Arbitration Germany 2025

Laws and Institutions

Multilateral conventions relating to arbitration

Is your jurisdiction a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? Since when has the Convention been in force? Were any declarations or notifications made under articles I, X and XI of the Convention? What other multilateral conventions relating to international commercial and investment arbitration is your country a party to?

Germany signed the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) on 10 June 1958, and ratified it on 30 June 1961, with effect as of 28 September 1961. Germany has made a reciprocity reservation, which it withdrew on 31 August 1998. Furthermore, Germany is party to:

• the Geneva Protocol on Arbitration Clauses;

• the Geneva Convention on the Execution of Foreign Arbitral Awards;

• the European Convention on International Commercial Arbitration; and

• the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention).

Germany declared withdrawal from the Energy Charter Treaty (ECT) in 2022. The withdrawal came into force in December 2023.

Law stated - 2 Mai 2025 

Bilateral investment treaties

Do bilateral investment treaties exist with other countries?

Germany is one of the pioneers in concluding bilateral investment treaties (BITs) with other states. To date, Germany has signed around 150 BITs, 114 of which are presently in force. However, given the ‘backlash’ of investor-state dispute settlements (ISDS) in the European Union in the context of the Court of Justice of the European Union (CJEU) judgment in Slovak Republic v Achmea BV and Agreement for the termination of BITs between the Member States of the European Union of May 2020, Germany has terminated several intra-EU BITs in recent years (with Portugal, Romania, Czech Republic, Greece, Lithuania, Bulgaria, Croatia, etc.).

Law stated - 2 Mai 2025

Domestic arbitration law

What are the primary domestic sources of law relating to domestic and foreign arbitral proceedings, and recognition and enforcement of awards?

Book 10 of the German Code of Civil Procedure (ZPO) (sections 1025 to 1066) is the cornerstone of the regulation of domestic and foreign arbitration, with the seat of arbitration in Germany. It regulates both the conduct of arbitration proceedings and the procedure of recognition and enforcement of arbitral awards.

Law stated - 2 Mai 2025

Domestic arbitration and UNCITRAL

Is your domestic arbitration law based on the UNCITRAL Model Law? What are the major differences between your domestic arbitration law and the UNCITRAL Model Law?

Sections 1025 to 1066 of the ZPO, which constitute German arbitration law, are mainly identical to the text of UNCITRAL Model Law on International Commercial Arbitration (1985). However, these sections contain subtle distinctions from Model law:

• pursuant to section 1031(2) of the ZPO, a form of arbitration agreement is considered to have been complied with also if the arbitration agreement is contained in a document transmitted by one party to the other party, and if, in the event of an opposition having been raised late, the content of that document is regarded, in keeping with common usage, to constitute the substance of an agreement;
• according to section 1032(2) of the ZPO, until the arbitral tribunal has been formed, a request may be filed with the court to have it determine the admissibility or inadmissibility of arbitral proceedings;
• according to section 1035(3) of the ZPO, the German courts can provide assistance concerning the appointment of arbitrators as long as the place of arbitration has not yet been determined if the respondent or claimant has their seat or place of abode in Germany; and
• pursuant to section 1057 of the ZPO, unless otherwise agreed by the parties, the arbitral tribunal is to decide, in its arbitral award, on the share of the costs of the arbitral proceedings that each of the parties is to bear.

Law stated - 2 Mai 2025

Mandatory provisions

What are the mandatory domestic arbitration law provisions on procedure from which parties may not deviate?

Book 10 of the ZPO contains in certain sections mandatory provisions that the parties of the arbitration proceedings must comply with:

• the requirements of arbitrability (section 1030 of the ZPO);
• the requirements of form of the arbitration agreement (section 1031 of the ZPO);
• equal parties rights concerning composition of the arbitral tribunal (section 1034(2) of the ZPO);
• equal parties rights concerning an effective and fair legal hearing (section 1042(1) of the ZPO);
• the court final decision on the challenge of an arbitrator (section 1037(3) of the ZPO);
• the court final decision on the on the jurisdiction of the arbitral tribunal (section 1040(3) of the ZPO); and
• the right to set aside an award before state courts (section 1059 of the ZPO).

Law stated - 2 May 2025

Substantive law

Is there any rule in your domestic arbitration law that provides the arbitral tribunal with guidance as to which substantive law to apply to the merits of the dispute?

Pursuant to section 1051 of the ZPO, the arbitral tribunal decides on the dispute in accordance with the legislative provisions the parties have designated as being applicable to the substance of the legal dispute. Unless the parties agree otherwise, the designation of the laws or the legal system of a given state is to be understood as directly referring to the rules of substantive law of that state, and not to its conflict of laws rules. Furthermore, absent a designation of the applicable legislative provisions by the parties, the arbitral tribunal applies the law of that state with which the subject matter of the proceedings is most closely connected.

By comparison, according to article 24.2 of the German Arbitration Institute (DIS) Arbitration Rules, if the parties have not agreed upon the rules of law to be applied to the merits of the dispute, the arbitral tribunal shall apply the rules of law that it deems to be appropriate.

Law stated - 2 May 2025

Arbitral institutions

What are the most prominent arbitral institutions situated in your jurisdiction?

The DIS is the leading institution in Germany in administrating arbitration proceedings and other alternative dispute resolution proceedings for national and international commercial disputes.

The DIS provides services for administration of arbitration, mediation, conciliation, expert determination and more. According to statistics the DIS administers on average 250 arbitration proceedings at any given time and has successfully administered thousands of arbitration proceedings throughout its more than 100-year history.

The last version of the DIS Arbitration Rules entered into force on 1 March 2018 and are currently available in five languages (German, English, Korean, Polish and Russian). Moreover, Annex 5 to the DIS Arbitration Rules contains Supplementary Rules for Corporate Disputes.

The DIS main office located in Bonn. The DIS offices are also located in Berlin and Munich.

Law stated - 2 May 2025

Arbitration Agreement

Arbitrability

Are there any types of disputes that are not arbitrable?

