Arbitration in Germany

Arbitration in GermanyThe Model Law in Practice

Arbitration in GermanyThe Model Law in Practice

Second Edition

edited by

Karl-Heinz Bckstiegel

Stefan Michael Krll

Patricia Nacimiento

Published by:Kluwer Law InternationalPO Box 3162400 AH Alphen aan den RijnThe Netherlands Website: www.kluwerlaw.com

Sold and distributed in North, Central and South America by:Aspen Publishers, Inc. 7201 McKinney CircleFrederick, MD 21704United States of AmericaEmail: [email protected]

Sold and distributed in all other countries by:Turpin Distribution Services Ltd.Stratton Business Park Pegasus DriveBiggleswadeBedfordshire SG18 8TQUnited KingdomEmail: [email protected]

Printed on acid-free paper.

ISBN 978-90-411-5860-4

2014 Kluwer Law International BV, The Netherlands

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, photocopying, recording or otherwise, without prior written permission of the publishers.

Permission to use this content must be obtained from the copyright owner. Please apply to: Permissions Department, Wolters Kluwer Legal, 76 Ninth Avenue, Seventh Floor, New York, NY 10011-5201, United States of America. E-mail: [email protected].

Printed and bound by CPI Group (UK) Ltd., Croydon, CR0 4YY

Foreword to the First Edition

Coming from Germany myself, it was a pleasure for me to see that, during my time as Secre-tary of the United Nations Commission for International Trade Law (UNCITRAL), in 1998 Germany adopted the UNCITRAL Model Law on Commercial Arbitration.The Model Law had been the result of years of difficult negotiations involving representa-tives both of industrialized and developing countries in order to present to states all over the world a model for a modern law taking into account the growth and development of com-mercial arbitration as the preferred method of dispute settlement in international trade and investment. A is well known, by now the Model Law has been introduced in a great number industrialized and developing countries.Though German commerce and industry are major users of both domestic and international arbitration and Germany has a highly developed law of civil procedure, the legal and the business community agreed that its arbitration law which was and is contained in the 10th book of its Code of Civil Procedure needed a modernisation. Comparable other industrial-ized countries, particularly France, England and Switzerland, had already modernized their arbitration laws though not by accepting the UNCITRAL Model. When, at the initiative of the German Institution of Arbitration (DIS), the Commission formed by the German Federal Ministry of Justice started its work on a new arbitration law, two major policy deci-sions were agreed early: 1. Germany would accept the UNCITRAL Model Law literally and with as few modifications as possible in order to assure transparency for the non-German users of the law to whom the UNITRAL Model was well known throughout the world. 2. The law would be applicable both to domestic and to international arbitration in Germany to avoid the well known difficulties arising from the distinction between these two. The result is that, now, Germany has one of the most advanced arbitration laws worldwide which is easily understandable and usable for foreign readers and practitioners.The present publication closes a gap by providing the first full and detailed commentary in the English language on the modern German arbitration law. A commentary is also provided on the Arbitration Rules of the German Institution of Arbitration (DIS) which are mostly used in Germany and are available also to foreign parties both for national and international arbitration. Since the book is edited and authored by the leading arbitration practitioners and academics in the country, it provides to the foreign reader and user a reliable information and tool thereby expanding the transparency to the international public even if they are not familiar with the German language.I have no doubt that this book will be found to be very useful indeed for the practical users of arbitration as well as for the academic community interested in the field. This is not limited to users which are either involved in arbitration proceedings in Germany or want to enforce a foreign award in Germany. Due to the nearly literal adoption of the Model Law in Germany, the book can also constitute a work of reference for users engaged in arbitral proceedings or arbitration related court proceedings in other Model Law countries.

Prof. Dr. Gerold Hermann President, International Council for Commercial Arbitration (ICCA)

Foreword to the Second Edition

I am proud to have been asked again to write a foreword for the second edition of this im-portant study of German arbitration law under the Model Law. The first edition of this book was particularly timely and useful after the initial years of development of the law since the Model Law became effective in 1998, and this edition provides important updates on the many applications of the law since then.While Germany is of course a civil law country, the Model Law presents a blending of the common law and civil law traditions. First, the provisions of the law itself include elements of both traditions. Second, and most importantly, the Model Law offers all countries that have adopted it common law and civil law alike the opportunity to use a common, international system of precedent in applying its terms. With more than 50 jurisdictions having adopted the Model Law, each has the opportunity to learn from the other. That was the purpose of the book I wrote a few years ago with Henri Alvarez and Neil Kaplan: Model Law Decisions. In the book, we compiled court decisions from the countries that had then adopted the Model Law and organized them by article. In that way, a court or counsel in any Model Law country may refer to the interpretation and application of that article in other countries. We hope that the book has aided the Model Laws goal of harmonization.Germanys adoption of the Model Law has played a significant role in the development of the Model Law internationally. As a sophisticated legal system in a country with broad inter-national reach, Germanys courts have had to consider many issues arising under the Model Law. Their decisions will benefit courts and practitioners everywhere. This is particularly true because Germany adopted the Model Law without significant change and to apply to both domestic and international disputes.The second edition of this book will accelerate that learning and development process. Writ-ten by leading German lawyers and scholars, the book discusses in detail the many issues that can arise under the Model Law in a clear and sensible manner. It will be an invaluable source for understanding the Model Law, not just in the German context but anywhere that the Model Law has application.

David W. Rivkin Debevoise & Plimpton LLP

New York and London

Preface

Germany has a long tradition of commercial arbitration and the German business com-munity is one of the primary users of arbitration, as the figures of international arbitra-tion institutions show. The largely verbatim adoption of the UNCITRAL Model Law on International Commercial Arbitration as the German Arbitration Law in 1998 and several other initiatives have considerably increased the attractiveness of Germany as a place of ar-bitration. For parties coming from other Model Law jurisdictions, they will feel on familiar territory; for parties from other jurisdictions, this makes the access to German arbitration law easy in both content and application.. For their arbitration proceedings, they find in Germany a legal framework which is largely similar to that of their home jurisdiction. At the same time, the relevant rules are applied in Germany by an efficient and generally arbitra-tion friendly judiciary.

The quality of the German system is proven by the fact that courts in other Model Law ju-risdictions regularly cite in their argumentation German decisions. Not surprisingly, several foreign legislators have looked and been influenced by the German experiences with the UNCITRAL Model Law in their revision of their own arbitration law. In addition, German case law figures prominently in the UNCITRAL Digest on the Model Law.

Over the years, a considerable number of the leading German decisions have been trans-lated into English or have been reported in the various arbitration journals. Until the first edition of this book, however, there was no comprehensive and detailed presentation of the German arbitration law in English. In particular, no easily accessible Article by Article commentary existed.

The reception of the first edition of this book in practice has been extremely positive and ex-ceeded the expectations of the editors. The format of the book has been taken up in a num-ber of similar publications on the law and leading institutional rules of other jurisdiction.

In addition, the circle of users has been larger than anticipated. Beyond the originally in-tended audience, the book has also been used by German colleagues and parties to explain specific features of the German arbitration law and practice to foreign counterparties and clients.

This positive feedback and the developments since 2007 justified and necessitated an up-date of the commentary. At the same time we have furthermore added in Part IV a number of chapters on arbitration in additional important industries (energy, distribution) or on topics of a general importance (confidentiality, arbitration with insolvent parties)

Purpose and Structure of the Commentary This commentary provides a comprehensive analysis of German arbitration law. Written by leading practitioners and academics, it furnishes insights from and for all legal sectors where arbitration plays a role.

x Arbitration in Germany

Part I contains a general overview of the practice of arbitration in Germany with cross refer-ences to the detailed analysis in Parts II to IV of this commentary. It serves both as a first and easy reference as well as a guide for finding in depth analysis where required.

Part II is a detailed commentary of each provision of the 10th Book of the ZPO based on both a detailed analysis of the applicable case law and legal writing. It further contains a systematic reference to the UNCITRAL Model Law on International Commercial Arbitra-tion and specifically indicates any specific deviation from or addition to the Model Law.

Part III contains a comprehensive commentary in the English language of the Arbitration Rules of the German Institution of Arbitration (Deutsche Institution fr Schiedsgerichts-barkeit DIS), the leading institution of arbitration seated in Germany. It is written by leading practitioners and experts of DIS arbitrations, and thereby ensures a profound insight into the practice of DIS arbitrations.

To complete the comprehensive analysis of arbitration as practised in Germany, the com-mentary concludes with the specific issues analysed in Part IV. These are either a specific branch where arbitration plays a particular role or fields of the law that generate specific problems in relation to arbitration. Part IV reviews the specific case law and legal writing related to the relevant branch or sector of law in addition and completion of Part II.

As with the previous edition, the primary intention of this commentary is to provide comprehensive guidance to all parties either planning to arbitrate in Germany or which are already involved in arbitral proceedings or arbitration related court proceedings in Germany. In addition, it may serve as a reference for parties involved in such proceedings in other countries which have adopted the Model Law or have submitted the recognition and enforcement of foreign awards to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention 1958). The German arbitration law is to a large extent a literal adoption of the Model Law. Consequently, the solutions adopted in Germany may also be relevant in other Model Law countries, not only those which tra-ditionally have close ties to the legal developments in Germany, such as Austria, Japan or Turkey, but also others like Singapore or Canada where courts and parties have relied on German decisions in their reasoning. The same applies for the New York Convention 1958, for which German law provides a rich jurisprudence.

AcknowledgmentsThe editors wish to express their grateful thanks to Robert Linder, Esq., MLB, for his valu-able assistance in editing this book a task accomplished with great diligence and devotion. We also thank Vincent Verschoor from our publisher for his patience and continuing sup-port in the publication of the book.

