MR. FRANZ SEDELMAYER (GERMANY) v. THE RUSSIAN FEDERATION TWO DECISIONS BY GERMANY’S SUPREME COURT

 

Subject Matters:

(1) Can the Russian State’s claims against the German State or a German company be attached to secure payment of a German private individual’s award against Russia?

(2) Does an arbitration clause in a Bilateral Investment Treaty constitute a waiver by the State of its immunity from enforcement of the award?

 

Findings:

(1) Enforcement may not be directed against such Russian assets in Germany that serve Russia’s diplomatic representation if the exercise of the diplomatic activities will be affected thereby. Administrative fees charged by Russia to Lufthansa for overflight of its territory and landing rights are not subject to the jurisdiction of German courts and beyond reach for the purpose of German enforcement measures.

(2) The arbitration agreement in the Investment Protection Treaty between Germany and the Soviet Union (13 June 1989) does not constitute a waiver by Russia of its immunity in enforcement proceedings.

 

Parties:

Appellant: Franz Sedelmayer

Respondent: The Russian Federation

Counsel: (Not indicated)

 

Court: Bundesgerichtshof, Karlsruhe, Germany

 

Case Numbers: VII ZB 08/05 and VII ZB 09/05

 

Date of Decisions: 4 October 2005