Czech court rejects NKL Agency’s lawsuit in Žofín Palace lease dispute
The District Court for Prague 1 has dismissed a lawsuit filed by the NKL Agency against the Prague 1 City Hall regarding an amendment to the lease agreement for Žofín Palace. NKL Agency spokesperson Karolína Šnejdarová confirmed the ruling to the Czech News Agency.
The legal dispute revolves around the lease of the historic palace, with Prague 1 asserting that the contract expired on December 31, 2024, while NKL Agency maintains that it exercised its renewal option and extended the lease for another ten years. Despite the court ruling, the agency refuses to vacate the premises and continues to organize events.
“The court ruled in the first instance that Prague 1 was not obligated to sign an amendment extending the contract with NKL Agency, confirming that the lease agreement officially ended on December 31, 2024,” Šnejdarová stated.
However, NKL Agency argues that the ruling did not examine whether the renewal option was properly exercised, focusing instead on whether the city district was required to sign a contract amendment specifying rent. “We will await the written reasoning and consider our next legal steps, including a likely appeal,” said NKL Agency’s legal representative, Kolářová.
The agency also confirmed it will not vacate Žofín for now. “Last week, Prague 1 informed us that it had filed an eviction lawsuit, which will determine whether the lease was legally extended. We have not yet received an official summons,” Kolářová added.
Meanwhile, Prague 1 is preparing for a smooth transition to a new tenant, expected to be the Zátiší Group, as decided by the municipal council.
The long-running lease dispute over Žofín Palace has been a controversial issue for Prague 1. The lease was previously extended by the ODS-led city hall just before the 2010 municipal elections. Subsequent extensions, including a proposed ten-year renewal ahead of the 2018 elections, were met with opposition and ultimately rejected.
Source: CTK
Photo: Žofín Palace