Karl-Heinz Bckstiegel Stefan Krll

Patricia Nacimiento

Cologne and Frankfurt, October 2014

Summary Table of Contents

Foreword to the First Edition v

Foreword to the Second Edition vii

Preface ix

Contributing Authors xxi

List of Abbreviations xxix

PART I: GERMANY AS A PLACE FOR INTERNATIONAL AND DOMESTIC ARBITRATIONS GENERAL OVERVIEW 1

PART II : COMMENTARY ON THE GERMAN ARBITRATION LAW (10TH BOOK OF THE GERMAN CODE OF CIVIL PROCEDURE) 51

PART III: COMMENTARY ON THE ARBITRATION RULES OF THE GERMAN INSTITUTION OF ARBITRATION (DIS RULES) 583

PART IV: SELECTED AREAS AND ISSUES OF ARBITRATION IN GERMANY 725

Annex I 1083

Annex II 1109

Annex III 1115

Bibliography 1123

Index 1137

Table of Contents

Foreword to the First Edition v

Foreword to the Second Edition vii

Preface ix

Contributing Authors xxi

List of Abbreviations xxix

PART I: GERMANY AS A PLACE FOR INTERNATIONAL AND DOMESTIC ARBITRATIONS GENERAL OVERVIEW 1

General Overview 3Karl-Heinz Bckstiegel / Stefan Krll / Patricia Nacimiento

PART II : COMMENTARY ON THE GERMAN ARBITRATION LAW (10TH BOOK OF THE GERMAN CODE OF CIVIL PROCEDURE) 51

Chapter I General Provisions 53

1025 Scope of Application 53Gerhard Wagner

1026 Extent of Court Intervention 67Gerhard Wagner

1027 Loss of Right to Object 71Gerhard Wagner

1028 Receipt of Written Communications in Case of Unknown Whereabouts 76Gerhard Wagner

Chapter II Arbitration Agreement 79

1029 Definition 79Rolf Trittmann / Inka Hanefeld

1030 Arbitrability 94Rolf Trittmann / Inka Hanefeld

xiv Arbitration in Germany

1031 Form of Arbitration Agreement 105Rolf Trittmann / Inka Hanefeld

1032 Arbitration Agreement and Substantive Claim Before Court 116Peter Huber / Ivo Bach

1033 Arbitration Agreement and Interim Measures by Court 133Richard Kreindler / Johannes Schmidt

Chapter III Constitution of the Arbitral Tribunal 147

Introduction to 10341039 ZPO* 147Patricia Nacimiento / Amelie Abt / Max Stein

1034 Composition of Arbitral Tribunal 154Patricia Nacimiento / Amelie Abt / Max Stein

1035 Appointment of Arbitrators 164Patricia Nacimiento / Amelie Abt / Max Stein

1036 Challenge of an Arbitrator 179Patricia Nacimiento / Amelie Abt / Max Stein

1037 Challenge Procedure 194Patricia Nacimiento / Amelie Abt / Max Stein

1038 Failure or Impossibility to Act 203Patricia Nacimiento / Amelie Abt / Max Stein

1039 Appointment of Substitute Arbitrator 209Patricia Nacimiento / Amelie Abt / Max Stein

Chapter IV Jurisdiction of Arbitral Tribunal 215

1040 Competence of Arbitral Tribunal to Rule on its Jurisdiction 215Peter Huber / Ivo Bach

1041 Interim Measures of Protection 226Jan Schfer

Chapter V Conduct of the Arbitral Proceeding 239

Introduction to 10421050 ZPO 239Klaus Sachs / Torsten Lrcher

1042 General Rules of Procedure 241Klaus Sachs / Torsten Lrcher

Table of Contents xv

1043 Place of Arbitration 260Klaus Sachs / Torsten Lrcher

1044 Commencement of Arbitral Proceedings 264Klaus Sachs / Torsten Lrcher

1045 Language of Proceedings 268Klaus Sachs / Torsten Lrcher

1046 Statements of Claim and Defence 272Klaus Sachs / Torsten Lrcher

1047 Oral Hearings and Written Proceedings 278Klaus Sachs / Torsten Lrcher

1048 Default of a Party 287Klaus Sachs / Torsten Lrcher

1049 Experts Appointed by Arbitral Tribunal 292Klaus Sachs / Torsten Lrcher

1050 Court Assistance in Taking Evidence and Other Judicial Acts 297Klaus Sachs / Torsten Lrcher

Chapter VI Making of the Award and Termination of the Proceedings 301

1051 Rules Applicable to Substance of Dispute 301Bettina Schmalz

1052 Decision Making by Panel of Arbitrators 318Fabian von Schlabrendorff / Anke Sessler

1053 Settlement 325Fabian von Schlabrendorff / Anke Sessler

1054 Form and Contents of Award 339Fabian von Schlabrendorff / Anke Sessler

1055 Effect of Arbitral Award 348Fabian von Schlabrendorff / Anke Sessler

1056 Termination of Proceedings 360Fabian von Schlabrendorff / Anke Sessler

1057 Decision on Costs 365Fabian von Schlabrendorff / Anke Sessler

1058 Correction and Interpretation of Award; Additional Award 378Fabian von Schlabrendorff / Anke Sessler

xvi Arbitration in Germany

Chapter VII Recourse Against the Award 383

1059 Application for Setting Aside 383Stefan Krll / Peter Kraft

Chapter VIII Recognition and Enforcement of Awards 421

Introduction to 1060, 1061 ZPO 421Stefan Krll

1060 Domestic Awards 428Stefan Krll

1061 Foreign Awards 443Stefan Krll

Chapter IX Court Proceedings 505

Introduction to 10621065 ZPO 505Hans-Patrick Schroeder / Wiebke Wortmann

1062 Jurisdiction 524Hans-Patrick Schroeder / Wiebke Wortmann

1063 General Provisions 532Hans-Patrick Schroeder / Wiebke Wortmann

1064 Particularities Regarding the Enforcement of Awards 538Hans-Patrick Schroeder / Wiebke Wortmann

1065 Legal Remedies 543Hans-Patrick Schroeder / Wiebke Wortmann

Chapter X Arbitral Tribunals Not Established by Agreement 549

1066 Mutatis Mutandis Application of the Provisions of the 10th Book 549Ulrich Haas

PART III: COMMENTARY ON THE ARBITRATION RULES OF THE GERMAN INSTITUTION OF ARBITRATION (DIS RULES) 583

DIS Introduction 585Francesca Mazza

Section 1 Scope of Application 593Jens Bredow / Isabel Mulder

Table of Contents xvii

Section 2 Selection of Arbitrators 598Siegfried Elsing

Section 3 Number of Arbitrators 601Siegfried Elsing

Section 4 Requisite Copies of Written Pleadings and Attachments 604Jens Bredow / Isabel Mulder

Section 5 Delivery of Written Communications 606Jens Bredow / Isabel Mulder

Section 6 Commencement of Arbitral Proceedings 610Siegfried Elsing

Section 7 Costs upon Commencement of Proceedings 614Jens Bredow / Isabel Mulder

Section 8 Delivery of Statement of Claim to Respondent 616Jens Bredow / Isabel Mulder

Section 9 Statement of Defence 618Siegfried Elsing

Section 10 Counterclaim 620Siegfried Elsing

Section 11 Costs of Filing Counterclaim 623Jens Bredow / Isabel Mulder

Section 12 Arbitral Tribunal with Three Arbitrators 625Jens Bredow / Isabel Mulder

Section 13 Multiple Parties on Claimant or Respondent Side 629Jens Bredow / Isabel Mulder

Section 14 Sole Arbitrator 632Klaus-Peter Berger

Section 15 Impartiality and Independence 634Klaus-Peter Berger

Section 16 Acceptance of Mandate as Arbitrator 638Klaus-Peter Berger

Section 17 Confirmation of Arbitrators 644Jens Bredow / Isabel Mulder

Section 18 Challenge of Arbitrator 647Jens Bredow / Isabel Mulder

xviii Arbitration in Germany

Section 19 Default of an Arbitrator 651Jens Bredow / Isabel Mulder

Section 20 Interim Measures of Protection 654Siegfried Elsing

Section 21 Place of Arbitration 657Jrg Risse

Section 22 Language of Proceedings 661Jrg Risse

Section 23 Applicable Law 664Jrg Risse

Section 24 Rules of Procedure 668Jrg Risse

Section 25 Advance on Costs of Arbitral Tribunal 672Jrg Risse

Section 26 Due Process 675Jrg Risse

Section 27 Establishing the Facts 679Jrg Risse

Section 28 Oral Hearing 682Jrg Risse

Section 29 Records of Oral Proceedings 684Jrg Risse

Section 30 Default of a Party 686Jrg Risse

Section 31 Closing of Proceedings 688Jrg Risse

Section 32 Settlement 690Siegfried Elsing

Section 33 Rendering of the Arbitral Award 693Siegfried Elsing

Section 34 Arbitral Award 696Siegfried Elsing

Section 35 Decision on Costs 699Jens Bredow / Isabel Mulder

Table of Contents xix

Section 36 Delivery of the Arbitral Award 704Jens Bredow / Isabel Mulder

Section 37 Interpretation and Correction of Arbitral Award 706Siegfried Elsing

Section 38 Effect of Arbitral Award 708Siegfried Elsing

Section 39 Termination of Arbitral Proceedings 710Siegfried Elsing

Section 40 Costs of Arbitral Proceedings 713Jens Bredow / Isabel Mulder

Section 41 Loss of Right to Object 719Jens Bredow / Isabel Mulder

Section 42 Publication of the Arbitral Award 721Jens Bredow / Isabel Mulder

Section 43 Confidentiality 722Jens Bredow / Isabel Mulder

Section 44 Exclusion of Liability 724Jens Bredow / Isabel Mulder

PART IV: SELECTED AREAS AND ISSUES OF ARBITRATION IN GERMANY 725

Ad hoc Arbitration in Germany 727Stephan Wilske

ICC Arbitration in Germany 753Detlev Khner / Gustav Flecke-Giammarco

Maritime Arbitration in Germany 787Jan Wlper

Trade Arbitration in Germany 795Rainer Karstaedt / Christian Graf

Arbitration of Disputes from Commercial Representation in Germany 817David Quinke

Construction Arbitration 829Christoph Benedict

Arbitration in Germany in the Energy Sector 847Peter Kraft / Mrton Hagner

xx Arbitration in Germany

Arbitration of Banking and Finance Disputes in Germany 875Norbert Horn

Arbitration of Insurance Disputes in Germany 889Hubertus Labes

Arbitration of Intellectual Property Related Disputes in Germany 907Jan Schfer

Arbitration of Corporate Law Disputes in Germany 927Christian Duve / Philip Wimalasena

Privacy and Confidentiality 963Ulrich Haas / Heiner Kahlert

Insolvency and Arbitration Effects of Party Insolvency on Arbitral Proceedings in Germany 981Stefan Krll

Investment Arbitration and the Participation of State Parties in Germany 1013Alfred Escher / Patricia Nacimiento / Christoph Weissenborn / Svan Lange

Enforcement of Court Orders Declaring Awards Enforceable in Germany 1061Stefan Rtzel / Claudia Krapfl

Annex I 1083

Annex II 1109

Annex III 1115

Bibliography 1123

Index 1137

Contributing Authors

Editors

Bckstiegel, Karl-Heinz Professor em. of International Business Law, University of Cologne (Germany); Hon. President (President 1996-2012), German Institution of Arbitration (DIS); Member of ICCA Govern-ing Board and ICC Arbitration Commission. Practice as arbitrator and president of arbitration tribunal in many national and international arbitrations of the DIS, ICC, ICSID, NAFTA, SCC, AAA, UNCITRAL and others. He was: President, LCIA (1993-1997); President, Iran-United States Claims Tribunal (1984-1988); Panel Chairman, United Nations Compensation Com-mission (UNCC) 1994-1996; President, International Law Association (2004-2006).

