Case of the Week: Brexit Does Not Facilitate Freezing Orders

Featured

olg-frankfurt-ganz-neu2In my opinion, obtaining a freezing order (Arrest) against the debtor pending final judgment tends to be rather difficult in this jurisdiction. Often, the courts set the bar for showing that “the enforcement of the judgment would be frustrated or be significantly more difficult”, as Section 917 German Code of Civil Procedure (ZPO) puts it, frustratingly high. It is somewhat easier if the debtor is situated abroad: Section 917 para. 2 ZPO stipulates that it is sufficient grounds for a freezing order if the judgment would have to be enforced abroad and there is no reciprocity with the foreign jurisdiction (Arrestgrund der Auslandsvollstreckung). As there is reciprocity across all member states of the European Union, this does not work, however, with respect to a debtor situated in the United Kingdom – at least for now.

In a recent case in the Frankfurt Court of Appeals (Oberlandesgericht), the applicant was seeking a freezing order against a German national who had moved to the United Kingdom. The applicant argued that given the United Kingdom’s decision to leave the European Union and given that a final judgment would not be in place prior to the current Brexit deadline of 31 October 2019, the reciprocity exemption should not apply to the United Kingdom, the freezing order should be granted pursuant to Section 917 para. 2 ZPO.

Continue reading

Share and Enjoy

Frankfurt Court of Appeals: Moving Towards Greater Specialization on the Bench

olg-frankfurt-ganz-neu2The Frankfurt Court of Appeals (Oberlandesgericht) is creating additional specialized senates (a Senat is a division of the court of appeals, sitting with three judges) as of the beginning of this year.

Continue reading

Share and Enjoy

Greek Debt Crises Reaches Federal Supreme Court

Coat_of_arms_of_Greece_svgGerman investors in Greek government bonds have sued the Hellenic Republic in German courts over losses suffered as a result of the restructuring of their bonds. The Greek debt restructuring which triggered this litigation took place in March 2012. Greek bonds were exchanged for new bonds with lower principal, lower interest rates and longer maturity, resulting in a haircut for investors. A large majority of investors accepted the swap, but some investors did not, and went to court. Continue reading

Share and Enjoy

IBA Guidelines on Conflicts of Interest in International Arbitration: Revised Version 2014

At its session in Tokyo on October 23, 2014, the IBA Council has approved the new version of the IBA Guidelines on Conflicts of Interest in International Arbitration. This version updates and clarifies the original IBA Guidelines, which were approved by the IBA Council on May 22, 2004. According to the IBA, “the Guidelines on Conflicts of Interest represent the most comprehensive work to date defining the framework by which the impartiality of arbitration in the international arena can be most effectively assured.” Continue reading

Share and Enjoy