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03.09.2008 - Govt appeals arbitration result in Diag Human dispute

The state demands that new arbitrators re-assess the decision.

"We want new arbitrators to assess the files and comment on the damage level," Health Ministry spokesman Tomas Cikrt told CT.

Diag Human, too, plans to seek review of the arbitration ruling as it is convinced it has the right to a higher compensation.

"Including the interest on late-payment, the sum is about three billion crowns higher," said Diag Human's lawyer Jan Kalvoda.

Now new arbitrators must be found to re-assess the verdict.

"The state has its candidate, a respected lawyer.

The Czech Republic news are represented by www.czech-republic-prague.com

We are waiting for his consent," Cikrt said.

According to CT information, this might be Milan Kyndl from the Faculty of Law in Plzen, west Bohemia.

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Without clear evidence CzechRep should pay to Diag Human - Klener ...
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Diag Human vs CzechRep dispute to end by autumn - press ...
Republic must pay 8.33 billion crowns to Diag Human as compensation as of July 2007. Since then the sum has been increasing by another interest of about 1.3 million a day, so the final sum is approaching nine billion crowns.

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 health minister Jan Strasky (Civic Democrats, 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.

The daily Mlada fronta Dnes (MfD) reported that one of the arbitrators in the dispute between the Czech Republic and Diag Human, Zdenek Rusek, is accused in the case of extensive corruption at the Defence Ministry.

(USD1=17.120 crowns)

(Ceske Noviny)


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