Arbitration in Germany

Can Arbitration Tribunals Correct or Interpret Awards in Germany on Their Own or at the Parties’ Request? Are There Any Deadlines?

Parties involved in settling a dispute through arbitration in Germany can request that any computational, grammar or typographical mistakes be corrected. They can also request for particular sections of an award to be interpreted or for additional awards regarding the claims which were put forth during the proceedings but not included in the award to be made. Requests like these can be lodged within thirty days after an award is handed down. Once they are lodged, arbitration tribunals in Germany have thirty days to correct or interpret an award, and sixty days to make additional awards. 

Challenging Arbitral Awards in German Arbitration Tribunals

Challenging an arbitral award in Germany can be done by submitting a corresponding application with a court. However, for the application to be considered, an award must be received in Germany. Challenging an arbitral award in a German tribunal requires the applicants to meet a number of conditions, such as:

1. they were legally incapacitated as per applicable law;
2. an arbitration agreement they were signatories to is no longer valid under applicable or German law;
3. they weren’t properly notified of an arbitrator’s appointment or upcoming proceedings, which made it impossible for them to present their case;
4. the award they are trying to challenge is connected to another dispute which isn’t related to the the terms of the submission to arbitration; 
5. the tribunal’s composition or procedure weren’t in compliance with German arbitration legislation; 
6. it is impossible to settle a dispute as per German legislation;
7. 3 months have passed after a party submitting an application got an award.

Where Must Applications Be Submitted? How Long Does It Take for Challenges to be Considered? How Much Does it Cost ?

Applicants seeking to  challenge an arbitral award in Germany must submit their applications to regional courts. Appeals are to be filed with the Federal Justice Court. It normally takes from 3 to 12 months to consider a challenge or appeal. When it comes to the costs involved, they’re apportioned by taking into consideration the sum in dispute. 

Enforcing an Arbitral Award in Germany

Overall, enforcing arbitral awards in Germany is something the local courts look favourably upon. There are, of course, certain divergences with regard to the enforcement of awards handed down by German & foreign courts.   

Enforcing an Award by Handed Down by a German Court

An award can be enforced if it is deemed as such that can be enforced. Applications for declaring awards enforceable in Germany may be rejected & awards cancelled if there are grounds for cancellation. The said grounds will not be considered if an application for cancellation of an award which was based on the said grounds was refused by the time an application for enforceability was submitted. Also, the said grounds won’t be considered if the deadline for submitting an application for cancellation expired & the party that objected to an award being declared enforceable didn’t submit an application for its cancellation.  

Enforcing an Award Handed Down by a Foreign Court

Awards handed down by foreign courts are granted as per the NY Convention. Should there be any reasons for not declaring an award enforceable, courts may rule that such an award won’t be recognized in Germany. 

Deadlines for Enforcing Arbitral Awards in Germany

Under German legislation, no deadlines are prescribed for requests pertaining to the enforcement of an arbitral award in Germany. 
 

How Much Does It Cost To Have an Award Enforced in Germany?

How much it will cost to have an award enforced in Germany will depend on the sum in dispute, as well as the fees payable to the court & lawyers. It is the losing party that must pay the fees.