BGH: Greece, investors can not sue in Germany – SPIEGEL ONLINE

investors who have lost money by buying Greek government bonds, can sue for any damages of Greece in German courts. The Bundesgerichtshof (BGH) has dismissed an appropriate action as inadmissible. “For a pure instrument issued by the Greek state can not decide German courts,” said the presiding judge Gregor Galke. Under international law, States could not sit in judgment on one another.

action had been brought three investors who had purchased on the German banking market bonds of Greece in 2010 and 2011. The then value of the papers was for investors 8000-110000 Euro.

The Greek parliament then adopted because of the budget crisis in February 2012, a law that investors could be forcibly included in a restructuring of government bonds. Prerequisite: The creditors vote by a qualified majority of the rescheduling and waive 53.5 percent of the value of its bonds

The applicant, did not think so, saw it as a forced conversion and wanted German courts the

Greek. sue State for damages of more than 85,000 euros. Earlier, the regional court and the higher court had declared the application inadmissible. Other German courts did not follow this view in similar procedures but

The BGH in the judgment, in which the other courts often orient, now clear. The complaints fall at the jurisdiction. The law of the Greek Council of Ministers, which has made possible the conversion of the bonds, was undoubtedly a sovereign act. And according to customary international law may sovereign acts of a sovereign state, such as the enactment of laws, not be reviewed by courts of other states.

Case number: VI ZR 516/14