Arbitration Law of Austria: Practice and Procedure

Stefan Riegler Alexander Petsche Alice Fremuth-Wolf Martin Platte and Christoph Liebscher

Juris Publishing, Inc.

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ISBN-13: 978-1-933833-07-1 ISBN-10: 1-933833-07-6

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TABLE OF CONTENTS

Preface...... vii

About the Authors ...... ix

List of Abbreviations ...... xi

Chapter 1 Commentary on Sections 577 to 618 Austrian Code of Civil Procedure ...... 1 Section 577 – Fremuth-Wolf ...... 1 Section 578 – Fremuth-Wolf ...... 24 Section 579 – Fremuth-Wolf ...... 31 Section 580 – Fremuth-Wolf ...... 39 Section 581 – Fremuth-Wolf ...... 48 Section 582 – Fremuth-Wolf ...... 113 Section 583 – Fremuth-Wolf ...... 137 Section 584 – Fremuth-Wolf ...... 185 Section 585 – Platte ...... 212 Section 586 – Platte ...... 220 Section 587 – Platte ...... 230 Section 588 – Platte ...... 253 Section 589 – Platte ...... 270 Section 590 – Platte ...... 280 Section 591 – Platte ...... 288 Section 592 – Fremuth-Wolf ...... 294 Section 593 – Platte ...... 313 Section 594 – Platte ...... 331 Section 595 – Petsche ...... 344 Section 596 – Petsche ...... 351 Section 597 – Platte ...... 355 Section 598 – Petsche ...... 369 Section 599 – Platte ...... 374 Section 600 – Platte ...... 383 Section 601 – Platte ...... 391 Section 602 – Petsche ...... 400

iii ARBITRATION LAW OF AUSTRIA: PRACTICE AND PROCEDURE

Section 603 – Riegler...... 406 Section 604 – Riegler...... 419 Section 605 – Riegler...... 431 Section 606 – Riegler...... 442 Section 607 – Riegler...... 462 Section 608 – Riegler...... 469 Section 609 – Riegler...... 480 Section 610 – Riegler...... 496 Section 611 – Riegler...... 507 Section 612 – Riegler...... 561 Section 613 – Riegler...... 565 Section 614 – Riegler...... 569 Section 615 – Petsche ...... 578 Section 616 – Petsche ...... 585 Section 617 – Petsche ...... 590 Section 618 – Petsche ...... 599 Art VII – Platte / Fremuth-Wolf ...... 603

Chapter 2 Commentary on the “Vienna Rules” – Liebscher...... 607

Chapter 3 Special Topics...... 661 3.1 Confidentiality in Arbitration – Fremuth-Wolf...... 661 3.2 Arbitration Agreement and Third Parties – Fremuth-Wolf...... 672 (i) The Separability Doctrine – Autonomy or Dependency from Main Contract ...... 672 (ii) Legal Nature of the Arbitration Agreement ...... 674 (iii) Writing Requirement...... 675 (1) Universal Successors ...... 676 (2) Singular Successors (especially assignment of claims) ...... 676 (3) Other Third Parties...... 678 (4) Group of Companies and Groups of Contracts...... 681 3.3 Arbitrators’ Liability – Platte...... 682 1. Introduction...... 682 2. Applicable Law...... 683 3. Procedural Remedies ...... 684 4. Extent of Liability...... 684 5. Arbitrator’s Contract...... 685 6. Requirements for Liability...... 686 6.1 Case Law ...... 686

iv TABLE OF CONTENTS

6.2 Legal Literature ...... 688 6.3 Extensive Interpretation of Sec 594 (4)...... 688 6.4 Standard of Care ...... 689 7. Conclusion...... 691 3.4 Enforcement and Recognition of Arbitral Awards – Riegler...... 693 1. Introduction...... 693 2. Domestic versus Foreign...... 693 3. Level of Scrutiny...... 694 4. Domestic Arbitral Awards ...... 694 4.1 General ...... 694 4.2 Confirmation of Enforceability ...... 695 4.3 No Leave for Enforcement ...... 695 4.4 Potential Remedies against Court Order Granting Enforcement ...... 696 4.5 Consideration of Grounds of Setting Aside in Other Proceedings ...... 696 5. Foreign Arbitral Awards ...... 697 5.1 General ...... 697 5.2 Multilateral Treaties / New York Convention...... 698 5.3 Leave for Enforcement and Enforcement Authorization...... 699 5.4 Austrian Case Law...... 701 6. Jurisdiction ...... 704 6.1 Foreign Arbitral Awards...... 704 6.2 Domestic Arbitral Awards...... 705 3.5 Arbitration and Bankruptcy – Riegler ...... 706 1. Introduction ...... 706 2. Austrian Bankruptcy Law...... 706 3. Effects of Bankruptcy on Arbitration Agreements...... 708 3.1 General ...... 708 3.2 Cases of Impecuniosity as a Consequence of Bankruptcy ...... 708 4. Effects of Bankruptcy on Pending Arbitral Proceedings...... 712 4.1 Automatic Stay of Arbitral Proceedings...... 712 4.2 Trustee Instead of Debtor ...... 713 5. Arbitrability of Bankruptcy Matters and Claims...... 713 6. Is the Trustee Bound by “Pre-Bankruptcy” Arbitration Agreements? ...... 715

v ARBITRATION LAW OF AUSTRIA: PRACTICE AND PROCEDURE

6.1 General ...... 715 6.2 Outstanding, Secured, Preferred and Asset Claims...... 715 6.3 Challenge Claims on Behalf of the Estate ...... 715 6.4 Unsecured Claims...... 716

Chapter 4 Compendium of Case Law...... 719 4.1 Austrian Court Decisions...... 719 4.2 German Court Decisions...... 788

Chapter 5 Attachments ...... 805 5.1 Austrian Arbitration Act (English Version)...... 805 5.2 Official Comment to the Austrian Arbitration Act (English Version)...... 823 5.3 Austrian Arbitration Act prior to 1 July 2006 (English Version)...... 889 5.4 Synopsis on the Austrian Arbitration Act, the German Arbitration Act and the UNCITRAL Model Law...... 895 5.5 UNCITRAL Model Law on International Commercial Arbitration of 1985 ...... 897 5.6 German Arbitration Act (English Version)...... 910 5.7 Vienna Rules (English Version) ...... 926 5.8 Bilateral Investment Treaties (concluded by Austria) ...... 946 5.9 List of Authorities...... 948

Index ...... 1005