Being the main arbitration institution, the DIS provides parties with a regulatory framework applicable to both national & international proceedings. Other rules governing the conduct of arbitration in Germany are contained in the Civil Code, which, in its turn, is modelled on the UML.
There’s also expedited proceedings used in connection with M&A transactions in Germany. Arbitration in Germany can be used to resolve domestic or foreign disputes, as long as they don't concern residential lease agreements or matters that parties can’t handle.
Those planning to initiate arbitration proceedings in the EU should keep in mind that:
- there’s certain legislative provisions requiring conclusion of arbitration agreements in commercial transactions;
- if an arbitration agreement puts one party at a disadvantage with respect to the composition of the tribunal, they may request that a state court appoint an arbitrator, regardless of what is provided for in an arbitration agreement;
- if parties haven’t determined a law applicable to their dispute, an arbitral tribunal must apply the law of the country that’s most closely related to the subject of the dispute.
- decisions made in the course of dispute resolution by arbitration in Germany have the same effect as decisions rendered by state courts.
Mediation in Germany
Pursuant to the country’s legislation, mediator or parties are free to organize the mediation procedure the way they see fit. Mediation is a confidential & structured procedure in which parties seek a peaceful settlement of a dispute in Germany with the assistance of one or more mediators. Modelled on UML, DIS mediation rules provide a detailed & comprehensive framework for the mediation procedure.
Other Forms of ADR in Germany
Other forms of ADR include expert opinion & dispute resolution boards (DRBs). Normally, parties resort to expert advice in disputes over technical or accounting issues. They tend to ask experts to provide their opinion in writing, which, depending on the decision of parties, may be mandatory or optional.
Recent years have seen an emerging trend toward an increased use of mediation & arbitration in Germany. Parties often resort to arbitration in cases requiring a highly qualified tribunal having knowledge of foreign languages & international law.
Looking to settle a dispute in Germany? Need a consultation on arbitration regulation in Germany? Why not reach out to IQ Decision UK?
