Commercial Courts in Germany: An Alternative for International Business Disputes

On 1 April 2025, the Law to Strengthen Germany as a Judicial Location by Introducing Commercial Courts and the Court Language English in Civil Jurisdiction (Judicial Location Strengthening Act) came into force.

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

But what does the introduction of the Commercial Courts specifically mean for international companies? This article analyzes the most important advantages and responsibilities and outlines when it is worthwhile to take the path to the new courts.

What are Commercial Courts and why were they introduced?

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

The Advantages of the Commercial Courts for Your Company

English as the Language of Proceedings

International contracts and business communication often take place in English. The ability to conduct the entire proceedings in English reduces translation costs and prevents misunderstandings.

The parties must explicitly or implicitly agree to the English language, or the defendant proceeds with the defense without objection to this language (§ 184a para. 3 GVG).

Even the Federal Court of Justice can continue proceedings in English if the parties request this and the responsible senate agrees (§ 184b GVG).

Specialized Judges and Fast Procedures

The judges at the Commercial Courts have proven expertise in international commercial law. The law also provides for streamlined and digital procedural flows leading to faster decisions.

Protection of Trade Secrets

The protection of trade secrets in the process is enhanced by § 273a ZPO. Courts can now classify disputed information as requiring confidentiality if it can be considered a trade secret.

Efficient Procedures

§ 612 ZPO requires Commercial Courts and Commercial Chambers to provide an early organization meeting, where agreements regarding the organization and course of the proceedings are made with the parties, unless there are substantive or organizational reasons against this. This measure aims to increase procedural efficiency and has proven to be a procedural management conference in arbitration (see e.g. Annex 3 to the DIS Arbitration Rules). From my experience as a business lawyer with over 18 years of litigation experience, this measure is highly welcome.

Upon request of the parties, a legible verbatim transcript can be created according to § 613 ZPO.

Appeals against first-instance judgments of the Commercial Court to the Federal Court of Justice are possible. The appeal does not need 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 those in the field of industrial property rights, copyright as well as claims under the law against unfair competition,

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

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

The jurisdiction of the Commercial Court can be limited to specific subjects. However, the jurisdiction can also be extended to subjects where the exclusive jurisdiction of the regional court or another exclusive court venue is provided.

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

Overview of 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 company acquisitions (M&A)

• Commercial Chambers at the Regional Court of Stuttgart

A standard clause (so-called "Stuttgart Standard 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 Court of Appeal – specialized in construction and architectural law

• Commercial Chambers at LG Berlin II – specialized in construction and architectural law

Source: Press release of the 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 company 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

Hesse

• 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 for the Rule of Law from 1 April 2025

Lower Saxony

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

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

Source: Message 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 financial loss liability insurance (D&O insurances)

• 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 value-dependent specialization for the law of renewable energies (Regional Courts Bielefeld and Essen), disputes in the field of information technology (Regional Court Cologne), and from corporate transactions (Regional Court Düsseldorf) will be expanded, insofar as these proceedings are to be conducted in English.

Sources: Press release of the State Government of NRW 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 drafting and negotiation of international contracts.

Arbitration offers more flexibility in procedural design and is internationally accepted. Moreover, arbitration 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, on the other hand, score with government authority and usually lower procedural costs. For the losing party, it is also an advantage that there are multiple instances. However, the enforceability of judgments outside the EU is problematic.

A careful consideration of the advantages and disadvantages is crucial.

Conclusion

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

The further development remains to be seen – further adjustments may follow in the future to further strengthen Germany's position in this area. This is also 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. Furthermore, the Federal Court of Justice can reject English-language proceedings. Practice will show how effectively 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 as an alternative to arbitration in major commercial disputes.