What this litigation service covers

Commercial litigation in Germany covers disputes between companies and business partners. The dispute may arise from a supply contract, distribution relationship, service agreement, project contract, purchase order, framework agreement or other commercial arrangement.

For a foreign company, the challenge is not only the legal claim itself. The practical questions are often more important at the beginning: Can the matter be pursued in Germany? Which court may have jurisdiction? What evidence is needed? What will it cost? Is the German opponent likely to react to local pressure?

Typical business disputes in Germany

I assist foreign companies in commercially relevant disputes involving German business partners. Typical matters include:

• Payment claims and unpaid invoices against German companies
• Debt recovery and commercial claim enforcement in Germany
• Advance payment recovery after failed delivery or contract failure
• Delivery disputes with German suppliers
• Defect claims against German manufacturers and suppliers
• Wrongful termination of commercial agreements
• Distribution, exclusivity and customer protection disputes
• Damages claims arising from breach of contract

These matters often require more than a standard reminder. They require a litigation perspective: what can be proven, what objections are expected and what procedural step creates leverage in Germany.

My role as German litigation counsel

Foreign companies often do not need a general description of German law. They need a lawyer who can turn the facts, documents and commercial objective into a procedural strategy.

My role is to assess the claim, identify the German procedural route, address the likely defence and decide with the client whether the next step should be a lawyer’s letter, negotiation, settlement or court proceedings.

• Assessment of the commercial claim and supporting documents
• Review of jurisdiction and applicable law
• Evaluation of the German opponent’s likely objections
• Cost-risk assessment before litigation
• Preparation of German lawyer’s letters
• Negotiation and settlement strategy
• Representation before German courts where litigation is justified

Before litigation: assessing the case

A German lawsuit should not be started only because the foreign company is frustrated. It should be started because the claim is supported by documents, the procedural route is available and the cost risk is proportionate.

Before proceedings are considered, the following questions should usually be reviewed:

• What is the contractual basis of the claim?
• Which German company is the correct opponent?
• Can jurisdiction in Germany be established?
• Which law applies to the dispute?
• Are the relevant contracts, invoices and correspondence available?
• What objections is the German company likely to raise?
• Does the amount in dispute justify the cost risk?
• Can a judgment realistically be enforced in Germany?

This assessment helps distinguish between cases that should be pursued immediately, cases that should first be tested by a German lawyer’s letter and cases where litigation may not be commercially sensible.

German lawyer’s letter before litigation

In many commercial disputes, a German lawyer’s letter is the most effective first step. The German company may ignore reminders from abroad because it assumes that the foreign claimant will avoid local legal action.

A proper lawyer’s letter should identify the claim, address expected objections and make clear that court proceedings in Germany are a realistic next step if the dispute is not resolved.

Litigation before German courts

If a lawyer’s letter or negotiation does not resolve the dispute, court proceedings in Germany may become necessary. German commercial litigation is usually driven by written submissions, documentary evidence and a structured presentation of the legal and factual position.

For foreign companies, this can be an advantage where the case is well documented. Contracts, invoices, order confirmations, delivery documents, technical specifications, termination notices and email correspondence often form the basis of the claim.

The decision to sue should be based on the amount in dispute, the strength of the documents, the expected defence, the cost risk and enforcement prospects in Germany.

Foreign companies do not usually need to travel first

A foreign company can often start the assessment and preparation of a German commercial dispute from abroad. Documents can be reviewed electronically, communication can be handled in English and court communication is handled through the German lawyer.

Personal attendance may become relevant in individual cases, especially where witness evidence is important. But the initial assessment, the lawyer’s letter and many procedural steps can usually be handled without immediate travel to Germany.

More on this practical issue: Sue in Germany Without Travelling.

Examples of commercial litigation matters

The following pages address specific types of disputes in more detail. They are examples of the commercial litigation matters for which foreign companies may need German counsel.

For unpaid invoices and debt recovery, see: German Company Refuses to Pay an Invoice and Debt Collection in Germany for Foreign Companies.

For failed delivery and repayment of money already paid, see: German Supplier Fails to Deliver Goods and Recovering Advance Payments from a German Company.

For defective goods, disputed termination and distribution issues, see: Defective Goods Delivered by a German Manufacturer, Wrongful Termination by a German Business Partner and German Distributor Breaches an Exclusivity Agreement.

Can a foreign company sue in Germany?

In many commercial disputes, a foreign company can sue a German company in Germany. Jurisdiction may result from the German company’s registered office, a jurisdiction clause, the place of performance, European procedural rules or other connecting factors.

The jurisdiction question should be checked before proceedings are started. It is especially important where the contract contains choice-of-law clauses, jurisdiction clauses, Incoterms, German general terms and conditions or international delivery arrangements.

For the broader claimant overview, see: Sue a German Company from Abroad.

Cost risk and commercial sense

Commercial litigation should be proportionate. A claim may be legally valid but commercially unattractive if the amount is too low, the evidence is weak, the debtor is insolvent or enforcement is doubtful.

In other cases, the amount, documentation and enforcement prospects justify a structured escalation from lawyer’s letter to litigation.

More on the commercial assessment: Is It Worth Suing a German Company in Germany?.

When you should contact a German litigation lawyer

You should consider involving a German litigation lawyer if your company has a commercially relevant dispute with a German company and needs to know whether local legal action is possible and worth pursuing.

This is particularly useful if the German company refuses payment, failed to deliver, supplied defective goods, terminated a contract, kept money already paid or has stopped responding to correspondence from abroad.

The first step is usually a review of the key documents and the commercial objective. Based on that review, the next step may be a German lawyer’s letter, negotiation, settlement strategy or court proceedings in Germany.