Germany’s Justice Location Strengthening Act: Commercial Courts and English-Language Proceedings

A. Introduction

Germany’s Justice Location Strengthening Act entered into force on 1 April 2025. Its formal title refers to strengthening Germany as a judicial location by introducing Commercial Courts and English as a court language in civil litigation.

The Act aims to make Germany more attractive for complex domestic and international commercial disputes. Businesses may now have a broader choice between German state courts and arbitration. The most relevant features for international companies include specialist court units, the possibility of English-language proceedings, early procedural planning and improved protection of trade secrets.

This article explains the practical implications as of November 2025:

• Commercial Courts at Higher Regional Courts;
• Commercial Chambers at Regional Courts;
• forum agreements and jurisdiction clauses;
• English-language proceedings;
• confidentiality and trade-secret protection;
• case-management conferences;
• the strategic choice between state courts and arbitration;
• the need to review existing contracts.

Historical legal notice: This English version reflects the position as of November 2025. Later changes in court organisation, legislation and case law have not been incorporated without separate review.

B. Legal framework

1. Commercial Courts

The Act authorises the federal states to establish first-instance specialist senates at Higher Regional Courts for major civil-law commercial disputes. These senates are referred to as Commercial Courts.

As of November 2025, the general value threshold was more than EUR 500,000.

The relevant subject areas may include:

• civil disputes between businesses;
• disputes arising from or connected with the acquisition of companies or shares;
• post-M&A disputes;
• disputes between a company and members of its management board or supervisory board.

There are also exclusions, including certain intellectual-property, copyright and unfair-competition disputes. The precise scope depends on the claim and the applicable procedural provisions.

2. Commercial Chambers

Commercial disputes that fall within the subject-matter scope of a Commercial Court but do not exceed the EUR 500,000 threshold may be heard by specialist Commercial Chambers at Regional Courts.

Commercial Chambers are not separate courts. They are specialist chambers within the Regional Courts and may be particularly relevant for mid-sized businesses whose disputes are commercially significant but below the Commercial Court threshold.

3. Party agreement and forum clauses

A Commercial Court or Commercial Chamber may become competent through an express or implied agreement of the parties if the value and subject-matter requirements are met.

A forum clause should address, where possible:

• the court and location;
• the disputes covered;
• the value threshold;
• the first-instance court and appellate route;
• Commercial Court or Commercial Chamber status;
• the intended language;
• changes in court organisation;
• international jurisdiction and enforceability.

A court could also become competent where the claimant requested the specialist forum in its statement of claim and the defendant entered an appearance without objection. Businesses should not rely on this route instead of a carefully drafted jurisdiction agreement.

4. English-language proceedings

The reform allows proceedings before Commercial Courts and Commercial Chambers to be conducted entirely in English under the relevant statutory conditions.

The possible scope includes:

• the statement of claim;
• pleadings and written submissions;
• the case-management conference;
• the hearing transcript;
• the judgment;
• appeals and proceedings before the Federal Court of Justice.

English remains an option rather than an automatic requirement. The parties should consider language at the contract and forum-selection stage.

German remains the official court language. The reform supplements the German system with an international option for suitable commercial disputes.

5. Protection of trade secrets

Commercial litigation may expose sensitive technical, financial and strategic information. Enhanced protection applies to information qualifying as a trade secret under the German Trade Secrets Act.

Possible measures include:

• confidentiality obligations for participants;
• restrictions on access to files and documents;
• anonymisation and redaction;
• exclusion of the public from parts of the hearing;
• fines for breaches of confidentiality obligations.

Businesses should identify sensitive information early and prepare the necessary applications. Confidentiality should not be left to an informal understanding between the parties.

6. Case-management conferences

Commercial Courts and Commercial Chambers may use early organisational hearings modelled in part on international arbitration practice.

A case-management conference can address:

• the issues in dispute;
• pleadings and deadlines;
• evidence and experts;
• document production and organisation;
• the hearing timetable;
• confidentiality applications;
• procedural language;
• settlement opportunities.

Early preparation is essential. A party that only develops its procedural strategy after the first hearing may lose the benefits of structured case management.

C. Legal assessment

1. Strengthening Germany as a litigation forum

The reform responds to competition between state courts and arbitration. International businesses have often selected arbitration or foreign courts because they expected specialist decision-makers, confidentiality, speed and English-language proceedings.

