International Arbitration Guide

Germany

Melchers

Describe the international arbitration governing bodies/structure in your jurisdiction.

Germany is an acknowledged and attractive place for arbitration proceedings, both national and international, due to its arbitration-friendly legislation and legal integrity. Germany has ratified various bilateral agreements concerning arbitration regulations, including the New York Convention of 1958. German arbitration law is based on the principle that state and arbitration courts provide equivalent legal protection.

Arbitration institutions

The leading German arbitration institution is the DIS (Deutsche Institution für Schiedsgerichtsbarkeit eV – German Institute of Arbitration. Its 2018 arbitration rules are bilingual (German/English) and based on international standards. The DIS regularly handles proceedings involving parties from over 60 countries. There are also specialised institutions, such as the German Maritime Arbitration Association (GMAA) in Hamburg, which is particularly active in maritime commercial law, and the Court of Arbitration for Sport in Cologne (in part in cooperation with the DIS).

Many international arbitration proceedings are conducted by the International Chamber of Commerce (ICC), represented by ICC Germany.

In Germany, sections 1025–1066 of the Code of Civil Procedure (Zivilprozessordnung) govern arbitral proceedings as an almost literal adaptation of the United Nations Commission on International Trade Law (UNCITRAL) Model Law. Higher regional courts provide judicial support and supervision of arbitration proceedings, for example in the enforcement of foreign arbitral awards or the setting aside of arbitral awards.

Commercial Courts: Overview of responsibilities and procedures

Specialised Commercial Courts have also been introduced to conduct proceedings in English and deal with international commercial disputes more efficiently.

The Commercial Court at a Higher Regional Court (Oberlandesgericht) has jurisdiction over certain commercial disputes where the value in dispute is EUR 500,000 or more. If the parties decide to bring proceedings before a commercial court, the appeal process is shortened. The parties may also agree on the structure of the proceedings and the preparation of verbatim transcripts.

Currently, there are seven Commercial Courts in Germany (in Baden-Württemberg, Bavaria, Berlin, Bremen, Hamburg, Hesse and North Rhine-Westphalia). More are to follow soon.

Commercial Chambers as a supplement to commercial courts at the district court level

In addition to commercial courts, the federal states can decide to introduce commercial chambers, which are located at regional courts (Landgerichte). As commercial chambers are regular chambers (civil or commercial) at the regional court level, the regional court in question must have local jurisdiction, and the commercial chamber must be assigned to its area of expertise. This means that, in the first instance, parties can conduct proceedings in English while retaining the right to appeal to the regular courts. Commercial chambers already exist in Baden-Württemberg, Berlin, Hamburg, Hesse and North Rhine-Westphalia.

Advantages of Commercial Courts and Commercial Chambers

Commercial courts and chambers offer companies specialised, efficient and internationally oriented dispute resolution. Proceedings are conducted by experienced commercial panels, and proceedings in English facilitate cross-border disputes. These proceedings are particularly suitable for companies that operate internationally, large-scale projects, disputes relating to mergers and acquisitions, and complex disputes relating to construction, finance and trade.

Describe any unique circumstances in your country that affect international arbitration (i.e., change in government, etc.).

There are no restrictions for arbitration. It is a well-functioning alternative to state court proceedings, providing high quality, flexibility and legal integrity, and it may be conducted in English (and other languages).

Germany has a long history of international arbitration and registers an increasing amount of international arbitrations over the years.

Germany plans to modernize its arbitration law to make international proceedings more efficient and attractive. The plans include form-free arbitration agreements in commercial transactions, the introduction of electronic arbitral awards with qualified signatures, the explicit admission of video hearings, the establishment of English-language commercial courts, and the possibility of publishing arbitral awards anonymously. These reforms are intended to strengthen digitization, transparency, and international connectivity.

Please provide a brief overview of your firms international arbitration capabilities (team members, experience as litigators in arbitration as well as experience as arbitrators).

We have a strong practice in arbitration. Our experienced team members conducted arbitrations before national and international arbitration courts under the rules of ICC and DIS as well as “Ad-Hoc”-arbitrations.

In which areas does your firm handle arbitration? (i.e., international investment, infrastructure, public works, energy, construction, etc.)

Mainly commercial and corporate disputes, as well as construction law and energy law matters.

Which industries does your firm serve in this area (i.e., energy, insurance, public concessions, etc.)?

Our services are not limited to clients from specific industries. Our client base mainly consists of (domestic and international) medium-sized and larger commercial enterprises.

Does your firm provide lawyer representation or certified arbitrator resources, or both? Please describe.

MELCHERS represent clients in arbitration proceedings conducted in German and English, and lawyers of our firm occasionally act as arbitrators. However, we do not provide certified mediator resources.