How to Resolve a Commercial Dispute in Italy from Abroad

A dispute with an Italian counterpart — a supplier that fails to deliver goods, a client that does not pay invoices, a distributor that breaches the contract — is a situation that many foreign companies will encounter at some point. The geographical distance, the language barrier, and the unfamiliarity with the Italian judicial system make these disputes particularly challenging to manage.

Italian law provides effective tools for resolving commercial disputes, but using them correctly requires a precise understanding of the available procedures, the competent courts, the applicable deadlines, and the alternatives to ordinary litigation. The wrong strategy — for example, initiating full civil proceedings when an injunction order would be far quicker and less expensive — can turn a manageable dispute into years of litigation.

This guide sets out the options available to a foreign company that needs to resolve a commercial dispute with an Italian counterpart: from the pre-litigation formal notice to mandatory mediation, from the injunction order to ordinary court proceedings, through to international arbitration.

The First Step: The Pre-Litigation Formal Notice

Before any formal proceedings, the first step is almost always the sending of a formal notice (diffida) to the Italian counterpart. The notice is a written communication — sent by registered letter with acknowledgement of receipt or by certified email (PEC — posta elettronica certificata) — in which the breach is identified, the claim is quantified, and compliance is demanded within a precise deadline, with notice that legal proceedings will follow if the demand is not met.

The formal notice serves two essential functions:

• Substantive function: in reciprocal contracts, a formal notice to perform (diffida ad adempiere, Art. 1454 c.c.) — if it goes unheeded within the stated period, which must be no less than fifteen days — produces the automatic termination of the contract by operation of law, without the need for a court judgment. This is a powerful tool that many foreign companies are unaware of.
• Evidentiary function: the notice constitutes documentary evidence of the breach and of the formal placing in default (messa in mora, Art. 1219 c.c.), with important consequences for the running of default interest and for the burden of proof in any subsequent proceedings.

In many cases, a well-drafted formal notice — professional in tone, precise in its legal references, and firm in its demands — is sufficient to unblock the situation without resort to the courts. For a detailed treatment of this tool: The Formal Notice to Comply (Diffida ad Adempiere) Under Italian Law and The Formal Notice of the Italian Debtor.

Mandatory Civil and Commercial Mediation

For many categories of commercial dispute, Italian law makes an attempt at civil and commercial mediation a mandatory pre-condition for the admissibility of court proceedings (Legislative Decree no. 28 of 4 March 2010, as amended by Legislative Decree no. 149 of 10 October 2022). A party that brings a court claim without first attempting mediation where required risks having the claim declared inadmissible — a costly and time-consuming outcome.

Matters Subject to Mandatory Mediation

The matters for which mediation is a mandatory procedural pre-condition include, among others:

• Works contracts (appalto)
• Franchise agreements
• Sub-supply contracts (subfornitura)
• Company disputes (between shareholders, between shareholders and the company)
• Intellectual property and industrial property rights
• Lease and loan for use (locazione e comodato)
• Compensation claims arising from medical liability and defamation in the press

For disputes concerning general commercial contracts — sale of goods, provision of services, distribution — mediation is not mandatory by law, but remains a useful tool that is often faster and less expensive than ordinary proceedings.

How Mediation Works

The mediation procedure takes place before an accredited mediation body (organismo di mediazione) approved by the Ministry of Justice. The main stages are:

1. Filing the application: the initiating party files the application with the mediation body, identifying the parties, the subject matter of the dispute, and its claim. The body notifies the other party.
2. Appointment of the mediator: the body appoints a professional mediator, who is not a judge and does not decide the dispute but facilitates dialogue between the parties.
3. First meeting: at the first meeting the mediator explains the procedure and establishes whether the parties wish to proceed. Attendance at the first meeting is mandatory by law; failure to send a representative with decision-making authority may be viewed adversely by the court in any subsequent proceedings.
4. Mediation sessions: if the parties decide to continue, one or more sessions are held with the aim of reaching an agreement. The mediator may meet with each party separately (private sessions or caucus).
5. Agreement or no agreement: if the parties reach an agreement, it is recorded in writing and — if approved by the court (omologato) — has the force of an enforceable title (Art. 12, Legislative Decree no. 28/2010). If no agreement is reached, each party is free to proceed to court.

