Excursus: the court of arbitration

In the case of existing and also future disputes in relation to a specific legal relationship, the parties can make a so-called arbitration agreement. The arbitration agreement results in the dispute being withdrawn from state jurisdiction and it is now judged privately. In this case, the appointment of the arbitrators generally takes place in accordance with the corresponding agreement between the parties. If no provision is made in the agreement with regard to the appointment of the arbitrators, the arbitrators are appointed by the state court. In terms of enforceability, the judgements of arbitrators are equal to the judgements of state courts.

Various reasons may argue in favour of the appointment of a court of arbitration:

  • experts can be appointed to the court;
  • to accelerate proceedings in accordance with the wishes of successors;
  • a desire for confidentiality;
  • in international disputes, a desire to not subject the dispute to the judgement of a national court;
  • a desire to pursue legal proceedings in a non-official ambience.

The fact that the costs of appointing a court of arbitration are generally higher than those associated with a state court argue against such an appointment.

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