FEDERAL COURT OF JUSTICE OF GERMANY DECISION IN CASE NO: III ZB 97/06 ON APRIL 17, 2008
Observations by Dr. Stefan Kröll & Dmitry Marenkov
Subject-matters: Circumstances under which a party may be estopped from invoking one of the defenses set out in Article V of the New York Convention—Whether the respondent is estopped from resisting an application seeking the recognition and enforcement of a foreign award on the ground that it failed to challenge the award before the courts of the seat of arbitration.
Findings: The mere fact that the respondent failed to challenge the award before the courts of the seat does not, in itself, establish a breach of the duty to act in good faith justifying a conclusion that the respondent is estopped from objecting to the recognition and enforcement of the award in Germany.
Place of court proceedings: Germany
Applicable law: German law (Code of Civil Procedure (ZPO))