German Practice

There are numerous transactions between Germany and Japan, the two economic giants in Europe and in East Asia. Such transactions exist vertically between manufacturers and sales agents, as well as horizontally within the same industrial segments, including joint ventures and joint R&D.

German-Japanese legal practice has several important features. Although a significant part of Japanese law was modeled on German law more than a century ago, today there are areas of the law reflecting a considerable difference between the two legal systems: There have been fundamental differences in the law governing rights in rem (real right). Legal frameworks for employment relationships under the two legal systems also considerably differ. It would be no exaggeration to describe navigating the area of distribution law as a legal minefield between Japan and Europe due to frequently occurring conflicts resulting from substantial differences in legal systems apparently amplified by the European Directive to protect commercial agents. The rules governing lawyers fees to be borne by a party, which often has a significant impact on the costs of protracted litigation, are entirely different. City-Yuwa Partners can advise clients on these important differences in the two jurisdictions.

In our experience, the question of language should not be underestimated. There are many corresponding legal concepts in Germany and Japan because both legal systems derive from the same Roman law system, which is distinguishable from the Anglo-American common law system. The exchange of communications in the English language containing certain legal terminologies common under German or Japanese laws can sometimes lead to miscommunications. City-Yuwa can highlight these differences or usage of certain terminology, and can explain these important aspects in the German language in a precise and time saving manner. The German practice of City-Yuwa offers legal services in various areas of corporate transactions led by a Partner who has successfully completed an LL.M. program at a German university and who speaks German and English.