I. Aim of Commercial Courts and Commercial Chambers

For some time now, there has been criticism from various directions that the German judiciary is decreasing in attractiveness compared to foreign courts and arbitration. The German legislator aims to counteract this criticism with the Justice Location Strengthening Act. By introducing new procedural regulations, Germany intends to increase the attractiveness of the German judiciary for a broad range of commercial disputes.
The Justice Location Strengthening Act authorizes the federal states to establish specialized courts (Commercial Chambers and Commercial Courts) in certain subject areas, before which the parties can conduct the proceedings in English to a large extent.

II. The establishment of Commercial Courts

The Commercial Court can be established as a specialized chamber by the federal states at the higher regional court. The parties can agree on original jurisdiction for civil law disputes between businesses, for disputes arising from or in connection with the acquisition of a company or shares in a company and for disputes between a company and members of its management body or supervisory board, subject to a minimum amount in dispute of EUR 500,000. Excluded from civil disputes are disputes in the field of intellectual property rights, copyright law and claims arising from the Act against Unfair Competition. Disputes regarding the validity of shareholder resolutions are also excluded from the jurisdiction of the Commercial Courts.
The parties may expressly or by implication agree that the Commercial Court has original jurisdiction. The agreement is not bound to any particular form. If the parties have not reached an agreement on the jurisdiction of the Commercial Court, jurisdiction can also be established by the plaintiff requesting jurisdiction in the statement of claim and the defendant accepting it without objection in the statement of defense.

III. The establishment of Commercial Chambers

The federal states are also authorized to establish so-called Commercial Chambers at the regional courts. Commercial Chambers are customary civil or commercial chambers that are also responsible for proceedings in the subject areas of the Commercial Courts, but where the amount in dispute is less than EUR 500,000. The federal states are entitled to establish one or more joint Commercial Chambers.

IV. Proceedings in English

Proceedings before the Commercial Courts and the Commercial Chambers can, in principle, be conducted entirely in English if the parties have agreed to this or if the plaintiff has filed the statement of claim in English and the defendant has accepted it without objection in its statement of defense.
If the proceedings are conducted in English, all actions in the proceedings must be conducted in English. This includes all orders of the court, the conduct of the hearing, procedural acts of the parties and all pleadings. Decisions of the court – a judgment or order – must also be written in English. However, the court may translate the enforceable decision into German at the request of one of the parties.

V. Organizational hearing and verbatim transcript

The mandatory holding of an organizational hearing is intended to make the proceedings before the Commercial Chambers and Commercial Courts more efficient and bring them closer to arbitration proceedings. Both the Commercial Chambers and the Commercial Courts are obliged to determine the further course of the proceedings (deadlines for written submissions, dates for oral hearings, taking of evidence, etc.) with the parties in an organizational hearing from the outset. At the request of the parties, a verbatim transcript of the hearing or taking of evidence must also be kept. The verbatim transcript has also long been established and proven in arbitration law and is common practice internationally.

VI. Appeals against decisions of the Commercial Court or the Commercial Chamber

The ruling of the Commercial Court may be appealed to the Federal Court of Justice. The appeal does not require admission. If the proceedings are conducted in English, the appeal proceedings before the Federal Court of Justice must also be conducted in English if this is requested in the notice of appeal and the Federal Court of Justice grants the request. The decision of the Federal Court of Justice on the application shall be made irrespective of the parties’ agreement to conduct the proceedings in English.
Decisions of the Commercial Chamber may be appealed to the Commercial Court. If the proceedings before the Commercial Chamber were conducted in English, the appeal proceedings must also be conducted in English.