On April 25, 2023, the Federal Ministry of Justice presented a draft law for the introduction of Commercial Courts to strengthen Germany as a judicial location.
Germany is an important economic location, and many companies operate internationally. Legal disputes are not uncommon among international business partners, especially as national regulations in commercial law differ. The possibilities of negotiating legal disputes with international business partners in German courts are, however, limited. The procedural options in this country do not reflect the importance of Germany as an economic location, says attorney Michael Rainer, contact person for commercial law at the law firm MTR Legal Rechtsanwälte. The introduction of so-called Commercial Courts is intended to provide a remedy.
The Federal Ministry of Justice wants to strengthen Germany as a judicial location so that economic disputes are not increasingly conducted abroad or by arbitration courts. The draft law proposes the establishment of so-called Commercial Chambers at the regional courts and Commercial Courts at the higher regional courts. Additionally, proceedings in the regional and higher regional courts should be fully conducted in English if the parties agree.
Appeal proceedings against judgments of the Commercial Courts should also be able to be conducted in English at the Federal Court of Justice if the responsible Senate agrees.
Decisions of the Commercial Courts shall then be translated into German and published. Therefore, the protection of trade secrets is another important point of the draft law to strengthen Germany as a judicial location. It is planned that trade secrets will be protected from the filing of the complaint and that this protection will be extended to cover the entire proceedings. Thus, all trade secrets would also be protected when judgments are published.
The use of video technology, e.g., for taking evidence, should also be possible in negotiations at the Commercial Chambers and Commercial Courts.
In international business relationships, English is the common language. Therefore, conducting proceedings in English is a relief for the parties.
Experienced attorneys in commercial law advise the national and international clients at MTR Legal Rechtsanwälte.
