BGH: Negative Interest Rates Impermissible

Rulings of the Federal Court of Justice on Custody Fees – Case Numbers: XI ZR 61/23, XI ZR 65/23, XI ZR 161/23, and XI ZR 183/23   During the prolonged low-interest phase, a number of banks began charging their customers so-called custody fees, effectively imposing negative interest rates on deposits. Such custody fees on savings […]

DEGAG Files for Insolvency

Investors’ Compensation Claims On January 27, 2025, DEGAG Deutsche Grundbesitz Holding AG and DEGAG Bestand und Neubau 1 GmbH filed for insolvency. According to a press release from the company, insolvency applications for DEGAG Kapital GmbH and DEGAG WI8 GmbH are expected to follow. Investors have invested a total of approximately 282 million euros in […]

Expert Opinion Confirms Authenticity of a Will

OLG Munich on Authenticity and Testamentary Capacity – Decision of August 12, 2024, Case No. 33 Wx 294/23 e   Disputes over the authenticity of a handwritten will and the testamentary capacity of the testator are common. In a decision dated August 12, 2024, the Higher Regional Court (OLG) of Munich clarified that an expert […]

Will Invalid Without Signature

Decision of the Munich Higher Regional Court (OLG) dated 09.08.2024 – Case No.: 33 Wx 115/24 e   By drafting a will, a testator can override the statutory rules of succession and personally determine who will inherit their estate. However, for a handwritten will to be legally valid, it must comply with certain formal requirements. […]

BGH on Prepayment Penalty

Bank Loses Claim to Prepayment Penalty After BGH Ruling – Case No.: XI ZR 75/23   If a loan is repaid early, banks and savings banks may claim a prepayment penalty as compensation for lost interest. However, they lose this claim if the clause governing the calculation of the prepayment penalty is not “clear and […]

DR Deutsche Rücklagen GmbH – Money of Apartment Owners at Risk

Property Management Invests WEG Reserve Funds in Risky Bonds Apartment owners’ associations (WEG) across Germany are facing financial uncertainty, with millions of euros at risk. Funds originally intended as reserves for property maintenance and repairs have reportedly been invested in bonds issued by DR Deutsche Rücklagen GmbH—a move by property management companies that may result […]

Agreement on Targets in Employment Contracts

Federal Labor Court Ruling of July 3, 2024 – Case No.: 10 AZR 171/23   Employers are not permitted to unilaterally set target agreements for performance-based variable compensation; instead, they must negotiate them with employees. This was clarified by the Federal Labor Court (BAG) in its ruling of July 3, 2024 (Case No.: 10 AZR […]

Changes to AWV Reporting Requirements in 2025

Reporting thresholds increased and deadlines standardized   On January 1, 2025, various changes to the German Foreign Trade and Payments Regulation (AWV) came into effect. For example, the reporting requirement for cross-border payments has been raised to €50,000. Additionally, reporting deadlines have been standardized. The AWV reporting obligation serves to secure the financial system and […]

Misleading Advertising with “Skin-Friendly”

Violation of the Biocide Regulation – Judgment of the CJEU of June 20, 2024, Case C-296/23   Advertising biocide products such as disinfectants as skin-friendly is misleading and therefore inadmissible. This was clarified by the Court of Justice of the European Union (CJEU) in its ruling on June 20, 2024 (Case C-296/23). Biocide products can […]

Tightening of Exit Taxation

Shares in Investment Funds May Be Subject to Taxation When Moving Abroad   When relocating one’s residence from Germany to another country, the so-called exit taxation may apply. With the adoption of the 2024 Annual Tax Act, the exit taxation has been tightened. Starting in 2025, it will also cover income from certain investment funds […]

Liquidation of dii. Wohnimmobilien Deutschland 1

Investors in the Real Estate Fund Face Financial Losses   The closed-end real estate fund dii. Wohnimmobilien Deutschland 1 GmbH & Co. Geschlossene Investment-KG is set to be liquidated. This was communicated to investors by Paribus Kapitalverwaltungsgesellschaft in a letter dated January 9, 2025. For investors in this public fund, the liquidation means they must […]

Tax Evasion – Filing a Voluntary Disclosure

BFH: Exchange of Financial Data Constitutional – Ref.: IX R 36/21   The automatic exchange of financial account information (AIA) has become a powerful tool in the global fight against tax evasion. Taxpayers in Germany cannot claim that the exchange of such information infringes on their fundamental rights. The Federal Fiscal Court (BFH) made it […]

Deutsches Edelmetallhaus GmbH insolvent

Representation of Investors in Insolvency Proceedings The Cologne District Court opened insolvency proceedings against Deutsches Edelmetallhaus GmbH on December 20, 2024, due to insolvency and over-indebtedness (Case No.: 70c IN 158/24). As a result, the funds of investors who invested in precious metals through the company are now at risk. Investors and other creditors can […]

Transfer of Business Shares as a Gift

Ruling of the German Federal Fiscal Court (BFH) on April 10, 2024 – Case No.: II R 22/21   If a shareholder transfers shares to the company below value, this results in an indirect increase in the value of the remaining shareholders’ shares and is considered a gift under tax law. The German Federal Fiscal […]

BGH on the Validity of Arbitral Awards

Missing Signature of an Arbitrator – BGH I ZB 34/23   An arbitral award can, in exceptional cases, be valid even if only two out of three arbitrators have signed it. This was clarified by the German Federal Court of Justice (BGH) in its decision of July 11, 2024 (Case No.: I ZB 34/23). Arbitration […]

Before Divorce Comes Separation

Start of the Separation Year   Before a marriage can be dissolved through divorce, the spouses must first undergo a separation year. During this period, the couple must no longer maintain a shared household. A common point of contention is determining the exact date when the separation was factually initiated and the separation year began. […]

Parental Maintenance – BGH Ruling on Exemptions

Decision of the Federal Court of Justice (BGH) of October 23, 2024 – Case No. XII ZB 6/24   At what income levels are children obliged to provide financial support to their parents, and what is their minimum exemption? After the Higher Regional Court (OLG) Düsseldorf ruled on December 4, 2023 (Case No.: 3 UF […]

Violation of Data Protection – €900,000 Fine

Violation of Obligations to Delete Personal Data   Violations of data protection laws or the General Data Protection Regulation (GDPR) can result in significant fines. For instance, the Hamburg Commissioner for Data Protection and Freedom of Information (HmbBfDI) imposed a fine of €900,000 on a company in the debt management sector for failing to delete […]

Trademark Infringement Through Customer Reviews

KG Berlin on Unlawful Customer Reviews – Ruling of July 10, 2024 – Case No. 5 U 92/22   Customer reviews in an online shop can also violate existing trademark rights. The Berlin Higher Regional Court (KG Berlin) emphasized this in its ruling of July 10, 2024 (Case No.: 5 U 92/22), holding the online […]

Misleading Advertising in the Skilled Trades

Violation of Competition Law Due to Lack of Registration in the Crafts Register   Advertising for regulated skilled trade services is only permissible if the advertising company is registered in the crafts register. If no registration exists, such advertising violates competition law and the Crafts Code. This was clarified by the Stuttgart Higher Regional Court […]