Judgment of 26 January 1989
Germany Federal Court of Justice
1989 NJW 1477 (1989)
- Written by Mary Katherine Cunningham, JD
Facts
A liquidator of the assets of a debtor (plaintiff) initiated a lawsuit in German courts related to a contract the debtor entered into in January 1977. The debtor produced injection-molded parts for a business party (defendant). The contract provided that the defendant could initiate a fast-track arbitral procedure. The contract also contained an annex containing three sections. Section 2 provided that the defendant would choose a neutral person to serve as an arbitrator. Section 3 provided for the procedure in arbitration, including requiring that the parties represent themselves in the arbitration and that lawyers be excluded from the arbitration proceedings. Section 4 provided that the amount of dispute of each procedure was limited to a certain amount, 7,000 Deutschmarks. Section 13 of the contract indicated the arbitration agreement was drafted unilaterally in favor of the defendant. The liquidator later initiated a lawsuit in the German courts.
Rule of Law
Issue
Holding and Reasoning (Per curiam)
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