Presently, the language of the courts has been German only; international parties to a dispute can call an interpreter. However, this discourages international parties from bringing their disputes before the German state courts. The new chambers for international commercial matters are intended to enable litigation in English, the "lingua franca" of international commerce. Some German states have already implemented Commercial Courts at the end of 2020, the nationwide implementation shall follow.
It is planned that English can be agreed as the language of proceedings for the Commercial Courts in the first instance. In addition, appeals against Commercial Court decisions will be allowed to the German Federal Supreme Court in English language.
Attempts to introduce such special courts for international commercial disputes have already been made in recent years. Previous drafts have failed. This draft is intended to change some aspects.
While the reform efforts were previously based on the tried-and-tested three-instance system of the ordinary civil courts, a more flexible solution is now being created. The parties may freely decide whether they consider rapid proceedings or a second factual instance as more important. In addition to the English-language chambers for international commercial matters at the regional courts, English-language senates will also be established at the higher regional courts for amounts in dispute exceeding two million euros.
The most important innovation besides the English language is the introduction of case management. In procedural terms, this case management is characterized by comprehensive process management by the judge in the preparatory phase before a central main hearing date and is accompanied by duties of cooperation of the parties. The procedural rules of the Commercial Courts provide the trial judge with numerous instruments that can be used flexibly to make the trial as efficient as possible. Important innovations include the definition of pleading structures, the use of procedural calendars or the implementation of virtual organizational meetings. In addition, the existing civil procedure regulations for conducting video hearings and video evidence recordings shall be made even more flexible and practical. Written testimony in evidence proceedings will also be possible.
In addition, the courts can specialize, as is already the case in the Düsseldorf Higher Regional Court district where only M&A disputes are to be heard, in the Cologne Higher Regional Court district where IT disputes shall be heard, and in the Hamm Higher Regional Court district where disputes shall be heard with a focus on "renewable energies". Establishing civil chambers whose specialization is directed to the needs of regional business locations can serve to strengthen these locations economically. The courts could also gain an international reputation and be more progressive than the non-specialized commercial courts of our European neighbours.
It is welcome that, despite three unsuccessful attempts, the German legislature continues to work on reforms for commercial disputes. The rules in the latest draft are designed to establish the international standard of arbitration practice in the state Commercial Court. This is an important innovation and may offer hope for a successful implementation of Commercial Courts.