According to section 1030 of the ZPO, any claim involving property rights may become the subject matter of an arbitration agreement. An arbitration agreement regarding claims not involving property rights has legal effect insofar as the parties are entitled to settle regarding the object of the dispute. Despite the aforementioned general rule, an arbitration agreement regarding legal disputes relating to the existence of a tenancy relationship for residential spaces in Germany is ineffective. Criminal law matters are also not arbitrable in Germany.

More to the point, the issue of arbitrability of corporate disputes has a special place in German case law. In a series of landmark decisions (Arbitrability I–IV), the Federal Court of Justice (BGH) has provided guidance on limits to the arbitrability of certain types of corporate disputes. In its first judgment in 1996 on the matter above (Arbitrability I), the BGH rejects the arbitrability of disputes related to the validity of resolutions adopted by the shareholders. Second, the BGH changed its previously determined direction in 2009 and declared an arbitrability for disputes regarding shareholders' resolutions for the GmbH (Arbitrability II). In 2017 (Arbitrability III), the BGH extended the previous ruling to partnerships. Finally, in 2021, BGH rendered another judgment (Arbitrability IV) and declared that the additional requirements for the validity of the arbitration agreement incorporated in the articles of association of partnerships would apply only when corporate disputes were brought against the partnership itself.

Law stated - 2 May 2025

Requirements

What formal and other requirements exist for an arbitration agreement?

The requirements to form an arbitration agreement are expressed in section 1031 of the ZPO:

• the arbitration agreement must be set out either in a document signed by the parties, or in letters, telefax copies, telegrams or other forms of communication exchanged between them that ensure documentary proof of the agreement (section 1031(1) of the ZPO);
• the form of the arbitration agreement is compiled also if the arbitration agreement is contained in a document transmitted by one party to the other party, or by a third party to both parties, and if, in the event of an opposition having been raised late, the content of that document is regarded, in keeping with common usage, to constitute the substance of an agreement (section 1031(2) of the ZPO);
• reference to a document containing an arbitration clause; this constitutes an arbitration agreement, provided that the reference is such as to make said clause a part of the contract (section 1031(3) of the ZPO);
• arbitration agreements with consumers must form part of a record personally signed by the parties. The written form required may be replaced by the electronic form. The record or electronic document may not contain agreements other than those relating to the arbitral proceedings (section 1031(5) of the ZPO); and
• any failure to comply with formal requirements is remedied by a plea being made on the merits of the matter in the arbitral proceedings (section 1031(6) of the ZPO).

Law stated - 2 May 2025

Enforceability

In what circumstances is an arbitration agreement no longer enforceable?

Generally, following the doctrine of separability, the termination of the main contract does not entail the termination of the arbitration agreement in Germany. An arbitration agreement may be terminated by the decision of the parties and, therefore, become no longer enforceable.

Law stated - 2 May 2025

Separability

Are there any provisions on the separability of arbitration agreements from the main agreement?

Pursuant to section 1040(1) of the ZPO, the arbitral tribunal may rule on its own jurisdiction and, in this context, on the existence or the validity of the arbitration agreement. For that purpose, an arbitration clause is to be treated as an agreement independent of the other terms of the contract.

Law stated - 2 May 2025

Third parties – bound by arbitration agreement

In which instances can third parties or non-signatories be bound by an arbitration agreement?

In March 2024, the DIS adopted new Supplementary Rules for Third-Party Notices (DIS-TPNR) to involve third parties in arbitration proceedings. According to the text of DIS-TPNR, in an arbitration, the concept of a third-party notice is not readily available. German arbitration law, as most arbitration laws, does not contain any provisions on third-party notices. A fundamental problem is that the participation of third parties in an arbitration requires the consent of all parties. Generally, declarations of consent are lacking prior to the dispute arising and, in practice, are difficult to obtain after the dispute has arisen. The purpose of DIS-TPNR is to contractually bind a third party to an award rendered in an arbitration conducted pursuant to the DIS-TPNR (initial arbitration) and take effect in a subsequent dispute between a party to the initial arbitration and a third party (subsequent dispute). The new rules offer a comprehensive approach to including third parties in arbitration proceedings.

Law stated - 2 May 2025

Third parties – participation

Does your domestic arbitration law make any provisions with respect to third-party participation in arbitration, such as joinder or third-party notice?

Book 10 of the ZPO does not contain specific regulations on third parties' participation in arbitral proceedings. Nevertheless, article 19 of the DIS Arbitration Rules regulates joinder of additional parties to arbitration.

Law stated - 2 May 2025

Groups of companies

Do courts and arbitral tribunals in your jurisdiction extend an arbitration agreement to non-signatory parent or subsidiary companies of a signatory company, provided that the non-signatory was somehow involved in the conclusion, performance or termination of the contract in dispute, under the ‘group of companies’ doctrine?

In general, the ‘group of companies’ doctrine and the ‘piercing of the corporate veil’ doctrine in light of the extension of the arbitration agreement to non-signatory companies (parent or subsidiary) were dismissed in German case law. For instance, the BGH refused recognition and enforcement of an arbitral award issued in Russia in a landmark decision (ZB 33/22) because there were no indicators that respondents agreed to the extension of the arbitration agreement on them.

Law stated - 2 May 2025

Multiparty arbitration agreements

What are the requirements for a valid multiparty arbitration agreement?

Book 10 of the ZPO does not contain specific regulations on multiparty arbitration agreement. However, in accordance with article 18.1 of the DIS Arbitration Rules, claims made in an arbitration with multiple parties (multiparty arbitration) may be decided in that arbitration if there is an arbitration agreement that binds all of the parties to have their claims decided in a single arbitration or if all of the parties have so agreed in a different manner. Any dispute as to whether the parties have agreed thereto, in particular when there is no express agreement in writing to that effect, shall be decided by the arbitral tribunal.

Law stated - 2 May 2025

Consolidation

Can an arbitral tribunal in your jurisdiction consolidate separate arbitral proceedings? In which circumstances?

