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German business law
for the Mittelstand
HomePracticesDispute Resolution & Arbitration
Practice 02

Disputes in Germany, argued by lawyers who know the bench.

When a contract with a German counterparty turns into a conflict, the forum is often a German court or a German-seated arbitral tribunal. We represent international companies in commercial litigation and arbitration — in English with the client, in German with the court — and coordinate parallel proceedings abroad through independent local partner firms.

§ I — Context

German procedure is front-loaded — the written phase decides

German civil procedure differs from common-law litigation in ways that matter commercially. There is no pre-trial discovery; the case is decided largely on the written submissions, and the oral hearing is short. Claims are heard before the Landgericht (regional court, LG), appeals before the Oberlandesgericht (OLG), and points of law before the Bundesgerichtshof (BGH), Germany's federal court of justice. Whoever invests in the first written submission usually frames the entire proceeding — a fact that surprises parties used to building a case in depositions.

Deadlines are unforgiving. The standard limitation period under secs. 195, 199 BGB is three years from the end of the year in which the claim arose and became known; procedural periods for responses and appeals are measured in weeks. Missing them is rarely curable. On the cost side, German litigation is comparatively predictable: court fees and the statutory RVG fees scale with the amount in dispute, which makes exposure calculable before filing.

We assess the merits in writing before recommending proceedings, run litigation before the LG, OLG and — in cooperation with admitted BGH counsel for civil revisions — the BGH, and act as counsel in arbitration under the DIS rules and other institutional rules. For disputes that touch several countries, we coordinate the German anchor proceeding with measures abroad in cooperation with independent local partner firms in more than 20 jurisdictions — one point of contact in Munich or Berlin, local advocacy by locally admitted lawyers.

§ II — Services & scenarios

What we handle — and in which situations.

Services

  • Commercial litigation — representation of claimants and defendants before the Landgericht and Oberlandesgericht in contract, corporate and commercial matters.
  • Arbitration — counsel work in arbitration under the DIS rules and other institutional rules, with German or foreign parties, in English or German.
  • Interim relief — urgent applications to secure claims, evidence or assets before and during proceedings.
  • Cross-border coordination — parallel proceedings and enforcement steps abroad, coordinated in cooperation with independent local partner firms in more than 20 jurisdictions.
  • Enforcement in Germany — recognition and enforcement of foreign judgments and arbitral awards against German debtors.
  • Settlement architecture — structured negotiations and settlement documentation where a negotiated outcome serves the business better than a judgment.
  • Dispute-readiness review — written assessment of merits, limitation, evidence and cost exposure before any step is taken.

Typical scenarios

  • A foreign supplier sues a German distributor for unpaid deliveries before the Landgericht; the contract is silent on jurisdiction and the limitation clock is running.
  • A joint-venture conflict between a European investor and a German partner escalates into a DIS arbitration with its seat in Munich.
  • An international group needs to enforce a foreign arbitral award against a German counterparty's domestic assets.
  • A German customer withholds payment alleging defects; the foreign manufacturer needs a defence strategy and a view on counterclaim exposure.
  • A dispute spans Germany, Poland and the UAE; the client wants one coordinating counsel and consistent positions across all proceedings.
  • A contract negotiation is collapsing and the client needs interim relief in Germany before assets are moved.
§ III — Statutes & forums

The legal framework.

BGB §§ 195, 199
The German Civil Code provisions on limitation: the standard period is three years, starting at the end of the year in which the claim arose and the creditor knew of it. Limitation is checked first in every mandate.
BGB § 134
Renders legal acts void if they violate a statutory prohibition — a recurring defence and attack point in commercial disputes.
HGB
The Commercial Code. Transactions between merchants follow stricter rules — for example on inspection and notice of defects — than consumer-facing law, which often decides supply disputes.
LG / OLG / BGH
The German civil court hierarchy: Landgericht (first instance for commercial claims), Oberlandesgericht (appeal), Bundesgerichtshof (federal court of justice, points of law; civil revisions in cooperation with admitted BGH counsel).
DIS
The Deutsche Institution für Schiedsgerichtsbarkeit — Germany's principal arbitral institution. DIS arbitration is the standard choice for confidential resolution of German-seated commercial disputes.
RVG
The Lawyers' Remuneration Act. In court proceedings its statutory fees, scaled to the amount in dispute, form the binding floor — which also makes German cost exposure calculable in advance.
§ IV — How we start

How an engagement begins.