Commercial Courts combine several features that may make German state-court litigation more attractive:

• specialist judges;
• English-language proceedings;
• early case management;
• protection of trade secrets;
• a state-court judgment;
• a statutory appeal structure.

The reform does not mean that a Commercial Court will always be faster or cheaper than arbitration. The appropriate forum depends on the complexity of the dispute, the number of parties, the evidence and the countries in which enforcement may be required.

2. Compatibility with the German legal system

The possibility of English-language proceedings does not abolish the core principles of German civil procedure. German remains the official court language, while English is made available as an additional option for suitable proceedings.

Commercial Courts and Commercial Chambers remain part of the ordinary court system and continue to operate within the general framework of German civil procedure unless specific provisions apply.

D. Practical impact for businesses

1. Review existing contracts

Companies should review standard contracts and existing templates, including:

• jurisdiction clauses;
• arbitration clauses;
• choice-of-law clauses;
• language clauses;
• confidentiality provisions;
• M&A and post-M&A provisions;
• interim-relief clauses;
• evidence and document-management arrangements.

The reform does not make every existing arbitration clause obsolete. It creates an additional state-court option that should be considered in new and long-term contracts.

2. Draft precise forum clauses

A clause such as “the courts of Germany shall have jurisdiction” may not identify the intended Commercial Court or Commercial Chamber.

A robust clause should consider:

• the exact court or location;
• the subject matter;
• the value threshold;
• the first instance and appeal;
• international jurisdiction;
• the intended language;
• changes in the court organisation;
• compatibility with European jurisdiction rules;
• confidentiality and trade-secret protection.

A dynamic clause may allocate disputes according to objective criteria such as subject matter and value in dispute. Such clauses require careful drafting and should not be copied from a generic model without legal review.

3. State court or arbitration?

Potential advantages of a Commercial Court

• specialist judges;
• state-court authority;
• English-language proceedings where available;
• early procedural planning;
• statutory protection for trade secrets;
• a defined appellate structure;
• possible direct first-instance proceedings before a Higher Regional Court;
• state enforcement mechanisms.

Potential advantages of arbitration

• confidentiality;
• flexible procedure;
• choice of arbitrators;
• international working language;
• advantages for cross-border enforcement;
• suitability for multi-party and highly technical disputes.

The appropriate choice depends on the contract, the parties, the assets and the likely enforcement countries.

4. International legal departments and counsel

In-house and external counsel should update their advice for companies that:

• operate across borders;
• maintain international supply chains;
• conduct M&A transactions;
• rely on technical or confidential business models;
• regularly use arbitration clauses;
• conduct business in English.

Forum and language selection should be addressed before a dispute arises, not only after litigation has become inevitable.

5. Practical preparation for litigation

The new framework requires:

• the ability to conduct proceedings in English;
• knowledge of Commercial Court rules;
• preparation for case-management conferences;
• early identification of trade secrets;
• structured evidence and document planning;
• coordination with international in-house counsel;
• a reasoned choice between state proceedings and arbitration;
• an assessment of the appellate route.

E. Business checklist

New contracts

• select the dispute-resolution mechanism;
• compare a Commercial Court, Commercial Chamber and arbitration;
• draft a precise jurisdiction clause;
• address the intended language;
• consider M&A, supply-chain and corporate disputes;
• assess value thresholds;
• protect confidential information;
• review international jurisdiction and enforcement.

Existing contracts

• review standard clauses;
• reassess arbitration clauses;
• align jurisdiction and choice-of-law provisions;
• clarify language provisions;
• review confidentiality and document-protection arrangements;
• analyse M&A and post-M&A agreements separately.

Anticipated disputes

• identify the competent Commercial Court or Chamber;
• estimate the amount in dispute;
• verify subject-matter and local jurisdiction;
• decide on language;
• catalogue trade secrets;
• prepare for a case-management conference;
• develop the evidence and document strategy;
• assess appeals and enforcement;
• compare state litigation with arbitration.

CTA: Are you reviewing an international contract or preparing for complex commercial litigation? Have the court, language, confidentiality and dispute-resolution provisions reviewed before signing or filing. Contact Stroschein & Makowka.