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.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
International Arbitration
Consolidation and third parties
Does the law in your jurisdiction permit consolidation of separate arbitrations into a single arbitration proceeding? Are there any conditions which apply to consolidation?

Answer ... No explicit provisions in the German Arbitration Act address the consolidation of separate arbitration proceedings. Consolidation is nevertheless considered to be permissible, but it requires the unanimous consent of all parties in all proceedings that are to be consolidated. Under no circumstances can separate arbitrations be consolidated against the will of one of the participating parties.

The arbitration rules of the German Arbitration Institution explicitly contemplate the consolidation of arbitration proceedings, but likewise require the consent of all parties involved.

For more information about this answer please contact: Nicholas Kessler from Orrick
Does the law in your jurisdiction permit the joinder of additional parties to an arbitration which has already commenced?

Answer ... The German Arbitration Act does not address the joinder of additional parties. Failing an explicit prohibition in this respect, such a joinder is generally possible even once the proceedings have already commenced. However, it requires the explicit approval of all parties involved, including the tribunal. Only under this condition of mutual agreement can a new party effectively join (ongoing) arbitration proceedings.

For more information about this answer please contact: Nicholas Kessler from Orrick
Does an arbitration agreement bind assignees or other third parties?

Answer ... Assignees of claims for which an arbitration agreement had been made by the assignor are likewise bound by the arbitration agreement. The same is generally true of legal successors and even insolvency administrators.

Beyond this, German law is extremely cautious about extending the effect of an arbitration agreement to third parties which are not signatories to the arbitration agreement. The ‘group of companies’ doctrine and similar concepts are widely rejected, both in legal commentary and in practice.

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