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20.08.2008 - Czech govt to appeal arbitration result in Diag Human dispute

The cabinet today decided that the Health Ministry should apply for reviewing the arbitration decision and it should also propose a new arbitrator for the state, Julinek (senior ruling Civic Democrats, ODS) said. Diag Human complained that the Czech Republic harmed its good name and marred its deals with blood plasma. According to the arbitration verdict, the Czech Republic must pay 8.33 billion crowns to Diag Human as compensation as of July 2007.

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interest of about 1.3 million a day, so the final sum is approaching nine billion crowns. The Czech Republic was represented by the Office for Government Representation in Property Affairs in the arbitration. Under Czech law, after the arbitration ruling is issued, the participants can submit a proposal for its review by other arbitrators or for its annulment by court. The case was triggered by a letter that then health minister Martin Bojar wrote to the Danish company Novo Nordisk in 1992 after which the firm cut cooperation with Diag Human. Diag Human then demanded a high compensation for the state having allegedly prevented its lucrative deals with blood plasma in the early 1990s. Then healh minister Jan Strasky (ODS) decided to submit the case to the arbitration proceedings in 1996. In 1998 an arbitration panel recognised Diag Human's claim to compensation by the Czech Republic and a public apology. Since then the dispute has only been over the level of compensation. The government of Vladimir Spidla (Social Democrats, CSSD) paid 326.6 million crowns in compensation to Diag Human in 2002. The company then calculated new damage. ($1=16.620 crowns)

(Ceske Noviny)


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