Commercial Courts in Germany: An Alternative for International Business Disputes

On 1 April 2025, the Act to Strengthen Germany as a Judicial Location through the Introduction of Commercial Courts and the Use of English as a Court Language in Civil Court Proceedings (Judicial Location Strengthening Act) came into effect.

The law brings far-reaching changes to the handling of commercial disputes in Germany. The aim is to make Germany a more attractive location for justice, especially for international companies.

But what does the introduction of the Commercial Courts specifically mean for international companies? This article analyzes the key benefits and competences and shows when it is worthwhile to pursue these new courts.

What are Commercial Courts and why were they introduced?

Commercial Courts are specialized chambers at German regional and higher regional courts responsible for handling major commercial disputes. The main goal is to make Germany more attractive as a venue for litigation in international competition and to offer an efficient, practical alternative to often lengthy procedures or costly arbitration. A significant advantage: hearings can be conducted entirely in English.

The benefits of Commercial Courts for your company

English as the language of proceedings

International contracts and business communications are often conducted in English. The ability to conduct the entire proceeding in English reduces translation costs and prevents misunderstandings.

The parties must explicitly or tacitly agree on the English language of the proceedings, or the defendant submits to this language without objection in their defense (§ 184a para. 3 GVG).

Even the Federal Court of Justice can continue proceedings in English if the parties request it and the competent senate consents (§ 184b GVG).

Specialized judges and fast proceedings

The judges at the Commercial Courts have demonstrated expertise in international commercial law. The law also provides for streamlined and digital procedural processes to lead to quicker decisions.

Protection of trade secrets

The protection of trade secrets during the litigation process is improved by § 273a ZPO. Courts can now classify contentious information as requiring confidentiality if it can be considered a trade secret.

Efficient procedures

§ 612 ZPO obliges Commercial Courts and Commercial Chambers to hold an early organizational meeting, where agreements with the parties on the organization and conduct of the proceedings are made, unless substantive or organizational reasons oppose it. This measure serves to increase procedural efficiency and has proven itself in arbitration as a procedural management conference (see e.g. Appendix 3 to the DIS Arbitration Rules). In my experience as a commercial lawyer with over 18 years of litigation experience, this measure is highly welcome.

At the request of the parties, a read-along verbatim transcript can be created according to § 613 ZPO.

Appeals against first-instance judgments of the Commercial Court can be taken to the Federal Court of Justice. The appeal does not require separate admission (§ 614 ZPO).

For which disputes are the Commercial Courts responsible?

The Commercial Courts are first-instance responsible for:

1. Civil disputes between entrepreneurs except for those in the field of industrial property rights, copyright, or claims under the Act Against Unfair Competition,

2. Disputes arising from or in connection with the acquisition of a business or shares in a business,

3. Disputes between the company and members of the management body or supervisory board.

The competence of the Commercial Court can be restricted to certain subject areas. However, competence can also be extended to subject areas where exclusive jurisdiction of the regional court or another exclusive jurisdiction is provided for.

The dispute value must be at least 500,000 euros.

Overview of the Commercial Courts and Commercial Chambers in the individual federal states

Baden-Württemberg

• Commercial Court at the Higher Regional Court of Stuttgart – specialized in corporate law disputes and business acquisitions (M&A)

• Commercial Chambers at the Regional Court of Stuttgart

A sample clause (the so-called "Stuttgart Sample Clause") is available here.

Sources: Press Release of the State Government of Baden-Württemberg from 1 April 2025, Commercial Court Baden-Württemberg

Bavaria

• Commercial Court at the Higher Regional Court of Munich

Berlin

• Commercial Court at the Berlin Court of Appeal – specialized in construction and architectural law

• Commercial Chambers at the Regional Court Berlin II – specialized in construction and architectural law

Source: Press Release of the Berlin Court of Appeal from 1 April 2025

Bremen

• Commercial Court at the Hanseatic Higher Regional Court in Bremen – specialized in aerospace, logistics, and maritime trade

Sources: Hanseatic Commercial Court for Aerospace, Logistics and Maritime Trade of the Free Hanseatic City of Bremen (Hanseatic Commercial Court Bremen - HCCB)

Hamburg

• Commercial Court at the Hanseatic Higher Regional Court – specialized in construction law, banking and finance law, corporate law, and business acquisitions

• Commercial Court at the Hanseatic Higher Regional Court – specialized in insurance, transport, shipping, and traffic

Source: Press Release of the Free and Hanseatic City of Hamburg, Commercial Court Hamburg

Hessen

• Commercial Court at the Higher Regional Court of Frankfurt – planned for 1 July 2025

• Commercial Chambers at the Regional Court of Frankfurt – planned for 1 July 2025

Source: Press Release of the Hessian Ministry of Justice and the Rule of Law from 1 April 2025

Lower Saxony

• Commercial Courts at the Higher Regional Court of Celle – expected 2 senates, introduction planned for 2025

A limitation to certain areas of jurisdiction pursuant to § 119b para. 1 GVG is not planned in Lower Saxony. Commercial Chambers are expected to be established at one regional court in each of the three higher regional court districts. Details – such as the question of a jurisdictional dispute value level at the Commercial Chambers – are currently being reviewed and coordinated.

Source: Communication from the press office of the Lower Saxony Ministry of Justice from 11 April 2025

North Rhine-Westphalia

• Commercial Court at the Higher Regional Court of Düsseldorf – specialized in construction and architectural matters

• Commercial Court at the Higher Regional Court of Düsseldorf – specialized in insurance law (especially pecuniary damage liability insurance (D&O insurance))

• Commercial Court at the Higher Regional Court of Düsseldorf – specialized in corporate law and post-M&A disputes

• Commercial Chambers at the Regional Courts of Bielefeld, Düsseldorf, Essen, and Cologne. At the same time, the existing specialization based on the amount in dispute in the areas of renewable energy law (regional courts of Bielefeld and Essen), disputes from the IT sector (Regional Court of Cologne), and business transactions (Regional Court of Düsseldorf) is being expanded, provided these proceedings are also to be conducted in English.

Sources: Press Release of the NRW State Government from 12 March 2025; Press Release of the Higher Regional Court of Düsseldorf

Commercial Courts vs. Arbitration: Which is the better choice?

The decision between a Commercial Court and an arbitration procedure depends on the individual case and should play an important role already in the design and negotiation of international contracts.

Arbitration offers more flexibility in procedural design and is internationally accepted. Moreover, arbitral awards can be enforced internationally in significantly more countries than judgments of German courts (which does not change with the introduction of Commercial Courts in Germany).

Commercial Courts score points with state authority and generally lower procedural costs. Additionally, there is the advantage for the losing party that there are multiple instances available. However, the enforceability of judgments outside the EU is problematic.

Careful consideration of the advantages and disadvantages is crucial.

Conclusion

The introduction of Commercial Courts is a significant advance for Germany as a judicial location. They offer businesses an attractive, efficient, and internationally oriented option for resolving commercial disputes.

The further development remains to be seen – possibly further adjustments will follow in the future to further strengthen Germany's position in this area. This is urgently needed.

Despite these positive aspects, challenges remain. The dispute value threshold of 500,000 euros is relatively high. It is expected that not all federal states will establish Commercial Courts. Additionally, the Federal Court of Justice may reject English-language proceedings. Practice will show how effective the new courts work and whether they can compete internationally. This also applies to the declared goal of the German legislator to establish state courts for large commercial disputes as an alternative to arbitration.