Germany / 08 June 1967 / Landgericht Bremen / 11-OH 11/1966
|Germany, Landgericht Bremen
|08 June 1967
|Applicable NYC Provisions
|II | V | II(2) | V(1)(a)
|Original decision obtained from the registry of the Landgericht Bremen
|In relation to a sales contract, the Seller sent a confirmation letter to the Buyer, which contained an arbitration clause providing for arbitration at the Court of Arbitration of the International Wool Textile Organization (IWTO) in Paris. The Buyer, in turn, sent its own confirmation letter to the Seller referring to the application of the conditions of the Association of Wool Commerce of Bremen. After a dispute arose, the Seller initiated arbitration proceedings with the Court of Arbitration of the IWTO and obtained a favorable award. The Buyer had refused to participate in the proceedings, contending that the parties had agreed to arbitration under the rules of the Association of Wool Commerce of Bremen rather than those of the IWTO. The Seller sought enforcement of the award in Germany. The Landgericht (Regional Court) Bremen declared the award enforceable finding that the award was binding on the parties as the law of the seat excluded any possibility of appeal. Further, the Landgericht held that enforcement could not be refused under Article V(1)(a) NYC since the parties had exchanged letters after the dispute arose concurring on the competence of the arbitral institution which had eventually issued the award. Moreover, the Landgericht held that the conclusion of the arbitration agreement by way of an exchange of letters fulfilled the form requirements under Article II(2) NYC. Finally, the Landgericht also found that the award did not violate German public policy under Section 1044(2) No. 2 German Civil Procedure Code and that the Buyer’s right to be heard under Section 1044(2) No. 4 German Civil Procedure Code had also not been violated since it had been the Buyer’s own decision not to take part in the proceedings.
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