Law – Made in Germany
g l o b a l • e f f e c t i v e • c o s t-e f f i c i e n t
by Prof. Dr. Stephan Wernicke, Chief Legal Officerl
Association of German Chambers of Industry and Commerce (DIHK)
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Law – Made in Germany…
…is source of Germany‟s success story
…has helped German companies
to become global market leaders
…guarantees entrepreneurial freedom
…ensures legal certainty
…balances conflicting interests
“Made in Germany” also applies to German law!
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Qualities of German law recognized
around the world
• as a blue print for legislation – the German Civil Code and
German Corporate Law (e. g. Eastern European countries)
• “Rule of Law Dialogue” – e. g. China and Vietnam
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Alliance for German Law
• German Federal Bar Association (BRAK)
• Federal Chamber of German civil law notaries
• German Bar Association (DAV)
• German Notaries„ Association
• German Judges Association
• Association of German Chambers of Industry and
Commerce
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Objectives of the Alliance
• promote German law and draw public attention to the
benefits of German law
• no attempt of legal dominance, but willingness to support
our partner countries (e. g. Germany‟s National
Vocational Training Act)
• German law: excellent choice as the substantive
applicable law (in particular for arbitrational proceedings)
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Legal certainty
through codification
• continental legal system in the tradition of Roman law
• codified system: Legislation in the form of statues, codes and
regulations
• most important legislation in the area of business law inter
alia: Civil Code, Commercial Code, Private Limited Liability
Companies Act
• codification enables swift and straightforward access to law
• more predictability and legal certainty than common law
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Contract Law – customised solutions on
a case-by-case basis
• principle of contractual freedom
• reliable guidelines for drafting and
interpreting contracts
• no need of detailed provisions such
as right of retention, set-off or
assignment (catch all-provisions)
• liability - predictable and
quantifiable, no punitive damages
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
German courts
independent, fast and effective
• independence of German courts
• high quality of court rulings
• low costs and short duration of
lawsuits
• judges encourage in-court-settlements
• special proceedings help to facilitate
and accelerate
• quick and effective enforceability
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
German courts
independent, fast and effective
• well suitable for international issues
• reforms to introduce proceedings in English are on their way
• significant number of highly qualified and internationally experienced lawyers
• contract drafting stage forms a good base for legal checks and balances
Germany has the lowest number of law suits within
Europe.
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Law of evidence
• carefully balanced and
predictable rules on the
allocation of burden of proof
• no pre-trial discovery
• fast and efficient
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Court fees and lawyer’s fees
transparent and affordable
• “loser pays all“-rule
• no “black mail-settlement“
• no class actions
• legal fees are rather low
and calculated according
to statutory fee schedules
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Source: WrtschaftsWoche 29.4.2013 Nr. 18
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Alternative dispute resolutions
• broad spectrum of alternative
dispute settlement procedures
(genuine choice for the parties!)
• Chambers of Commerce and
network of bilateral Chambers
of Commerce abroad advise
business on the various forms
of proceedings
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Alternative dispute resolutions
• internationally prominent arbitral institutions
– German Chambers of Commerce
– German Institution of Arbitration (DIS)
– ICC Germany in Berlin
• German Arbitration law is modelled after UNCITRAL
• German arbitration awards are enforceable worldwide
• For further information on arbitration proceedings, please
visit the website: www.dihk.de/arbitration
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Fostering Arbitration between the
German and South African (SA)
business community
• Positive economic environment:
- Bilateral trade volume in 2012: 14 billion Euro
- 700 German companies in SA with about 100.000
employees and a turnover amounting to 100 billion Euro
- Vice versa, SA ranks for Germany at position 27 among
all trading partners (only slightly behind India but ahead
of South Korea and Canada)
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
• Arbitration has a long tradition in both SA and Germany
• High profile arbitral infrastructure:
- Numerous legal experts are specialized in both countries
in the conduct of arbitration proceedings
- Moreover, there are various internationally arbitral
institutions in SA (e.g. Association of Arbitrators, CCMA,
AFSA, Africa ADR) and Germany (Chambers of Industry,
ICC, German Institute of Arbitration, German Maritime
Arbritration et al)
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
• Ease of enforcement (New York Convention)
• Clear and Arbitration-Friendly Legislative Framework,
though SA has not yet adopted the UNCITRAL Model LAW
• Support of arbitration by the German judiciary
• Neutrality, Finality, Privacy, Party Control and Choice et al
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Further unique selling points
of German law
• Company Law
• Finance
• Public registers
• Intellectual property
• Patent matters
Law – Made in Germany g l o b a l • e f f e c t i v e • c o s t - e f f i c i e n t |
Thank you for your attention!
For further information please do not hesitate to contact me:
E-Mail: [email protected]