Case of the Week: Brexit Does Not Facilitate Freezing Orders

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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.

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Seizure of Bank Accounts in Europe: European Account Preservation Order Available Now

1024px-Flag_Map_of_European_UnionOn January 18, 2017, new rules governing the seizure of bank accounts in the European Union came into force: The EU Regulation No 655/2014 of May 15, 2014 established a European Account Preservation Order (EAPO) to facilitate cross-border debt recovery in civil and commercial matters. The EAPO procedure is available immediately.  Continue reading

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2nd Litigation Committee Conference on Private International Law, November 17/18 2016, Milan

Palazzo TuratiFollowing the first successful IBA Litigation Committee Conference on Private International in Milan in 2014, the Litigation Committee is presenting the second edition, again in Milan. This year’s topic is The Hague Convention on Choice of Court Agreements: New Perspectives in International Commercial Dispute Resolution (click here for the full programme). Continue reading

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IBA Conference on Hot Topics in European Cross- Border Commercial Disputes, Milan, September 11-12, 2014

This conference in Milan may be of interest to you. It is organized by the IBA Litigation Committee, and will cover these “hot topics”:

  • Brussels I Recast: New Rules on Jurisdiction and Enforcement – And What About Arbitration?
  • Enforcement of Choice-of Court Agreements: Solving Old Problems and Facing New Issues, From Torpedoes and Anti-Suit Injunctions to Unilateral Jurisdiction Clauses
  • Jurisdiction Topics in Cross-Border Financial Disputes: ECJ and National Recent Case Law

Here is a link to the programme and the registration details.

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