Malta has taken a decisive step in reshaping its commercial litigation landscape, with the re-establishment of the Commercial Court as a distinct superior court. Introduced through Act No. IV of 2026, enacted on 17 March 2026, the reform brings back a dedicated forum for resolving complex commercial disputes.
The move, approved unanimously by Parliament, reflects a clear recognition that Malta’s legal system must evolve alongside its growing and increasingly sophisticated economy. While the Act has now been published, the new court is not yet operational and will come into force on a later date.
More than just a structural change, this reform signals a shift in approach – towards greater efficiency, deeper expertise, and a more focused handling of business disputes.
Specialised Commercial Justice
The reintroduction of the Commercial Court marks a full-circle moment. The original court had been abolished in 1995 and absorbed into the First Hall of the Civil Court, largely due to concerns about delays at the time.
Three decades later, the landscape looks very different. Malta’s economy has expanded and diversified, with sectors such as financial services, aviation, maritime, and international trade playing a far more prominent role. With that growth has come increased legal complexity and a strong case for specialised adjudication.
The aim is simple: to ensure that commercial disputes are handled by a court that understands them best, and that can deal with them more efficiently.
How the New Court Will Operate
The newly established Commercial Court will function as a distinct judicial forum, presided over by a single judge. This restores its identity as a specialised court, separate from the existing structure within the Civil Court.
The legislation also takes into account accessibility across Malta and Gozo. In cases involving parties based in Gozo, sittings may be held at the Court of Gozo, unless the parties agree otherwise. This ensures that the court remains practically accessible to businesses and individuals across both islands.
As with other civil matters, decisions of the Commercial Court will be subject to appeal before the Court of Appeal, maintaining continuity within the broader judicial system.
A Court with a Wide Reach
One of the most striking aspects of the reform is the breadth of the court’s jurisdiction. The Commercial Court is set to handle a wide range of disputes, this includes matters arising under the Companies Act, the Competition Act, and proceedings relating to insolvency and bankruptcy.
The court’s remit goes further. It will also deal with specialised sectors such as maritime and aviation law, covering issues like ship collisions, salvage, marine pollution, and aircraft registration. In addition, it will hear disputes involving intellectual property rights, including trademarks, patents, and copyrights.
Financial instruments such as bills of exchange and promissory notes also fall within the scope, as do matters relating to the recognition and enforcement of foreign arbitral awards.
Taken together, this wide-ranging jurisdiction positions the Commercial Court as a central forum for resolving complex, and often cross-border, commercial disputes.
What Happens to Ongoing Cases?
Once the new law comes into force, cases currently pending before the Civil Court (Commercial Section) will automatically be transferred to the new Commercial Court. In some instances, even cases pending before other civil courts may be reassigned if they fall within the new court’s jurisdiction.
However, the law introduces an important safeguard. Cases that are already at an advanced stage (particularly those awaiting final submissions or judgment) will remain where they are. This is intended to avoid unnecessary disruption or further delays for parties nearing the delivery of a court judgment.
For lawyers and businesses alike, this transition phase will require careful attention, particularly when managing ongoing proceedings.
In Practice
For businesses, the return of the Commercial Court offers the promise of a more focused and informed approach to dispute resolution. Having cases heard by a court that specialises in commercial matters may lead to clearer reasoning and more consistent outcomes.
For legal practitioners, however, the reform brings new considerations. Choosing the correct forum will become even more important. Filing a claim in the wrong court could result in procedural complications or delays, particularly during the early stages of implementation.
There is also likely to be a period of adjustment as the new system beds in. As with any major reform, how the law operates in practice will only become clear over time.
Conclusion
By reintroducing a dedicated forum for commercial disputes, the reform aims to bring greater efficiency, expertise, and clarity to an increasingly complex area of law. At the same time, its success will depend on how it functions in practice, particularly during its early stages. Questions around jurisdiction, case management, and procedural efficiency will all play a role in shaping its impact.
What is clear is that the return of the Commercial Court marks a meaningful step forward for Malta’s legal system – one that reflects the evolving needs of its business community.
