Wants to allow more flexibility: Federal Minister of Justice Marco Buschmann
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Companies prefer to settle their disputes in private arbitration courts. The federal government is reacting to this and wants to modernize an old law: It should be simpler and more flexible in the future.
SArbitration proceedings are very important in resolving disputes between companies around the world. They are expected to continue to increase in this country too. To this end, the Federal Ministry of Justice wants to simplify the existing rules and make them more flexible. This emerges from a draft law to modernize arbitration law, which is to be sent to the federal states and associations for a statement on Thursday. It is available to the FAZ in advance. The innovations are aimed, for example, at disputes over the interpretation of contractual clauses, claims for repairs or purchase and longer-term delivery contracts.
The arbitration proceedings, which are not heard in public court proceedings but are arbitrated by self-selected arbitrators, should be more closely linked to other reforms that Federal Justice Minister Marco Buschmann (FDP) has already initiated. This applies to state civil proceedings in “commercial courts”, where the proceedings are conducted entirely in English. Video negotiations should also be easier in the future. Overall, there should be less formalism and more openness to digital solutions. This is intended to increase performance and strengthen Germany's attractiveness as an arbitration location, according to the draft law.
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