Germany / 11 June 2009 / Kammergericht / 20 Sch 04/07
|11 June 2009
|20 Sch 04/07
|Applicable NYC Provisions
|In 1981, the Parties concluded an investment contract for the construction of an observatory, which included an agreement for the resolution of disputes by three arbitrators. A war broke out in State X and the observatory was destroyed. At the end of the war, Construction Company Z decided not to resume work. The Parties thereafter signed an Acknowledgement of Debt. State X did not meet its obligations and Company Z initiated arbitration, obtaining favorable award in 2007. Company Z then sought enforcement in Germany. The Kammergericht (Higher Regional Court Berlin) granted enforcement. It reasoned that there were no public policy or arbitrability grounds to deny enforcement which could be analysed at its own initiative. This would only be the case if the subject matter of the dispute were not capable of settlement by arbitration under German law or the recognition or enforcement of the arbitral award would be contrary to public policy.
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