Book 10 of the ZPO does not contain specific regulations on the consolidation of separate arbitral proceedings. Despite this fact, pursuant to article 8 of the DIS Arbitration Rules, upon the request of one or more parties, the DIS may consolidate two or more arbitrations conducted under the DIS Arbitration Rules into a single arbitration if all parties to all of the arbitrations consent to the consolidation. Moreover, any consolidation of arbitrations shall be into the arbitration that was first commenced, unless the parties have agreed otherwise.

Law stated - 2 May 2025

Constitution of arbitral tribunal

Eligibility of arbitrators

Are there any restrictions as to who may act as an arbitrator? Would any contractually stipulated requirement for arbitrators based on nationality, religion or gender be recognised by the courts in your jurisdiction?

Book 10 of the ZPO does not specify any special requirements for the arbitrators such as nationality, religion, gender or education. In accordance with article 9.2 of the DIS Arbitration Rules, the parties may nominate any person of their choice to act as an arbitrator. The DIS may propose names of potential arbitrators to any party upon such party’s request.

Law stated - 2 May 2025

Background of arbitrators

Who regularly sit as arbitrators in your jurisdiction?

Generally, arbitrators appointed in arbitration proceedings with the seat in Germany are lawyers. Retired judges or professors are also appointed as arbitrators. Reference should also be made to the DIS endeavour for gender equality in the context of the appointment of arbitrators. DIS Gender Statistics on the appointment of arbitrators in DIS-administered arbitrations for 2023 show a record high for the appointment of female arbitrators in DIS arbitrations. For instance, 53.85 per cent of the DIS-nominated arbitrators appointed in 2023 were women (up from 44.4 per cent in 2022).

Law stated - 2 May 2025

Default appointment of arbitrators

Failing prior agreement of the parties, what is the default mechanism for the appointment of arbitrators?

The default procedure for the appointment of arbitrators is reflected in section 1035(3) of the ZPO. In the case of the absence of agreement made by the parties regarding the appointment of arbitrators, the court will appoint a sole arbitrator upon request by one party if the parties are unable to come to an arrangement regarding the appointment of the arbitrator. In arbitral proceedings with three arbitrators, each party appoints one arbitrator; the two arbitrators thus appointed will appoint the third arbitrator, who will act as presiding arbitrator. If a party has not appointed the arbitrator within one month of having received a request to do so from the other party, or if the two arbitrators are unable to agree upon the third arbitrator within one month of their appointment, then the court is to appoint the third arbitrator upon request of a party.

This approach is followed by the DIS Arbitration Rules. According to article 11 of the DIS Arbitration Rules, if the parties do not agree upon a sole arbitrator within a time limit fixed by the DIS, the appointing committee of the DIS shall select and appoint the sole arbitrator pursuant to article 13.2. Furthermore, pursuant to article 12 of the DIS Arbitration Rules, if the arbitral tribunal is comprised of three arbitrators, each party shall nominate one co-arbitrator. If a party fails to nominate a co-arbitrator, such co-arbitrator shall be selected by the appointing committee.

Law stated - 2 May 2025

Challenge and replacement of arbitrators

On what grounds and how can an arbitrator be challenged and replaced? Please discuss in particular the grounds for challenge and replacement, and the procedure, including challenge in court. Is there a tendency to apply or seek guidance from the IBA Guidelines on Conflicts of Interest in International Arbitration?

The procedure of challenging arbitrators described is in section 1037 of the ZPO. First, the parties are free to agree on a procedure for challenging an arbitrator. Second, absent such agreement, the party intending to challenge an arbitrator is to submit to the arbitral tribunal, within two weeks of having become aware of the composition of the arbitral tribunal, a written statement with the reasons for challenging the arbitrator. If the challenged arbitrator does not withdraw from office or if the other party does not agree with the challenge, then the arbitral tribunal decides on the challenge. Third, if the challenge is not successful, then the challenging party may request, within one month of having become aware of the decision rejecting the challenge, that the court decides on the challenge; the parties may agree on a different time limit. While such a request is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and may make an award.

The grounds for challenging an arbitrator are contained in section 1036 of the ZPO. An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts about their impartiality or independence, or if they do not meet the prerequisites agreed to by the parties. A party may challenge an arbitrator whom they have themselves appointed, or in the appointment of whom the party has participated, solely for reasons of which the party became aware only after the appointment was made.

The grounds for removal of an arbitrator are contained in section 1038 of the ZPO. Where an arbitrator is unable, whether de jure or de facto, to perform their functions or fails to perform their functions within a reasonable time for other reasons, their mandate will end upon their withdrawal from office or upon the parties agreeing to terminate the mandate. Where the arbitrator does not withdraw from office, or where the parties are unable to agree on the termination of the mandate, each of the parties may request that the court decide on the termination of the arbitrator’s mandate.

Meanwhile, in accordance with article 16.2 of the DIS Arbitration Rules, the Arbitration Council may remove an arbitrator from office if it considers that such arbitrator is not fulfilling the arbitrator’s duties pursuant to the Rules or is not, or will not be, in a position to fulfil those duties in the future.

Finally, the International Bar Association (IBA) Guidelines on Conflicts of Interest may be used in Germany in the context of disclosure of potential conflicts of interest.

Law stated - 2 May 2025

Relationship between parties and arbitrators

What is the relationship between parties and arbitrators? Please elaborate on the contractual relationship between parties and arbitrators, neutrality of party-appointed arbitrators, remuneration and expenses of arbitrators.

Book 10 of the ZPO does not specify any provisions on the legal relationship between parties and arbitrators. By virtue of article 34.1 of the DIS Arbitration Rules, the arbitrators shall be entitled to fees and reimbursement of their expenses, except as otherwise provided in the Rules.

Law stated - 2 May 2025

Duties of arbitrators

What are arbitrators’ duties of disclosure regarding impartiality and independence throughout the arbitral proceedings?

