New Era for Commercial Disputes in Germany
Germany introduces Commercial Courts and the court language English. The article provides an initial overview of the new opportunities.
April 11, 2025
International
TL;DR
Germany is introducing specialized courts for large commercial disputes to enhance its attractiveness as a legal venue.
Proceedings can be conducted in English.
Trade secrets will be better protected in the proceedings.
Introduction
The Act to Strengthen Germany's Position as a Legal Venue by Introducing Commercial Courts and the English Language in Civil Courts (Legal Venue Strengthening Act) came into force on April 1, 2025.
The legislation brings significant changes to handling commercial disputes in Germany. The aim is to make Germany more attractive as a legal venue, especially for international companies.
Commercial Courts
The core of the reform is the new Commercial Courts. According to Sec. 119b Para. 1 of the GVG, state governments can establish such specialized panels in higher regional courts or supreme state courts by regulation. They have first-instance jurisdiction for:
Civil disputes between entrepreneurs, except for those in the fields of industrial property protection, copyright, and claims under the Unfair Competition Act,
Disputes arising from or in connection with the acquisition of a company or stakes in a company,
Disputes between a company and members of its governing body or supervisory board.
The jurisdiction of the Commercial Court can be limited to specific subject areas. It can also be extended to areas where exclusive jurisdiction of the regional court or another exclusive venue is provided for.
The dispute value must be at least 500,000 euros.
The Commercial Court gains exclusive jurisdiction by explicit or tacit agreement of the parties, provided the requirements of Sec. 119b Para. 1 of the GVG are met. The agreed jurisdiction is exclusive unless the parties have expressly agreed otherwise. Under the conditions of Sec. 119b Para. 1 of the GVG, the Commercial Court also gains jurisdiction if the plaintiff requests it in the complaint and the defendant tacitly accepts it in the defense.
Overview of Commercial Courts and Commercial Chambers across the Federal States
Baden-Württemberg
Commercial Court at the Higher Regional Court of Stuttgart – specialized in corporate disputes and mergers & acquisitions (M&A)
Commercial Chambers at the Regional Court of Stuttgart
An example clause (the so-called "Stuttgart Example Clause") is available here.
Sources: Press release from the Baden-Württemberg State Government dated April 1, 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 the Regional Court of Berlin II – specialized in construction and architectural law
Source: Press release from the Court of Appeal dated April 1, 2025
Bremen
Commercial Court at the Hanseatic Higher Regional Court in Bremen – specialized in aerospace, logistics, and maritime trade
Hamburg
Commercial Court at the Hanseatic Higher Regional Court – specialized in construction law, banking and finance law, corporate law, and M&A
Commercial Court at the Hanseatic Higher Regional Court – specialized in insurance, transport, shipping, and traffic
Source: Press release from the Free and Hanseatic City of Hamburg, Commercial Court Hamburg
Hesse
Commercial Court at the Higher Regional Court of Frankfurt – planned for July 1, 2025
Commercial Chambers at the Regional Court of Frankfurt – planned for July 1, 2025
Source: Press release from the Hessian Ministry of Justice and the Rule of Law dated April 1, 2025
Lower Saxony
Commercial Courts at the Higher Regional Court of Celle – presumably 2 panels, introduction planned for 2025
A restriction to certain areas of jurisdiction according to Sec. 119b Para. 1 of the GVG is not intended in Lower Saxony. Commercial Chambers will presumably be established at one regional court in each of the three higher regional court districts. Details – such as the question of a dispute value threshold at the level of the Commercial Chambers – are currently being considered and coordinated.
Source: Communication from the Press Office of the Lower Saxony Ministry of Justice dated April 11, 2025
North Rhine-Westphalia
Commercial Court at the Higher Regional Court of Düsseldorf – specialized in construction and architectural cases
Commercial Court at the Higher Regional Court of Düsseldorf – specialized in insurance law (especially directors' and officers' liability insurance (D&O insurance)
Commercial Court at the Higher Regional Court of Düsseldorf – specialized in corporate and post-M&A disputes
Commercial Chambers at the Regional Courts in Bielefeld, Düsseldorf, Essen, and Cologne. At the same time, the dispute value-dependent specialization in renewable energy law (Regional Courts of Bielefeld and Essen), disputes in the field of information technology (Regional Court of Cologne), and company transactions (Regional Court of Düsseldorf) already existing at these locations will be expanded, provided these proceedings are also to be conducted in English.
Sources: Press release from the NRW State Government dated March 12, 2025; Press release from the Higher Regional Court of Düsseldorf
English Language
A significant innovation is the ability to conduct proceedings entirely in English. Sec. 184a Para. 1 of the GVG allows state governments to permit this in
selected regional courts for the designated civil chambers and chambers for commercial matters (Commercial Chambers),
the panels responsible for appeals and complaints at higher regional courts over decisions of the Commercial Chambers
as well as the Commercial Courts.
The parties must expressly or tacitly agree on the English language of the proceedings or the defendant tacitly accepts this language in his defense (§ 184a Para. 3 GVG).
Even the Federal Court of Justice can continue proceedings in English if the parties apply for it and the responsible panel consents (§ 184b GVG).
Protection of Trade Secrets
The protection of trade secrets during proceedings is improved by Sec. 273a of the ZPO. Courts can now classify contentious information as confidential if it can be considered a trade secret.
New Procedural Rules
The Legal Venue Strengthening Act also introduces new procedural rules.
Sec. 612 of the ZPO requires Commercial Courts and Commercial Chambers to conduct an early organizational meeting where agreements on the organization and course of the proceedings are made with the parties, provided no substantive or organizational reasons oppose this. This measure serves to enhance procedural efficiency and has proven effective in arbitration as a procedural management conference (see e.g. Appendix 3 to the DIS Arbitration Rules). From my experience as a commercial lawyer with over 18 years of litigation experience, this measure is very welcome.
Upon the parties' request, a verbatim transcript can be created according to Sec. 613 of the ZPO.
Appeals against first-instance judgments from the Commercial Court can be made to the Federal Court of Justice. The appeal does not need to be separately admitted (§ 614 of the ZPO).
Benefits for Companies and Lawyers
These innovations provide benefits for companies and their lawyers. The Commercial Courts are expected to build expertise in economic matters. The first-instance jurisdiction of higher regional courts can accelerate proceedings. The possibility of English-language proceedings makes the venue more attractive for international companies. Additionally, sensitive business information is better protected in the process.
Challenges
These innovations offer challenges for companies and their lawyers. Not all federal states are expected to establish Commercial Courts. Furthermore, the German Federal Court of Justice can refuse to hear cases conducted in English. Practice will show how effective the new measures are in establishing German courts as an alternative to arbitration in major commercial disputes.
Conclusion
The Legal Venue Strengthening Act offers new opportunities for companies and their lawyers. The Commercial Courts are expected to bring expertise in economic issues. The innovations promise to make Germany a more attractive location, especially for international companies. However, it is crucial for businesses to carefully examine and leverage these opportunities. Future developments should be monitored – further adjustments may follow to enhance Germany's position in this field.