Originally from Dispute Resolution Journal

Preview Page

THE VIEW FROM EUROPE
WHAT’S NEW IN EUROPEAN ARBITRATION?
Stephan Wilske, Isabelle Michou, Todd J. Fox ∗

RECENT DECISIONS BY NATIONAL COURTS

Germany. In a decision dated May 8, 2014 (BGH, Docket Number III
ZR 371/12) and only recently published, the German Federal Court of
Justice discussed whether a non-signatory to an arbitration agreement
can be bound to it, and what law applies to this question. In this
regard it also considered whether the so-called “group of companies”
doctrine, which is not recognized in Germany but which may be
applicable under foreign law, violates German public policy.

The plaintiff is a company based in Denmark that produces casings
for electrical equipment. The company’s managing director and sole
shareholder is the owner of a patent to a three-dimensional frame
design for electrical equipment casings. The defendant is an Indian
company that produces casings for electrical equipment.
In 1999 a company based in Mauritius (Holdings Ltd) represented
by the patent owner entered into a license agreement with a company
based in India (Private Ltd), according to which the latter acquired the
right to use the patented design (“License Agreement”). The License
Agreement, which was subject to Indian law, contained an arbitration
clause stipulating that disputes between the parties arising out of or in
connection with the agreement would be resolved by ICC arbitration
in New Delhi.

Following the Hannover Trade Fair in 2010 the plaintiff initiated
German court proceedings against the defendant alleging violation of
the patent.