GERMANY Law and Practice Contributed by: Daniel Engel, Antonia Hösch, Mathäus Mogendorf and Viola Sailer-Coceani, Hengeler Mueller
including the option to participate in oral hearings vir- tually as well as to bundle factually or legally related cases. Modernisation of German Arbitration Law Aside from the recent developments in litigation leg- islation, German arbitration law provisions (codified in the 10th book of the German Code of Civil Procedure) are undergoing an update. A previous draft amendment of German arbitration law came to a halt when the former German coalition broke in early 2025. The Federal Ministry of Justice has now proposed a new draft bill which builds on the former draft with slight amendments. The envisioned amendments include a lowering of the form requirement for arbitration agreements, the option to render arbitral awards in electronic form, and the option to conduct proceedings in state court relat- ing to arbitration matters in English. The standard limitation period for most claims in Germany is three years, commencing at the end of the year in which the claim arose and the claimant obtained or should have obtained knowledge of the relevant circumstances (Sections 195, 199 of the Ger- man Civil Code ( Bürgerliches Gesetzbuch , BGB)). For certain claims, longer (eg, 30 years for damage based on intentional injury to life, limb, health, liberty or sex- ual self-determination) or shorter limitation periods (eg, two years for purchase agreements concerning movable goods) may apply. Parties may, within certain limits, contractually modify limitation periods, though they cannot reduce the limitation period for liability arising from intentional conduct. 2.2 Court Structure Within the ordinary courts, civil proceedings are typi- cally initiated before the local courts ( Amtsgerichte ) for disputes valued at up to EUR10,000 and certain dis- putes regardless of the value (eg, disputes in relation to lease agreements) or the regional courts ( Landger- ichte ) for disputes higher than EUR10,000. Appeals 2. Litigation 2.1 Limitation Periods
are heard by the higher regional courts ( Oberland- esgerichte ), with further review limited to points of law by the Federal Court of Justice ( Bundesgerichtshof ). In order for the newly introduced commercial courts to be competent, the dispute value must exceed EUR500,000 and the parties must explicitly agree to their jurisdiction (see 1.3 Key Dispute Resolution Trends ). 2.3 Pre-Action Conduct There are generally no overarching pre-action con- duct requirements in civil proceedings. In commer- cial practice, claimants are expected to send a formal demand letter ( Forderungsschreiben ) or a cease-and- desist letter ( Abmahnung ) before commencing pro- ceedings. While these letters are not a formal admis- sibility requirement, a claimant who files suit without taking the aforementioned measures risks bearing the costs of the proceedings if the defendant immediately acknowledges the claim. 2.4 Stages of Court Proceedings Civil court proceedings generally commence with the filing of the complaint, followed by the defendant’s written response. German civil procedure is predomi- nantly written in nature, and there is no pre-trial dis- covery comparable to common law jurisdictions. Gen- erally, the dispute is to be dealt with and terminated in one hearing. After the hearing, the court issues a written judgment. Proceedings at local courts typically last 6-12 months, while cases at regional courts may take approximately 18 months, with appeals adding further time depend- ing on complexity. Early experience with the commer- cial courts, such as in Stuttgart, suggests that pro- ceedings can be resolved significantly faster (based on the experience of the Commercial Court Stuttgart, within approximately six months). 2.5 Confidentiality While court files are not publicly accessible, court hearings are generally public, and anyone may attend. However, certain cases are confidential by law, such as family law matters, disputes involving minors, or trade secrets in commercial litigation. Additionally, the court may order restricted access in sensitive cases
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