GERMANY Law and Practice Contributed by: Christian Strasser, Thomas Wambach and Yannick Greimann, HEUKING
man law, particularly if the recognition is incompat - ible with fundamental rights (ordre public). The Federal Supreme Court applies a generous inter - national standard in determining the ordre public. For a violation of the German ordre public, the recognition and enforcement of the foreign judgment must lead to a result contrary to the principles of German law. The German courts are very reluctant to refuse the recognition of a foreign judgment because of a viola - tion of ordre public. 4. Arbitral Awards 4.1 Legal Issues Concerning Enforcement of Arbitral Awards German arbitration law is regulated in the tenth sec - tion of the ZPO. The regulations therein are an almost verbatim adop - tion of the UNCITRAL Model Law on International Commercial Arbitration. Deviations from the Model Law result, inter alia, from the fact that German arbi - tration law partially grants the parties greater party autonomy. The procedure for enforcing foreign arbitral awards was adopted into German law without deviations from the UNCITRAL Model Law. Furthermore, Germany has ratified the New York Convention. Article 1061 of the ZPO, which regulates the recognition and enforcement of foreign arbitral awards, refers, inter alia, directly to the New York Con - vention. Foreign arbitral awards from countries that have equally ratified the Convention are enforceable in Germany even without guaranteed reciprocity. The judicial procedure for recognising foreign arbi - tral awards in Germany is limited to a maximum of two instances. Furthermore, the scope of review is severely limited (see 4.4 Process of Enforcing Arbi- tral Awards ). The Higher Regional Courts ( Oberland- esgericht ) are the competent courts of first instance for recognition. Pursuant to Section 1065 (1) of the ZPO, an appeal on a point of law ( Rechtsbeschwerde ) against the decision of the Higher Regional Court can
be submitted to the Federal Supreme Court ( Bun- desgerichtshof ) as the court of last instance. 4.2 Variations in Approach to Enforcement of Arbitral Awards The procedure standardised in the ZPO regulates the recognition and enforcement of foreign arbitral awards from an abstract point of view. There is no differentia - tion according to the type of arbitral award as long as it has a ruling in line with enforceable titles in Germany. 4.3 Categories of Arbitral Awards Not Enforced Declaratory awards and awards from states that have not signed the New York Convention (eg, Angola, Iraq, Tajikistan) cannot be enforced in Germany. 4.4 Process of Enforcing Arbitral Awards On 1 February 2024, the Federal Ministry of Justice published a draft bill for a law to modernise German arbitration law. Unfortunately, the government’s draft was not passed before the new German Parliament was constituted, so the procedure for recognition and enforcement of a foreign arbitral award is still gov - erned by the current versions of Section 1061 ff. of the ZPO. The basic prerequisite for successful recognition and enforceability proceedings is that the arbitral award has become final according to the rules of the country of origin. The procedure for recognition and enforceability is initiated by an application to the competent Higher Regional Court. The formal requirements for the appli - cation under the ZPO are not as strict as those of Article IV (1) (a) and (b) as set out in the New York Convention. The original (or a certified copy) of the arbitral award must be submitted to the Higher Regional Court; however, there is no obligation for a German translation to be attached. Likewise, there is no requirement that the arbitration agreement be submitted. However, the court may order the submis - sion of the arbitration agreement or a translation of the award. If the current version of the draft bill for a law to modernise German arbitration law comes into force, the court’s authority to request a translation of the arbitration award will be restricted and can only
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