Jurisdiction(s):
United Kingdom

BGH on Section 110 ZPO: Hague 1954 Convention bars security for costs in award recognition and enforcement; EU sanctions and reciprocity concerns irrelevant (I ZB 53/25)

Published on: 10 March 2026

Published by a LexisNexis Arbitration expert

Legal News

Article summary

What are the practical implications of this case?

Section 110 of the German Code of Civil Procedure (ZPO) obliges claimants domiciled outside the EU/EEA, upon request, to furnish security for the respondent’s litigation costs. This rule also applies by analogy in proceedings for the recognition and enforcement of arbitral awards and serves to shield respondents from the risk that a later costs award cannot be executed abroad. The FCJ has now clarified that where a treaty-based exemption is available (such as Article 17 of the 1954 Hague Convention on Civil Procedure) the assessment is purely formal. Under Section 110(2) No. 1 ZPO, the sole question is whether Germany remains internationally obliged to waive security for costs. Sanctions, political frictions, reciprocity concerns or expected enforcement hurdles overseas do not change that position. So long as the treaty is formally in force, the exemption prevails. For respondents, this meaningfully limits defensive strategies in award recognition and enforcement proceedings. Applications seeking security for costs cannot be used as a tactical lever grounded in EU sanctions or uncertainty about recovering costs in the claimant’s home jurisdiction...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...