Commercial courts: when they are worthwhile for companies – and when they are not

Large commercial disputes are given courts specially tailored to their needs: the Commercial Courts. The German legislator introduced it with the Act to Strengthen the Location of Justice on April 1, 2025. The aim is to make Germany more attractive for international court proceedings and to offer companies an alternative to private arbitration proceedings.

Companies can look forward to specialized courts with experience in conducting international proceedings and business-related expertise. With the exception of the Commercial Court Dresden, proceedings can be conducted in English for the first time. In addition, even complex proceedings will be conducted more quickly and efficiently as the Commercial Courts have modern technical equipment.

The Commercial Courts are affiliated to the Higher Regional Courts.

Requirements for appealing to a commercial court

Formal requirements

The Commercial Courts have first instance jurisdiction for certain commercial law disputes with an amount in dispute of EUR 500,000 or more if the parties have contractually agreed to this. However, it is also possible to go to the Commercial Court by filing a motion in the statement of claim. To do so, however, the defendant must submit a response in the statement of defense.

Content requirements

Civil disputes between entrepreneurs can be heard by the new panels. This excludes disputes in the field of industrial property rights, copyright and claims under the Unfair Competition Act. The Commercial Courts can also be called upon to hear disputes relating to the acquisition of companies and disputes under company law. However, the federal states can limit the jurisdiction of their Commercial Courts to individual points and also to certain subject areas.

Hesse and Lower Saxony make almost unlimited use of the legal framework, while other states focus on specific areas. For example, the Commercial Court at the Higher Regional Court of Düsseldorf concentrates on building and architects’ contracts, engineering contracts, insurance contracts and company law matters. The Commercial Court at the Higher Regional Court of Dresden deals with tenancy and leasehold matters, banking transactions and company law disputes.

Where commercial courts already exist

Commercial Courts have already been established at the Higher Regional Courts in Bremen, Celle, Düsseldorf, Frankfurt am Main, Hamburg, Munich and Stuttgart, at the Berlin Court of Appeal and, since November 2025, at the Dresden Higher Regional Court.

The states of Baden-Württemberg (Stuttgart Regional Court), Berlin (Berlin II Regional Court), Hamburg (Hamburg Regional Court), Hesse (Frankfurt am Main Regional Court), Lower Saxony (Braunschweig, Hanover, Osnabrück Regional Courts) and North Rhine-Westphalia (Bielefeld, Düsseldorf, Essen, Cologne Regional Courts) have also made use of the option to establish commercial chambers at regional courts. Commercial chambers have not been established in Bavaria and Saxony.

In proceedings before the Commercial Court, there can be a two-stage or three-stage appeal process. The following applies to the two-tier appeal system: The first instance is the Commercial Court, and an appeal to the BGH is generally possible. In this case, there is no appeal instance. If there are three levels of appeal, the first instance is the Commercial Chamber, the second instance is the Commercial Court and an appeal on points of law may be allowed if the requirements are met.

The Commercial Chambers also offer the option of choosing English as the language of proceedings. Commercial Chambers are responsible for the same business-related disputes as Commercial Courts, provided that the respective national ordinance does not provide for any deviating or supplementary subject matter assignments.

The special features of proceedings before the Commercial Court

Proceedings before the Commercial Courts can be conducted exclusively in English upon request. Only in Saxony is this option not available.

In addition, the Commercial Courts adopt some instruments known from arbitration law:

• The court appoints an “organizational meeting” (comparable to a case management conference) at an early stage, in which it discusses the organization and course of the proceedings with the parties. Within the limits of mandatory procedural law, deviations from the ZPO are possible – for example with regard to the taking of evidence or the allocation of costs.
• In the first instance, the parties may also request that verbatim minutes be taken during the hearing or the taking of evidence.
• A two-stage appeal is possible. In this case, the Commercial Court has jurisdiction at first instance. The appeal to the BGH is not restricted and can also be conducted in English.
• The appeal process can be fully exhausted. For appeals against judgments of the Commercial Chambers, the general provisions of Section 543 et seq. ZPO apply.

When the Commercial Court is worthwhile for companies

In these cases, it may be worth conducting proceedings before the Commercial Court:

For international or English-language contractual relationships

If foreign employees or business partners are involved in the proceedings, it is a great advantage if the proceedings can be conducted entirely in English. This can be a decisive argument for agreeing to German jurisdiction in the first place.

For complex disputes with a high amount in dispute

The Commercial Courts have first instance jurisdiction for disputes with an amount in dispute of EUR 500,000 or more and are tailored to “large” commercial disputes.

For proceedings that benefit from specialized OLG senates

If a case requires more in-depth economic knowledge than judges normally have, it makes sense to go to the Commercial Court.

When process acceleration is strategically important

Commercial Courts are designed to ensure that proceedings are processed swiftly and efficiently and to schedule a quick organizational hearing. In most cases, a quick decision will be in the interests of both parties.

When state jurisdiction is preferable to arbitration

The Commercial Courts use the instruments of arbitration law without adopting its disadvantages, such as the lack of legal protection in the appeal process.

The special feature of a two-tier appeal system is that access to appeal is reliably open. This means that legal disputes can be clarified by the highest court.

Another advantage of the Commercial Court procedure is that the costs may be lower than in arbitration proceedings, as arbitrators’ fees and administrative fees are incurred in addition to the court costs.

When the Commercial Court is not the best choice

The Commercial Court is a powerful instrument, but it is by no means ideal for every case. Particularly in the following constellations, companies should carefully consider whether it really makes sense to go to the Commercial Court:

When confidentiality has top priority

Commercial courts are state courts. This means that hearings are generally public. Even pleadings and attachments are not completely protected from publicity. Media or industry services can gain access if there is a public interest. If confidentiality is very important, arbitration proceedings may be preferable. This is because it offers complete confidentiality, non-public hearings and no public judgment database.

If one party insists on an arbitration clause

In many industries, an arbitration clause is de facto standard. Many international partners prefer institutions that they know. In this case, the Commercial Court agreement may not be enforceable.

Your own company may also have guidelines that initially prescribe out-of-court dispute resolution.

If the dispute is not of high economic or legal complexity

Proceedings before the Commercial Court are generally not worthwhile if the dispute is neither particularly economically complex nor significant beyond the individual case. In the case of straightforward facts or cases in which the focus is primarily on questions of factual evidence, no recognizable advantages can be achieved compared to normal civil proceedings.

Quick check for legal departments: Is the Commercial Court suitable?

• Value in dispute ≥ 500,000 euros?
• Economic civil dispute between entrepreneurs?
• International/English-speaking parties involved?
• Interested in specialized judges with a business background?
• Need to speed up the process?
• Is the jurisdiction agreement realistically enforceable?
• Confidentiality not crucial?

Conclusion: Commercial courts are recommended in many cases

The new regulations are by no means only relevant for international disputes. The Commercial Courts also offer an attractive alternative to conventional proceedings for larger domestic disputes due to their specialization and the parties’ extended possibilities to influence the course of the proceedings.

However, the Commercial Court is not the right option for all disputes. It is particularly worthwhile when the complexity, internationality and amount in dispute are high, but less so when the focus is on confidentiality or out-of-court solutions.