Declining Civil Lawsuit Filings in Germany and the Role of Alternative Dispute Resolution (adr)

Abstract Which factors are contributing to the significant decline in lawsuits filed in German civil courts since the late 1990s? The empirically based picture which comes out from a recent research project commissioned by the German Federal Ministry of Justice indicates not one factor only, but a number of factors and developments contributing to the ongoing decline of civil law cases. Alternative Dispute Resolution ( adr ) mechanisms are certainly gaining in importance, but the total reduction of more than 600.000 court cases during the 2005–2019 review period can by far not be solely attributed to adr bodies. There are, however, modest signs of a migration of disputes from the civil courts to alternative dispute resolution procedures. Following the perceptions of some Ombudspersons and adr bodies, the value and complexity of the civil law disputes involved often make them economically or practically unviable for a civil lawsuit, but preferably directs them to free consumer conciliation services. In principle, the same is true regarding arbitration with its much more smaller numbers which does not explain the quantitative decline in the number of lawsuits filed with the civil courts. Much more explanation of the decline in lawsuits is to find in strategies for conflict avoidance and resolution developed by businesses, notably meticulously crafted contracts and efficient complaint management. Another factor contributing to the decline of lawsuits is the filtering effect of legal advisers increasingly discouraging clients from pursuing legal action. An analysis of the factors contributing to the decline in lawsuits filed in German civil courts must naturally also consider the role of extrajudicial dispute resolution methods. Have disputes “migrated” elsewhere? Notably, conciliation, arbitration, and mediation present themselves as viable alternatives. A research project commissioned by the German Federal Ministry of Justice ( Bundesministerium der Justiz , bmj ) has yielded a more complex picture: Alternative Dispute Resolution ( adr ) mechanisms are gaining in importance and indicate possible shortcomings within the state judicial system. However, it is crucial to recognize that the decline in conventional litigation cannot be solely attributed to adr