Cologne court rules 1.3 million euros is not a tip

Large payments to authorized signatories not tax exempt Payments made to employees amounting to 1.3 million euros, or even “just” 50,000 euros, do not constitute tax-free tips. That was the verdict of Cologne’s fiscal court – the Finanzgericht (FG) Köln – in two judgments published on November 27, 2023 (case nos.: 9 K 2507/20 and […]

Pros and cons of joint custody

What it means for child support When parents separate or divorce, one of the more pressing issues is who their children should live with. While the traditional model has been for one parent to have primary custody, joint custody is becoming increasingly popular. The most important thing is that the interests of the children come […]

Unclear designation of heirs renders will ineffective

OLG München opines on vagueness of a will When it comes to wills, precise wording is a must. It ensures that the testator’s last will and testament is implemented in accordance with his or her wishes. It also keeps any interpretive wiggle room to a minimum, and for good reason. Unclear wording is a recipe […]

ProReal debenture interest payments suspended

ProReal Deutschland 7 and 8 and ProReal Europa 9 and 10 affected January 15, 2024, is the date investors in “ProReal Europa 9 GmbH” and “ProReal Europa 10 GmbH” were expecting to receive interest payments for the fourth quarter of 2023. Instead, they were met with an announcement from the Hamburg-based issuer One Group that […]

ECJ: Credit scoring potentially in breach of GDPR

Businesses must carefully consider implications of European court’s ruling In a judgment delivered on December 7, 2023, the European Court of Justice (ECJ) held that a credit score issued by the German credit bureau Schutzgemeinschaft für allgemeine Kreditsicherung – better known by its acronym “SCHUFA” – must not be the sole determining factor for assessing […]

Munich beer is no joke

Misleading claims fall foul of competition law Beer is not all fun and games. That was certainly the position of Munich’s regional court – the Landgericht (LG) München – with respect to a bottle label whose statements about the product’s origin and climate neutrality were rather economical with the truth. Given their potential to mislead […]

BGH: Property sellers’ liability for defects applies despite exclusion of warranty

Court opines on the obligation to inform and the fraudulent concealment of material defects in connection with the sale of real estate (case no.: V ZR 43/23) Anyone looking to sell real estate is obligated to disclose any defects that affect the property. According to a judgment of Germany’s federal supreme court – the “Bundesgerichtshof” […]

Artistic freedom outweighs trademark protection

Judgment of LG Frankfurt – case nos. 2-06 O 532/23 and 2-06 O 533/23 In a ruling from September 19, 2023, delivered in response to a trademark infringement, Frankfurt’s regional court – the Landgericht (LG) Frankfurt – deemed artistic freedom to be more important than protecting a registered trademark when it rejected an urgent motion […]

Removal of a GmbH shareholder for cause

BGH: Removal effective as soon as ruling is final   When a shareholder is removed from a GmbH for cause, their removal takes effect from the moment the ruling becomes legally binding, and not from the date on which the shareholder receives their severance pay. That was the verdict of Germany’s federal supreme court – […]

Prenup invalid for being unjust

Wife under pressure when concluding the agreement   A prenuptial agreement is a sensible means of protecting one’s assets. But the terms of the agreement must not put one of the partners at an excessive disadvantage, as this has the potential to render individual clauses, or even the agreement as a whole, null and void. […]

DSL Bank – Trouble financing real estate projects

Delayed cancellation approval and faltering construction financing DSL Bank‘s technical problems are becoming more than a mere nuisance to its customers, with the bank coming under increasing pressure due to delays in granting cancellation approvals and faltering construction financing. For the bank’s affected customers who chose DSL Bank to assist them with their real estate […]

BAG: Video recordings potentially admissible in wrongful termination proceedings

Judgment of the Bundesarbeitsgericht from June 29, 2023 – case no.: 2 AZR 296/22 Video surveillance in the workplace is a common source of controversy, especially when it comes to whether the footage is admissible in wrongful termination proceedings. In a remarkable ruling from June 29, 2023, Germany’s federal labor court – the Bundesarbeitsgericht (BAG) […]

Misleading promotion of zero-percent financing

Ruling of OLG München – Ref.: 6 U 3908/22   Advertisements that promote zero-percent financing have the potential to mislead consumers and hence to fall foul of competition law, according to a judgment of Munich’s higher regional court – the Oberlandesgericht (OLG) München – from October 19, 2023 (case no.: 6 U 3908/22).   Advertising […]

German Supply Chain Act to affect businesses with 1000 or more employees from January 1

Establishing an effective risk management system   From January 1 of next year, businesses with at least 1000 employees will also be among those affected by Germany’s Supply Chain Act, known as the “Lieferkettensorgfaltsgesetz” (LkSG), or “Lieferkettengesetz” for short. In order to meet the heightened due diligence requirements, it is essential for those concerned to […]

Limits to estate tax exemption for family home where multiple plots involved

Judgment of Finanzgericht Niedersachsen, case no.: 3 K 14/23 It is only the plot of land on which the family home sits that can be exempt from estate tax. That was the verdict of Lower Saxony’s fiscal court – the Finanzgericht (FG) Niedersachsen – in a ruling from July 12, 2023. In cases involving larger […]

Losses from letting luxury real estate without intention to profit not tax deductible

BFH: Landlord must demonstrate intent to make a profit Tax laws in Germany do not allow financial losses from a hobby to be offset against taxpayers’ income. And the country’s highest fiscal court – the Bundesfinanzhof (BFH) – recently confirmed in a ruling from June 20, 2023, that this principle can also be applied to […]

Child maintenance claims to rise under 2024 national guidelines

Next year’s “Düsseldorfer Tabelle” has been released. The latest guidelines, which become operative on January 1, 2024, recommend an increase in child maintenance claims. The guidelines, which are recognized throughout Germany as an effective benchmark for maintenance claims after a child’s parents separate or divorce, are mainly based on the parents’ living conditions and the […]

Choice of forum for claims brought against businesses

KG Berlin: Place of jurisdiction is the location of the company’s registered office A business’s ordinary place of jurisdiction depends on the location of the company’s registered office. That was the verdict of Berlin’s court of appeals – the Kammergericht (KG) Berlin – in a ruling from June 17, 2022 (case ref.: 2 AR 23/22). […]

Possible to acknowledge paternity even after death of the mother

Germany’s federal supreme court – the Bundesgerichtshof (BGH) – recently ruled on August 30, 2023, that it is possible for paternity to be acknowledged even if the child’s mother has already passed away (case ref.: XII ZB 48/23). Under these circumstances, her consent is no longer required. In cases involving married couples, German family law […]

Cologne court strengthens position of ghostwriters under copyright law – Claims for damages under IP law

Ghostwriters are no less than co-authors of the works they create and as such benefit from copyright protections. Case in point: a ruling of Cologne’s regional court – the Landgericht (LG) Köln – from July 13, 2023 (case ref..: 14 O 237/22). Intellectual property needs to be consistently protected. This includes enforcing copyright protections for […]