ICDR Re-sit exam April 2021
1
A chemistry production plant in Ireland experiences a huge fire. The chemistry production plant
seeks compensation for the damage from its insurance company residing in Germany. However,
the insurance company is unwilling to indemnify damages suffered by the production plant, as
allegedly the production plant ignored safety protocols during the production process.
Further communications and negotiations are unsuccessful and both parties agree to submit their
conflict to ad hoc arbitration in England. The insurance company is however dissatisfied in
respect of procedural errors (time spans, documents provided for after delays) and even decides
to resign from the arbitration proceedings unilaterally. The proceedings nevertheless are
continued and an arbitral award orders the insurance company to compensate all damages
suffered by the chemistry production plant.
The insurance company however takes action in a local court in the arbitration seat (England).
This court, while positively honouring the insurance company’s complaints, indeed vacates the
award.
(a) Explain how you would characterize the nature of the award in this case. (2 pts)
(b) The chemistry production plant, left with empty hands, still demands indemnification of
damages by the insurance company. Has arbitration become impossible now the award has been
vacated by a court? (4 pts)
(c) Given that the award is vacated by an English local court, explain whether this means that the
award cannot have any legal force anywhere in the world. (4 pts)
2
For approximately 16 years, Company X, residing in Austria, has been distributing dairy
products provided for by Company Y, residing in Hungary, in Austria without a framework
contract or exclusivity agreement.
On 12 February 2021, Company Y informed Company X that, from 1 May 2021, its products
will forthwith be distributed in Austria by another Austrian company. Company X is determined
to sue Company Y in court for breaching the minimum notice period of at least one year.
(a) Explain in which state may Company X start court proceedings. (4 pts)
(b) Suppose that the contract would provide for the following: ‘all obligations arising from the
contract shall be performed in Hungary’. Explain whether and how this would change the
outcome under question (a). (3 pts)
(c) Explain which law applies to the conflict (breach of notice period) (3 pts)
1
A chemistry production plant in Ireland experiences a huge fire. The chemistry production plant
seeks compensation for the damage from its insurance company residing in Germany. However,
the insurance company is unwilling to indemnify damages suffered by the production plant, as
allegedly the production plant ignored safety protocols during the production process.
Further communications and negotiations are unsuccessful and both parties agree to submit their
conflict to ad hoc arbitration in England. The insurance company is however dissatisfied in
respect of procedural errors (time spans, documents provided for after delays) and even decides
to resign from the arbitration proceedings unilaterally. The proceedings nevertheless are
continued and an arbitral award orders the insurance company to compensate all damages
suffered by the chemistry production plant.
The insurance company however takes action in a local court in the arbitration seat (England).
This court, while positively honouring the insurance company’s complaints, indeed vacates the
award.
(a) Explain how you would characterize the nature of the award in this case. (2 pts)
(b) The chemistry production plant, left with empty hands, still demands indemnification of
damages by the insurance company. Has arbitration become impossible now the award has been
vacated by a court? (4 pts)
(c) Given that the award is vacated by an English local court, explain whether this means that the
award cannot have any legal force anywhere in the world. (4 pts)
2
For approximately 16 years, Company X, residing in Austria, has been distributing dairy
products provided for by Company Y, residing in Hungary, in Austria without a framework
contract or exclusivity agreement.
On 12 February 2021, Company Y informed Company X that, from 1 May 2021, its products
will forthwith be distributed in Austria by another Austrian company. Company X is determined
to sue Company Y in court for breaching the minimum notice period of at least one year.
(a) Explain in which state may Company X start court proceedings. (4 pts)
(b) Suppose that the contract would provide for the following: ‘all obligations arising from the
contract shall be performed in Hungary’. Explain whether and how this would change the
outcome under question (a). (3 pts)
(c) Explain which law applies to the conflict (breach of notice period) (3 pts)
