. Due to the privatization in 1997, the national monument got stuck in a complicated and non-transparent tangle of ownership rights, and, subsequently, has fallen into disrepair since 2002. The main goal of the Jaromir Krejcar Society is to save, restore, and maintain the national heritage site – the former Machnac Sanatorium. The founders of the Jaromir Krejcar Society, alongside the Abandoned (re)creation group members, are photographer Andrea Kalinova and architect Martin Zaicek, as well as the rector of the Academy of Fine Arts and Design in Bratislava, Bohunka Koklesova. The Jaromir Krejcar Society puts particular emphasis on the importance of strong representation, and therefore the members of its Management Board include the former dean of the Faculty of Architecture in Bratislava and currently the vice-rector of the Slovak University of Technology in Bratislava – architect Lubica Vitkova, the director of the Slovak branch Docomomo International – prof. Henrieta Moravcíkova, as well as the mayor of the town Trencianske Teplice – Zuzana Frajkova Durmekova. All major educational scientific institutions in Slovakia and Czech Republic, such as the Slovak University of Technology, the Academy of Fine Arts and Design in Bratislava, but also the Academy of Arts, Architecture and Design in Prague, or the Brno University of Technology, support the activities of the Jaromír Krejcar Society.

    CEEIHM: What about the former Machnac spa house site. What is its significance?

    Martin: Jaromir Krejcar was one of the most talented Czech architects of the interwar period – a “poet of construction,” as his companions used to call him. Along with the philosopher Karel Teig and poets Jaroslav Seifert and Vitezlav Nezval, he was a member of the cult avant-garde group Devetsil. In 1937, the architect Krejcar built the Czechoslovak Pavilion at the World Exhibition of Art and Technology (Expo) in Paris. With his glass and steel pavilion on the riverside of Seine, in the immediate proximity of the Eiffel Tower, Krejcar paid tribute to constructivist architecture. The pavilion won a gold medal at the exhibition in Paris. However, his most significant and last intact work is the Machnac Sanatorium in the town of Trencianske Teplice in western Slovakia. It is located at the end of the park in a picturesque spa town, situated on sulfur thermal springs. The Machnac Sanatorium was built in 1932. After its commissioning, the house was described by the Prague philosopher Karel Teig as the most remarkable work of modern architecture in the country.

    CEEIHM: As we reported, you filed a motion for expropriation of Machnac with the District Office in Trencin. Why did you take this step?

    Martin: Our primary goal was an agreement with the owner of the building. To achieve this goal, we have repeatedly contacted him in order to negotiate a buyout since 2020, unfortunately, our efforts have not been successful. Therefore, we proceeded to the next possible way in order to gain ownership of the building, which is through an expropriation proceeding. In order for the proceeding to be successful, there has to be an existence of public interest, which can not be achieved without the building changing its owner. We believe that this public interest exists and we see it in the protection and restoration of historic values ​​of the national cultural monument of the Machnac Sanatorium and the restoration of its proper utilization. It is important to mention that this expropriation procedure has never been used in Slovakia for the purpose of monument protection. Even though expropriation is an extreme form of restriction of property rights guaranteed by the Constitution of the Slovak republic, it is fully legal. Moreover, extreme situations call for extreme measures, and in this case, we are looking at extreme neglect of the duty of care, which the owner of a national monument is obligated to. Such behavior directly leads to the destruction of cultural heritage. The expropriation does not happen for free, the expropriating entity, in this case, the Jaromir Krejcar Society, must pay adequate compensation. In the case of the Machnac Sanatorium, the compensation was calculated by an independent expert in February 2021 in the amount of EUR 320,529.94. The expropriated entity, in this case, the czech company Keorlen Trade s.r.o, has the right to defend itself against the expropriation proceeding and also has the right to appeal to the decision issued in this proceeding. In case of an appeal, the case will be referred to the court and the whole process may take several more years. During that time the national cultural monument can be further devalued.  

    CEEIHM: What was Dentons’ mandate on the affair and what was the outcome?

    Martin: Dentons is representing Jaromir Krejcar Society in this proceeding. Since 2020 they have communicated on our behalf with the representatives of the owner of the monument. It should be noted that we, as the founders of the Jaromír Krejcar Society, all belong to the environment of culture and art and do not have sufficient legal knowledge. We are very happy that this missing part of the professional composition of our team is completed by the colleagues from Dentons – Associates Miroslava Jesikova and Jan Dulovic as well as Managing Partner Peter Kubina. We are glad that together we can proceed in the procedure of expropriation of the monument in the public interest, in order to preserve and restore it. The expropriation procedure is used mainly in connection with the construction of infrastructure such as highways. Together, we are trying to give it a new relevant field of application. To file the proposal for expropriation itself required enormous legal commitment and skills in legal argumentation while incorporating key cultural and historical remarks of the Machnac Sanatorium. Also, we believe that it is the cooperation with Dentons that creates the strongest foundations for achieving the goals of our organization.