In accordance with section 1036(1) of the ZPO, a person approached in connection with a possible appointment as an arbitrator is to disclose any and all circumstances likely to give rise to doubts as to their impartiality or independence. Similarly, article 9.1 of the DIS Arbitration Rules demands that every arbitrator shall be impartial and independent of the parties throughout the entire arbitration and shall have all of the qualifications, if any, agreed upon by the parties.

Law stated - 2 May 2025

Immunity of arbitrators from liability

To what extent are arbitrators immune from liability for their conduct in the course of the arbitration?

Regarding arbitration proceedings under DIS Arbitration Rules, an arbitrator shall not be liable to any person for any acts or omissions in connection with such arbitrator’s decision-making in the arbitration, except in the case of an intentional breach of duty. According to article 45.2 of the DIS Arbitration Rules, for any other acts or omissions in connection with the arbitration, an arbitrator, the DIS, its statutory organs, its employees and any other person associated with the DIS who is involved in the arbitration shall not be liable, except in the case of an intentional breach of duty or gross negligence.

Law stated - 2 May 2025

Jurisdiction and competence of arbitral tirbunal

Court proceedings contrary to arbitration agreements

What is the procedure for disputes over jurisdiction if court proceedings are initiated despite an existing arbitration agreement, and what time limits exist for jurisdictional objections?

Based on section 1032(1) of the ZPO, if an action is brought before a court in a matter that is the subject of an arbitration agreement, the court is to dismiss the action as inadmissible, provided that the respondent has raised a corresponding objection prior to commencement of the hearing on the merits of the case, unless the court finds that the arbitration agreement is null and void, ineffective or incapable of being performed.

Historically, it is rather impossible to obtain anti-suit injunction in Germany. Nevertheless, several years ago, the anti-anti-suit injunction was confirmed by the Higher Regional Court of Munich in Decision of 12 December 2019 No. 6 U 5042/19 to block any action of a party from chasing an anti-suit injunction in another jurisdiction.

Law stated - 2 May 2025

Jurisdiction of arbitral tribunal

What is the procedure for disputes over jurisdiction of the arbitral tribunal once arbitral proceedings have been initiated, and what time limits exist for jurisdictional objections?

German arbitration law follows the doctrine of competence-competence and allows the arbitral tribunal to rule on its own jurisdiction and, in this context, on the existence or the validity of the arbitration agreement under section 1040(1) of the ZPO. Due to section 1040(2) of the ZPO, the objection to the arbitral tribunal lacking jurisdiction is to be raised no later than by submitting the statement of defence. A party is not precluded from raising such an objection by the fact that the party has appointed an arbitrator or has participated in the arbitrator’s appointment. Furthermore, section 1040(3) of the ZPO precludes that if the arbitral tribunal considers that it has jurisdiction, its decision on an objection generally takes the form of an interlocutory decision. In this case, either party may request a court decision within one month of receiving the written notice of the interlocutory decision. While such a request is pending, the arbitral tribunal may continue the arbitral proceedings and may make an award.

Law stated - 2 May 2025

Distinction between admissibility and jurisdiction of tribunal

Is there a distinction between challenges as to the admissibility of a claim and as to the jurisdiction of the tribunal?

The main distinction between a challenge as to the jurisdiction of the tribunal and the admissibility of the claim is the extent of court intervention.

Jurisdiction and admissibility are two different concepts under German arbitration law. The difference between the two concepts is relevant in the resolution of disputes arising from non-compliance with the condition precedent of multi-tiered dispute resolution clauses. In Decision No. I ZB 50/15, the BGH has expressed the standpoint that failure to comply with the mandatory terms of multi-tiered dispute resolution clauses does not lead to the arbitral tribunal's lack of jurisdiction, but may result the claim could be as ‘currently unfounded’. This position was developed in a further BGH Decision No. I ZB 1/15.

Law stated - 2 May 2025

Arbitral proceedings

Place and language of arbitration, and choice of law

Failing prior agreement of the parties, what is the default mechanism for the place of arbitration and the language of the arbitral proceedings? How is the substantive law of the dispute determined?

Without agreement between parties, the arbitral tribunal will determine the place of arbitration under section 1043(1) of the ZPO. In the same vein, the arbitral tribunal may choose the language of the arbitral proceedings under section 1045(1) of the ZPO. Regarding the absence of a choice of applicable law by the parties, the arbitral tribunal is to apply the law of that state with which the subject matter of the proceedings is most closely connected under section 1051(2) of the ZPO.

The DIS Arbitration Rules followed this approach in the context of the seat of arbitration (article 22.1 the DIS Arbitration Rules) and the language of arbitral proceedings (article 23 DIS Arbitration Rules). Nevertheless, a different approach is expressed in article 24.2 of the DIS Arbitration Rules on the application of substantive law. According to the article above, if the parties have not agreed upon the rules of law to be applied to the merits of the dispute, the arbitral tribunal shall apply the rules of law that it deems appropriate.

Law stated - 2 May 2025

Commencement of arbitration

How are arbitral proceedings initiated?

The initial point of arbitral proceeding is the request for arbitration. Such request must designate the parties as well as the subject matter in dispute and must include a reference to the arbitration agreement under section 1044 of the ZPO.

Under provisions of article 5.2 of the DIS Arbitration Rules, a request for arbitration shall contain:

• the names and addresses of the parties;
• the names and addresses of any designated counsel representing the claimant in the arbitration;
• a statement of the specific relief sought;
• the amount of any quantified claims and an estimate of the monetary value of any unquantified claims;
• a description of the facts and circumstances on which the claims are based;
• the arbitration agreement(s) on which the claimant relies;
• the nomination of an arbitrator if required under the Rules; and
• any particulars or proposals regarding the seat of the arbitration, the language of the arbitration, and the rules of law applicable to the merits.

Moreover, a request for arbitration shall be sent to the DIS in paper form as well as in electronic form. The arbitration will commence when the request is filed with the DIS.

Law stated - 2 May 2025

Hearing

Is a hearing required and what rules apply?

