Yugoslav Co. v. PDR Korea Co.

8 Y.B. Comm. Arb. 129 (1983)

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Yugoslav Co. v. PDR Korea Co.

German Democratic Republic Chamber for Foreign Trade, Arbitration Court
8 Y.B. Comm. Arb. 129 (1983)

Facts

A Yugoslav company (plaintiff) and PDR Korea Co. (the Korean company) (defendant) contracted for the Korean company to sell frozen fish to the Yugoslav company. The contract included an arbitration clause stating that any disputes arising from the contract that could not be settled amicably could be subject to arbitration in the People’s Republic of China in Peking, the People’s Republic of Poland in Warsaw, or the German Democratic Republic (GDR) in Berlin. The Yugoslav company filed a petition for damages in arbitration court in Berlin, GDR. The Yugoslav company had previously filed its petition with the arbitration court in Warsaw, Poland, but the petition was dismissed after the Korean company challenged the Warsaw arbitration court’s competence. The Korean company was notified of the Berlin arbitration proceedings and asserted that the Berlin arbitration court was not competent to hear the dispute because the arbitration clause required that both parties agree on the arbitration location from the three listed in the contract. An arbitrator was appointed for the Korean company after the Korean company failed to select one. The Korean company failed to attend a hearing on the issue of competency, and the Yugoslav company moved at the Berlin arbitration court for an interim judgment on the competency issue.

Rule of Law

Issue

Holding and Reasoning ()

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