Dresden Commercial Court Launches with Unique German Law Focus – Breaking News
Dresden, Germany – October 26, 2025 – In a move that’s already sparking debate among legal experts, the Commercial Court Dresden officially opens its doors today, becoming the ninth specialized commercial court in Germany. However, unlike its counterparts in Berlin, Frankfurt, and Munich, Dresden is taking a decidedly national approach, limiting its jurisdiction to disputes governed *exclusively* by German law. This is breaking news for businesses operating in Germany, particularly those involved in international trade, and signals a potentially significant shift in how commercial litigation is handled.
A New Model for Commercial Dispute Resolution
The launch of the Dresden court is a direct result of the Justice Location Strengthening Act, which authorized federal states to establish these specialized courts to handle complex commercial disputes valued at EUR 500,000 or more. While most states have adopted a fairly standardized approach, Saxony has chosen a “single-stage model,” foregoing the creation of Commercial Chambers within regional courts – a structure implemented in Bremen and Bavaria. This streamlined approach aims for efficiency, but the German law restriction introduces a novel complexity.
What Does “German Law Only” Really Mean?
The core of the story lies in Section 7 Paragraph 2 of Saxony’s Commercial Court ordinance (SächsJOrgVO). This provision explicitly states that the court will only handle disputes “to be assessed according to German law.” This isn’t simply about parties choosing German law in their contracts. The court’s jurisdiction can be challenged by even minor legal questions requiring interpretation of foreign law. Imagine a seemingly straightforward German contract with a clause referencing the power of representation of a foreign entity – that single point could be enough to shift the case to a different court.
“This is a genuinely unusual step,” explains Dr. Erika Schmidt, a professor of commercial law at Humboldt University of Berlin. “German procedural law has traditionally maintained a strict separation between jurisdiction and the applicable law. This regulation blurs that line, creating potential for forum shopping and, frankly, unnecessary delays.”
Why the Restriction? A Potential Cost-Saving Measure?
The rationale behind Saxony’s decision remains unclear. The legislative justification offers a terse “It should exclusively German law applies,” offering little insight. Some speculate it’s an attempt to avoid the costs and complexities associated with determining foreign law under Section 293 of the German Code of Civil Procedure (ZPO). However, critics argue this is a short-sighted solution. While determining foreign law can be resource-intensive, courts across Germany routinely handle such issues, often leveraging resources like the Max Planck Institute for Foreign and International Private Law in Hamburg.
The potential for obstruction is real. Opposing parties could strategically raise questions of foreign law to avoid the Dresden court, even if those questions are ultimately minor. This could lead to lengthy referral processes under Section 281 ZPO, ultimately defeating the purpose of a specialized, efficient court.
Implications for International Businesses
The Dresden court’s limitations are particularly relevant for international companies doing business in Germany. While the court is actively courting German businesses – the Dresden Higher Regional Court’s press release specifically mentions “companies from all parts of Germany” – it’s effectively signaling that international parties should look elsewhere for dispute resolution. Furthermore, even domestic transactions can trigger questions of foreign law, potentially rendering the court without jurisdiction.
A Broader Trend in German Commercial Courts
The establishment of these Commercial Courts represents a broader effort to strengthen Germany’s position as a leading hub for international commerce. These courts are designed to provide specialized expertise and efficient resolution of complex disputes. However, Saxony’s unique approach raises questions about whether a fragmented system – with varying jurisdictional rules across different states – will truly achieve that goal. The success of these courts, and Germany’s attractiveness as a legal venue, hinges on clarity, predictability, and a willingness to embrace the complexities of international commerce.
As the Dresden Commercial Court begins hearing cases, legal professionals will be closely watching to see how this novel jurisdictional rule plays out in practice. The outcome could have significant implications for the future of commercial litigation in Germany and beyond, potentially prompting a reevaluation of Saxony’s approach and a move towards greater harmonization across the federal states. Stay tuned to archyde.com for ongoing coverage of this developing story and expert analysis on the evolving landscape of German commercial law.
