GERMANY Trends and Developments Contributed by: Johanna Wirth, Maximilian Bülau, Philipp Hanfland and Carsten van de Sande, Hengeler Mueller
of collective legal redress in capital-markets litigation. Perhaps most importantly, under the new regime, the higher regional courts themselves (and not the lower courts or the parties) determine the set of questions to be litigated, thus determining the subject matter of the proceedings. This change promises significantly leaner (and faster) proceedings. Also, the process for initiating model case proceedings has been expedited and simplified, and the new law provides for easier access of claimants to document production from the defendant or third parties. Modernisation of German Arbitration Legislation Germany has adopted the New York Convention and its existing arbitration regulations are broadly arbitra- tion-friendly. Likewise, arbitration is well accepted by participants in the disputes market. German parties consistently rank among the top ten users of arbitra- tion according to the ICC’s statistics. And the German Arbitration Institution (DIS) reported 218 new cases in 2025 – a year-on-year increase of nearly 40%, and the highest number of new entries in the institution’s history. A draft bill published by the Federal Ministry of Jus- tice from early 2026 aims to further enhance the attractiveness of Germany as an arbitration venue. Key proposed reforms include the express authorisa- tion of video hearings and electronic awards, and the relaxation of form requirements for arbitration agree- ments, which may henceforth be concluded by any means of communication that allows information to be accessed again later. Also, the newly formed com- mercial courts may be assigned special jurisdiction in arbitration-related matters, which will enable English- language proceedings and documentation. Alongside the legislative reform, the German Arbitra- tion Institution (DIS) keeps modernising its rule set. After an overhaul of its arbitration rules in 2018, the DIS Supplementary Rules for Third-Party Notices, issued in 2024, probably make the DIS rules the most advanced when it comes to administering multi-par- ty situations. The Supplementary Rules introduce a procedural mechanism by which a party to an ongo- ing arbitration may give formal notice to a third party, thereby binding that third party to the outcome of the arbitration in any follow-on proceedings. This mecha-
nism, modelled on a procedural device well estab- lished in the German procedural tradition of Streit- verkündung , is a novelty in the world of arbitration. It is expected to become highly relevant in complex commercial relationships involving multiple contracts, subcontracting chains, or indemnity arrangements, where the outcome of one dispute may have direct consequences for a party’s rights against or obliga- tions toward a non-party. Commercial Courts After a temporary dip during the COVID-19 pandem- ic, new case filings before German civil courts have resumed their upward trajectory, surpassing one mil- lion new cases in 2024. However, this growing case- load comes at a cost: backlogs are mounting and lead times for dispute resolution are lengthening, with the average duration of cases before regional courts – where most commercial disputes are litigated – now at over 17 months. In the case of complex, high-value commercial disputes, parties can expect even longer proceedings. In an attempt to react to this development and to provide for efficient proceedings in particular for complex international disputes, the legislature has enacted legislation to strengthen the position of Ger- many as a legal venue ( Justizstandort - Stärkungsge- setz ), which entered into force on 1 April 2025. The new law empowers the German states to establish specialised commercial courts at the level of courts of appeal. A defining feature of the new commercial courts is the ability to conduct proceedings entirely in English – covering written submissions, hearings, and, upon the parties’ request, the judgment itself. The appellate pathway is deliberately shortened: the sole remedy against a commercial court decision is an appeal on points of law directly to the Federal Court of Justice, with no intermediate appellate review. Pro- cedural features are modelled on arbitration practice, including early case management conferences and the option for verbatim transcription of hearings. In addition, hearings may be conducted under exclusion of the public where necessary to protect trade secrets. The commercial courts are envisaged to be staffed with judges who possess particular expertise in com- mercial matters. Depending on the specific court, the
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