Settlement in German High Court

The German High Court (Landgericht) sitting in Düsseldorf last week issued a preliminary settlement order (Vergleich mit Widerrufsvorbehalt) in the case of Baumgarten v. DiMa whereby the Claimant is entitled to withdraw his consent within 14 days.

The defendant’s director was in court personally and consenting, whereas the claimant was represented by a lawyer only and the court deemed it appropriate that the claimant’s lawyer be offered an opportunity to discuss the settlement with his client before being ultimately bound by the order.

The order provides that the defendant pays roughly half of the sum initially claimed and makes a donation reflecting about 10% of the value of the claim to an agreed charity.

Philipp Simon acted for the defendant and also suggested the payment to charity in a situation where the parties agreed that they wanted to settle, but failed to reach consent on the sums for that it appeared that the 10% difference between them arose out of positions of principle