01

First contact

Describe the conflict and send the key documents. We reply within one business day and offer a free 30-minute orientation call.

02

Legal assessment

Before recommending proceedings, we put merits, limitation, evidence and cost risk in writing — at a fixed fee from EUR 1,500 plus VAT.

03

Mandate

For litigation or arbitration we agree hourly rates, a fixed fee for defined phases, or a fee agreement under sec. 3a RVG. In court proceedings, statutory RVG fees are the floor.

04

Ongoing support

We report at every procedural step, in English, and re-assess settlement value as the proceeding develops.

From practice
In a German courtroom the case is won or lost on paper. The hearing only confirms what the written phase has built.
Dr. Julia Falk · Partner
§ VI — Fees

Clear before the engagement begins.

Litigation budgets in Germany are more predictable than in most jurisdictions: statutory fees scale with the amount in dispute. We put the numbers on the table before you decide to file.

  • Orientation call — 30 minutes, free of charge: forum, deadlines, first view on merits.
  • Legal assessment — a written merits-and-risk analysis before proceedings, at a fixed fee from EUR 1,500 plus VAT.
  • Mandate — hourly rates, a fixed fee per procedural phase, or a fee agreement under sec. 3a RVG.
  • Court proceedings — the statutory fees under the RVG form the floor; we do not undercut them, and we model total cost exposure including court fees in advance.
§ VII — FAQ

What clients ask first.

Can we run the dispute in English?

With us, yes — correspondence, calls and reporting are in English. Proceedings before German state courts are conducted in German; we handle all submissions and hearings and provide English summaries of every material step. In arbitration the parties choose the language, and DIS proceedings are frequently conducted entirely in English. If the contract is still being negotiated, this is one more reason to consider an arbitration clause: it lets an international party keep the dispute in a language and procedure it can follow directly.

How long does a German commercial lawsuit take?

It depends on the court, the complexity and whether expert evidence is needed. A first-instance proceeding before the Landgericht commonly runs between one and two years; an appeal to the Oberlandesgericht adds a further phase. Arbitration can be faster, but not automatically. What German procedure offers in return is predictability: no discovery battles, calculable statutory costs and a decision built on written submissions. We give you a realistic timeline per phase in the initial written assessment, and we flag settlement windows as they open.

Who pays the legal costs if the claim succeeds?

German procedure follows the loser-pays principle: the unsuccessful party bears the court fees and the opponent's statutory lawyer fees under the RVG. Note that reimbursement covers the statutory fees, not necessarily the full fees actually agreed — the difference stays with the client. Because court and statutory fees scale with the amount in dispute, we can model both your downside and your recoverable costs before filing. This calculation is part of our written assessment, so the decision to litigate is a business decision made with the numbers visible.

Can you enforce our foreign judgment or award in Germany?

Arbitral awards from most countries are enforceable in Germany under the New York Convention framework; judgments from EU member states circulate under EU rules; for other state-court judgments, recognition depends on the applicable treaties and reciprocity. The practical questions are usually asset location, the debtor's corporate structure and timing. We assess enforceability in writing first, then pursue declaration of enforceability and concrete enforcement steps against German assets. Where assets sit in several countries, we coordinate in cooperation with independent local partner firms.

Litigation or arbitration — what should our contracts choose?

There is no universal answer. German courts are competent, comparatively fast at first instance and inexpensive by international standards — but proceedings are public and conducted in German. Arbitration under the DIS rules offers confidentiality, language choice and easier international enforcement, at higher procedural cost. For contracts with a German Mittelstand counterparty, the realistic question is which forum the other side will accept and where its assets are. We review dispute-resolution clauses at the drafting stage — it is the least expensive moment to shape the future dispute.
§ VIII — Insights

Articles on this practice area.

Articles on German civil procedure, DIS arbitration and cross-border enforcement appear in our knowledge base.

Browse the knowledge base →

A dispute with a German counterparty? Check the deadlines first.

Limitation and procedural periods decide more cases than arguments do. Send us the facts — we reply within one business day.

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BRANDT & FALK Rechtsanwälte is a German business-law firm with offices in Munich and Berlin. The content of this website is general information about our fields of work and does not constitute legal advice. An attorney–client relationship is established only by a separate engagement agreement. Unless stated otherwise, all fees are quoted plus statutory VAT. Our lawyers are admitted to the bar in Germany; advice on foreign law is provided by independent local partner firms.