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Financial Capacity of the Parties

A Condition for the Validity of Arbitration Agreements?- Based on a Conference organized by the German Institution of Arbitration (DIS) on 29 th November 2002 in Berlin


Deutsche Institution für

The German Federal Court of Justice ruled in 2000 that an arbitration agreement is eo ipso incapable of being performed if the parties to the arbitration agreement are not able to meet the procedural costs for the proceedings. The book discusses in detail the implications of this case law on arbitration in Germany. Furthermore, eminent lawyers from Austria, France, Switzerland, the United Kingdom and the United States set out the practical implications of impecuniosity and insolvency of parties on the arbitral process under their respective legal systems. Possible practical instruments in the banking and insurance sectors to overcome the detrimental effects of impecuniosity are discussed. The contributions are based on a conference organized by DIS in November 2002 in Berlin.
Contents: Karl-Heinz Böckstiegel: Preface – Gerhard Wagner: Poor Parties and German Forum: Placing Arbitration under the Sword of Damocles – Andreas Reiner: Impecuniosity of Parties and its Effect on Arbitration - From the Perspective of Austrian Law – Emmanuel Gaillard: Impecuniosity of Parties and its Effect on Arbitration - A French View – Laurent Lévy: Insolvency in Arbitration - Swiss Law – Robert Hunter: Impecuniosity of the Parties and its Effect on Arbitration - An English Perspective – D. Brian King: No Money, No Arbitration? The United States Perspective on Impecuniousness and Arbitration Agreements – Stefan Kröll: Bank-related Instruments to Secure the Right to Arbitration despite the Impecuniousness of a Party – Hubertus Labes: Are there means - contractual or otherwise - to guard against an adverse impact of financial incapacity on arbitration? Insurance-related Instruments – Marc-Oliver Heidkamp/Jens Wenzel: Summary of the Discussion.