     CEEIHM: Lastly, why did you choose Dentons to assist you on this?

    Martin: Dentons was active in other publicly sensitive topics even before the start of our cooperation. As committed citizens, we admired the activity of the former Dentons Partner Daniel Lipsic who acted as the main legal representative of the survivors in one of the most traumatizing cases in the history of Slovakia – the murder of journalist Jan Kuciak and his fiancée Martina Kusnirova.

    We approached Lipsic for a consultation. Since the beginning of our cooperation, we greatly appreciated the professional commitment of their team of lawyers. Last but not least, we also value mutual trust and a professional approach. We very much appreciate Dentons and its advanced corporate culture and responsible approach, which considers the struggle for the preservation of the cultural and historical legacy of Slovakia an equal part of the struggle for justice, despite the publicly exposed case.

    Originally reported by CEE In-House Matters.

  • Marek Holka Makes Partner at Cechova & Partners

    Former Senior Associate Marek Holka has made Partner at Cechova & Partners.

    Holka started out with Cechova & Partners as a Legal Trainee in 2011 and was quickly promoted to Junior Associate. In 2015, he was promoted to Senior Associate and will take his next step as Partner from January 1, 2022.

    According to the firm, “in the competition law area, Marek has advised in numerous cases of successful notifications of concentrations to the Slovak competition authority. He has been also involved in advising several multinational companies within antitrust investigations and proceedings, including on-site assistance during unannounced inspections, and regularly advises clients on antitrust compliance issues, including revising and setting up distribution models and contracts, internal antitrust audits, and compliance training.” 

    Holka holds a Master’s degree in Law from Komenskeho University in Bratislava. 

  • Cytowski & Partners Advises Surglogs on USD 10.5 Million Series A

    Cytowski & Partners has advised Slovak healthcare startup Surglogs on its USD 10.5 million series A with Open Ocean. Royer Cooper Cohen Braunfeld reportedly advised Open Ocean on the deal.

    According to Cytowski & Partners, “Open Ocean was joined in the financing by Credo Ventures from Prague and 8VC from San Francisco as well as angel investors from the US and Europe.”

    Open Ocean is a Finish series A venture fund. Surglogs provides a digital platform that seeks to replace regulatory compliance paperwork and automates clinical workflows.

    The Cytowski & Partners team included Partner Tytus Cytowski and Associates Eresi Uche, Kunal Kolhe, and Tomiwa Ogundipe.

  • The Double Jeopardy (Ne Bis in Idem) Saga of Slovak Telekom is Finally Resolved

    On June 9, 2021, the Slovak Supreme Court finally ended its long-running proceedings against Slovak Telekom (ST). The case involved a more than EUR 17 million fine against ST for the abuse of a dominant position and resulted in an important decision regarding the application of the ne bis in idem principle in Slovak law.

    Two key issues regarding the ne bis in idem principle, also known as the prohibition of double jeopardy, concerned whether the powers of the Slovak competition authority (NCA) and the Slovak telecommunications regulator (TR) overlapped, and the parallel proceedings by the NCA and the European Commission (EC).

    Background

    In 2005, the NCA began proceedings against ST for the abuse of a dominant position (margin squeezing) on the Slovak telecommunications market for telephone and low-speed internet access services. This was followed by a first-instance decision against ST, in 2007, and by a second-instance decision, in 2009. The NCA’s decision was then challenged in court in two instances, with the ne bis in idem principle being especially relevant.

    In parallel, in 2008, the EC became involved and in January 2009 carried out a dawn raid on ST’s Bratislava premises. Three months later, the EC officially initiated proceedings against ST and in 2015 ruled that ST had abused its dominant position. The EC’s decision was unsuccessfully challenged.

    The First Ne Bis in Idem Issue: Which Authority Takes Precedent?

    In the first test regarding ne bis in idem, the Slovak Supreme Court concluded that the abuse of a dominant position was regulated by the Slovak competition act. Ultimately, this court decided that only the NCA was authorized to proceed in competition matters and that this power could not be taken from it. As a specialized regulator, the TR could not have precedence in this area of law. Furthermore, it was also irrelevant if the TR agreed on price regulation with ST, as the practice of margin squeezing was not part of this.

    The Second Ne Bis in Idem Issue: Were There Parallel Proceedings?

