Can an arbitration agreement be binding on a party that did not sign it? Generally, an arbitration agreement only binds its signatories. This is a transnational principle, also anchored in the German Constitution. There are, however, widely accepted exceptions. This article examines the extension of arbitration agreements to third parties under the requirements of Sec. 25(1)…
Seven years ago, Germany’s Federal Court of Justice (Bundesgerichtshof, BGH) set off an avalanche that buried most of the European investment arbitration landscape. The BGH’s order of June 3rd 2016 referred to the Court of Justice of the EU (CJEU) a long debated question: Are intra-EU investment arbitrations compatible with EU law? They are not,…
In an order dated 28 January 2014 (file number III ZB 40/13), the German Federal Supreme Court (Bundesgerichtshof, the “Court”) clarified that an arbitral award can only be set aside in recognition or enforcement proceedings by a state court in “extremely exceptional cases”, i.e. if an award breaches the fundamental principles of the German legal…
