German LawCommercial LawInternational Civil ProcedureArbitration
With the Act to Strengthen Germany as a Judicial Location, the German legislature launched an ambitious reform package in April 2025 in order to make state civil proceedings more attractive for complex international commercial disputes. At the heart of the reform are the introduction of Commercial Courts at the Higher Regional Courts and Commercial Chambers at the Regional Courts, combined with the possibility of conducting proceedings in English.
The new framework responds to structural deficits of the traditional forum: lack of specialisation, language barriers, limited international visibility and insufficient protection of confidential information. The aim is to combine the advantages of state courts, such as the lawful judge, enforceability and lower costs, with those of arbitration, in particular procedural efficiency, language flexibility and confidentiality.
Commercial Courts are specialised panels at the Higher Regional Courts and hear at first instance commercial disputes with an amount in dispute of EUR 2 million or more, provided that they fall within certain subject matters defined in section 119b(1) of the German Courts Constitution Act, such as corporate law, company acquisitions or disputes involving corporate bodies. The Länder determine by regulation which panels and subject matters are actually assigned. In addition, appellate proceedings may also be allocated to them.
Commercial Courts are specialised panels at the Higher Regional Courts and hear at first instance commercial disputes with an amount in dispute of EUR 2 million or more, provided that they fall within certain subject matters defined in section 119b(1) of the German Courts Constitution Act, such as corporate law, company acquisitions or disputes involving corporate bodies.
An action is admissible only if both parties consent to the court's jurisdiction, either expressly by jurisdiction agreement or implicitly by entering an appearance without objection.
The proceedings follow in principle the general rules of the German Code of Civil Procedure, but are supplemented by central instruments: a three-judge principle under which all cases are mandatorily decided by a panel of three professional judges; an organisation hearing for structured case management on procedural steps, evidence and timing, inspired by international arbitral practice; a verbatim transcript which the parties may request as a reliable basis of documentation; and a direct appeal on points of law to the Federal Court of Justice, so that judgments of the Commercial Courts may be challenged before the Bundesgerichtshof without any prior appeal.
For the first time, a state civil proceeding may be conducted entirely in English. The prerequisite is a valid language agreement between the parties. This can be concluded contractually or by unobjected conduct, for example by filing a statement of defence without raising a language objection.
The use of English is permitted only before Commercial Courts and Commercial Chambers and only within the subject matters covered by section 119b GVG. A switch back to German is provided for third parties not involved in the language agreement. Before the Federal Court of Justice, English remains permissible only if the panel authorises it upon application.
A particularly innovative element is the new section 273a ZPO, which permits confidential treatment of sensitive information, for example through redacted submissions, confidentiality orders or restricted file access. Protection is based on the definition of a trade secret under the German Trade Secrets Act and requires only a summary plausibility review. In this way, the legislature closes a gap vis-à-vis arbitration, where confidentiality clubs have long been established.
The reform marks a structural turning point. For the first time, state civil justice is intended to become a serious alternative to arbitration through specialisation, procedural management, openness to English and protection of confidential information. At the same time, the success of the reform will depend decisively on its practical implementation. Personnel, digitalisation, training and coherent application by the Länder are essential.
In its current form, the Commercial Courts create the basis for an efficient, credible and internationally connected system of state commercial adjudication, a long overdue step in the global competition for legal certainty, efficiency and trust.
Baden-Württemberg / OLG Stuttgart (from April 2025): civil disputes between businesses in corporate law; disputes arising from acquisition of a company or at least 3% of shares.
Bavaria / OLG Munich (from June 2025): supply chain disputes between businesses; disputes between a company and members of management or supervisory bodies.
Berlin / Kammergericht (from April 2025): civil disputes arising from construction, architects' and engineering contracts insofar as connected with construction services.
Bremen / Hanseatic OLG (from April 2025): disputes in freight, forwarding, warehousing and maritime commercial law; hydrogen technology disputes; civil aviation and space technologies.
Hamburg / Hanseatic OLG (from April 2025): Panel 1: construction, banking, corporate, post-M&A; Panel 2: insurance, transport, shipping, traffic law.
Hesse / OLG Frankfurt (from July 2025): disputes connected with company acquisitions; corporate disputes; bilateral commercial transactions between companies. Excluded: capital investment, construction, medical treatment, insurance, publications, succession, insolvency.
North Rhine-Westphalia / OLG Düsseldorf (from April 2025): construction and architects' contracts; insurance (especially D&O); corporate law and company acquisitions. Special allocations: LG Cologne for IT disputes; LG Bielefeld/Essen for renewable energy; LG Düsseldorf for company transactions.