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The German Federal Court of Justice (“BGH”) recently decided that the application to set aside an arbitral award before a German state court is inadmissible if the applicant has already paid the amount stipulated in the award without reservations (BGH, decision of 26 October 2023, case no I ZB 14/23). The decision provides clarity on an issue that had been widely debated amongst scholars and arbitration practitioners in Germany. Factual Background The Claimant in the…

On 18 April 2023, the German Federal Ministry of Justice published its „Guidelines on the modernization of German Arbitration Law“ (Guidelines)[1], proposing twelve potential changes to the current rules. Those changes, together with the proposed introduction of commercial courts[2], are aimed at strengthening Germany as a place for international commercial disputes. The Guidelines are based on a report by a working group which had been tasked with the review of German arbitration law back in…

A. LEGISLATION AND RULES A.1 Legislation Already in the 2017-2018 edition of this Yearbook, we had reported about a working group tasked with a review of German arbitration law.[1] Based on the findings of the working group, the German Federal Ministry of Justice intended to present a draft bill for the reform of German arbitration law in 2021.[2] For various reasons, the reform was delayed, but the ministry recently resumed its work. It confirmed that…

A. LEGISLATION AND RULES A.1       Legislation In the 2017-2018 edition of this Yearbook, we reported about a working group that had been tasked with a review of German arbitration law.[1] After the working group had submitted its findings to the German Federal Ministry of Justice, the Ministry wanted to present a draft bill for the reform of German arbitration law before the end of the 19th legislative period in December 2021.[2] The Ministry did not…