Krll, Stefan Rechtsanwalt, Prof. Dr. iur., LL.M. (London), Honorary Professor Bucerius Law School, Visiting Reader School of Arbitration, CCLS Queen Mary, London; Director Willem C Vis Moot, National Correspondent for Germany to UNCITRAL; Member of DIS-Advisory Board; practice as arbitrator in national and international cases under DIS, ICC, WKO, SCC, Swiss Rules and UNCITRAL Rules and in other ad-hoc proceedings; member of the board of editors of the International Arbitration Law Review and of Internationales Handelsrecht (IHR); author and editor of various books, articles and case notes on arbitration including co-author of Comparative International Commercial Arbitration.

Website: E-mail: .

Nacimiento, PatriciaRechtsanwltin, Dr. iur, partner with Norton Rose Fulbright LLP in Frankurt am Main (Ger-many) where she heads the disputes practice. Practice as arbitrator and counsel in numerous national and international LCIA, ICC, AAA, Swiss Rules, DIS, SCC, ICSID and ad hoc cases, including investment disputes and the representation of states; appointed by the German gov-ernment to the ICSID panel of arbitrators and mediators since 2007; member of the ICC Com-mission on Arbitration; lecturer at the Universities of Heidelberg, Frankfurt and Saarbruecken; author of numerous publications, including The New York Convention a Global Commentary.

Website E-mail .

Authors

Abt, AmelieRechtsanwltin, Bosch Siemens Hausgerte GmbH, Mnchen (Germany).

Website: .

xxii Arbitration in Germany

Bach, IvoAkademischer Rat, Dr. iur., Senior Research and Teaching Assistant Johannes Gutenberg University, Mainz (Germany).

Website: E-mail: .

Benedict, ChristophDr. iur. utr., Rechtsanwalt and Legal Director with ALSTOM Deutschland AG, Mannheim (Germany); former Legal Counsel of Ed. Zueblin AG, Stuttgart (Germany). Admitted as Solicitor in England and Wales. Chairman of the German Chapter of the Chartered Institute of Arbitrators, London. Honorary Professor, Swansea University.

Website: E-mail: .

Berger, Klaus Peter Professor, University of Cologne (Germany). Dr. iur., LL.M. (Virginia) Director of the Institute of Banking Law, and the Center for Transnational Law (CENTRAL), President, German Insti-tution of Arbitration (DIS).

Website: E-mail: .

Bredow, JensRechtsanwalt in Kln, Gurland Rechtsanwlte, Former Secretary General of German Institu-tion of Arbitration (DIS)

Website: E-mail:.

Duve, ChristianRechtsanwalt, Prof. Dr. iur., Partner with Freshfields Bruckhaus Deringer, Practice Group Dispute Resolution, Frankfurt am Main (Germany), honorary professor at University of Hei-delberg

Website: E-mail: .

Elsing, Siegfried H.Rechtsanwalt and Attoney-at-Law (New York), Dr. iur., LL.M. (Yale), Partner with Orrick, Herrington & Sutcliff LLP, Dsseldorf (Germany); Member of DIS-Board of Directors and the Board of AAA/ICDR, Member ICSID Panel of Conciliators; Honorary Professor, University of Dsseldorf (Germany).

Website: E-mail: .

Contributing Authors xxiii

Escher, AlfredRechtsanwalt, Dr. iur., Partner with ESCHER Rechtsanwlte, Frankfurt am Main (Ger-many).

Website: E-mail: .

Flecke-Giammarco, GustavRechtsanwalt, Counsel, Secretariat of the ICC International Court of Arbitration, Paris (France).

Website: E-mail: .

Graf, ChristianDirector Legal Department, Hamburg Chamber of Commerce, Member of DIS-Board of Directors. Website: , E-mail .

Haas, UlrichProfessor, Dr. iur., University of Zurich (Switzerland), Off-Counsel with Netzle Rechtsan-wlte (Zurich, Switzerland), Board Member DIS.

Website: E-mail:.

Hagner, MrtonRechtsanwalt and Solicitor (admitted in England and Wales), LL.M. (Queen Mary Univer-sity, London), Head of General Civil and Construction Law, Center of Competence Legal, E.ON SE, Essen (Germany).

Website: E-mail: .

Hanefeld, InkaRechtsanwltin and Attorney-at-Law (New York), Dr. iur., LL.M. (NYU), Partner with Hanefeld Rechtsanwlte Rechtsanwaltsgesellschaft mbH, Hamburg (Germany).

Website: E-mail: .

Horn, Norbert Professor em. of German and international banking and business law; Director em., Institute of Banking Law, University of Cologne (Germany); Director, ADIC Arbitration Documen-tation and Information Center, Kln (Germany); independent arbitrator and legal counsel.

E-mail: .

xxiv Arbitration in Germany

Huber, PeterProfessor, Johannes Gutenberg University, Mainz (Germany).

Website: E-mail: .

Kahlert, HeinerRechtsanwalt, Dr. iur., Martens Rechtsanwlte, Munich (Germany).

Website: E-mail:.

Karstaedt, RainerFormer Professor of International Commercial Law, Leuphana University, Lueneburg (Germany); Independent Arbitrator, Fellow of the Chartered Institute of Arbitrators, Chartered Arbitrator, GAFTA.

E-mail: .

Kraft, PeterRechtsanwalt, E.ON SE, Center of Competence Legal General Civil and Construction Law, Essen (Germany).

Website: E-mail:.

Krapfl, Claudia Rechtsanwltin, Dr. iur., Gleiss Lutz, Stuttgart (Germany).

Website: E-mail: .

Kreindler, RichardAttorney at Law (New York) and Avocat (Paris); Dr. iur., Partner with Cleary Gottlieb Steen & Hamilton LLP, Frankfurt am Main (Germany); Honorary Professor, University of Mnster (Germany).

Website: E-mail: .

Khner, DetlevRechtsanwalt/Avocat au Barreau de Paris, Partner BMH Avocats, Paris (France); former Counsel at the ICC International Court of Arbitration.

Website: E-mail: .

Contributing Authors xxv

Labes, HubertusRechtsanwalt, Dr. iur, Chairman of the Board, Hamburger Internationale Rckversicherung AG in Rellingen (Germany); Member of the Advisory Board of August-Maria-Berges-Stiftung-fr-Arbitrales-Recht.

Website: E-mail: .

Lange, SvenAss. iur. with Norton Rose Fulbright LLP in Frankfurt am Main (Germany).

Website E-mail .

Lrcher, TorstenRechtsanwalt, Dr. iur., Partner with CMS Hasche Sigle, Cologne (Germany); head of the CMS Dispute Resolution Practice Group.

Website: E-mail: .

Mazza, Francesca Dr.iur., Secretary General, German Institution of Arbitration (DIS), Berlin/Cologne (Ger-many); Editor-in-chief of SchiedsVZ/German Arbitration Journal (2015)

Website: E-mail: .

Mulder, Isabel Rechtsanwltin, Kln (Germany).

Quinke, DavidRechtsanwalt, Dr. iur., LL.M., Partner with Gleiss Lutz, Dsseldorf (Germany); Member of DIS-Advisory Board.

Website: E-mail: .

Risse, JrgRechtsanwalt, Dr. iur., LL.M. (Berkeley), Professor at the University of Mannheim (Ger-many), Partner with Baker & McKenzie, Frankfurt am Main (Germany); Editor-in-chief of SchiedsVZ/German Arbitration Journal;

Website: E-mail: .

xxvi Arbitration in Germany

Rtzel, StefanRechtsanwalt, Dr. iur., LL.M., Partner with Gleiss Lutz, Frankfurt am Main (Germany).

Website: E-mail: .

Sachs, KlausRechtsanwalt, Prof. Dr. iur., Partner with CMS Hasche Sigle, Mnchen (Germany); Vice-President ICC Court; Vice-President LCIA; Member of DIS-Board of Directors and of ASA Board; honorary professor at Ludwig Maximilians University Munich.

Website: E-mail: .

Schfer, ErikRechtsanwalt, COHAUSZ & FLORACK Partnerschaftsgesellschaft, Dsseldorf (Ger-many), acts as counsel and arbitrator; member of DIS, ASA, CEA, GRUR, LES, ICC Commission on ADR; Chairman Task Force IT & Arbitration; Co-Chair Task Force ICC Expertise Proceedings (ICC).

Website: E-mail: .

Schfer, Jan K.Rechtsanwalt, LL.M. (National University of Singapore), Partner with King & Spalding LLP, Practice Group International Arbitration, Frankfurt am Main (Germany).

Website: E-mail: ,

Schlabrendorff, Fabian vonRechtsanwalt, Dr. iur., Clifford Chance, Frankfurt am Main (Germany); Member of DIS-Advisory Board.

Website: E-mail: .

Schmaltz, BettinaRechtsanwltin, Dr. iur., Practice Group Dispute Resolution, Freshfields Bruckhaus Der-inger LLP, Frankfurt am Main (Germany).

Website: E-mail: .

Contributing Authors xxvii

Schmidt, JohannesRechtsanwalt, Dr. iur., Associate with Cleary Gottlieb Stehen & Hamilton LLP, Frankfurt am Main (Germany).

Website: E-mail: .

Schroeder, Hans-PatrickRechtsanwalt, Dr. iur., MLE, Solicitor England and Wales, Certified Mediator (CVM), Partner with Freshfields Bruckhaus Deringer, Practice Group Dispute Resolution, Ham-burg (Germany).

Website: E-mail: .

Sessler, Anke Rechtsanwaltin, Dr. iur. Partner with Skadden, Arps, Slate, Meagher & Flom LLP in Frankfurt am Main (Germany); Member of ICC Arbitration Commission, Member of DIS-Board of Directors, ASA Board, AAA Board of Directors and ICCA Board.

Website: E-mail:.

Stein, MaxRechtsanwalt, Associate with Norton Rose Fulbright LLP, Frankfurt am Main (Germany).

Website E-mail .

Trittmann, RolfRechtsanwalt, Prof. Dr.iur.; LL.M. (Berkeley), Partner with Freshfields Bruckhaus Deringer, Practice Group Dispute Resolution, Frankfurt am Main (Germany).

Website: E-mail: .

Wagner, GerhardProfessor, Humboldt University at Berlin (Germany), Chair in Private Law, Commercial Law and Law & Economics; Member of DIS-Board of Directors.

Website: E-mail: .

