Firm P (U.S.A) v. Firm F (F.R.G.)

2 Y.B. Comm. Arb. 241 (1977)

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Firm P (U.S.A) v. Firm F (F.R.G.)

Hamburg Court of Appeal
2 Y.B. Comm. Arb. 241 (1977)

Facts

After a dispute arose between German Firm F and United Stated Firm P, the parties initiated arbitration proceedings under the rules of the American Arbitration Association pursuant to the arbitration agreement between them. The dispute was decided by a single arbitrator. Firm P submitted a letter to the arbitrator, which the arbitrator failed to share with Firm F, and Firm F sent the arbitrator a letter from a German ministry that conflicted with Firm P’s letter. The arbitrator entirely ignored the letter submitted by Firm F. The arbitrator issued an award in favor of Firm P based solely on documents submitted by the parties and did not hold any oral hearings about the dispute. After a United States district court declared that the award was legally enforceable, Firm P filed to enforce the award in a German court of first instance. The German court granted the action for enforcement. Firm F appealed, arguing that the arbitrator’s actions prevented it from presenting its case.

Rule of Law

Issue

Holding and Reasoning ()

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