In accordance with section 1047(1) of the ZPO, considering an agreement by the parties, the arbitral tribunal decides whether the matter is to be dealt with in oral hearings, or whether the proceedings are to be conducted on the basis of documents and other documentary materials. Where the parties have not ruled out a hearing for oral argument, the arbitral tribunal is to hold such a hearing, on request by a party, at an appropriate stage of the proceedings.

Although German arbitration law does not expressly provide the possibility to hold remote hearings, such hearings could be carried out by arbitrators unless the parties have expressly excluded this option by agreement.

Law stated - 2 May 2025

Evidence

By what rules is the arbitral tribunal bound in establishing the facts of the case? What types of evidence are admitted and how is the taking of evidence conducted?

Book 10 of the ZPO does not specify any special regulation on taking evidence. In this context, reference could be made to general rule expressed in section 1042(4) of the ZPO, which states that the arbitral tribunal lays down the rules of procedure at its sole discretion. The arbitral tribunal is entitled to decide on the admissibility of taking evidence, to take evidence and to freely assess the evidence.

In addition, according to article 28 of the DIS Arbitration Rules, the arbitral tribunal shall establish the facts of the case that are relevant and material for deciding the dispute. To comply with this purpose, the arbitral tribunal may, inter alia, on its own initiative, appoint experts, examine fact witnesses other than those called by the parties, and order any party to produce or make available any documents or electronically stored data. The arbitral tribunal shall not be limited to admit only evidence offered by the parties.

Practically, in international arbitrations with a seat in Germany, arbitrators may use the IBA Rules on the Taking of Evidence in International Arbitration as a recognised international standard on the taking of evidence procedure.

Law stated - 2 May 2025

Court involvement

In what instances can the arbitral tribunal request assistance from a court, and in what instances may courts intervene?

German state courts can assist arbitral tribunals on the following issues:

• determining the admissibility or inadmissibility of arbitral proceedings under request of a party in accordance with section 1032(2) of the ZPO;
• granting an interim measure or measure of protection concerning the subject matter of the dispute submitted to arbitration, before or after arbitral proceedings have commenced and upon request by a party in accordance with section 1033 of the ZPO;
• appointing arbitrators if a party has not appointed the arbitrator within one month of having received a request to do so from the other party, or if the two arbitrators are unable to agree upon the third arbitrator within one month of their appointment, then the court is to appoint the third arbitrator upon request of a party in accordance with section 1035 of the ZPO;
• deciding on the challenge of an arbitrator under request of a party in accordance with section 1037(3) of the ZPO;
• deciding on the tribunal’s decision on its jurisdiction under request of a party in accordance with section 1040(3) of the ZPO;
• granting an enforcement of interim measure in accordance with section 1041(2) of the ZPO; or
• providing assistance on taking evidence or by performing any other judicial acts for which the arbitral tribunal is not authorised in accordance with section 1050 of the ZPO.

Law stated - 2 May 2025

Confidentiality

Is confidentiality ensured?

Book 10 of the ZPO does not contain any specific sections on the confidentiality issue. Nonetheless, pursuant to article 44.1 of the DIS Arbitration Rules, unless the parties agree otherwise, the parties and their outside counsel, the arbitrators, the DIS employees and any other persons associated with the DIS who are involved in the arbitration shall not disclose to anyone any information concerning the arbitration, including in particular the existence of the arbitration, the names of the parties, the nature of the claims, the names of any witnesses or experts, any procedural orders or awards and any evidence that is not publicly available. However, by virtue of article 44.2 of the DIS Arbitration Rules, disclosures may be made to the extent required by applicable law, by other legal duties, or for purposes of the recognition and enforcement or annulment of an arbitral award.

Law stated - 2 May 2025

Interim measures and sanctioning powers

Interim measures by the courts

What interim measures may be ordered by courts before and after arbitration proceedings have been initiated?

According to section 1033 of the ZPO, it is possible for a court to order, before or after arbitral proceedings have commenced and upon request by a party, an interim measure or measure of protection concerning the subject matter of the dispute submitted to arbitration.

Moreover, under article 25.1 of the DIS Arbitration Rules, the arbitral tribunal may, at the request of a party, order interim or conservatory measures, and may amend, suspend or revoke any such measure. The arbitral tribunal shall transmit the request to the other party for comments. The arbitral tribunal may request any party to provide appropriate security in connection with such measures.

Law stated - 2 May 2025

Interim measures by an emergency arbitrator

Does your domestic arbitration law or do the rules of the domestic arbitration institutions mentioned above provide for an emergency arbitrator prior to the constitution of the arbitral tribunal?

The emergency arbitrator as an adjudicator appears only in the renovated DIS Sport Arbitration Rules (DIS-SportSchO), which came into force on 1 January 2025. According to article 25.3 of DIS-SportSchO, the emergency arbitrator can decide on the application of a party seeking interim relief if the arbitral tribunal has not yet been constituted. Meanwhile, Book 10 of the ZPO and the DIS Arbitration Rules does not mention an emergency arbitrator.

Law stated - 2 May 2025

Interim measures by the arbitral tribunal

What interim measures may the arbitral tribunal order after it is constituted? In which instances can security for costs be ordered by an arbitral tribunal?

The arbitral tribunal, by virtue of section 1041(1) of the ZPO, may order, at the request of a party, interim measures or measures of protection as it considers necessary in respect of the subject matter of the dispute. The arbitral tribunal may require either party to provide reasonable security in connection with such a measure. As mentioned earlier, the issue of interim relief is also addressed in article 25 of the DIS Arbitration Rules. In turn, the DIS Arbitration Rules do not expressly mention the arbitral tribunal's ability to order security for costs. However, the arbitral tribunal is not prohibited from ordering security for costs under its discretionary powers.

Law stated - 2 May 2025

Sanctioning powers of the arbitral tribunal

Pursuant to your domestic arbitration law or the rules of the domestic arbitration institutions mentioned above, is the arbitral tribunal competent to order sanctions against parties or their counsel who use ‘guerrilla tactics’ in arbitration? May counsel be subject to sanctions by the arbitral tribunal or domestic arbitral institutions?