Weissenborn, ChristophDr. iur., Partner von HFK Rechtsanwlte LLP, Munich (Germany),

Website E-mail: .

xxviii Arbitration in Germany

Wilske, StephanRechtsanwalt and Attorney-at-Law (New York), Dr. iur., Matre en Droit, LL.M. (The Uni-versity of Chicago), FCIArb Partner with Gleiss Lutz, Stuttgart (Germany).

Website: E-mail: .

Wimalasena, PhilipRechtsanwalt, Associate with Freshfields Bruckhaus Deringer LLP, Frankfurt (Germany).

Website: E-mail: .

Wlper, JanRechtsanwalt, CMS Hasche Sigle, Hamburg (Germany); Chairman, German Maritime Arbitration Association (GMAA).

Website: E-mail: .

Wortmann, WiebkeRechtsanwltin, Freshfields Bruckhaus Deringer, Practice Group Dispute Resolution, Hamburg (Germany).

Website: E-mail: .

List of Abbreviations

AAA American Arbitration Association ADIC Arbitration Documentation and Information Center e.V. ADR Alternative Dispute Resolution AG Amtsgericht (Local Court) AG Aktiengesellschaft (Stock Corporation) AG Die Aktiengesellschaft ( Journal) AGA Auslandsgeschftsabsicherung der Bundesrepublik Deutschland

(Foreign Trade and Investment Promotion Scheme) AGB Allgemeine Geschftsbedingungen (Standard Terms and

Conditions) AHB Allgemeine Bedingungen fr die Haftpflichtversicherung (General

Standard Insurance Terms for Liability Insurance) AIDA Association Internationale de Droit des Assurances AJIL American Journal of International Law AktG Aktiengesetz (German Stock Corporation Act) Am. Rev. Intl Arb. American Review of International Arbitration Am. U. Intl L. Rev. American University International Law Review xxviii Ann. Rev. Banking L. Annual Review of Banking LawAnwBl. AnwaltsblattAO Abgabenordnung (German Tax Code)ARB Allgemeine Bedingungen fr die Rechtsschutzversicherung

(General Conditions for Legal Costs Insurance)Arb.Int. Arbitration InternationalArbGG Arbeitsgerichtsgesetz (Act governing the Employment Courts)ARGE Baurecht Arebeitsgemeinschaft Bau- und Schiedsordnung fr Baustretigkeiten

(Conciliation and Arbitration Code for Construction Disputes)ARIAS AIDA Reinsurance and Insurance Arbitration SocietyArt. ArticleASA Swiss Arbitration AssociationASA Bulletin The Bulletin of the Swiss Arbitration AssociationAWD AuenwirtschaftsdienstB2B Business to BusinessB2C Business to Consumer

xxx Arbitration in Germany

BaFin Bundesanstalt fr Finanzdienstleistungsaufsicht (German Federal Financial Services Supervisory Authority)

BAG Bundesarbeitsgericht (Federal Labour Court)BAnz. Bundesanzeiger (German Federal Gazette)BauR BaurechtBauRB Der Bau-RechtsberaterBayObLG Bayerisches Oberstes Landesgericht (Bavarian Highest Regional

Court)BayObLGZ Entscheidungen des Bayerischen Obersten Landesgerichts in

ZivilsachenBB BetriebsberaterBBG Bundesbeamtengesetz (Act on Federal Civil Servants) BDI Bundesverband der Deutschen Industrie (Federation of German

Industries)BGB Brgerliches Gesetzbuch (Civil Code)BGBl. Bundesgesetzblatt (Federal Law Gazette) BGH Bundesgerichtshof (Federal Court of Justice) BGHZ Entscheidungen des Bundesgerichtshofs in Zivilsachen BIMCO Baltic and International Maritime Conference BIT Bilateral Investment Treaty BKR Zeitschrift fr Bank und Kapitalmarktrecht BLI Business Law International BrsG Brsengesetz (Stock Exchange Act) BOT Build Operate Transfer BPatG Bundespatentgericht (German Federal Patent Court) BRAGO Bundesrechtsanwaltsgebhrenordnung (Federal Statute Regulating

Attorneys Fees) BRAK-Mitt. Bundesrechtsanwaltskammer Mitteilungen BRRG Beamtenrechtsrahmengesetz BSG Bundessozialgericht BT-Drs. Bundestags-Drucksache BTR Der Bautrger BuB Baurecht und Baupraxis BVerfG Bundesverfassungsgericht (German Constitutional Court) BVerfGE Entscheidungen des Bundesverfassungsgerichts (Decisions of the

German Constitutional Court) BWNotZ Zeitschrift fr das Notariat in Baden-Wrttemberg CAFTA Central American Free Trade Agreement

List of Abbreviations xxxi

CAS/TAS Court of Arbitration for Sport CDREG Community Designs Regulation Chap. Chapter CIF Cost, Insurance, Freight (Incoterms) CISG United Nations Convention on Contracts for the International Sale

of Goods CJEU Court of Justice of the European UnionCLOUT Case Law on UNCITRAL Texts CMR Convention on the Contract for the International Carriage of Goods

by Road (Convention Relative au Contrat de Transport Inter-national de Marchandises par Route)

CTMR Community Trademark Regulation DABs Dispute Adjudication Boards DAS Deutscher Ausschuss fr Schiedsgerichtswesen DAV Deutscher Anwaltverein (German Lawyers Association) DAX Deutscher Aktien Index (German Stock Market Index) DB Der Betrieb DIHK Deutscher Industrie- und Handelskammertag (German Association

of Chambers of Industry and Commerce)DIS Deutsche Institution fr Schiedsgerichtsbarkeit (German Institution

of Arbitration) DIS-SchO DIS Arbitration RulesDIS-SRCOLD DIS Supplementary Rules for Corporate Law DisputesDNotZ Deutsche Notar-Zeitschrift DOCDEX ICC Rules for Documentary Credit Dispute Resolution Expertise DPMA Deutsches Patent- und Markenamt (Federal Patent and Trademark

Office) DRBs Dispute Resolution Boards DRiG Deutsches Richtergesetz (German Law on Judges) DRiZ Deutsche Richterzeitung DZWiR Deutsche Zeitschrift fr Wirtschaftsrecht e.g. exempli gratia EBOLR European Business Organization Law Review EC European Community ECC European Commodity ClearingECC European Contract for Coffee ECF European Coffee Federation ECHR European Convention on Human Rights

xxxii Arbitration in Germany

ECJ European Court of Justice ECSC European Contract for Spot Coffee ECT Energy Charter Treaty ECtHR European Court of Human RightsEDCC European Delivery Contract for Coffee EEG Erneuerbare-Energien-Gesetz (Renewable Energy Sources Act)EEIG European Economic Interest Groupings (Europische Wirtschafts-

vereinigung (EWiV)) EEX European Energy ExchangeEFCACC European Free Carrier Contract for CoffeeEFET European Federation of Energy TradersEGBGB Einfhrungsgesetz zum Brgerlichen Gesetzbuch (Introductory

Law to the German Civil Code)EGStGB Einfhrungsgesetz zum Strafgesetzbuch (Introductory Law to the

Criminal Code)EJIL European Journal of International LawELJ European Law JournalEnWG Energiewirtschaftsgesetz (Energy Industry Act)EPC Convention on the Grant of European PatentsEPC Engineering, Proceurement and ConstructionEStG Einkommenssteuergesetz (Income Tax Law)EU European UnionEuGVO Council regulation No. 44/2001 of December 22, 2000, on jurisdic-

tion and the recognition and enforcement of judgements in civil and commercial matters

EUR EuroEur. Rev. Priv. Law European Review of Private LawEuZW Europische Zeitschrift fr WirtschaftsrechtEVU Energieversorgungsunternehmen (energy utilities)EWiR Entscheidungen zum WirtschaftsrechtEWiV Europische Wirtschaftsvereinigung (European Economic Interest

Grouping (EEIG))EWiVAG Gesetz zur Ausfhrung der EWG-Verordnung ber die Europische

wirtschaftliche Interessenvereinigung (Act for the Implementation of the EU Regulation applying to the European Economic Interest Association)

FamFG Gesetz ber das Verfahren in Familiensachen und in den Angelegen-heiten der freiwilligen Gerichstbarkeit (Family Matter Proceedings and Non-Contentious Proceedings Act)

List of Abbreviations xxxiii

FamRZ Zeitschrift fr das gesamte FamilienrechtFCA Free Carrier (Incoterms)FCPA Foreign Corrupt Practices ActFEED front end engineering designFET fair and equitable treatmentFGG Gesetz ber die freiwillige Gerichtsbarkeit (Act on Matters Subject

to Voluntary Jurisdiction)FIAC Frankfurt International Arbitration CenterFOB Free On Board (Incoterms)FWB Frankfurter Wertpapierbrse (Frankfurt Stock Exchange)GAFTA Grain and Feed Trade AssociationGasNZV Gasnetzzugangsverordnung (Gas Grid Access Regulation)GATS General Agreement on Trade in ServicesGbmG Gebrauchsmustergesetz (German Act on Utility Models)GbR Gesellschaft brgerlichen Rechts (civil code company) GDV Gesamtverband der Deutschen Versicherungswirtschaft (German

Insurance Association)GenG Genossenschaftsgesetz (Act on Cooperative Societies) GeschmMG Gesetz ber den rechtlichen Schutz von Mustern und Modellen

(Geschmacksmustergesetz) (German Act on Registered Designs) GG Grundgesetz (German Constitution)GKG Gerichtskostengesetz (Court Fees Act)GMAA German Maritime Arbitration Association GmbH Gesellschaft mit beschrnkter Haftung (Limited Liability Company)GmbHG Gesetz betreffend die Gesellschaft mit beschrnkter Haftung (Act

on Limited Liability Companies)GmbHR GmbH RundschauGrofor German Wholesalers Federation for Oil, Fat and Oil Raw MaterialsGRUR Gewerblicher Rechtsschutz und UrheberrechtGRURInt Gewerblicher Rechtsschutz und Urheberrecht / Internationaler TeilGVG Gerichtsverfassungsgesetz (Act on the Constitution of the Courts)GVGA Geschftsanweisung fr Gerichtsvollzieher (Rules for Bailiffs)GWB Gesetz gegen Wettbewerbsbeschrnkungen (Antitrust Act)GWG Geldwschegesetz (Money Laundering Act)HalbleiterschutzG Gesetz ber den Schutz von Topographien (German Act on the

Protection of Semiconductor Designs)Harv. L. Rev. Harvard Law Review

xxxiv Arbitration in Germany

HGB Handelsgesetzbuch (Commercial Code) i.e. id estIBA International Bar Associationibid. ibidemIBR Immobilien- und BaurechtICC International Chamber of CommerceICC ICArb. Bull. International Chamber of Commerce International Court of

