Comparative Guides
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Results: 4 Answers
International Arbitration
14.
Grounds for challenging an award
14.1
What are the grounds on which an award can be challenged, appealed or otherwise set aside in your jurisdiction?
 
Germany
An award may be set aside by the court if the applicant can adduce sufficient proof (Section 1056, paragraph 2(1) of the Code of Civil Procedure) that:

  • one of the parties to the arbitration agreement did not have the legal capacity to submit itself under the applicable law governing such party’s legal status;
  • the arbitral agreement is invalid;
  • the award is based on improper procedure (eg, if one of the parties did not get the chance to defend its position);
  • the award goes above and beyond the substantive scope of the arbitration agreement; or
  • the formation of the tribunal or the proceedings as such did not comply with the German Arbitration Act or with a specific party agreement and such non-compliance influenced the outcome of the award.

The award may further be set aside if the court finds (Section 1056, paragraph 2(2) of the Code of Civil Procedure) that:

  • the subject matter of the award is not eligible for arbitration under German law; or
  • enforcement of the award would infringe German public policy.

According to the prevailing opinion, the parties cannot agree on additional grounds for annulment, because the list set out in Section 1056, paragraphs 2(1) and (2) of the Code of Civil Procedure is considered to be exhaustive.

For more information about this answer please contact: Nicholas Kessler from Orrick
14.2
Are there are any time limits and/or other requirements to bring a challenge?
 
Germany
The application to annul an arbitral award must be made within three months of receipt of the award.

For more information about this answer please contact: Nicholas Kessler from Orrick
14.3
Are parties permitted to exclude any rights of challenge or appeal?
 
Germany
The parties cannot waive their right to apply for an annulment in its entirety, as otherwise the review of the award by a state court would no longer be guaranteed. According to the prevailing opinion, the parties may waive only individual grounds for annulment as listed in Section 1059, paragraph 2(1) of the Code of Civil Procedure (but not those listed in Section 1059, paragraph 2(2)), and then only after receipt of the award and thus with full knowledge of the grounds for annulment.

For more information about this answer please contact: Nicholas Kessler from Orrick