Jurisdiction(s):
United Kingdom

Key definition

Arbitration definition

What does Arbitration mean? Arbitration is a private process where parties resolve disputes by one or more arbitrators who issue a final, binding award instead of a court judgment. It is consensual, usually agreed by an arbitration clause, and the law of the seat governs the procedure (lex arbitri). In England and Wales and Northern Ireland, the Arbitration Act 1996 applies. Courts stay court proceedings in favour of arbitration, provide support, and enforce awards; challenges are limited to lack of jurisdiction (s.67), serious irregularity (s.68) and, unless excluded, appeal on a point of law (s.69). In Scotland, the Arbitration (Scotland) Act 2010 provides a similar...

Enforcing arbitral awards against states in Germany: immunity from suit versus execution, diplomatic and other sovereign assets, state-owned enterprises and waiver

Published by a LexisNexis Arbitration expert

Practice notes

This Practice Note explores the place of state immunity within arbitration under German law. For a broad overview, see Practice Note: State immunity and arbitration—general considerations. For additional Practice Notes covering state immunity across multiple jurisdictions (including England and Wales), consult our ‘State immunity’ subtopic: State immunity and arbitration. Note: the German decisions cited in this Practice Note are not reported by LexisNexis®.

The law on state immunity in Germany

Whether assets belonging to a foreign state can be enforced against in Germany is determined by German law, not by the law of the state targeted by enforcement. Germany has no standalone statute on state immunity; instead, international law applies directly. For most states, Article 25 of the German Constitution (Grundgesetz (GG)) and section 20 of the Court Constitution Act (Gerichtsverfassungsgesetz (GVG)) require German courts to apply customary international law on state immunity. The only exception concerns the seven other Member States of the European Convention on State Immunity of 16...

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Dr Tom Christopher Pröstler , LL.M. (Sydney)

CMS

Tom Christopher Pröstler is a dispute resolution partner with CMS in Germany and a senior foreign legal consultant with CMS Hong Kong’s international arbitration team. With over a decade of experience, Tom advises his clients in complex, multi-jurisdictional disputes involving a wide range of applicable laws. He primarily acts in international arbitration proceedings under all major arbitration rules, including ICC, DIS, HKIAC, LCIA and UNCITRAL Rules. In addition, he advises on arbitration related court proceedings, transnational litigations and alternative dispute resolution proceedings. He also serves as arbitrator. Tom has special expertise in disputes concerning large technology, construction, and development projects and in conflicts between western and Asian parties. Moreover, he regularly advises on commercial, corporate, and post-M&A disputes. His sector expertise includes engineering (esp. plants, infrastructure, software, automotive and e-mobility), energy (esp. offshore wind, solar, coal, gas and biomass), mining,...

Susanne Schwalb

CMS

Susanne Schwalb primarily advises and represents clients in international arbitration proceedings. She has a focus on international commercial arbitration and the protection of foreign investments where she advises both on the structuring of investments and in contentious proceedings. Susanne also has extensive practical experience in third-party funding.In commercial arbitration, Susanne represents clients in post-M&A disputes as well as in disputes concerning failed (large-scale) projects, in particular in the technology, life sciences, infrastructure and energy sectors. She has specific experience in disputes over cross-border projects that involve numerous jurisdictions and applicable laws, as well as in arbitration proceedings against State-owned entities. When it comes to the protection of foreign investments, Susanne provides advice on the planning and implementation of investments as well as during the investment period. She also represents clients in investor-State arbitration proceedings and related domestic court...

Web page updated on 21/05/2026

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