Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
International Arbitration
The parties
Are there any restrictions on who can be a party to an arbitration agreement?

Answer ... The German Arbitration Act in no way restricts the capability of a natural or legal person to agree to, and participate in, dispute resolution through arbitration, as long as that person has full legal capacity.

For more information about this answer please contact: Nicholas Kessler from Orrick
Are the parties under any duties in relation to the arbitration?

Answer ... Once arbitration has been initiated, the parties are generally considered to be under an obligation to participate actively in the proceedings, but this obligation is not enforceable. In contrast, the predominant view at least acknowledges an (enforceable) obligation of the parties to pay an advance on the costs of the proceedings, the specific amount of which is determined by the arbitral tribunal.

The German Arbitration Act does not impose a general obligation on the parties to the arbitration to keep the arbitration and its contents confidential.

For more information about this answer please contact: Nicholas Kessler from Orrick
Are there any provisions of law which deal with multi-party disputes?

Answer ... Even though multi-party arbitration is relatively common in Germany, the German Arbitration Act does not set out any specific rules on such proceedings. This can cause problems and inefficiencies when multi-party arbitrations are conducted under the statutory regime. In response to this situation, the German Arbitration Association introduced provisions on multi-party arbitration in its recently revised rules of arbitration, which entered into force as of 1 March 2018.

In this context, it is noteworthy that German law does not recognise the group of companies’ doctrine or any similar concept of law which would lead to the submission under arbitration of a party that at no point consented to opt out of the state court system.

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