International

What should be considered in a legal dispute with
a foreign business partner before state courts
and in arbitration proceedings?

Disputes can quickly arise in international business transactions with customers, suppliers, or partners abroad due to outstanding claims, delivery delays, or defective contract performance. Such conflicts are often more complex when several legal systems are involved. Therefore, it is crucial to ensure that effective contractual clauses stipulate that disputes will be settled before state courts in your own country or international arbitration tribunals before a conflict arises.

Our lawyers specializing in international litigation, arbitration, and commercial law support you in all phases of dispute avoidance and resolution, from negotiating and formulating appropriate and legally effective jurisdiction or arbitration clauses, to developing a tailored defense strategy, and supporting you in court or arbitration proceedings in Germany, France, or a third country. We collaborate closely with our colleagues from our a-Global partner network.

How can you collect an unpaid bill in another EU country?

The European Order for Payment procedure is a simple and efficient tool for enforcing outstanding claims against debtors in other EU member states (excluding Denmark) without having to appear in person.

This standardized procedure allows cross-border monetary claims to be enforced quickly and cost-effectively with full enforceability and automatic recognition in all EU countries.

Our lawyers specializing in international litigation will prepare the entire application for the European Order for Payment, submit it to the competent court, and guide you through all steps of the procedure.

What to do if you are summoned to appear as a defendant before a foreign court?

If a company is sued in a foreign court, swift and strategic action is essential. There are often short deadlines for responding to a lawsuit, such as raising a jurisdictional objection, defending the case on its merits, or initiating an out-of-court settlement.

Since each national code of civil procedure has its own rules, precise knowledge of the requirements is essential.

Our lawyers specializing in international litigation and commercial law analyze your specific circumstances. In close cooperation with our colleagues from our a-Global partner network, they develop a tailored defense strategy to protect your interests and minimize financial risks, whether in Germany, France, or a third country.

What is international arbitration and what is its purpose?

Like international commercial mediation, international arbitration is one of the alternative dispute resolution (ADR) methods used in cross-border commercial transactions. It is an effective alternative to traditional state court proceedings because it allows international B2B disputes to be resolved without submitting to the jurisdiction of a foreign national court. Instead, disputes are resolved by a private, supranational arbitral tribunal consisting of one or several arbitrators, usually three.

International arbitration offers numerous advantages, including the neutrality of the arbitral tribunal with respect to the parties’ different nationalities, flexible proceedings, the speed with which final, enforceable decisions are rendered, highly specialized arbitrators (who are selected by the parties based on their technical or legal expertise), the option to conduct proceedings in English or another language, confidentiality, and the ease with which arbitral awards are recognized and enforced abroad. The higher administrative costs associated with arbitration can be offset by the proceedings’ specific efficiency and speed.

However, arbitration does not apply automatically. Rather, it requires the agreement of both parties, either through an arbitration clause in the original contract or a separate agreement after a dispute arises.

There are two forms of arbitration: institutional, in which an arbitration institution organizes the proceedings, and ad hoc, in which the parties organize the proceedings themselves with the assistance of their lawyer and under certain legislations (e.g. France) a supporting judge of a State Court.

Our lawyers specializing in international arbitration law can support you with drafting a legally compliant arbitration agreement and initiating institutional or ad hoc arbitration proceedings. They can also help you with the selection of the arbitration institution and the appointment of arbitrators, as well as the drafting and review of the arbitration mandate. They can assist you prepare pleadings and exhibits and represent you in arbitration proceedings. They can also support you with the legal interpretation of the arbitral tribunal’s decision and the recognition and enforcement of the arbitral award in France, Germany, or a third country. We work closely with our colleagues from our a-Global partner network.

Which arbitration institutions come into consideration if the parties agree on institutional arbitration?

When parties opt for institutional arbitration in their contract, the question arises as to which institution is best suited to organize the proceedings. Globally recognized institutions specialize in conducting international arbitration proceedings. Notable institutions include the International Chamber of Commerce (ICC) in Paris, the London Court of International Arbitration (LCIA), the Singapore International Arbitration Centre (SIAC), and the Center for International Investment Arbitration (CIRDI) in Washington, which are particularly renowned for investment protection proceedings between states and investors. In France, in addition to the renowned Cour Internationale d’Arbitrage de la CCI (ICC) in Paris, there are other high-quality institutions, such as the Centre d’arbitrage et de médiation de Paris (CAMP), the Association française d’arbitrage (AFA) in Paris, and the Centre interprofessionnel de médiation et d’arbitrage (CIMA) in Lyon. These institutions specialize in national and international proceedings.

In Germany, institutional arbitration is less diverse and is primarily managed by the German Institution of Arbitration (Deutsche Institution für Schiedsgerichtsbarkeit – DIS).

The choice of the appropriate arbitration institution depends on various factors, including the field of business activity, the registered office and legal profile of the contractual partner, the economic significance of the case, and any industry-specific requirements. Our lawyers specializing in international arbitration law can help you select the most suitable institution and represent your interests throughout arbitration proceedings in France, Germany, or a third country, in close coordination with our colleagues from our a-Global partner network.

How do you draft an effective arbitration agreement in a contract (arbitration clause)?

The wording of an arbitration agreement must be precise. At a minimum, an arbitration clause should clearly and unambiguously specify the type of arbitration proceedings, whether institutional or ad hoc, the seat of the arbitral tribunal, the number of arbitrators, the language of the proceedings, and the applicable procedural law.

If institutional arbitration is chosen, the arbitration institution agreed upon by the parties must be clearly named. This institution is responsible for ensuring that the arbitration proceedings run smoothly. In practice, an arbitration clause is often supplemented by a mediation clause. According to this clause, mediation proceedings must be conducted first and fail to reach an amicable settlement before arbitration proceedings can be initiated.

Under certain circumstances, it may also be advisable to draft a “hybrid” clause, combining elements of a jurisdiction clause and an arbitration clause, in compliance with the relevant legal requirements.

Our lawyers specializing in international contract and arbitration law will negotiate and draft a legally secure and enforceable arbitration agreement tailored to your business needs that will best protect your interests in the event of a conflict in France, Germany, or a third country. We work closely with our colleagues from our a-Global partner network to achieve this.

How do you enforce a foreign court decision or foreign arbitration award?

When a court or arbitration tribunal rules in your favor, you may wonder how the ruling can be recognized and enforced abroad. For example, you may want to know how to do this in the country where your company is based or where the debtor’s assets are located.

If the decision was made by a state court within the European Union, then enforcement in another member state is generally straightforward because current EU law does not require separate exequatur proceedings. The decision is immediately enforceable if certain formalities are met and does not require additional recognition by a national court.

The situation is different if the court decision was issued outside the EU or is to be enforced in a non-EU country. In such cases, an exequatur procedure is usually required. This is a secondary court procedure for recognizing and issuing an enforcement clause. It is carried out based on bilateral or multilateral agreements, if available.

Different rules apply to the enforcement of an arbitral award. Although an arbitral award must always be declared enforceable within the framework of exequatur proceedings in an international context, the worldwide enforceability of foreign arbitral awards is best guaranteed by the New York Convention of June 10, 1958, on the Recognition and Enforcement of Foreign Arbitral Awards. This is because the legal requirements for recognition and enforcement are comparatively low, and the convention applies in more than 160 countries worldwide.

Our lawyers specializing in international litigation and enforcement law provide comprehensive advice on the recognition and enforcement of foreign court or arbitral awards. They also represent clients in exequatur proceedings in Germany, France, and third countries, working closely with our colleagues from our a-Global partner network.

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