Litigation Germany

Litigation in Germany

The German legal system is known for its efficiency, predictability, and high quality of adjudication. For commercial disputes, German courts and arbitration tribunals offer reliable procedures for enforcing claims.

The German Court System

Ordinary Courts (Civil Matters)

Level	Jurisdiction	Amount in Dispute
Local Court (Amtsgericht)	1st instance (small claims)	Up to €5,000
Regional Court (Landgericht)	1st instance (higher claims), appeal from AG	From €5,001
Higher Regional Court (OLG)	Appeal from LG	-
Federal Court of Justice (BGH)	Revision (legal issues)	-

Specialized Courts

• Chamber for Commercial Matters: Commercial disputes at Regional Court
• Labor Court: Employment disputes
• Administrative Court: Public law disputes
• Tax Court: Tax disputes
• Social Court: Social insurance law

Civil Proceedings Process

1. Pre-Trial Phase

• Warning Letter: Often recommended before filing
• Negotiations: Seek out-of-court settlement
• Evidence Preservation: Secure documents and witnesses
• Cost Analysis: Cost-benefit assessment

2. Filing the Claim

• Statement of Claim: Facts and claims presented
• Court Fees: Advance payment upon filing
• Service: To the defendant
• Defense: Deadline for defendant's response

3. Main Proceedings

• Written Submissions: Exchange of briefs
• Settlement Hearing: Attempt at amicable resolution
• Main Hearing: Oral argument
• Taking of Evidence: Witnesses, experts, documents
• Judgment: Pronouncement or written delivery

4. Appeals

Appeal	Deadline	Requirement
Appeal (Berufung)	1 month	Grievance > €600
Revision	1 month	Leave by OLG or BGH
Complaint against denial	1 month	Grievance > €20,000

Litigation Costs

Cost Components

Cost Type	Calculation
Court Fees	3.0 fees under GKG (based on amount in dispute)
Plaintiff's Attorney	Approx. 2.5 fees under RVG
Defendant's Attorney	Approx. 2.5 fees under RVG
Experts	According to effort (often €3,000-15,000)

Cost Examples (1st Instance)

Amount in Dispute	Court Fees	Attorney Fees (each)	Total
€10,000	€723	€1,100	~€2,900
€50,000	€1,638	€2,600	~€6,800
€100,000	€2,988	€4,100	~€11,200
€500,000	€10,488	€11,000	~€32,500

Allocation of Costs

Principle: The losing party bears all costs (own attorney fees, opposing attorney fees, court fees). Partial loss results in proportional allocation.

Litigation Funding

• Legal Expenses Insurance: Covers costs according to policy
• Legal Aid: State assistance based on need
• Third-Party Funding: Financing in exchange for success fee

Arbitration

Arbitration tribunals offer an alternative to state courts, especially for international commercial disputes.

Advantages

• Confidentiality: No public hearings
• Expertise: Arbitrators with industry knowledge
• Flexibility: Procedural rules freely agreed
• Enforcement: Internationally recognized (New York Convention)
• Speed: Often faster than state courts

Disadvantages

• Costs: Higher procedural costs
• No Appeal: Limited review options
• No State Power: Interim relief limited

Arbitration Institutions in Germany

• DIS (German Institution of Arbitration): Leading in Germany
• ICC: International Chamber of Commerce
• Ad-hoc Proceedings: By individual agreement

Enforcement

Enforcement Titles

• Final Judgments: Immediately enforceable
• Provisionally Enforceable Judgments: Against security deposit
• Enforcement Orders: From payment order proceedings
• Arbitral Awards: After declaration of enforceability
• Notarial Deeds: With submission clause

Types of Enforcement

• Account Seizure: Access to bank balances
• Wage Garnishment: Access to ongoing income
• Seizure of Assets: By bailiff
• Real Estate Enforcement: Forced sale or administration
• Asset Disclosure: Disclosure of financial circumstances

International Enforcement

Origin	Procedure
EU Judgments	Direct enforcement (Brussels Regulation)
Arbitral Awards	Declaration of enforceability (NYC)
Third Countries	Exequatur proceedings (bilateral treaties)

Alternative Dispute Resolution

Mediation

• Facilitation by neutral third party
• Voluntary and confidential
• No binding decision
• Cost-effective and fast

Conciliation

• Industry-specific conciliation bodies
• Often required before filing suit
• Conciliation award usually non-binding

Special Procedures

Payment Order Proceedings

Fast procedure for undisputed monetary claims:

• Payment Order: Online application possible
• Objection: 2 weeks deadline
• Enforcement Order: If no objection
• Costs: Significantly cheaper than lawsuit

Interim Relief

• Arrest: Securing monetary claims
• Preliminary Injunction: Securing other claims
• Urgency: Special urgency required

Our Services

• Court Representation: Before all German courts
• Arbitration: DIS, ICC, ad-hoc
• Settlement Negotiations: Out-of-court resolution
• Enforcement: Execution of judgments
• Cost Analysis: Risk and cost assessment
• International Disputes: Cross-border cases