    On the second ne bis in idem issue, the Court of Justice of the European Union (CJEU) was asked to review the preliminary ruling. It concluded that all national competition authorities were relieved of their power to apply Articles 101 and 102 of the TFEU if the proceedings initiated by the EC related to alleged competition infringements identical to those in proceedings brought by the national authority, i.e. the same practices, product, geographical markets, and period of time. Furthermore, the ne bis in idem principle also applied to infringements of competition law. However, it did not apply if proceedings were brought against (or sanctions were imposed on) an undertaking separately and independently by a national authority and the EC for infringements of Article 102 of the TFEU relating to separate product markets or separate geographical markets.

    In the light of the CJEU ruling, the Slovak Supreme Court ruled that the EC’s decision concerned margin squeezes in wholesale access to unbundled local loops and other broadband access services and their corresponding retail services in Slovakia, whereas the proceedings brought by the NCA concerned abuses of a dominant position on the wholesale and retail markets for telephone services and low-speed internet access services, which are different product markets. Therefore, the ne bis in idem principle did not apply because the sub-condition of idem, i.e. the identity of facts, was not satisfied, and therefore the NCA had not been relieved of its power to apply Article 102 of the TFEU.

    Final Observations

    The decision, together with the CJEU ruling, clarifies the correct application of the ne bis in idem principle in parallel competition proceedings and the division of power between national regulators. This case shows that the NCA has precedence over sector-specific regulators and that cases concerning different markets cannot be considered similar. Therefore, national authorities retain their power to apply EU competition rules even if the EC starts its own proceedings.

    This aspect underlines the importance of the definition of the (product) market to establish whether a national authority is relieved of its competencies to apply Article 101 or Article 102 of the TFEU.

    By Petra Corba Stark, Partner​, and Zuzana Nikodemova, Senior Associate​, CMS

    This Article was originally published in Issue 8.9 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Dentons Successful for Jan Bencik in Defamation Dispute

    Dentons has provided pro bono representation to blogger Jan Bencik in a defamation dispute regarding an article in the Zem a Vek magazine.

    According to Dentons, “the Bratislava District Court ruled that the publisher of Zem a Vek must apologize to Bencik and pay him EUR 33,000 in damages. The court found that an article published by the magazine contained false allegations against Jan Bencik. The article claimed that he exposed Slovaks fighting illegally in the territory of eastern Ukraine by publishing an article on his online blog in the Slovak newspaper Dennik N.”

    Dentons’ team included Partner Peter Kubina and Counsel Miroslava Jesikova.

  • Possibility to Request Confirmation of Vaccination by Employers in Slovakia

    The possibility of the employer to investigate whether its employees are vaccinated against COVID-19 was subject of heated debate in Slovakia. The prevailing view was the employer could not request such information from them as allegedly there was no legal basis for it in the Labour Code or other regulations. Surprisingly, such view was also supported by the Slovak National Inspectorate of Labour that claimed it should be up to the employees whether they inform the employer about their vaccination. There were also discussions whether obtaining such information by the employer complies with the GDPR.

    Nevertheless, the Slovak Labour Code requires the employer to take measures for ensuring safety and protection of health of its employees at work. Under the assumption the vaccination decreases the risk of contracting COVID-19 it naturally helps ensuring such safety and protection. Without doubts, it is in the interest of the employers that their employees do not contract COVID-19 as they may be required to remain in a lengthy quarantine. Absence of a larger number of employees may potentially lead to temporary closing of the operations. In a worst-case scenario, the employer may be forced out of business. There are thus surely legitimate reasons for the employers to investigate whether their employees are vaccinated, have already overcome COVID-19 (and still have sufficient antibodies) or at least have a valid negative test against it.

    Given the above discussions, the Slovak parliament adopted legislative changes aimed at strengthening the position of employers that started applying from 15 November 2021. Based on these changes, the public health authorities will have (under certain circumstances) the possibility to impose measures requiring that employers in specific regions prevent their employees from entering their workplace unless they present a valid confirmation about their vaccination or that they have already overcome COVID-19. Alternatively, the employees must be given a possibility of being tested against COVID-19 at the full expense of the employer. Currently, it is not entirely clear whether the government shall cover all or at least part of the costs of such testing.

    Employees who do not present a relevant confirmation or negative test against COVID-19 will have to be prevented from entering the workplace. In such case they will not have a claim for a salary compensation. However, it does not prevent the employer to provide them such compensation anyway or for example agree with them they will take a holiday or work from home.

    Such restrictions should be generally imposed only on employers in regions with the worst epidemiologic situation. Nevertheless, the other employers may also decide to prevent their employees from entering their workplace unless they present a valid confirmation or a negative COVID-19 test, but only in case it is necessary to ensure protection of health at work, including such organization of work that shall eliminate or decrease the risk of spread of COVID-19. Such employees who failed to present the necessary evidence and were thus prevented from entering their workplace will, however, have a claim for a salary compensation.

