Landegger v. Bayerische Hypotheken und Wechsel Bank

Karl Landegger (plaintiff), an American citizen, entered into an investment contract with Bayerische Hypotheken und Wechsel Bank (Bayerische) (defendant), a German bank. The investment contract contained an arbitration clause requiring any disputes to be resolved via arbitration in Germany. After a dispute arose, Landegger commenced an arbitration proceeding in Germany. The arbitration panel awarded money damages and costs to Landegger. Bayerische filed an action in Germany to vacate the award. The German court confirmed the arbitration panel’s money-damages award except for costs. Bayerische appealed. The German court permitted Landegger to seek enforcement of the arbitration award on the condition that Bayerische post security for the awarded amount plus interest, returnable to Bayerische in the event that Bayerische prevailed on appeal. While the appeal was pending in Germany, Landegger filed suit in the New York district court, seeking to enforce the German arbitration award. Landegger motioned for summary judgment in the New York action. Bayerische opposed the summary-judgment motion and moved to stay the New York action, arguing that the German arbitration was not final and thus was unenforceable pursuant to a treaty between the United States and Germany. Bayerische also argued that the German arbitration award should be vacated on due-process grounds, claiming that the German court had denied Bayerische the opportunity to be heard.