The mediation timeline is relatively short: Art. 6 of Legislative Decree no. 28/2010 provides that the procedure may not last more than three months, extendable by a further three with the parties’ consent. Compared with the average duration of Italian court proceedings — which for a first-instance judgment is often measured in years — this is a significant advantage.

For the foreign company participating in mediation remotely: since 2023, participation by audiovisual link is expressly provided for by law, making the procedure far more accessible to those who cannot travel to Italy.

The Injunction Order: The Fastest Tool for Documented Claims

Where the dispute concerns a claim that is certain, liquidated and due — unpaid invoices, sums owed under a written contract, dishonoured cheques — the most effective and rapid instrument available to the foreign creditor is the injunction order (decreto ingiuntivo, Arts. 633–656 c.p.c.).

The injunction order is a summary payment procedure (procedimento monitorio a cognizione sommaria): the court issues it on the creditor’s application alone, without hearing the debtor, on the basis of the documentary evidence produced (contract, invoices, account statements, commercial correspondence). The debtor only becomes aware of the order when it is served, and from that point has forty days in which to lodge an opposition.

Advantages for the Foreign Creditor

• Speed: if no opposition is lodged, the order becomes definitively enforceable forty days after service. The time taken to obtain the order varies from a few weeks to a few months depending on the court.
• Lower cost: the court fee (contributo unificato) for an injunction order is significantly lower than for ordinary proceedings.
• Immediate enforcement: the creditor may ask the court to grant provisional enforceability of the order (Art. 642 c.p.c.) where the claim is based on a bill of exchange, cheque, notarial deed, or authenticated private document. In this case enforcement may begin even while the debtor’s opposition is pending.
• Remote management: the foreign creditor need not be present in Italy. The entire procedure is handled by the Italian lawyer acting under a power of attorney.

For a full treatment of the procedure: Understanding the Italian Injunction Decree and How to Recover an Unpaid Debt in Italy: Complete Legal Guide.

When the Injunction Order Is Not the Right Tool

The injunction order is not suitable in every situation. It cannot be used where:

• The claim is not documented in writing or is disputed in its amount.
• The contract contains an arbitration clause — in that case the ordinary court lacks jurisdiction and the creditor must refer to arbitration.
• The dispute requires the assessment of complex facts or technical expert evidence — the summary procedure is not the appropriate forum.
• The debtor is insolvent — in that case the creditor must file a proof of debt in the insolvency proceedings, not proceed by injunction order.

Ordinary Court Proceedings Before the Italian Courts

Where the dispute is complex, the claim is contested, or the injunction order has been opposed by the debtor, the route is ordinary civil proceedings (giudizio ordinario di cognizione) before the Italian civil court.

Which Court Has Jurisdiction

Territorial jurisdiction over commercial disputes is determined, as a general rule, by three alternative criteria (Art. 20 c.p.c.):

• The place where the obligation arose: typically the place where the contract was concluded.
• The place where the obligation is to be performed: for example, the place of delivery of goods or provision of services.
• The domicile or registered office of the defendant: the Italian company’s registered office or the sole trader’s domicile.

Where the contract contains a jurisdiction clause (derogating from the general territorial rules), it prevails over the default criteria, provided it was specifically approved in writing by the adhering party (Art. 1341, para. 2, c.c.). For intra-EU disputes, Regulation (EU) No. 1215/2012 (Brussels I bis) applies and may modify the jurisdiction criteria relative to domestic Italian rules.

