Latest updates

Need for speed – revised DIS Rules for Expedited Proceedings
Skadden Arps Slate Meagher & Flom LLP
  • Germany
  • 05 March 2020

Alongside its 2018 Arbitration Rules, the German Arbitration Institute issued a revised set of fast-track arbitration rules. The appeal of these rules is that parties can expect a binding award within six months of the first case management conference. As parties are free to agree on the application of these rules to all kinds of dispute, irrespective of the amount at issue, they provide parties with a high level of autonomy. However, parties should exercise their discretion wisely as the rules are not suitable for all disputes.

Third-party arbitration funding – an overview
Skadden Arps Slate Meagher & Flom LLP
  • Germany
  • 24 October 2019

Third-party arbitration funding continues to be a hot topic in Germany, with a growing number of companies considering using third-party funding and more international funders than ever joining established German funders. This article outlines some of the pros and cons of third-party funding in an arbitration context.

2018 DIS Arbitration Rules – one year on
Skadden Arps Slate Meagher & Flom LLP
  • Germany
  • 18 July 2019

In March 2018 the German Arbitration Institute's (DIS's) new arbitration rules came into force. The new rules are a good choice in almost every setting, offering competitive fees for arbitrators and institutions and providing a modern and efficient arbitration framework that preserves and expands on the distinctive features of the previous DIS rules. These unique factors are particularly appealing to in-house counsel.

Court rules on New York Convention's more-favourable right provision
  • Germany
  • 08 September 2011

The Federal Supreme Court recently confirmed that foreign arbitration agreements which do not adhere to the formal requirements of Article II(2) of the New York Convention may still be valid under the less strict criteria of Section 1031 of the Code of Civil Procedure.

Supreme Court changes jurisdiction on preclusion in enforcement proceedings
  • Germany
  • 23 June 2011

The Federal Supreme Court has changed its jurisdiction on preclusion in enforcement proceedings relating to international arbitral awards. The court held that a debtor is not required to exhaust all available remedies at the (foreign) seat of arbitration to preserve its right to argue in enforcement proceedings in Germany that no valid arbitration agreement exists.

DIS establishes new ADR rules
  • Germany
  • 17 February 2011

Together with its conciliation rules of 2002, Germany's foremost arbitration institution has now established a comprehensive set of administered ADR procedures to respond to the growing demand for the timely and cost-effective (although not necessarily final and binding) resolution of disputes. This update provides an insight into which procedures might advantageously be applied in different situations.

Court confirms low criteria for preliminary awards enforcement and execution
  • Germany
  • 16 September 2010

The Frankfurt Higher Regional Court has frozen assets on the basis of an ex parte application for preliminary enforcement of a foreign arbitral award. The decision was made under Section 1063(3) of the Code of Civil Procedure's preliminary enforcement provision, which allows successful claimants in arbitration to obtain securing measures like asset freezes even before exequatur of the arbitral award is granted.

German courts no longer enforce foreign judgments confirming arbitral awards
  • Germany
  • 15 April 2010

The Federal Supreme Court ended the German practice of permitting claimants to seek the enforcement of foreign judgments confirming arbitral awards. Overturning a 25-year-old ruling, the court no longer offers claimants a choice between the enforcement of the original arbitral award and the recognition of its exequatur from jurisdictions following the procedural merger doctrine.

Supreme Court Permits Arbitration on Validity of Shareholder Resolutions
  • Germany
  • 03 September 2009

The Supreme Court has held that disputes on the validity of shareholder resolutions in German limited liability companies are arbitrable, based on an arbitration clause in the company's articles of association. The court established a set of requirements for the validity of shareholder arbitration clauses that other jurisdictions may wish to take into account when considering their position on appropriate procedural safeguards.

Tribunal Questions Scope of Most-Favoured Nation Clauses
  • Germany
  • 26 February 2009

In a recent case, the International Centre for the Settlement of Investment Disputes tribunal has refused to apply the 'most-favoured nation' clause of the German-Argentine bilateral investment treaty to its dispute settlement provision. It thereby contributed to the longstanding debate regarding the applicability of such clauses to dispute settlement provisions.