    By Peter Oravec, Partner, and Jan Augustin, Attorney at Law, PRK Partners

  • HKV and Paul Q Advise on Bauer Media Group’s Acquisition of Europa 2 and Radio Jemne

    HKV has advised the owners of Slovak radio stations Europa 2 and Radio Jemne on their sale to the Bauer Media Group. Paul Q advised the buyer.

    According to HKV, Europa 2 and Radio Jemne are both well-established radio stations with a significant market share.

    Operating in 14 countries with EUR 2.3 billion in annual revenue, the Bauer Media Group provides printing, online publishing, and radio services for consumers, as well as sales and marketing solutions.

    “Expanding our presence in Slovakia is great news for our company and for the local market,” commented Bauer Media Audio President Paul Keenan. “Growing our operation will enable us to bring audio innovations, new formats, and passion for great content to more Slovakian listeners.”

    The HKV team was led by Partner Martin Kluch and included Partner Lukas Michalik, Senior Associate Martin Kosa, Associates Jana Trangelova and Vladimir Gadus, and Junior Associate Simon Hora.

    The Paul Q team was led by Partners Tomas Kamenec and Boris Brhlovic and included Senior Associate Dominika Schweighoferova and Junior Associates Viktoria Poliakova, Tibor Krizan, and Marko Pachnik.

  • New Developments in Renewable Energy Legislation in Slovakia – Focus on Photovoltaics, Wind, and Hydrogen

    The year 2021 has seen several major developments in the field of green energy in Slovakia.

    The stop-status for photovoltaics and wind energy, which prevented existing sources’ capacity from being increased and new power generation sources from being connected to the grid, was lifted. The available installed capacity earmarked for photovoltaics and wind power plants totals 407 megawatts for the entire Slovak Republic. It is divided equally among the individual operators of the regional distribution systems – the West Slovak, Central Slovak, and East Slovak distribution companies. Currently, 50 megawatts of installed capacity are allocated to each region. This limit will be increased, when necessary, up to a total combined capacity of 407 megawatts. Any restrictions will be announced three years in advance.

    According to current data made available by the Slovak Electricity Transmission System, capacity in Western Slovakia is currently approaching the allocated 50 megawatts. Guidelines published on the SETS website provide detailed information on the release procedures, as well as information on exhausting the allocated capacity and available installed capacities.

    In addition, an amendment to the Act on the Promotion of Renewable Energy Sources and High Efficiency Combined Generation has been adopted. The major change introduced is an extension of the support provided to the production of energy from renewable sources over five years, combined with a reduction in the payments provided. Thus, the original amount of aid will be granted to the affected operators of renewable energy sources, but in the form of lower individual grants over a longer period.

    The amendment has been adopted by the National Council of the Slovak Republic and became effective on August 1, 2021. Affected operators of photovoltaic and wind energy sources awaited its implementation apprehensively, as the introduced change will likely cause many of them operational difficulties and adversely impact their business plans.

    The Slovak Association of Photovoltaic and RES Industry (SAPI) strongly criticized the final wording of the amendment and pointed to its unconstitutionality. The operators concerned also emphasized they were prepared to seek compensation through the courts for any damage caused by the adoption of the amendment.

    There has been an increased interest in hydrogen in Slovakia, and the Slovak Ministry of Economy recently presented the National Hydrogen Strategy. The strategy provides an outlook on the intended actions of the state and opportunities for investors and businesses in the field of renewable energy. It aims to be the basis for increasing the utilization of hydrogen in Slovakia as part of the efforts on the path to carbon neutrality. Although this is a non-legislative document, it has been authorized by the Government.

    The strategy considers a wide range of areas for hydrogen utilization, including in the chemical and petrochemical industry, metallurgy, and gas industry. Some of the most ambitious plans include the production of hydrogen by utilizing surplus energy from Slovak nuclear power plants or from the existing natural gas infrastructure.

    Plans presented by the strategy do not lack ambition and, while their implementation may require a longer timeframe, the first tangible results can be expected as soon as the second half of 2021. Bratislava and Kosice are to get their first two hydrogen fueling stations, supporting the development of hydrogen solutions for the automotive market. The Slovak Innovation and Energy Agency has already announced a public tender for the two hydrogen stations. Both stations will be designed to supply hydrogen to both cars and hydrogen-powered buses.

    In response to the strategy, the Public Transport Company Bratislava, through its CEO, announced its intention to purchase 40 hydrogen buses. The main competitive advantage of hydrogen buses is their range, which doubles the range of comparable electric buses. In general, the efforts and the announced support of the Ministry of Finance for hydrogen utilization are likely to positively incentivize similar projects. 

    We are closely monitoring changes in this rapidly developing field: green energy is here to grow.

    By Oliver Werner, Partner, and Pavel Straka, Junior Associate, CMS Slovakia

    This Article was originally published in Issue 8.8 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.