\

10. ATHENS COURT OF APPEAL Deci s i on No 4458 of 1984

Claimant - Appellee: A W. German Company. Respondent - Appellant: A Greek Company.

Published in Ephemeris Ellenon Nomikon, 01 51 (1984),p.461

Arti c les II( 1)-(2), V.

Subject matter : Enforcement of a for ign arbitr al award .

FACTS A Greek Company sold a quan ity of canned peaches to a German Company : The sal contract of 28th April 1978 co~ined a cla use p v iding for arbitration in Hamburg l Commodities Exch ge. Difficulties arose and ar bitration took pI e in Hamburg~with the participation of both p r ties . The arbitral tribunal rendered t wo awards dated Jan . 14, an d l'1arch 20, 1980) which were dec ared enforceable by the Greek Judge ot First Instance. The respondent lodged an appeal, on the grounds that the arbitration agreement was not val id, because the general manager of the Greek respondent did not recei>'e a written authority from his company to conc lude arbitration agreements (See Yearbook~o l. IV, p.269 on the writ ten authority requiredffor the Agent to conclude arbitrat ion agreements).

EXTRACTS --------1 . According to art V of the N.Y. Con venti on; enforcemen t of an award may be refused if, among other grounds, the arbitration agreement on which it is based was not va lid . But according to German law (ZPO & 1027), the lack of writing is remedied if the case is submitted to arbitration proceedings, and, ~/ according to Gr eek law (CCP Art 869), the lack of a writing is remedied if the parties participate to the arbitration pr oceedings with no reservation.

-According to Art II of the N. Y. Convention the ar bitration agreement must be in writing bu t according to German law, which is the law go verning t he arbitration p roceedi ngs, the lack of writing is remedi ed . And German law does not have any provision

I

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similar to the Gr eek one wh·ch requires a written authority tive. But even if Greek law were appl i cable, e participation of the respondent with no rese vation to the arbitration proceedings has ied the lack of written authority .

(N.B. The above according to which a special r .t written authority. the general manager of a ~ company is requir d so that he might conclude valid arbitration agn ements is not shared by the recent Greek jurispru ence, See Yearbook Vol XII, p.367) .

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