A. LEGISLATION, TRENDS AND TENDENCIES There have been no relevant changes to German arbitration legislation in the past year. B. CASES B.1 Invalidity and Severability of an Arbitration Clause In a decision of September 10, 2013,4 the Court of Appeal Munich was concerned with an arbitration clause that provided for dispute settlement in accordance with the rules of the German Institution for Arbitration (DIS). The clause conferred upon the tribunal the power to “render a binding decision as to the validity of this arbitration agreement”. The empowerment gave rise to difficulties, as it could deprive the parties of their right to request a state court to decide on the tribunal’s jurisdiction. Furthermore, the arbitration clause was part of a notarized sale and transfer agreement, but the DIS arbitration rules to which the arbitration clause referred were not notarized separately. The defendant in the arbitration (and applicant in the state court proceedings) challenged the jurisdiction of the arbitral tribunal, arguing that the entire arbitration agreement was void (1) for lack of notarization of the DIS Rules and (2) because the “Kompetenz- Kompetenz” provision rendered the entire arbitration clause invalid. The Court of Appeal Munich held that (1) the institutional arbitration rules referred to in a contract requiring notarization do not have to be notarized separately, (2) the second sentence of the arbitration clause was in fact void, but that (3) as the sentence was severable, the arbitration agreement was valid.