Luther

The German firm is suing Albania at ICSID

One of the founding fathers of the German Institution of Arbitration, Martin Luther, established this firm in Hamburg in 1950. However, its arbitration practice only took off half a century later. Originally a boutique corporate firm (Martin Luther was one of the most respected corporate lawyers in post-war Germany), it was not until a merger with Arthur Andersen’s local legal division that it began to receive international arbitration work.

After the implosion of Arthur Andersen and some years with Ernst & Young, the firm became independent again but retained an international focus. Its reputation developed in investment arbitration after it became one of the first firms in the country to be instructed on a treaty claim (Inmaris v Ukraine). Luther also represented Swedish energy company Vattenfall and its German subsidiaries in the first-ever ICSID case against Germany – a €1.6 billion claim under the Energy Charter Treaty that eventually settled.

Hamburg-based Ulrich Theune established the arbitration practice, which is now co-chaired by Richard Happ in Hamburg and Réne-Alexander Hirth, who divides his time between his base in Stuttgart and the firm’s office in Singapore. Happ was lead counsel on the Vattenfall case; Hirth specialises in Asian arbitrations, having previously headed the Singapore office of another German law firm for many years. Jutta Wittler, in Cologne, specialises in international construction arbitration. All serve as arbitrators in commercial cases, with Happ also sitting on investment panels.

Network

As well as 11 German offices, the firm is also present in Brussels, Budapest, London, Luxemburg, Shanghai and Singapore.

Track record

In 2012, the firm helped Hamburg sailing-tours group Inmaris win €3 million in an ICSID claim against Ukraine over an impounded vessel.

The firm helped Vattenfall settle its first ICSID claim against Germany in 2010; the company has since reinstructed the firm for a second ICSID claim against Germany concerning the closure of its nuclear power stations in response to Japan’s Fukushima crisis. (Sweden’s Mannheimer Swartling is co-counsel on the claimant’s side.)

On the commercial front, the firm has helped Turkish clients win a series of ICC arbitrations.

Recent events

On the work front, the firm has successfully represented a German automotive supplier in a VIAC arbitration against a Chinese joint venture partner; and acted on behalf of a Singapore listed electronics company in a Zurich-seated ICC arbitration against a German-listed company.

Besides the second Vattenfall case, the firm has been acting for Greek petroleum products maker Mamidoil in an ICSID claim against Albania. The firm says it is also preparing an ICSID case against a South American state.

Client comment

The head of a multinational who used lawyers from the firm’s Stuttgart and Shanghai offices was particularly impressed by their professionalism and knowledge, as well as their level of preparation and how the lawyers developed their relationship both with the COO and his company.