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This decision arose out of an action to set aside an award for lack of jurisdiction and dealt with the interpretation of an arbitration clause referring to a non-existing arbitral institution.

The parties entered into a contract providing for arbitration under the rules of the "German Central Chamber of Commerce". Since no such organisation or rules exist the claimant started arbitration proceedings under the rules of the Deutsches Institut für Schiedsgerichtsbarkeit. Upon the respondent's plea that the arbitral tribunal lacked jurisdiction, the tribunal rendered a partial award on jurisdiction according to section 1040(3) German Code of Civil Procedure (adapted from article 16(3) MAL). That award in favour of jurisdiction was challenged by the respondent pursuant to section 1040(3)(2) German Code of Civil Procedure before the Kammergericht Berlin.

The Court held that the parties entered into a valid arbitration agreement despite the referral to a non- existing arbitration institution since it was possible to determine through interpretation a particular arbitration institution. The Court stated that arbitration clauses are to be construed in accordance with the general principles of interpretation applicable under the law of the contract. A broad interpretation should be applied, if necessary, to meet the parties' intentions. In the case at issue, the parties had agreed that their contract should be governed by German law and that any dispute should be settled by an arbitration institution seated in Germany. Furthermore, the reference to the "German Central Chamber of Commerce" indicated that the parties wanted to submit their case to the arbitration institution authorized or recommended by the institution which the parties described as the German Central Chamber of Commerce. In light of these circumstances, there was only one arbitration institution which the parties could have meant; i.e. the Deutsches Institut für Schiedsgerichtsbarkeit. Therefore, respondent's application was to be dismissed.

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