Finally: The Possibility to conduct Commercial Litigation in Germany in the English Language

While the topic is not new, the 2013 German elections (Bundestagswahl) had brought it to a standstill. In a renewed attempt to drive the matter forward, the Upper House of the German Parliament (Bundesrat) has now presented a draft law, pursuant to which it will be possible to establish chambers for international commercial matters at the German regional courts (Landgericht), before which chambers the involved parties will be able to conduct legal proceedings in the English language. The object of the new law is to strengthen Germany's position as a legal and economic centre.  

German law has many advantages. It is codified and - other than the common law - is not based on case law. A solution to most legal problems can be found and accurately predicted by reference (only) to applicable statutes and legal commentaries. The German courts, too, do well in international comparison: German judges are extremely well qualified and independent, and hand down judgments promptly and (usually) without same giving rise to unexpected surprises. Notwithstanding, prominent international commercial litigation matters regularly pass Germany by, given that foreign companies and businesses do not easily enter into agreements in terms of which it is provided that German courts should have jurisdiction in the event of a dispute. And they cannot be blamed for this: While the international language of commerce is English, the language of the German courts is and remains, well, - German. In consequence, documents that are not in the German language have to be produced to the courts in the form of certified translations, and foreign witnesses and parties can only be questioned with the assistance of an interpreter. This is not only expensive and cumbersome, but also provides scope for mistakes. Prominent commercial disputes are consequently usually litigated in other countries, or before arbitration courts. This, in turn, affects the question of which law should govern an agreement. Notwithstanding its advantages, German law is usually not selected if a court in another country has jurisdiction, before which it is possible to conduct proceedings in the English language as the "lingua franca" of international commerce.

This is now supposed to change: Pursuant to the aforementioned draft law of 14 March 2014, it will be possible for parties to conduct proceedings in the English language before newly-established chambers docked to the German regional courts. These chambers will also be able to hand down English language judgments. The draft law will need to be debated in the Lower House of the German Parliament (Bundestag) as a next step. If and when passed, it will result in a definite strengthening of Germany as a legal centre - provided that the chambers will be up to the linguistic challenges posed by having to conduct entire proceedings in the English language. We do, however, believe that there are enough suitably qualified German judges to make a success of the new law.
You can view the text of the draft law (in the German language) here.

Barbara Mayer