Formality over Fiction: Austrian Supreme Court upholds enforcement on internet domain.
As successful claimants increasingly turn to enforcement proceedings to realise the value of their awards, Austrian law continues to stand out for its creditor-friendly enforcement framework. Rooted in the principle that debtors have already had ample opportunity to be heard in the underlying proceedings, Austrian enforcement rules are designed to ensure finality and efficiency.
But enforcement rarely goes uncontested. Debtors often resort to inventive tactics to shield assets—one frequent strategy being the claim that the seized asset belongs to a third party. Under Austrian law, such third parties must initiate legal proceedings against the enforcing creditor to assert their rights and reclaim the asset.
In a recent case before the Austrian Supreme Court (3 Ob 32/25i), a creditor had seized the debtor's internet domain. A third party—purportedly unrelated—intervened, alleging it had acquired the domain orally prior to the seizure.
While oral agreements are generally valid under Austrian contract law, the Supreme Court made a crucial clarification: domain rights are not standalone assets, but are governed by the underlying contractual relationship between the domain holder and the registry (in this instance, nic.at). As such, a transfer of the domain constitutes a transfer of contract ("Vertragsübernahme"), which requires both notification to and consent by the registry.
These formal steps had not been completed prior to the seizure. Consequently, the third party had not validly acquired any rights enforceable against the creditor.
This decision is consistent with the Supreme Court's broader pro-enforcement jurisprudence and sends a clear message: Enforcement cannot be easily derailed by unsupported third-party claims or informal arrangements.
For creditors and enforcement practitioners, this ruling is a welcome affirmation of legal certainty in asset recovery. If a debtor's business depends on an active internet presence, seizing control over their main domain can be a powerful persuasive measure that will often lead to payment by the debtor.
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