The High Court of Justice in Prague has dismissed an action concerning the dissolution and liquidation of Budweiser Budvar National Corporation brewery

15. 5. 2008 | České Budějovice

During an appellate procedure, the High Court of Justice in Prague dismissed an action filed in 2003 by BCB concerning the dissolution and liquidation of Budweiser Budvar, National Corporation brewery. The grounds of the judgement states among others that “the plaintiff itself is unclear in the matter, since it claims completely conflicting facts resulting in contradictory conclusions.” The plaintiff alleges that the national corporation does not exist; on the other hand it requires the dissolution of this corporation together with liquidation. The respond to the plaintiff’s arguments in the grounds of the judgement verbatim reads that “it is in logical disagreement; the claims are conflicting and contradict one another”. The High Court of Justice thus fully endorsed with the ruling of České Budějovice Regional Court of December 2006. Additionally, the plaintiff has to reimburse Budweiser Budvar’s expenses of the appellate procedure.

“From its very beginning, we had considered this BCB’s legal action as speculative, purpose-orientated and based on fictitious arguments. The absurdity of the arguments was now confirmed by the High Court of Justice as well in its grounds of the judgement. We are very pleased with the ruling. That was the second case when the court ruled that Budweiser Budvar’s legal personality is unimpeachable,” says Budweiser Budvar’s CEO Jiří Boček. In 2004, the High Court dismissed another BCB’s action requiring the discard of Budweiser Budvar from the Trades Register. Long-term efforts to establish BCB’s position as one of the bodies not omitted during Budweiser Budvar’s potential privatization are behind these legal actions.

BCB often uses a claim of being historically entitled to use the “Budweiser” designation and considers itself the sole legal successor of the original German civic brewery founded in 1795. According to the High Court of Justice in Prague, such historical rights do not exist. In a ruling to a different case of March 2006, the High Court explicitly stated that the manner of BCB’s origination “rules out the term-wise sole legal succession after any legal entity,” therefore including the former German brewery. This former brewery called “Budweiser Bräuberichtigten Bräuhaus in Budweis“ perished in 1970 without a legal successor. The current BCB was founded as a completely new company no earlier than in 1992 within a partial privatization of Breweries České Budějovice National Corporation and only in 2001 appropriated purposely the name of one of the breweries that had been effective in České Budějovice in the past.

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