Disputes with a value of up to €10,000 fall within the jurisdiction of the Justice of the Peace (Giudice di Pace); disputes valued at €10,001 and above are heard by the Tribunal (Tribunale). Company disputes — between shareholders, between shareholders and directors, between companies — fall within the exclusive jurisdiction of the Specialised Court for Business Matters (Sezione Specializzata in materia di Impresa, commonly known as the Tribunale delle Imprese), established at the courts of the district capitals.

The Duration of Ordinary Proceedings

This is the aspect that most deters foreign companies: the duration of Italian civil proceedings is historically long. According to data from the Ministry of Justice, the average duration of first-instance civil proceedings before the Tribunals is two to four years in the main courts, with higher figures in major urban centres in southern Italy. The appeal stage adds an average of a further two to three years.

For this reason, ordinary court proceedings should genuinely be the last resort: they should be considered only where the out-of-court alternatives — mediation, arbitration — have produced no results, or where the complexity of the dispute makes them unavoidable. In all other cases, the faster tools are preferable.

Arbitration: When It Is Useful and How It Works

Arbitration is an alternative to ordinary court proceedings in which the dispute is decided by one or more private arbitrators — experts chosen by the parties — rather than by a state judge. In Italy it is governed by Arts. 806–840 c.p.c. and may take two forms:

• Formal arbitration (arbitrato rituale): the award has the same effect as a court judgment and may be challenged before the Court of Appeal on the limited grounds listed in Art. 829 c.p.c. (procedural defects, violation of public policy).
• Informal arbitration (arbitrato irrituale or contractual arbitration): the award has the value of a contract between the parties and is not directly enforceable as an execution title without a further court step.

For international commercial disputes it is often preferable to opt for administered arbitration under recognised international institutions — such as the International Chamber of Commerce (ICC) or the Milan Chamber of Arbitration — which apply well-established procedural rules, ensure neutrality, and allow proceedings to be conducted in English.

Advantages of Arbitration for Foreign Companies

• Neutrality: the parties may choose arbitrators of different nationalities, avoiding the perception of asymmetry that can arise in proceedings before an Italian court.
• Confidentiality: arbitration proceedings are private, unlike ordinary court proceedings which are public.
• More predictable timelines: arbitral rules set precise deadlines for the various stages of the proceedings, with durations generally shorter than ordinary court proceedings.
• Language of the proceedings: the parties may agree to conduct the proceedings in English or another language, eliminating the language barrier.
• International enforceability of the award: arbitral awards are recognised and enforceable in more than 170 countries that are signatories to the 1958 New York Convention, making them far more effective than foreign court judgments for the purposes of enforcement abroad.

The Limitation of Arbitration: The Injunction Order

As noted in the article on commercial contracts, the inclusion of an arbitration clause in the contract precludes access to the injunction order for unpaid debts. A creditor with a documented claim who wishes to act quickly against a defaulting Italian debtor must make a choice: an arbitration clause (a more neutral and international procedure, but slower and more expensive) or access to the injunction order (extremely fast, but before the Italian court). The choice depends on the nature of the commercial relationship and the typical value of disputes that may arise. For further analysis: Commercial Contracts in Italy: What Foreign Companies Need to Know.

Recognition and Enforcement of Foreign Judgments in Italy

Where a foreign court judgment — for example from an English, American, or German court — orders an Italian company to pay a sum, the foreign creditor must have the judgment recognised in Italy before they can enforce it against the Italian debtor’s assets.

The recognition procedure varies depending on the origin of the judgment:

• Judgments from EU courts: Regulation (EU) No. 1215/2012 (Brussels I bis) applies, providing for the automatic recognition of civil and commercial judgments between member states without any specific exequatur procedure. The creditor may proceed directly to enforcement by presenting the foreign judgment with the relevant certification.
• Judgments from non-EU courts: the delibazione procedure under Arts. 64–68 of Law no. 218 of 31 May 1995 (Private International Law Reform) applies. The creditor must file an application with the Court of Appeal of the district where the debtor is domiciled, which verifies that the recognition requirements are met (jurisdiction of the foreign court, proper service, finality of the judgment, consistency with Italian public policy).

