Arbitration Award

Many legal disputes are not about legal disagreements but about actual (technical) questions. Misguided legal conflicts result in economic and social damage and yield no benefits. Therefore, the legislature has introduced arbitration awards as an efficient and cost-effective way to achieve legal certainty.

An arbitration award is the opinion of an independent, impartial and competent third party on an issue that is disputed between two parties. These parties obtain a legally binding clarification of their contractual dispute and avoid going to court. The arbitration award is therefore legally binding. Should legal action be taken at a later point, the courts are bound to the conclusion of facts in the arbitration award as long as the award does not turn out to be fundamentally incorrect.