Arbitration BulletinIPR German Private International LawITLOS International Tribunal for the Law of the SeaKostO Kostenordnung (Cost Register)KTS Zeitschrift fr Konkurs-, Treuhand- und SchiedsgerichtswesenKV KostenverzeichnissesLCIA London Court of International ArbitrationLG Landgericht (Regional Court)LIRMA London International Insurance and Reinsurance Market Associa-

tionM&A Merger & AcquisitionMarkenG Markengesetz (German Trademark Act) MDR Monatsschrift fr deutsches RechtMealeys I.A.R. Mealeys International Arbitration ReportMedArb Mediation ArbitrationMedG Mediationgesetz (2012 Mediation Act)MFN most-favoured-nationML Model Law (UNCITRAL Model Law on International Commercial

Arbitration)MMR Multimedia und RechtMVM Magyar Villamos Mvek ZrtN.Y.U. Envtl. L. J. New York University Environmental Law JournalNAFTA North American Free Trade AgreementNJW Neue Juristische WochenschriftNJW-RR Neue Juristische Wochenschrift RechtsprechungsreportNo. NumberNotBZ Zeitschrift fr die notarielle Beratungs- und BeurkundungspraxisNYC New York Convention (Convention on the Recognition and

Enforcement of Foreign Arbitral Awards) NZBau Neue Zeitschrift fr Baurecht und Vergaberecht

List of Abbreviations xxxv

NZG Neue Zeitschrift fr GesellschaftsrechtNZV Neue Zeitschrift fr VerkehrsrechtOECD Organisation for Economic Cooperation and DevelopmentOGH Oberster Gerichtshof (Austria) oHG Offene Handelsgesellschaft (General Commercial Partnership) OHIM Office for the Harmonization in the Internal Market Trade Marks

and Designs OLG Oberlandesgericht (Higher Regional Court) OLG-NL OLG-Rechtsprechung Neue Lnder OLGR OLG-Rechtsprechung OTC Over-the-CounterVVG sterreichisches Versicherungsvertragsgesetz p. / pp. page/pages para. / paras paragraph/paragraphs PatG Patentgesetz (German Patent Act) PCA Permanent Court of Arbitration PCT Patent Cooperation Treaty PPA Power Purchase AgreementPSC Product sharing contractsRAA Reinsurance Association of America Rev.Arb. Revue de lArbitrage RG Reichsgericht RIW Recht der internationalen Wirtschaft RKS Rechtsprechung kaufmnnischer Schiedsgerichte (formerly

Handelsrechtliche Schiedsgerichtspraxis) RNotZ Rheinische Notar-Zeitschrift ROA Reinsurance Offices Association Rpfleger Rechtspfeger RPS Recht und Praxis der Schiedsgerichtsbarkeit RVG Rechtsanwaltsvergtungsgesetz (Lawyers Fees Act) s. section SCC Arbitration Institute of the Stockholm Chamber of Commerce SchiedsO Schiedsordnung SchiedsVfG Gesetz zur Neuregelung des Schiedsverfahrensrechts (Arbitration

Law Reform Act) SchiedsVZ Zeitschrift fr Schiedsverfahren SchlHA Schleswig-Holsteinische Anzeigen

xxxvi Arbitration in Germany

Schufa Schutzgemeinschaft fr allgemeine Kreditsicherung SE Societas Europea SGO Bau Schiedsgerichtsordnung fr das Bauwesen, einschlielich Anlagen-

bau (Arbitration Code for Construction, including Plant Engineer-ing)

SIAR Stockholm International Arbitration Review SignG Signaturgesetz (German Signature Act) SL Bau Dispute Resolution Rules for the Construction Industry SOBau Schlichtungs- und Schiedsordnung fr Baustreitigkeiten (Concilia-

tion and Arbitration Code for Construction Disputes) SortSchG Sortenschutzgesetz (German Act on the Protection of Plant Variants

and Seeds) StGB Strafgesetzbuch (Criminal Code) Swiss PIL Swiss Private International Law TFEU Treaty on the Functioning of the European UnionTranspR Transportrecht TRIM Agreement on Trade Related Investment Measures TRIPS Agreement on Trade-Related Aspects of Intellectual Property Rights UG Unternehmergesellschaft (entrepreneurial company)UK United Kingdom UN United Nations UNCITRAL United Nations Commission on International Trade Law UNCLOS United Nations Convention on the Law of the SeaUNCTAD United Nations Conference on Trade and DevelopmentURDG ICC Uniform Rules for Demand Guarantees UrhG Urheberrechtsgesetz (German Copyright Act) US United States USA United States of America U.S.C. United States Code UWG Gesetz gegen den unlauteren Wettbewerb (German Unfair Trade

Practices Act) VAG Versicherungsaufsichtsgesetz (Insurance Supervisory Law) VAT Value Added Tax VCLT Vienna Convention on the Law of TreatiesVersR Versicherungsrecht VG Verwaltungsgericht (Administrative Court)VIAC Vienna International Arbitration Center

List of Abbreviations xxxvii

VO Verfahrensordnung (Rules of Procedure)Vol. Volume VV Vergtungsverzeichnis (Cost Schedule) VVG Versicherungsvertragsgesetz (Insurance Contract Law) VW Versicherungswirtschaft VwGO Verwaltungsgerichtsordnung (Rules of the Administrative Court)VwVfG Verwaltungsverfahrensgesetz (German Code of Administrative

Procedure) WIPO World Intellectual Property Organization WM Wertpapier-Mitteilungen WpHG Wertpapierhandelsgesetz (Securities Trading Act) WUB Entscheidungssammlung zum Wirtschafts- und Bankrecht WuW Wirtschaft und Wettbewerb Yearbook Yearbook of Commercial Arbitration YILJ Yearbook of International Law and Jurisprudence ZaVR Zeitschrift fr auslndisches ffentliches Recht und Vlkerrecht ZBB Zeitschrift fr Bankrecht und Bankwirtschaft ZEV Zeitschrift fr Erbrecht und Vermgensnachfolge ZfBR Zeitschrift fr deutsches und internationales Bau- und Vergaberecht Zf V Zeitschrift fr Versicherungswesen ZGR Zeitschrift fr Unternehmens- und Gesellschaftsrecht ZHR Zeitschrift fr das gesamte Handelsrecht und Wirtschaftsrecht ZInsO Zeitschrift fr das gesamte Insolvenzrecht ZKM Zeitschrift fr Konfliktmanagement ZPO Zivilprozessordnung (Code of Civil Procedure) ZSEG Gesetz ber die Entschdigung von Zeugen und Sachverstndigen

(Law on Compensation of Witnesses and Experts)ZVG Gesetz ber die Zwangsversteigerung und Zwangsverwaltung (Law

on Compulsory Sale and Administration) ZVglRWiss Zeitschrift fr vergleichende Rechtswissenschaft ZZP Zeitschrift fr Zivilprozess ZZPInt Zeitschrift fr Zivilprozess international

PART I

GERMANY AS A PLACE FOR INTERNATIONAL AND DOMESTIC ARBITRATIONS

GENERAL OVERVIEW

General Overview*

Karl-Heinz Bckstiegel / Stefan Krll / Patricia Nacimiento

Short Bibliography: See general bibliography.

Para.I. Arbitration in Germany: Past and Present . 1

A. The History of Arbitration and the Road to the New Law . . . . . . . . . . . . . . . . 1

B. The Present Practice of Arbitration . . . 5C. Information about Arbitration in

Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8II. The Legal Framework of Arbitration in

Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11A. The German Arbitration Law . . . . . . . . 11

1. The 10th Book of the ZPO . . . . . . . 122. Transitional Provisions and Old

Arbitration Law . . . . . . . . . . . . . . . . . . 15B. Other Relevant National Provisions . 16C. International Arbitration Conven-

tions to which Germany is a Party. . . . 181. The New York Convention

on the Recognition and Enforcement of Foreign Arbitral Awards 1958 . . . . . . . . . . . . . . . . . . . . . 19

2. The European Convention on Inter-national Commercial Arbitration. . . . . . . . . . . . . . . . . . . . . . . 20

3. The Washington Convention on the Settlement of Investment Disputes between States and Nationals of other States . . . . . . . . . . 21

4. Energy Charter Treaty . . . . . . . . . . . 235. Bilateral Commerce, Friendship

and Investment Protection Treaties . . . . . . . . . . . . . . . . . . . . . . . . . . 24

III. The Arbitration Infrastructure . . . . . . . . . . . 26A. Institutional Arbitration ad hoc

Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . 261. Leading Institutions . . . . . . . . . . . . . . 262. Ad hoc Arbitration in Germany . . . 31

B. German State Courts . . . . . . . . . . . . . . . . 32IV. Characteristic Features of German

Arbitration Law. . . . . . . . . . . . . . . . . . . . . . . . . 34A. Territoriality . . . . . . . . . . . . . . . . . . . . . . . . 35B. Party Autonomy with Few Limits . . . . 36

Para.1. General Principles . . . . . . . . . . . . . . . 362. Arbitrability . . . . . . . . . . . . . . . . . . . . . 373. Conduct of Proceedings . . . . . . . . . . 39

C. Wide Discretion of the Tribunal in the Conduct of the Proceedings . . . . . 40

D. Limited Court Intervention and Swift Court Proceedings . . . . . . . . . . . . 41

E. Jurisdiction and Early Determina-tion of Tribunals Jurisdiction by the Courts . . . . . . . . . . . . . . . . . . . . . . . . . . 43

F. Prevention of Delay and Obstruc-tive Behaviour . . . . . . . . . . . . . . . . . . . . . . 44

G. Promotion of Amicable Solutions. . . . 45V. The Arbitration Agreement . . . . . . . . . . . . . 47

A. Legal Nature and Necessary Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

B. Separability . . . . . . . . . . . . . . . . . . . . . . . . . 49C. Form Requirements . . . . . . . . . . . . . . . . . 50

1. Form Requirements of 1031 ZPO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

2. Agreements Providing for Arbitration Abroad . . . . . . . . . . . . . . . 56

D. Parties to the Agreement . . . . . . . . . . . . 571. No Restriction as to Parties

State Parties . . . . . . . . . . . . . . . . . . . . . . 572. Non-signatory Parties . . . . . . . . . . . . 60

E. Effects of the Agreement . . . . . . . . . . . . 631. Jurisdictional and Contractual

Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . 632. The Interpretation of the

Arbitration Agreement and the Admissibility of Summary Court Proceedings . . . . . . . . . . . . . . . 65

3. Summary Proceedings for Recovery of Debt (Mahnverfahren) . . . . . . . . . . . . . . . . . 68

VI. The Arbitral Tribunal . . . . . . . . . . . . . . . . . . . 69A. Appointment of Arbitrators . . . . . . . . . 70B. Challenge and Dismissal of

Arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . 74

* This parts draws on the Country Report Germany in the ICCA International Handbook on Commer-cial Arbitration, Deventer 2013.

