Trabrennbahn

27 October 2008, II ZR 158/06, BGHZ 178, 192 (2008)

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Trabrennbahn

Germany Federal Court of Justice
27 October 2008, II ZR 158/06, BGHZ 178, 192 (2008)

Facts

A Swiss corporation with three shareholders and its real seat (principal place of business) in Germany (the Swiss company) (plaintiff) leased real property to a German party (the German party) (defendant). The German party defaulted on the lease, leading the Swiss company to bring suit for past-due lease payments, return of the property, and legal expenses incurred. The German party challenged the Swiss company’s capacity to sue in Germany. The Swiss company had not transferred its incorporation to Germany when the Swiss company moved its real seat to Germany. Switzerland is not a member of the European Union (EU) or the European Economic Area (EEA). Under treaties established by the EU and EEA, corporations from member countries can sue in other member countries, provided the corporations have the capacity to sue in the country in which the corporation was incorporated. The appellate court ruled that even though Switzerland is not a member of the EU or EEA, Swiss law is consistent with EU law, and therefore, Swiss corporations must be treated the same as EU or EEA corporations. Thus, the Swiss company had the capacity to sue in Germany. The German party appealed to the German Federal Court of Justice (the Bundesgerichtshof). [Editor’s Note: The Federal Court of Justice is Germany’s highest civil and criminal jurisdiction court.]

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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