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One year ago, the Higher Regional Court Frankfurt decided that the Achmea-decision[1] by the Court of Justice of the EU (“CJEU“) is transferable to arbitration clauses in other BITs (see Global Arbitration News on 22 April 2021). Factual Background Two banks who provide financial services in the Croatian market (= the investors) had initiated arbitration proceedings against Croatia based on the BIT between Croatia and Austria. Croatia sought a declaration that the arbitration proceedings were…

Parties often chose arbitration over state court litigation because arbitral proceedings are more flexible and more efficient. Parties are typically not in the business of “litigating”, but want to resolve their (commercial) disputes in order to continue their business. A dispute is resolved by the decision of the tribunal, i.e. the arbitral award. In order to ensure a timely decision, most arbitral institutions provide for a time limit for the final award (e.g. six months…

The arbitration agreement is a separate agreement from the substantive agreement (= doctrine of separability). As a result, the arbitration agreement can be governed by a different law from substantive agreement. What law governs the arbitration agreement if the parties have not explicitly chosen a law for the arbitration agreement? The answer is a continuing matter of debate.[1] Another matter of debate is whether the CISG can govern the arbitration agreement. The matter arises –…

At the beginning of 2020, it became known that the Polish airline company LOT decided to purchase its German rival which was part of the Thomas Cook Group which became insolvent in 2019. The deal was signed in January, but on 13 April 2020, it became known that LOT pulled out of the deal because of COVID-19.[1] This is a prominent example, but certainly not the only example where a purchaser of a company might try…