4 Arbitration in Germany

Para.C. The Arbitrators Contract . . . . . . . . . . . . 78

VII. The Arbitral Procedure . . . . . . . . . . . . . . . . . . 86A. General Principles . . . . . . . . . . . . . . . . . . 86B. Commencement and Conduct . . . . . . 89C. Security for Costs . . . . . . . . . . . . . . . . . . . 92D. Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93E. Record of Oral Hearing . . . . . . . . . . . . . 99F. Default Proceedings . . . . . . . . . . . . . . . .100G. Representation and Legal

Assistance . . . . . . . . . . . . . . . . . . . . . . . . .101VIII. Interim Relief and Interim Measures of

Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102IX. The Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106

A. Types of Awards . . . . . . . . . . . . . . . . . . .107B. Making of the Award . . . . . . . . . . . . . . .109C. Form and Delivery of the Award . . . .110 D. The Law Applicable to the

Decision on the Merits . . . . . . . . . . . . .112E. The Decision on Costs . . . . . . . . . . . . .116F. Correction and Interpretation of

the Award and Additional Awards . .118X. German State Courts and Arbitration . .120

A. General Principles . . . . . . . . . . . . . . . . .120B. Supervisory Function of the Courts 123C. Supportive Functions of the Courts .124

Para.D. Autonomous Procedure for the

Taking of Evidence (selbststndiges Beweisverfahren) . . . . . . . . . . . . . . . . . . .129

XI. Recourse against Awards . . . . . . . . . . . . . . .130A. General Principles . . . . . . . . . . . . . . . . .130B. The Setting Aside Proceedings

Pursuant to 1059 ZPO . . . . . . . . . . .1341. General Principles . . . . . . . . . . . . . .1342. Grounds for Setting Aside . . . . . . .1363. Procedure . . . . . . . . . . . . . . . . . . . . . .1424. Other Means of Recourse . . . . . . .144

XII. Recognition and Enforcement of Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146A. General Principles . . . . . . . . . . . . . . . . .146B. Domestic Awards . . . . . . . . . . . . . . . . . .148C. Foreign Awards . . . . . . . . . . . . . . . . . . . .149

1. Enforcement under International Instruments . . . . . . .150

2. Enforcement under the National Regime for Recognition and Enforcement . . . . . . . . . . . . . . . . . . . .152

3. Grounds to Refuse Enforcement . . . . . . . . . . . . . . . . . . . .155

XIII. Multi-Party Arbitrations . . . . . . . . . . . . . . .159XIV. Insolvency of a Party . . . . . . . . . . . . . . . . . . .162

I. Arbitration in Germany: Past and Present1

A. The History of Arbitration and the Road to the New LawArbitration has a long tradition in Germany. As in many other legal systems, the state court system actually developed from ad hoc tribunals based on consent.2 But also after state courts with compulsory jurisdiction had been established, arbitral tribunals based on an agreement between the parties were widely considered to be a useful supplement, particularly in com-mercial matters.3 In light of this, the first codification of arbitration law on a federal level in the 10th Book of the Code of Civil Procedure (Zivilprozessordnung ZPO) (1025 et seq. ZPO) in 1879 adopted a very favourable approach to arbitration. The fairly liberal law, consisting of 24 sec-tions only, was to a large extent already based on the same principles which today underlie the UNCITRAL Model Law on International Commercial Arbitration (ML) party autonomy and limited court intervention. Arbitration agreements, whether concluded before or after the disputes had arisen, were enforced as a matter of course and led to the exclusion of the jurisdiction of the state courts.4 Awards were given the same effect between the parties as

1 Cases without further citations are available for free on the DIS Database, .2 Krause, Die geschichtliche Entwicklung des Schiedsgerichtswesens in Deutschland, Berlin 1930, p.3.3 Krause, Entwicklungslinien des deutschen Schiedsgerichtswesens, in: Nubaum (ed.), Internationales

Jahrbuch fr Schiedsgerichtswesen, Vol. III, Berlin 1931, pp.220 (234 et seq.).4 1027a ZPO pre-1998; Schtze/Tschernig/Wais (1990), paras128 et seq.

1

2

General Overview Bckstiegel/Krll/Nacimiento 5

judgments of the state courts5 and were enforced unless one of the few grounds to resist en-forcement could be proven.6 There was no scrutiny of awards on the merits and considerable freedom was given to the parties in organizing their proceedings. While these principles are widely recognized today, at the time when the law entered into force this favourable attitude to arbitration was in stark contrast to the scepticism with which arbitration was treated in other legal systems. With some minor amendments, particularly concerning the recognition and enforcement of foreign awards, the law remained in force and largely unchanged until 1 January 1998, when the new German arbitration law came into force. Efforts to modernize German arbitration law had started shortly after the adoption of the UNCITRAL Model Law by the General Assembly of the United Nations in December 1985. It was a widely held belief that the incomplete and sometimes outdated provisions of the old arbitration law, irrespective of their arbitration friendliness, considerably diminished the attractiveness of Germany as a place for international arbitrations. It was impossible to be certain of German arbitration law from the text of the statute and some of the default provisions contained in the law, such as the appointment of two-member tribunals, were no longer in line with arbitration practice. The revision was intended to make German arbitration law more user-friendly and to bring it in line with international practice. To these ends, a comprehensive and easily understand-able arbitration law was to be devised. A primary objective was to allow potential users to derive the conduct of arbitral proceedings including the arbitration-related court pro-ceedings from the wording of the statute. Furthermore, to make the law easily accessible for foreign users, the drafters decided to mirror as closely as possible the wording of the Model Law. Consequently, the 41 sections of the new German arbitration law contained in the 10th Book of the Code of Civil Procedure (10251066 ZPO) are to a large extent a verbatim adoption of the Model Law. The new law was accompanied by a detailed explana-tory note which describes the rationale underlying each article7 and is a valuable tool for interpreting the law.

B. The Present Practice of ArbitrationToday, arbitration is widely used in most areas of business and commerce. The entry into force of the new German Arbitration Law and a number of high profile cases well reported in the general media have increased the awareness of arbitration as a dispute resolution mechanism beyond the regular users. Numerous standard form contracts suggested by industry organizations or the major form books for contract drafting now contain arbitration clauses.8 Unfortunately, there is only limited empirical data available, as a large proportion of arbitrations particularly domestic arbitrations are still conducted on an ad hoc basis

5 1040 ZPO pre-1998; Schtze/Tschernig/Wais (1990), para.526 seq.6 1041 (1) ZPO pre-1998; Schtze/Tschernig/Wais (1990), paras530 et seq.7 Bill of the Arbitration Law Reform Act, BT-Drs. 13/5274.8 Kreuzer, in: Langenfeld (ed.), Mnchener Vertragshandbuch, Vol. 6, 6th edn, Mnchen 2010, chapter

VIII (Wohnungseigentum) no. 1 para. 36; Nieder/Otto in: Langenfeld (ed.), Mnchener Vertrags-handbuch, Vol. 6, 6th edn, Mnchen 2010, chapter XVI (Testamente, Erbvertrge) no. 27 para. 36; Roquette/Otto, Vertragsbuch Privates Baurecht, 2nd edn, Mnchen 2011, chapter D II paras 12, 22, 43; Hoffmann-Becking/Rawert, Becksches Formularbuch Brgerliches, Handels- und Wirtschaftsrecht, 11th edn, Mnchen 2011, chapter XII (Schiedsverfahren und Alternative Streitbeilegung) no. 1, 2, 5.

3

4

5


with awards being rarely published. From the available data,9 some general inferences can be drawn. First, it is evident that there is a much stronger incentive to resort to arbitration in international cases than in purely national transactions. For the latter, the relatively effi-cient German judicial system with its specialized commercial chambers in general provides comparatively expeditious and competent dispute resolution. However, there appears to be a direct correlation between the complexity of the dispute and the incentive to go to arbitra-tion. Furthermore, there are some areas (e.g. such as shipping, M&A and to a certain degree construction) where arbitration is the norm, while the finance and banking sector tend to resort less often to arbitration. The figures of the leading non-specialized German arbitration institution, the German Institution of Arbitration (Deutsche Institution fr Schiedsgerichtsbar-keit DIS), also show a steady increase in the number of cases. From its creation in 1992 from two already existing institutions, the number of cases initiated per year with the DIS has increased from only 20 in 1992, to 125 cases in 2012, with a total value of approximately EUR 939 million.10

The growing importance of arbitration is also reflected in the increase in arbitration-related literature and events, which have to a certain extent been fuelled by the new German arbitra-tion law.The case law of recent years11 shows the clear tendency of the German state courts to respect and enforce the choice of the parties to opt out of the judicial system in favour of arbitration. The decisions of the state courts reflect the readiness to support arbitral tribunals and their findings. State court intervention has been mainly supportive, thus restricting the scope of judicial control. The range of disputes subject to arbitration has also grown considerably to encompass numerous fields of law previously excluded from arbitration. It is for example now beyond doubt that provided the arbitral proceedings are structured accordingly all types of corporate law disputes may be submitted to arbitration.12

9 Surveys conducted by Price Waterhouse Coopers/Queen Mary, University of London, School of Inter-national Arbitration, Corporate Choices in International Arbitration Industry Perspectives, London (2013); Queen Mary, University of London, School of International Arbitration, 2010 International Ar-bitration Survey: Choices in International Arbitration; Price Waterhouse Coopers/Europa-Universitt Viadrina Frankfurt (Oder), Commercial Dispute Resolution Konfliktbearbeitungsverfahren im Vergleich, Frankfurt 2005; Ebbing (2003), p.39; Hesse, Schiedsgerichtsbarkeit in der Investitionsgterin-dustrie eine empirische Untersuchung, in: Briner/Fortier/Berger/Bredow (eds), FS-Bckstiegel, 2001, p. 277; Schmidt-Diemitz, Internationale Schiedsgerichtsbarkeit eine empirische Untersuchung, DB 1999, 369; see further Hoffmann, Schiedsgerichte als Gewinner der Globalisierung?, SchiedsVZ 2010, 96.

10 In its record year 2011 the DIS had 178 new cases with a total aggregate amount in dispute of approxi-mately 3.946 million.

