Update of German civil procedure rules could bring AI to the fore

Among the changes, local courts in Germany now have first instance jurisdiction to hear disputes with a value of up to €10,000 – up from the previous €5,000 cap. Cases with an amount in dispute above €10,000 – previously €5,000 – are handled by regional courts. The parties in local court proceedings do not need to have legal representation – they do in regional courts.

Johanna Weißbach and Sibylle Schumacher of Pinsent Masons said that the increase of the threshold value for claims that can be brought before the local courts exposes businesses to more cases of that nature – and added that the likelihood of businesses facing claimants that deploy AI in support of their claims has also now increased.

Weißbach said: “Local courts are designed to provide easy access to justice. However, the number of civil cases filed at local courts has steadily declined in recent decades, which was particularly problematic for smaller court districts. The legislator therefore decided to assign more cases to local courts which do not require that a party is represented by a lawyer. This will probably change lead to cases brought with the help of AI instead of a lawyer. It is doubtful that this will lead to the desired outcome for citizens or the courts. The German Lawyers' Association had suggested increasing the threshold for local court claims from €5,000 to €10,000 but, at the same time, said the threshold for lawyer representation should be maintained at €5,000 – but the legislator did not act on this suggestion.”

Schumacher added: “In our experience, the technical equipment of local courts is less advanced compared to regional courts. Local courts, for example, proved less open or able to conduct court hearings online. As more cases, such as in the data protection mass claims context, will be handled by local courts in future, it might mean more travelling and less efficiency for both claimants and defendants. However, as of 1 January 2026, courts are obliged to keep their files electronically. This requires some digital progress, which the parties might benefit from.”

The legislator has also increased the threshold under which a local court may determine the procedural rules for a case in its discretion, as provided for in section 495a of the German Code on Civil Procedure, from €600 to €1,000.

Another change to the procedural code is that regional courts in Germany will now have jurisdiction to hear claims arising from publications in printed materials and image and sound media of all kinds – particularly in the press, broadcasting, film, television, and on the internet – as well as those regarding the awarding of public contracts, concessions or framework agreements, except where the Competition Act (GWB) provides for a different jurisdiction. The regional courts also now have jurisdiction to hear claims arising from medical treatments. With these changes, the legislator aims at strengthening the specialisation of certain courts.

Also, fewer cases will now be eligible for appeal. An appeal against a first instance judgment will only be admissible if the amount in dispute exceeds €1,000. The previous threshold was set at €600. A dispute must exceed €25,000 in value for parties to be able to bring the case to Germany’s highest civil court, the Federal Court of Justice (FCJ). The previous threshold to bring a case to the FCJ was set at €20,000.