SSS · Cross-Border Distribution Networks

Arbitration or the German courts?

It depends on where the counterparty’s assets are located and on the need for confidentiality. In a dispute with a German distributor, a German judgment is easy to enforce; in multi-country…

Updated · July 20261 min readCategory · Cross-Border Distribution Networks
Short answer

It depends on where the counterparty’s assets are located and on the need for confidentiality. In a dispute with a German distributor, a German judgment is easy to enforce; in multi-country networks, arbitration provides flexibility.

It depends on where the counterparty’s assets are located and on the need for confidentiality. In a dispute with a German distributor, a German judgment is easy to enforce; in multi-country networks, arbitration provides flexibility.

Enforceability usually settles it. An arbitral award travels under the New York Convention to over 170 states, Türkiye and Germany included, whereas a German court judgment needs a separate recognition step to bite abroad. So where the counterparty’s assets sit outside Germany, arbitration is often the more practical choice despite the higher upfront cost.

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This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.
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