11 Annual or bi-annual summaries of arbitration-related case law are published in the NJW by Krll (2001, 1173; 2003, 791; 2005, 194; 2007, 743; 2009, 1183; 2011, 1265; 2013, 3135) and the SchiedsVZ (2004, 113; 2005, 139; 2006, 203; 2007, 145; 2008, 62; 2008, 112; 2009, 161; 2009, 217; 2010, 144; 2010; 213; 2011, 131; 2011, 210; 2012, 136; 2012; 201; 2013, 185; 2013, 289); for an evaluation of the juris-prudence on selected issues see Krll/Kraft, Ten Years of UNCITRAL Model Law in Germany, (2007) World Arbitration and Mediation Review 439 et seq.

12 See BGH 06.04.2009, NJW 2009, 1962 clarifying its former misleading jurisprudence; for a detailed account see the contributions by Haas, 1066 and Part IV, Duve/Wimalasena, Arbitration of Corporate Law Disputes in Germany.

6

7


C. Information about Arbitration in GermanyThere is an abundance of literature on arbitration in German. Most of it can be found in the online catalogue of the Arbitration Documentation and Information Center (ADIC),13 the specialized arbitration library created and maintained by the DIS.14 Regular reports on cur-rent developments and new decisions are published in the German Journal for Arbitration (Zeitschrift fr Schiedsverfahren SchiedsVZ), as well as other law journals.15 In addition, the DIS maintains an excellent and freely accessible database where the full text of nearly all arbitration-related German court decisions can be found. For the most impor-tant decisions, an English abstract, which can be freely accessed via the DIS website, also exists. Full English text translations of the most important German decisions can be found in the Yearbook of Commercial Arbitration. Furthermore, the International Arbitration Law Review publishes regularly annotated summaries of relevant German decisions in English and numerous case abstracts can be found in UNCITRALs freely accessible CLOUT da-tabase.16 Last but not least, the German jurisprudence is heavily reported in UNCITRALs Digest on the Model Law.17

Awards may be published only with the consent of both the arbitral tribunal and the par-ties involved. On the rare occasions awards are published, the names of those involved are usually deleted. Published awards or at least reports of awards can be found in the following publications: SchiedsVZ (from 2003 onwards); Recht und Praxis der Schiedsgerichtsbarkeit (RPS) by the Deutsche Institution fr

Schiedsgerichtsbarkeit (DIS), semi-annual supplement to the Betriebs-Berater (until 2001);

Handelsrechtliche Schiedsgerichts-Praxis (Collection of Awards and Judgments on Arbi-tration) by Straatmann/Ulmer (eds);18

Recht der Internationalen Wirtschaft (RIW); and Yearbook of Commercial Arbitration (Yearbook).

13 See .14 See .15 These are, in particular, the Neue Juristische Wochenschrift (NJW); Betriebs-Berater (BB); Interna-

tionales Handelsrecht International Commercial Law (IHR); Praxis des Internationalen Privat- und Verfahrensrechts (IPRax); Recht der Internationalen Wirtschaft (RIW); Zeitschrift fr den Zivilprozess (ZZP); Deutsche Zeitschrift fr Wirtschaftsrecht (DZWiR).

16 The abbreviation CLOUT stands for Case Law on UNCITRAL Texts, a system for collecting and disseminating information on court decisions and awards relating to the Conventions and Model Laws that have emanated from the work of the Commission; cf. http://www.uncitral.org/uncitral/en/case_law.html. Important CLOUT cases are available from the CISG-online.ch Website < http://www.globalsaleslaw.org/index.cfm?pageID=28 >.

17 Available at: http://www.uncitral.org/uncitral/en/case_law/digests/mal2012.html. 18 Continued online on the website of the Hamburg Chamber of Commerce at .

8

9

10


II. The Legal Framework of Arbitration in Germany

A. The German Arbitration Law The core of the German arbitration law is integrated in the German Code of Civil Procedure where it constitutes its 10th Book. It is supplemented by a few arbitration-specific provisions in other statutes relating primarily to the non-arbitrability of certain disputes. Furthermore, some of the other provisions of the ZPO may become applicable in arbitration-related court proceedings in support or in supervision of the arbitration.19 These sources of a purely na-tional background are supplemented by the provisions in international instruments such as the New York Convention 1958 or the numerous bilateral treaties to which Germany is a party and which often provide for dispute resolution by arbitration.20

1. The 10th Book of the ZPOThe current version of the 10th Book of the ZPO, which entered into force on 1January 1998, is to a large extent a literal adoption of the UNCITRAL Model Law in its original version. The few amendments made to the Model Law were considered necessary either to facilitate the application of the law, to provide even greater room for party autonomy or to take into account the established German arbitration practice. In particular, German arbitration law does not distinguish between national and international cases but provides a single regime for both types of arbitrations. The German legislature held the view that, in light of the few differences between national and international cases, a single regime for all arbitrations is justifiable. It avoids the sometimes difficult distinctions between national and international cases and thereby serves the needs of practice better than two different regimes. For the same reason, the limitation to commercial arbitration contained in the Model Law was also dropped so that the German law would apply to all types of arbitration. Thus, users of arbitration do not have to worry about the sometimes difficult and controversial definition of the term commercial, for which a footnote to Article 1 (1) ML attempts to provide some guidance.A second important amendment made to the Model Law concerns a considerable easing of the form requirements for the arbitration agreement in 1031 (2) ZPO. It allows for the so-called half written form, such as arbitration agreements in letters of confirmation. As a consequence of this change, as well as an addition of a provision regulating the enforcement of interim relief ( 1041 (2) ZPO), the German legislator saw no need to amend the Ger-man law to reflect the changes made to the Model Law in 2006. Other important additions to the Model Law concern a special procedure to determine the admissibility of arbitral proceedings (1032 (2) ZPO), additional supportive powers of the courts in relation to appointment (1025 (3) ZPO) and a provision dealing with awards on costs ( 1057). Furthermore, the expiration of the three-month time limit for the initiation of setting aside proceedings can also affect the availability of possible defences in proceedings for a declar-ation of enforceability (1060 (2) sentence 3 ZPO). The new German arbitration law applies to all arbitrations having their place of arbitration in Germany. The procedural theory followed by the old law has been abolished by the new arbitration law. It is, however, still possible to conduct proceedings under German arbitration

19 For details see below, Part II, Schrder/Wortmann, Introduction to 1062-1065 paras 4 et seq. 20 For the interpretation of the various provisions see Krll/Kraft, Ten Years of UNCITRAL Model Law in

Germany (2007) World Arbitration and Mediation Review 439 (444 et seq.).

11

12

13

14


law where the place of arbitration is in a different country. Furthermore, 1025 (2) ZPO lists a number of provisions which are also applicable when the place of arbitration is either not in Germany or has not yet been determined.

2. Transitional Provisions and Old Arbitration LawPursuant to the transitional provisions contained in the Bill of the Arbitration Law Reform Act, the revised version of the 10th Book of the ZPO applies to all arbitral proceedings or arbitration related court proceedings started after 1January 1998. Thus, given the lapse of time, the provisions of the old German arbitration law have largely lost their practical impor-tance. The only questions for which they are still of relevance are the conclusion and validity of the arbitration agreement. Arbitration agreements entered into before 1 January 1998 are still governed by the former German arbitration law. This is of particular importance given the differences in the form requirements between the old and the new law.21 The former law, inter alia, allowed commercial parties to validly conclude an arbitration clause without any form requirements.22

B. Other Relevant National Provisions In addition to 1025-1066 ZPO, other provisions of the ZPO may become applicable in the various supportive or supervisory court proceedings provided for in the 10th Book, as long as they do not conflict with the specific rules of the 10th Book.23 1026 ZPO merely states that courts may not intervene in matters governed by 10251061 ZPO except where so provided in the 10th Book, but does not exclude the application of other ZPO provisions in connection with the functions specifically entrusted to the courts. Furthermore, there are few provisions in other laws dealing with sector-specific restrictions of party autonomy. Generally, these have a consumer protection or public policy background and either exclude the arbitrability of certain disputes (e.g. 37h Securities Trading Act (Wertpapierhandelsgesetz WpHG)) for certain financial service contracts24 or limit the parties freedom in devising their own arbitration procedure (e.g. 307 Civil Code (Brger-liches Gesetzbuch BGB))25 for arbitration agreements contained in standard conditions.

C. International Arbitration Conventions to which Germany is a Party The above rules of national origin are supplemented by the provisions of various inter-national instruments to which Germany is a party. The most important of these are the New York Convention 1958 (NYC),26 the European Convention on International Commercial

21 See Part II, Trittmann/Hanefeld, 1031, especially para.5.22 Lachmann (2008), para.326; Bill of the Arbitration Law Reform Act, BT-Drs. 13/5274, p.39.23 BGH 27.03.2002, IHR 2003, 43 (provision on legal representation 80 et seq. ZPO); BayObLG

11.11.2004 (provisions on separation of costs 91 et seq. ZPO); for details see Part II, Schroeder/Wort-mann, Introduction to 1062-1065.

24 For details see Part IV, Horn, Arbitration of Banking and Finance Disputes in Germany, paras7 et seq.; cf. Quinke, Brsenschiedsvereinbarungen und prozessualer Anlegerschutz, Kln 2005.

25 See on the issue Hanefeld/Wittinghofer, Schiedsklauseln in Allgemeinen Geschftsbedingungen, SchiedsVZ 2005, 217; OLG Bremen 28.06.2006; cf. OLG Bremen 30.10.2008, NJOZ 2009, 1188 = MDR 2009, 465 (based on 879 (3) ABGB (Austrian Civil Code); for details see Part II, Trittmann/Hanefeld, 1029 para.16.

26 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, imple-menting legislation in BGBl. 1961 II, 121; withdrawal of the originally declared reservation under Art.I

15

16

17

18


Arbitration,27 the International Centre for Settlement of Investment Disputes (ICSID) Convention28 and the Energy Charter Treaty.29 In addition to these multilateral treaties, Germany has also concluded numerous bilateral commerce, friendship and investment pro-tection treaties that contain arbitration-related provisions. Due to their public international law character, these treaties prevail, in principle, over the national provisions, as also stated explicitly in 1064 (3) ZPO. However, most of these treaties contain an explicit opening for more favourable national provisions. Thus, their practical relevance is largely limited to the rare cases where the treaty contains more favourable provisions than the German law (e.g. restrictions of the grounds to refuse recognition and enforcement) or where the authority of the tribunal has to be based on provisions of the treaty. In principle, each treaty defines its own scope of application which may, however, be enlarged by virtue of the most favoured national treatment clause contained in another treaty.30

1. The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958

The New York Convention of 10 June 1958 provides for the recognition and enforcement of international arbitration agreements and foreign awards. In Germany, the Convention entered into force on 28 September 1961.31 While Germany never availed itself of the com-mercial matters reservation, it originally declared the reciprocity reservation in Article I (3) NYC. With the entry into force of the new German law, the reciprocity reservation was with-drawn with effect as of 1 September 1998.32 Pursuant to 1061 ZPO, the recognition and enforcement of foreign awards is now generally subject to the New York Convention 1958. Apart from questions of enforcement of foreign awards, the provisions of the Convention may also become relevant where a party challenges the jurisdiction of the German courts, relying on an arbitration agreement providing for arbitration outside Germany.

