Direktlink:
Inhalt; Accesskey: 2 | Hauptnavigation; Accesskey: 3 | Servicenavigation; Accesskey: 4
Homepage » Market Entry » Legal Requirements » Enforcing the Law

Enforcing the Law

picture showing lady justice
© HHS/pixelio.de
  1. Place of Jurisdiction
  2. German Courts
  3. Civil Procedure Law
  4. Quick and Simple
  5. Alternative Forms of Dispute Resolution
  6. Self Supervision of Administrative Authorities
  7. Enforcement of Claims
  8. Insolvency Proceedings

Enforcement of Claims

It is not only litigation itself that is concluded quickly in Germany, but the execution of the judgment as well. The main reason for this is the fact that the judgment can be enforced provisionally. This means that the successful party does not have to wait until the judgment becomes final and absolute, i.e. they do not have to wait until it becomes "non-appealable". However, in order to provisionally enforce a judgment, security must be provided by the winning party to cover the defeated party's risk of non-repayment should the original judgment be reversed by the appeal court.

Because of the principle of territoriality, a judgment is only valid in the country where it was handed down. Foreign enforcement orders therefore usually have to be transformed into German legal acts by going through the national exequatur procedure for admission. The local ordinary courts (Amtsgericht) are the competent courts for such procedures.

In the course of the European harmonization process, the enforcement of judgments has been simplified within the European Union (except for Denmark). According to Council Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I), judgments delivered in other EU Member States are automatically recognized in Germany. Instead of the ordinary exequatur proceedings, the German court - before issuing an enforcement order - only needs to examine the foreign judgment to determine whether formal requirements have been met.

In addition, the European enforcement order for uncontested claims simplifies the enforcement of cross-border claims within the EU (except for Denmark). The order simply skips any recognition proceedings if the defendant explicitly assented to the claim, did not contest it, or failed to appear in court at all. The European order for payment procedure and the European small claims procedure can also be enforced directly. For further information on this, please refer to our site on simplified proceedings.

The enforcement is carried out by a local bailiff (Gerichtsvollzieher) in the case of attachment orders for movable property or for debt claims. The compulsory sale of real property (foreclosure) is dealt with by the local ordinary courts (Amtsgericht). If a debtor lacks sufficient funds, the creditor can apply at the local ordinary court to have insolvency proceedings opened against the debtor. Natural persons who are unable to pay their debts must make a list of their assets and affirm (in lieu of an oath) to the court that the list is true and complete; this will then be recorded in the local debtor's register (Schuldnerregister). For more information on insolvency proceedings please refer to the following chapter.