EU Mediation Directive and Its Impact on German Law
  • Germany
  • 11 December 2008

The European Parliament has adopted the EU Directive on Certain Aspects of Mediation in Civil and Commercial Matters in order to make mediation an attractive alternative to legal and arbitration proceedings. To comply with the directive, legislative provisions on the enforceability of all written mediation settlements must be introduced into German law within the next three years.

Proceedings for Annulment of Partial Arbitral Award Inadmissible before State Courts
  • Germany
  • 06 December 2007

A higher regional court has held that a partial arbitral award which confirms the basis of a claim for damages but reserves judgment on the amount of the damages and an arbitral award dismissing a counterclaim (conditional upon the same factual issues as the claim) as unmerited do not constitute a (final) arbitral award and, as such, cannot be the subject of proceedings for annulment before the state courts.

Validity of Arbitration Clause Available on the Internet
  • Germany
  • 23 August 2007

An arbitral tribunal has confirmed the validity of an arbitration clause included in the claimant's general terms and conditions by way of an interim award in a commercial arbitration pursuant to the Rules of the German Institution of Arbitration. The tribunal argued that an arbitration clause can be included by referring to general terms and conditions that contain such a clause.

German Court Takes First Step on Road to Mutual Recognition with China
  • Germany
  • 31 May 2007

The Higher Regional Court of Berlin has refused the recognition and enforcement of an International Chamber of Commerce arbitral award issued in Shanghai on the grounds that the arbitration agreement was invalid according to the final and binding decision of a Chinese court.

Dual Arbitration Clauses and Jurisdiction
  • Germany
  • 22 February 2007

The parties to a recent arbitration disagreed over, among other things, the jurisdiction of the arbitral tribunal of the Hamburg Chamber of Commerce, as the purchase agreement in dispute contained two separate and independent arbitration clauses referring to different arbitration institutions. The tribunal held that both arbitration clauses were valid, unambiguous and alternatively applicable.

Untimely Challenge May Foil Defence against Recognition of Foreign Award
  • Germany
  • 19 October 2006

The Higher Regional Court of Karlsruhe has held that if a defendant fails timely to challenge a foreign arbitral award in the award's country of origin, the respective arguments on which the challenge could have been based are also precluded in proceedings for a declaration of enforceability of the foreign arbitral award in Germany.

Development of DIS Arbitration in 2005
  • Germany
  • 24 August 2006

The continuing popularity of arbitration as an alternative dispute resolution tool in Germany in recent years has been confirmed by a recent report of Deutsche Institution für Schiedsgerichtsbarkeit eV (DIS), Germany's foremost arbitration institution, on the development of DIS arbitration in 2005. The aggregate amount in dispute in 2005 amounted to an impressive €451 million.

Arbitration Agreements Exclude Documentary Procedure
  • Germany
  • 11 May 2006

The Federal Supreme Court has held that an action not only in an ordinary civil procedure, but also in a documentary procedure (Urkundenprozess) according to Section 592 of the German Code of Civil Procedure, is excluded if the parties have submitted their disputes to arbitration.

Federal Supreme Court Maintains Arbitration-Friendly Attitude
  • Germany
  • 23 February 2006

The Federal Supreme Court recently ruled on the exequatur of a Dutch arbitral award. Among other things, the court held that the most favourable national enforcement rule in the New York Convention applies not only to the German procedural rules on the recognition and enforcement of arbitral awards, but also to the German conflict of laws rules and the applicable national law governing the arbitration agreement.

Set-off in Proceedings for Declaration of Enforceability?
  • Germany
  • 10 November 2005

The Higher Regional Court of Düsseldorf has decided a case in which the defendant had sought to raise a set-off in proceedings for a declaration of enforceability of an arbitral award. The decision is of practical significance as it adds new arguments to the controversial debate as to whether such a set-off is allowed under Germany's Arbitration Law 1998.