To prevent usage of dilatory tactics by parties of the arbitration proceedings, the arbitral tribunal can:

• reject dilatory submissions, the purpose of which is to obstruct or arbitral proceedings, from parties under its procedural discretion, which is expressed in section 1042(4) of the ZPO and article 21.3 of the DIS Arbitration Rules; and
• under article 33.3 of the DIS Arbitration Rules allocate costs in such a way, that the party that used guerrilla tactics would bear the cost of doing so because it was counteracting the efficient conduct of the arbitration proceedings.

There are no reported cases in Germany where an arbitral tribunal or the DIS has sanctioned counsel directly for using guerrilla during the arbitral proceedings.

Law stated - 2 May 2025

Awards

Decisions by the arbitral tribunal

Failing party agreement, is it sufficient if decisions by the arbitral tribunal are made by a majority of all its members or is a unanimous vote required? What are the consequences for the award if an arbitrator dissents?

In accordance with section 1052(1) of the ZPO, unless otherwise agreed by the parties, any decision of the arbitral tribunal taken in arbitral proceedings with more than one arbitrator is to be made by a majority of the votes cast by all of its members. In a case when an arbitrator refuses to participate in a vote, then unless otherwise agreed by the parties, the other arbitrators may decide on the matter without the arbitrator refusing to participate in the vote.

At same time, pursuant article 14.2 of the DIS Arbitration Rules, if an arbitration has more than one arbitrator, every decision by the arbitral tribunal that is not made unanimously shall be made by majority vote, unless the parties agree otherwise. In the absence of a majority vote, the President shall decide alone.

Law stated - 2 May 2025

Dissenting opinions

How does your domestic arbitration law deal with dissenting opinions?

Dissenting opinions are the bone of contention in the arbitration community in Germany. In the decision of 16 January 2020 (26, Sch 14/18), the Higher Regional Court Frankfurt stated that dissenting opinions in arbitration proceedings might be incompatible with the German domestic public order, and, consequently, such an award could be challenged. The court argued that publication of the dissenting opinion might violate the principle of confidentiality of proceedings. However, this decision has received mixed reviews in the arbitration community.

Law stated - 2 May 2025

Form and content requirements

What form and content requirements exist for an award?

According to section 1054 of the ZPO, the arbitral award is to be made in writing and is to be signed by the arbitrator or arbitrators. In arbitral proceedings with more than one arbitrator, the signatures of the majority of all members of the arbitral tribunal will suffice, provided that the reason for any missing signature is stated.

Moreover, the arbitral award is to state the reasons upon which it is based unless the parties have agreed that no reasons need be provided. For the DIS-administered arbitral proceedings, requirements for an award are expressed in article 39 of the DIS Arbitration Rules. The award must:

• be made in writing;
• state the names and addresses of the parties, of any designated counsel representing a party in the arbitration, and of the arbitrators;
• contain the arbitral tribunal’s decision and the reasons upon which it is based, unless the parties have agreed that reasons need not be given or the award is by consent;
• contain information about the seat of the arbitration; and
• contain information about the date of the award.

Furthermore, in the final award, the arbitral tribunal shall state the costs of the arbitration and shall decide on their allocation between the parties.

Law stated - 2 May 2025

Time limit for award

Does the award have to be rendered within a certain time limit under your domestic arbitration law or under the rules of the domestic arbitration institutions mentioned above?

Book 10 of the ZPO does not specify any time limit for rendering the award. Meanwhile, pursuant to article 37 of the DIS Arbitration Rules, the arbitral tribunal shall send the final award to the DIS for review, in principle within three months of the last hearing or the last authorised submission, whichever is later. The Arbitration Council, at its discretion, may reduce the fee of one or more arbitrators based upon the time taken by the arbitral tribunal to issue its final award. In deciding whether to reduce the fee, the Arbitration Council shall consult the arbitral tribunal and take into consideration the circumstances of the case.

Law stated - 2 May 2025

Date of award

For what time limits is the date of the award decisive and for what time limits is the date of delivery of the award decisive?

The request for correction, interpretation and supplementation of the arbitral award under section 1058 of the ZPO, should be made within one month of the arbitral award have been received if the parties have not agreed on a different time limit.

Another time period is expressed in section 1059 of the ZPO, for the application for setting aside the arbitral award. Such application must be filed with the court within three months. This period begins on the day on which the party filing the application has received the arbitral award.

Under article 40.5 of the DIS Arbitration Rules, the corrections of the arbitral award shall be made within 60 days of the date on which the award was made.

Law stated - 2 May 2025

Types of awards

What types of awards are possible and what types of relief may the arbitral tribunal grant?

The arbitral tribunal could grant final, partial, interim or interlocutory awards on agreed terms. However, German law does not recognise the concept of punitive damages, so awards containing punitive damages might be challenged in German courts.

Law stated - 2 May 2025

Termination of proceedings

By what other means than an award can proceedings be terminated?

According to section 1056 of the ZPO, arbitral proceedings are terminated by the final award, or by an order by the arbitral tribunal if:

• the claimant fails to submit the statement of claim;
• the claimant withdraws the claim, unless the respondent raises an opposition thereto and the arbitral tribunal recognises a legitimate interest on the part of the respondent in conclusively resolving the dispute;
• the parties agree on the termination of the proceedings;
• the parties no longer pursue the arbitral proceedings in spite of the arbitral tribunal having called on them to do so; or
• the continuation of the proceedings has become impossible for other reasons.

Reasons for termination of arbitral proceedings also expressed in article 42 of the DIS Arbitration Rules.

Law stated - 2 May 2025

Cost allocation and recovery

How are the costs of the arbitral proceedings allocated in awards? What costs are recoverable?

Pursuant to section 1057 of the ZPO, the arbitral tribunal is to decide, in its arbitral award, on the share of the costs of the arbitral proceedings that each of the parties is to bear, including the costs incurred by the parties that were necessary to properly pursue their claim or defence.

In this context, the arbitral tribunal will decide at its discretion while taking into account the circumstances of the individual case, in particular the outcome of the proceedings. Under article 33.3 of the DIS Arbitration Rules, the arbitral tribunal shall make decisions concerning the costs of the arbitration in its discretion.

