Germany / 16 October 2008 / Oberlandesgericht Frankfurt / 26 Sch 13/08
| Country | Germany |
| Court | Germany, Oberlandesgericht Frankfurt am Main (Higher Regional Court of Frankfurt am Main) |
| Date | 16 October 2008 |
| Case number | 26 Sch 13/08 |
| Applicable NYC Provisions | V | V(2)(b) |
| Source | DIS |
| Summary | By contract dated 6 July 2004, the Buyer purchased shares from the Seller. The Parties' contract contained a non-competition clause and a clause providing for arbitration in Switzerland under the Rules of the International Chamber of Commerce (ICC). In 2005, the Buyer initiated ICC proceedings against the Seller for breach of the contract's non-competition provisions. In 2008, an ICC tribunal rendered an award in favor of the Buyer, directing the Seller to pay damages for market disturbance but dismissing the Buyer's request for a seek-and-desist order because the three-year time limit in the non-competition clause had expired. The Buyer sought enforcement in Germany. The Oberlandesgericht (Higher Regional Court) Frankfurt granted enforcement, dismissing the Seller's argument that the award could not be granted a declaration of enforceability. It reasoned that the only requirement for enforcement under the NYC is that the award is binding. This was the case here, since under the ICC Rules an award rendered in ICC arbitration is final and binding on the parties. The Court dismissed the Defendant's argument that enforcement would violate German public policy. Even if the Defendant could prove that damages had been awarded arbitrarily, this would not amount to a violation of public policy. If considered that the tribunal's decision on damages was correct under German law and the the applicable Swiss law and was not contradictory or arbitrary. |
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