The timeline for the delibazione of non-EU judgments varies but is generally faster than ordinary proceedings: in practice, it typically takes between six and eighteen months depending on the court’s workload.

Strategy: Choosing the Right Tool

The choice of the most appropriate instrument depends on several key factors:

• Is the claim documented? Invoices, written contract, correspondence evidencing the claim → injunction order.
• Is the matter subject to mandatory mediation? Always verify before initiating any court proceedings, to avoid inadmissibility.
• Does the contract contain an arbitration clause? The ordinary court lacks jurisdiction → arbitration is mandatory.
• Is the dispute complex, the claim contested, or the amount high? Consider international arbitration before ordinary court proceedings.
• Is the debtor in financial difficulty? Verify the Italian counterpart’s solvency before investing in legal proceedings. A company registry search (visura camerale) and a property register search (visura ipotecaria) can provide valuable information.

For an overview of debt recovery tools available in Italy: How to Recover a Debt in Italy: A Brief Introduction.

Frequently Asked Questions

Do I need to come to Italy to participate in court proceedings against an Italian company?

No. The foreign company can be represented in court by an Italian lawyer acting under a special power of attorney, executed abroad before a local notary with an apostille. Physical presence in Italy is not required for ordinary hearings. In some cases the court may summon the parties in person, but this is uncommon in commercial disputes.

What is the limitation period for commercial disputes in Italy?

The ordinary limitation period for contractual debt claims is ten years (Art. 2946 c.c.). Shorter periods apply to specific claims: five years for periodic supply contracts (Art. 2948 c.c.), one year for certain professional fees. The limitation period may be interrupted by a formal notice sent by registered letter or certified email, which triggers a fresh ten-year period.

My company won a case in England against an Italian company. How do I collect in Italy?

Following Brexit, the United Kingdom is no longer covered by the Brussels I bis Regulation. English court judgments must be recognised in Italy through the delibazione procedure under Law no. 218/1995, by way of an application to the competent Court of Appeal. The main requirements are: jurisdiction of the English court, proper service of process, finality of the judgment, and consistency with Italian public policy.

My contract with the Italian company provides for the jurisdiction of the London courts. Can I still sue in Italy?

If the jurisdiction clause in favour of the English courts is valid and exclusive, the Italian court should decline jurisdiction. However, the clause must have been specifically approved in writing under Art. 1341, para. 2, c.c. in order to be enforceable against the Italian party. If this formality was not observed, the clause may be void under Italian law, with the result that the Italian court has jurisdiction.

Can I claim damages in addition to the principal amount owed?

Yes. In addition to the principal, the creditor may claim: default interest accrued from the date of formal notice (or from the agreed payment date), additional damages if a loss greater than the interest is demonstrated (Art. 1224, para. 2, c.c.), and legal costs incurred in managing the dispute. In court proceedings, the judge awards costs against the losing party.

Conclusion

Resolving a commercial dispute with an Italian counterpart from abroad is entirely possible — and in many cases faster and more effective than foreign companies expect — provided the right procedural tool is chosen from the outset. The formal notice, mediation, the injunction order, and arbitration are all potentially faster and less expensive than ordinary court proceedings, and should be assessed against the specific characteristics of the dispute.

The most common mistake is waiting too long before acting — whether out of reluctance to engage in proceedings in a foreign country, or in the hope that the counterpart will come forward spontaneously. Limitation periods run regardless of the parties’ inaction, and some steps (such as the formal notice) only produce their legal effects if taken promptly.

For assistance in assessing your commercial dispute and choosing the most appropriate strategy, Studio Legale Giorgianni is available. Further information is available in the Italian Business Lawyer section and on our Italian Lawyer hub page. For those operating in the real estate sector, see also the Italian Property Lawyer section.