In general, the arbitral tribunals in Germany adopt a ‘cost follows the event’ method, meaning that the unsuccessful party must pay the successful party's costs.

Law stated - 2 May 2025

Interest

May interest be awarded for principal claims and for costs, and at what rate?

An arbitral tribunal may render award on interest to the extent that the applicable substantive law of the dispute permits a claim for interests.

Law stated - 2 May 2025

Proceedings subsequent to issuance of award

Interpretation and correction of awards

Does the arbitral tribunal have the power to correct or interpret an award on its own or at the parties’ initiative? What time limits apply?

The arbitral award could be corrected and interpreted under section 1058 of the ZPO. The arbitral tribunal can correct in the arbitral award any errors in computation, any clerical or typographical errors or any errors of a similar nature, give an interpretation of specific parts of the arbitral award and make a supplementary arbitral award as to those claims that, although they had been asserted in the arbitral proceedings, were not addressed by the arbitral award. The request is to be made by parties within one month of the arbitral award having been received.

The procedure of correction of the arbitral award also regulated by article 40 of the DIS Arbitration Rules. Under this article, corrections shall be made by tribunal within 60 days of the date on which the award was made.

Law stated - 2 May 2025

Challenge of awards

How and on what grounds can awards be challenged and set aside?

An exclusive list of grounds for setting aside an arbitral award is contained in section 1059 of the ZPO and de facto mirrors the grounds contained in the UNCITRAL Model Law. According to the aforementioned section, an arbitral award may be set aside only if the party filing the application shows sufficient cause that:

• one of the parties concluding the arbitration agreement did not have the capacity to do so, or that the arbitration agreement is not valid or, if the parties have not made any determinations in this regard, that it is invalid under German law;
• the party filing the application had not been given proper notice;
• the arbitral award deals with a dispute not contemplated by the separate arbitration agreement or not covered by the terms of the arbitration clause, or that it contains decisions that are beyond the scope of the arbitration agreement; or
• the formation of the arbitral tribunal or the arbitral proceedings was not in accordance with a provision of Book 10 of the ZPO or with an admissible agreement in place between the parties, and that this presumably has had an effect on the arbitral award.

As another option the court finds that the:

• subject matter of the dispute is not capable of settlement by arbitration under German law; and
• recognition and enforcement of the arbitral award will lead to a result that is contrary to public policy.

The application for setting aside the arbitral award must be filed with the court within three months. This period begins on the day on which the party filing the application has received the arbitral award.

Law stated - 2 May 2025

Levels of appeal

How many levels of appeal are there? How long does it generally take until a challenge is decided at each level? Approximately what costs are incurred at each level? How are costs apportioned among the parties?

According to section 1062 of the ZPO, the Higher Regional Court designated in the arbitration agreement or, if no such designation was made, the higher regional court in the district of which the place of arbitration is located, is competent to decide on applications regarding the setting aside procedure. The decision of the higher regional court can be appealed to the BGH.

The general duration of the setting aside procedure and further appeal may vary from several months up to two years. The costs of the setting aside procedure also follow the ‘cost follows the event’ rule.

Law stated - 2 May 2025

Recognition and enforcement

What requirements exist for recognition and enforcement of domestic and foreign awards, what grounds exist for refusing recognition and enforcement, and what is the procedure?

The procedure of recognition and enforcement of arbitral awards is expressed in Chapter 8 of Book 10 of the ZPO. The procedure for the enforcement of domestic arbitral awards and foreign arbitral awards is separate.

In accordance with section 1060 of the ZPO, compulsory enforcement of the domestic arbitral award may be pursued after the award has been declared enforceable. The application for a declaration of enforceability is to be denied, and the arbitral award is to be set aside, if one of the grounds for setting aside designated in section 1059 (2) of ZPO is fulfilled.

The New York Convention governs the recognition and enforcement of foreign arbitral awards. Furthermore, where the declaration of enforceability is to be denied, the court will establish in a declaratory ruling that the arbitral award is not to be recognised in Germany.

However, in cases where the arbitral award is set aside abroad after being declared enforceable, an application may be filed seeking to repeal the declaration of enforceability.

Germany is a pro-arbitration jurisdiction, so domestic and foreign arbitral awards are generally declared enforceable in Germany if they do not have any manifest defects that would prevent them from being recognised.

Law stated - 2 May 2025

Time limits for enforcement of arbitral awards

Is there a limitation period for the enforcement of arbitral awards?

Book 10 of the ZPO does not specify a limitation period for enforcing arbitral awards. However, in applying substantive German law, a party may raise an objection to enforcing an arbitral award if 30 years have passed since the award was rendered.

Law stated - 2 May 2025

Enforcement of foreign awards

What is the attitude of domestic courts to the enforcement of foreign awards set aside by the courts at the place of arbitration?

Generally, German national courts will reject enforcement of foreign award that was set aside by a competent court in another jurisdiction where an award was rendered. This approach was upheld in BGH Decision No. III ZB 14/07.

Law stated - 2 May 2025

Enforcement of orders by emergency arbitrators

Does your domestic arbitration legislation, case law or the rules of domestic arbitration institutions provide for the enforcement of orders by emergency arbitrators?

Book 10 of the ZPO and the DIS Arbitration Rules does not mention an emergency arbitrator.

However, as noted in previous sections, an emergency arbitrator as an adjudicator appears in the amended DIS-SportSchO, which came into force on 1 January 2025. According to article 25.3 of DIS-SportSchO, the amergency arbitrator can decide on the application of a party seeking interim relief if the arbitral tribunal has not yet been constituted.

Law stated - 2 May 2025

Cost of enforcement

What costs are incurred in enforcing awards?

The costs associated with enforcing awards vary based on the amount of the dispute, following the cost schedules for court and lawyer fees. Generally, the losing party should pay these costs.

Law stated - 2 May 2025

Other

Influence of legal traditions on arbitrators

What dominant features of your judicial system might exert an influence on an arbitrator from your jurisdiction?

