What are the new commercial courts in Germany?
Commercial courts are specialized tribunals attached to higher regional courts that deal with major commercial disputes with an international dimension. They are aimed at companies that want to resolve complex commercial and corporate law disputes efficiently and professionally. The jurisdiction of the commercial court as the court of first instance can be agreed between the companies. Proceedings are conducted in German or English, at the parties' discretion. In an early organizational meeting, which can also take place via videoconference, agreements are made between the court and the parties on the course of the proceedings in order to structure the proceedings efficiently.
What are the advantages?
The special feature and strength of the Commercial Court lies in the high level of specialization of the senates and their focus on disputes with a regularly high value in dispute. Companies now have the option of calling on the Commercial Courts for disputes with a value in dispute of 500,000 euros or more. Correspondingly, commercial chambers have also been set up at some courts for proceedings with a lower value in dispute, which conduct hearings exclusively in English.
Appeals against first-instance decisions of the Commercial Court may be lodged with the Bundesgerichtshof (Federal Court of Justice). For decisions of the commercial chambers, the commercial courts are the (always English-speaking) appellate court.
The creation of commercial courts and commercial chambers is an important step in international commercial disputes. With the introduction of specialized senates for commercial disputes and the option of conducting proceedings in English at the request of the parties, international commercial disputes can now be heard more efficiently in German courts outside of arbitration.
Institutionally, commercial courts remain part of the ordinary court system and are not arbitration proceedings. This is particularly noticeable in the significantly lower court costs that this usually entails. Functionally, however, they represent a new type of internationally oriented procedural platform that combines German legal certainty with greater attractiveness for cross-border commercial disputes.
Are commercial courts justified?
So far, there is little reliable data on whether the newly introduced tribunals are conducting proceedings as efficiently and professionally as desired. However, the proceedings that have already been decided indicate that the duration of the proceedings is indeed only a few months and that the parties receive a judgment quickly, even in highly complex proceedings.
If you have any questions about proceedings before the Commercial Court, please feel free to send us an email or give us a call.
