FAQs SGH Arbitration Proceedings
SGH Arbitration: The procedure
The claimant initiates the arbitration proceedings by means of a digital request for arbitration via the PMP. After submitting his request for arbitration, the claimant will receive confirmation by email.
The request for arbitration will be checked for completeness and regarding the jurisdiction of the SGH. This ensures that the arbitration proceeding is conducted properly. If there are any queries, the SGH will contact the claimant. If all requirements under the SGH Arbitration Rules are met, the arbitration proceedings will be opened.
The respondent will formally be informed by email or post by the SGH that arbitration has commenced. As soon as the claimant has paid the security deposit, the respondent can register on the VMP, view the statement of claim and respond to it and, according to circumstance, file a counterclaim. The parties can be represented by lawyers, but they are free to represent themselves in the arbitration proceedings.
Once the Arbitral Tribunal has been constituted, it is officially formed and operational. The Arbitral Tribunal may consist of a sole arbitrator or three arbitrators. The selection of independent arbitrators is made jointly by the parties or, if they cannot agree, by the SGH. After the formal appointment by the SGH, the arbitrators take over the further proceedings.
The Arbitral Tribunal first holds a preliminary meeting (case conference) with the parties to organize the future proceedings. During this meeting, important topics such as procedural rules, timetables, deadlines for the submission of briefs and the modalities for taking evidence are discussed. The Arbitral Tribunal then sets out these points in writing in a procedural plan. The aim is to ensure a clear and efficient procedure that is transparent and comprehensible for all parties involved. Furthermore, possible ambiguities or points of contention should be resolved at an early stage.
Mediation is a useful additional instrument for resolving disputes. Together with a neutral mediator, the parties can try to reach an amicable solution after all. The mediator assists in clarifying the interests involved through confidential discussions and work out joint solutions. The aim of mediation is to resolve the dispute without a formal judgement, which can save time and costs. If both parties wish to attempt mediation, the arbitration proceedings will be suspended for a certain period of time.
The arguments and the legal situation are discussed during an oral hearing, which is usually held as a video conference. Evidence is taken if necessary. The Arbitral Tribunal hears both sides and asks questions about the facts of the case. The oral hearing serves as preparation for the decision.
Once all relevant aspects have been examined, the Arbitral Tribunal issues the Arbitral Award and also decides on the distribution of the costs incurred. The Arbitral Award is binding for all parties. The proceedings are officially terminated when the Arbitral Award is rendered. The parties are obliged to respect and implement the decision. Otherwise, the Arbitral Award can be enforced by way of compulsory enforcement. A key advantage of arbitration is that an Arbitral Award can be enforced almost anywhere in the world due to the New York Convention, an international treaty.
Proceedings under the SGH-Arbitration Rules shall be completed within 12 months, in the case of fast-track procedures within 6 months.
Further Information
The Procedure Management Platform (PMP) of the Arbitration Court at the German Chamber of Commerce and Industry (SGH) is used for the digital submission of all documents (including the arbitration application, statement of claim, and statement of defense) as well as the administration of SGH arbitration proceedings. Further information on the PMP can be found under the heading "Digital Procedures".
The costs vary depending on the value and complexity of the case. Use the Kostenrechner to obtain a cost estimate.
An Arbitral Award is generally binding and final. The Arbitration Court provides the possibility of a limited review of the Arbitral Award to correct obvious defects. Appeals to the court are only possible in exceptional cases, for example in the event of procedural errors or bias on the part of the arbitrators.
The SGH administers a pool of experienced lawyers from the legal profession and the judiciary, as well as business experts from companies, science or technology, thus ensuring practice-oriented decisions for your company.
The Arbitration Rules of the SGH do not require legal representation, as is the case before German regional courts and higher regional courts. However, depending on the case, the subject matter of the dispute and the potential amount of loss, legal advice is strongly recommended.
Digitalized procedures offer maximum flexibility and efficiency. Together with the arbitrators, the parties can manage the entire procedures online, submit documents electronically and conduct virtual hearings, which saves time and cost. However, video conferencing does not replace direct communication in all cases. If necessary and appropriate, the hearing can and should take place in person.
Arbitral Awards under the SGH Arbitration Rules are binding for all parties involved. They have the same effect as a state court judgment and may be enforced. Due to the International Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) enforcement is nearly possible worldwide.