The German judicial system is associated with initiative case management held by judges with limited document disclosure provisions. In international arbitral proceedings with a seat in Germany, arbitrators will more likely follow international standards and soft law sources such as the IBA Guidelines on Conflicts of Interest in International Arbitration and the IBA Rules on the Taking of Evidence in International Arbitration. However, local arbitration proceedings might be held under the standards expressed in the ZPO.

Law stated - 2 May 2025

Professional or ethical rules

Are specific professional or ethical rules applicable to counsel and arbitrators in international arbitration in your jurisdiction? Does best practice in your jurisdiction reflect (or contradict) the IBA Guidelines on Party Representation in International Arbitration?

Book 10 of the ZPO does not contain specific provisions on professional or ethical rules applicable to counsel and arbitrators. Generally, lawyers in Germany are subject to the statutory provisions of the German Federal Lawyers' Act and to the Lawyers Professional Code of Conduct. Meanwhile, the IBA Guidelines on Party Representation in International Arbitration can present valuable guidance for German counsel in international arbitration proceedings.

Law stated - 2 May 2025

Third-party funding

Is third-party funding of arbitral claims in your jurisdiction subject to regulatory restrictions? 

Third-party funding (TPF) is not prohibited under German law. Furthermore, there are no restrictions on TPF under provisions of the DIS Arbitration Rules.

Law stated - 2 May 2025

Regulation of activities

What particularities exist in your jurisdiction that a foreign practitioner should be aware of?

Foreign lawyers are not prohibited from participating as counsel in arbitration proceedings in Germany. In general, legal advice provided by counsel in Germany to German clients is subject to VAT.

Law stated - 2 May 2025

Update and trends

Legislative reform and investment treaty arbitration

Are there any emerging trends or hot topics in arbitration in your country? Is the arbitration law of your jurisdiction currently the subject of legislative reform? Are the rules of the domestic arbitration institutions mentioned above currently being revised? Have any bilateral investment treaties recently been terminated? If so, which ones? Is there any intention to terminate any of these bilateral investment treaties? If so, which ones? What are the main recent decisions in the field of international investment arbitration to which your country was a party? Are there any pending investment arbitration cases in which the country you are reporting about is a party?

German arbitration law was last substantially updated in the 1990s. Since then, the landscape of international arbitration and its peculiarities have undergone significant changes, which should certainly be reflected in the national legislation of Germany, which holds the position of an essential arbitration hub in the world. In response to the evolution of international commercial arbitration, on 26 June 2024, the German federal government published its draft bill on the modernisation of German arbitration law (the Draft Bill).

The first substantive amendment in the Draft Bill addresses the form of the arbitration agreement. According to the current text of Book 10 of the ZPO, arbitration agreements should generally be concluded in written form. However, according to the Draft Bill, arbitration agreements could be concluded orally. Nevertheless, arbitration agreements with consumers still demand strict formal requirements and should be signed by the consumer.

Second, according to section 1063b of the Draft Bill, English-language documents originating from arbitral proceedings can be submitted to the German courts regarding the setting aside of proceedings without supplying a translation into German. A translation must be provided only where a particular need is given in the individual case.

Third, the Draft Bill proposes, in sections 1047(2) and (3), discretionary legal provisions allowing oral hearings to be conducted via video conference hearings to clarify this manner of proceeding and further increase legal certainty in this regard.

Another major development that aims to promote publicity of arbitral proceedings is the possibility of publishing the arbitral award and, if applicable, any concurring or dissenting opinions of arbitrators with the parties' consent. Such publication can be made in anonymised form, in whole or in part.

Furthermore, the Draft Bill allows the possibility of setting aside a procedural award made by an arbitral tribunal that declares lack of jurisdiction if the party filing the application shows sufficient cause that the arbitral tribunal wrongly considered itself to lack jurisdiction.

The comprehensive character of the Draft Bill demonstrates the legislator's intention to substantially modernise German arbitration law and adapt it to the changes that have taken place in the field of international arbitration in recent years.

As for DIS rules, the DIS Arbitration Rules were revised last time in 2018. However, in March 2024, the DIS published brand new Supplementary Rules for Third-Party Notices (DIS-TPNR), which aim to solve the typical situation when a recourse claim may be raised if the notifying party does not prevail in the initial arbitration. Moreover, the DIS published its revised version of Sport Arbitration Rules in January 2025.

As for the ISDS, due to the continuing ‘backlash’ of ISDS in the European Union, Germany declared withdrawal from the ECT in 2022. The withdrawal came into force in December 2023. However, pursuant to the sunset clause in article 47(3) of the ECT, existing investments will continue to be protected for 20 years following the date on which the withdrawal came into force.

Moreover, the BGH, in decisions of 27 July 2023 I ZB 43/22, I ZB 74/22 and I ZB 75/2, declared that German courts can decide, according to section 1032(2) of the ZPO, that arbitration proceedings initiated under the ICSID Convention are inadmissible due to the lack of an effective arbitration agreement and the incompatibility of intra-EU investment arbitrations with EU law. Additionally, on 23 July 2024, the German Federal Constitutional Court dismissed two constitutional complaints by Achmea and upheld the position that arbitration clauses in investment treaties between EU member states are incompatible with EU law.

Finally, to date, there have been seven publicly reported investor-state cases in which Germany acts as a respondent:

• Sancheti v Germany (settled);
• Vattenfall v Germany (ICSID Case No. ARB/09/6; Vattenfall I) (settled);
• Vattenfall v. Germany (ICSID Case No. ARB/12/12; Vattenfall II) (settled);
• Strabag and others v Germany (ICSID Case No. ARB/19/29) (pending);
• Mainstream Renewable and others v Germany (ICSID Case No. ARB/21/26) (pending);
• Klesch and Raffinerie Heide v Germany (ICSID Case No. ARB/23/49) (pending); and
• AET v Germany (ICSID Case No. ARB/23/47) (pending).

Law stated - 2 May 2025