2. The European Convention on International Commercial ArbitrationThe European (Geneva) Convention on International Commercial Arbitration of 21 April 1961 was aimed at safeguarding international arbitration, notably in East-West commercial transactions, and in particular with regard to the interference of state courts.33 It entered into force on 7 January 1964 and was ratified by Germany on 25 January 1965.34 The practical importance of this convention was always rather limited and its importance diminished after the political changes in the Eastern European countries.35 In Germany, however, it may still be relevant for the recognition of awards which were set aside in their country of origin for

(3) NYC, BGBl. 1999 II, 7.27 European Convention on International Commercial Arbitration of 1961, implementing legislation in

BGBl. 1964 II, 425. 28 Convention on the Settlement of Investment Disputes Between States and Nationals of Other States of

1965, implementing legislation in BGBl. 1969 II, 369.29 Energy Charter Treaty, (1994) 33 ILM 360.30 OLG Dresden 31.01.2007 11 Sch 18/05, application of the European Convention to award between an

American and a Belorussian party.31 BGBl. 1961 II, 122.32 Bekanntmachung ber den Geltungsbereich des bereinkommens ber die Anerkennung und Voll-

streckung auslndischer Schiedssprche vom 03.12.1998, published in BB 1999, Beilage No. 4, p.3.33 Lionnet/Lionnet (2005), p.93; Stein/Jonas-Schlosser (2002), Anhang 1061 para.165.34 Baumbach/Lauterbach (2013), SchlAnh VI A 2; Lionnet/Lionnet (2005), p.93.35 Weigand-Weigand (2002), Germany, paras78 et seq.

19

20


local reasons pursuant to its Article IX.36 Furthermore, the Conventions Article IV provides a procedure to solve uncertainties as to the chosen institution in the case of pathological arbitration clauses.

3. The Washington Convention on the Settlement of Investment Disputes Between States and Nationals of Other States

The Washington Convention on the Settlement of Investment Disputes between States and Nationals of other States (ICSID Convention) was promoted by the World Bank in 1965 and created the International Centre for the Settlement of Investment Disputes (ICSID)37 for re-solving investment disputes between a state and national individuals or entities. The ICSID Convention entered into force in Germany on 18 May 1969. As a consequence, ICSID proceedings may be brought against Germany by foreign investors or by German investors against any other member state, provided that a valid submission to ICSID arbitration exists. As of July 2014, two ICSID proceedings have been brought against Germany, while German investors have initiated ICSID proceedings on several occasions.38 Since December 2005 parties have the opportunity, without the need for specific prior approval, to conduct ICSID proceedings at the Frankfurt International Arbitration Centre (FIAC) jointly established by the DIS and the Frankfurt Chamber of Industry and Com-merce. This is the result of a cooperation agreement under Article 63 of the ICSID Conven-tion concluded between the DIS and ICSID.

4. Energy Charter TreatyThe Energy Charter Treaty (ECT), currently composed of 52 members, was concluded in December 1994 and has been in force since April 1998.39 The treaty was entered into by countries from Western, Central and Eastern Europe, Japan and Australia.40 It aims to pro-vide a multilateral legal framework for continuous cross-border cooperation between the contracting states in the energy sector and is thus an instrument of investment protection within that field.41 It also provides for a mechanism of dispute resolution and grants direct

36 See Nienaber (2002), pp.32 et seq.; cf. OLG Dresden 31.01.2007 11 Sch 18/05.37 See < https://icsid.worldbank.org/ICSID/Index.jsp >.38 Vattenfall AB, Vattenfall Europe AG, Vattenfall Europe Generation AG v. Federal Republic of Germany

(ICSID Case No. ARB/09/6), on 17.04.2009 the acting Secretary-General registered a request for the institution of arbitration proceedings, on 11.03.2011 the Tribunal rendered its award embodying the parties settlement agreement, pursuant to ICSID Arbitration Rule 43(2); Vattenfall AB and others v. Federal Republic of Germany (ICSID Case No. ARB/12/12) was registered on 31.05.2012 (still pend-ing); see also Slovak Gas Holding BV, GDF International SAS and E.ON Ruhrgas International GmbH v. Slovak Republic (ICSID Case No. ARB/12/7); Utsch M.O.V.E.R.S. International GmbH, Erich Utsch Aktiengesellschaft, and Mr. Helmut Jungbluth v. Arab Republic of Egypt (ICSID Case No. ARB/13/37); Gelsenwasser AG v. Peoples Democratic Republic of Algeria (ICSID Case No. ARB/12/32); Fraport AG Frankfurt Airport Services Worldwide v. Republic of the Philippines (ICSID Case No. ARB/11/12).

39 BGBl. 1997 II, 4.40 See also Part IV, Escher/Nacimiento/Weissenborn/Lange, Investment Arbitration and the Participation of

State Parties in Germany, paras33 et seq.41 Detailed references in Wlde, Investment Arbitration Under the Energy Charter Treaty From Dispute

Settlement to Treaty Implementation, Arb.Int. 1996, 429; Turner, Investment Protection through Arbi-tration: The Dispute Resolution Provisions of the Energy Charter Treaty, (1998) Int.A.L.R. 166.

21

22

23


rights to non-state parties to initiate claims.42 Since the security of energy supply is one of Germanys major economical and political issues, one cannot overestimate the importance of the Energy Charter Treaty, particularly in light of the fact that growing East-West energy dependency has caused a significant increase in the number of disputes in recent years.

5. Bilateral Commerce, Friendship and Investment Protection TreatiesGermany has concluded numerous bilateral treaties with foreign states, including the US, the UK, Switzerland, Austria, Belgium, Greece and Italy. In particular, the various investment protection treaties contain offers by both states to submit certain disputes with the other state or its nationals to arbitration. Furthermore, these treaties often contain provisions for the recognition and enforcement of awards in the territory of the state. Some merely refer to the New York Convention 1958; others provide that recognition and enforcement may be refused only if recognition and enforcement would be contrary to public policy. German and foreign parties have, on several occasions, relied on such treaties either to initiate arbitral proceedings or to have awards declared enforceable in Germany. In the latter case, some trea-ties may be more favourable than the German law insofar as they limit the possible grounds to refuse recognition due to public policy43 or allow recognition of settlements concluded during arbitral proceedings but not rendered in the form of an award on agreed terms.44 A complete list of the various bi- and multilateral friendship, commerce and investment protection treaties can be found on the website of the DIS.45

III. The Arbitration Infrastructure

A. Institutional Arbitration ad hoc Arbitration

1. Leading InstitutionsThere are numerous arbitration institutions in Germany, most of which are specialized on certain sectors. The most important general arbitration institution is the German Institution of Arbitration (Deutsche Institution fr Schiedsgerichtsbarkeit e. V. DIS).46 It was formed on 1 January 1992 by a merger of two pre-existing institutions, the German Arbitration Com-mittee (Deutscher Ausschu fr Schiedsgerichtswesen DAS) whose arbitration rules were traditionally used in Germany, and the German Institute of Arbitration (Deutsches Institut fr Schiedsgerichtswesen DIS), which had been established by the German commercial and legal community for the study and promotion of arbitration.47

42 Wlde, Investment Arbitration Under the Energy Charter Treaty From Dispute Settlement to Treaty Implementation, Arb.Int. 1996, 429; Lew/Mistelis/Krll (2003), para.28-34.

43 BGH 23.02.2006, SchiedsVZ 2006, 161 (164) = IHR 2006, 125 = (2006) Int.A.L.R. N-59; (German-Soviet Treaty of 25.04.1958) reliance on procedural defect not possible as not a separate ground for refusal.

44 BayObLG 05.07.2004, BayObLGR 2004, 381 (enforcement of a settlement under the Bilateral Treaty with Austria).

45 .46 Deutsche Institution fr Schiedsgerichtsbarkeit e.V., Beethovenstrae 5-13, 50674 Kln, Tel.: +49 (0)2

21/ 28 55 20, Fax: +49 (0)2 21 / 28 55 22 22; for further information see Part III or .47 On the various features of the DIS Rules and the functions of the DIS, see Part III Mazza; Kuckenburg/

Shackelton, The German Institution of Arbitration issues new Arbitration Rules, (1998) 13(7) Mealeys I.A.R. 37; Schtze, Im Portrt: Deutsche Institution fr Schiedsgerichtsbarkeit, SchiedsVZ 2003, 178.

24

25

26


The presently valid DIS Arbitration Rules (referred to as DIS Rules), in force since 1 July 1998, are applicable both to national and international arbitrations.48 They are available in German, English, French, Spanish, Russian, Chinese, Turkish and Arabic versions. The DIS Rules have been revised in light of the new German law and closely follow the rules of the law. Under the DIS Rules, the role of the DIS focuses on the procedure for establishing the arbitral tribunal as well as on serving the request for arbitration and the award. There is no general monitoring of the proceedings or scrutiny of the draft awards. In addition to its general Arbitration Rules, the DIS offers supplementary arbitration rules for corporate law disputes and for expedited proceedings, as well as a number of other dispute resolution rules. These include, inter alia, the DIS Conflict Management Rules under which a pre-selected conflict manager decides on the most appropriate form of dispute resolution for the parties dispute. Since 2008, the DIS offers the German Court of Arbitration for Sport (Deutsches Sportschiedsgericht), which deals with sport related disputes (including doping).The DIS does not only administer arbitral proceedings under its own rules; it also regularly acts as appointing authority for UNCITRAL or other ad hoc proceedings and gives general advice on the selection of arbitrators. Furthermore, it has been one of the driving forces be-hind the revision of the German arbitration law and is actively involved in the continuing development of the law, inter alia, through regular conferences, seminars and lectures on the topic, as well as its database of arbitration-related court proceedings. In 2002, the DIS founded DIS40, an organization for practitioners under 40 years of age. The DIS is also the co-operation partner for the German Arbitration Journal (Zeitschrift fr Schiedsverfahren SchiedsVZ), which has been in publication since the beginning of 2003. Further specialized institutions are: Waren-Verein der Hamburger Brse e.V.

Groe Bckerstrae 4, 20095 Hamburg Tel: +49 (0)40

Documents

Arbitration in Germany