Germany: Commercial courts and commercial chambers

Germany, once a highly regarded jurisdiction, has been under pressure for years. Not least the flood of mass actions (such as the thousands upon thousands of Diesel lawsuits) and the use of English as the international language of business have made German courts appear less and less attractive in recent decades. Many clients are concerned about the sometimes lengthy proceedings, lack of (foreign language) flexibility and specialist expertise. Parties usually want a quick decision, especially in disputes arising from ongoing business relationships. Private arbitration tribunals have therefore often been entrusted with decision-making as an alternative. This is a highly problematic trend in terms of orderly legal development and legal certainty. However, since April 2025, several federal states have begun establishing commercial courts (at the higher regional courts) and commercial chambers (at the regional courts). This is in response to the Justice Strengthening Act, which aims to make state jurisdiction more attractive for larger international commercial disputes by combining the advantages of state jurisdiction (such as statutory judges, available structures, more favourable cost structure) with some of the advantages of arbitration tribunals (hearings in English, shortened or no appeals process).

What are commercial courts and commercial chambers?

Commercial courts are not new courts, but specialist bodies within the higher regional courts. They have the power to rule in the first instance on complex commercial disputes with a value in dispute of EUR 500,000 or more. They also act in appeals and complaint proceedings within their assigned areas of jurisdiction. The federal states can designate certain civil chambers and chambers for commercial matters at regional courts as commercial chambers.

So far, commercial courts and commercial chambers have been announced or already established in nine federal states. The Commercial Court for Construction and Architectural Contracts and Engineering Contracts has been established at the Berlin Court of Appeal, and the Hanseatic Commercial Court for Aerospace, Logistics and Maritime Trade has been established in Bremen. Commercial courts and commercial chambers have also already been established in Stuttgart, Hamburg and Düsseldorf. Commercial courts and commercial chambers are to follow in Celle, Frankfurt am Main, Dresden and Munich.

When do commercial courts have jurisdiction?

In the first instance, commercial courts have jurisdiction over disputes with a value in dispute of EUR 500,000 or more. Furthermore, there is a restriction to certain subject areas and the parties must give their consent.

The commercial courts only have first-instance jurisdiction in certain areas. The areas are determined by the respective federal states within the limits of Section 119b I GVG. The focus is on civil law disputes between companies, disputes arising from or in connection with the acquisition of companies or shares in companies, and disputes between a company and members of its management or supervisory board. Disputes in the field of industrial property rights, copyright and unfair competition law are expressly excluded.

Another prerequisite for the Commercial Court to have jurisdiction in the first instance is the agreement of the parties involved (Section 119b II GVG). The parties may expressly or tacitly determine the jurisdiction of the Commercial Court. It is also sufficient for the defendant to accept the jurisdiction of the Commercial Court without objection in the proceedings if this has been requested by the plaintiff. To avoid legal uncertainty and conflicts of jurisdiction, it is advisable to determine jurisdiction by means of a choice of court agreement.

In the event appellate proceedings are initiated, the federal states may assign appeals and complaints against regional court decisions to the commercial courts (Section 119b IV GVG). The dispute must relate to one of the assigned areas of jurisdiction. However, the value in dispute does not have to exceed EUR 500,000.

How do proceedings before the commercial courts work?

Proceedings before the commercial courts essentially follow the general rules of civil procedure (Sections 253-510b ZPO). However, the procedure is supplemented by a number of practical instruments (Sections 610-614 ZPO). Some of these also apply to the commercial chambers (Sections 612, 613 ZPO).

A key feature is the early organisational meeting (Section 612 ZPO). Similar to the case management conference that is common in arbitration proceedings, it serves to coordinate and plan complex proceedings. The parties can, for example, agree on rules for the organisation and conduct of the proceedings and draw up a schedule.

In addition, the verbatim record, which has proven its worth in arbitration proceedings, has also found its way into proceedings before the commercial courts and commercial chambers (Section 613 ZPO). A verbatim record must generally be kept at the mutual request of the parties in volved. A readable verbatim record is usually kept. Although readable records are very time-consuming, they are particularly suitable for providing evidence of the course of the proceedings due to the exact transcription of the statements. However, the parties may also agree to waive the readability of the verbatim record.

It should also be noted that the plaintiff must already request in the statement of claim that the first instance proceedings be conducted before the Commercial Court (Section 610 II ZPO). Finally, the Commercial Courts must decide as a collegiate body. A decision by a single judge is not provided for (Section 610 I ZPO).

Is there an appeal?

Another special feature is the shortened appeal process. First-instance judgments of the Commercial Court are subject to direct appeal to the Federal Court of Justice (BGH) (Section 614 ZPO). No leave to appeal is required. This speeds up the final conclusion of the proceedings. To further shorten proceedings, the parties are free to mutually waive their right of appeal when bringing a case before the Commercial Court.

Can proceedings be conducted in English?

With the consent of the parties involved, proceedings before the Commercial Courts and Commercial Chambers may be conducted in English. The advantages of this long-overdue provision are obvious: it facilitates access to the courts for foreign parties, avoids discrepancies between the language of the contract and the language of the proceedings, and eliminates the often necessary translation of the case file. The Federal Court of Justice, on the other hand, only conducts proceedings in English if 1) the court of first instance conducted the proceedings in English, 2) the proceedings are requested in English, and 3) the competent senate of the Federal Court of Justice grants the request. This means that a language break is permitted in the appeal instance.

Whether or not proceedings are conducted in English is at the discretion of the parties. The parties to the dispute must expressly or tacitly agree to proceedings being conducted in English (Section 184a III GVG). Uncontested acceptance is also possible here, whereby a statement of defence drafted in German is sufficient as a complaint. Conversely, parties may present their case in German despite the English language of the proceedings, provided this has been agreed or the presentation is not immediately contested.

Conclusion

Overall, our experience with the previous ‘Commercial Courts’ (now Commercial Chambers) has been positive in recent years. In fact, those predecessors of Commercial Chambers often organised proceedings efficiently, and judges were particularly motivated to understand the economic aspects of the cases. However, in our experience, proceedings conducted entirely in English were not common. One disadvantage compared to arbitration remains since confidentiality is limited.

All things considered, the establishment of commercial courts is a welcome development and should be taken into account when drafting contracts (jurisdiction clause).