Courts and the Reformed Civil Code
Claims are heard in the Summary Courts up to a statutory value and the District Courts above it. Japanese civil procedure emphasises documentary evidence and structured settlement discussion; courts actively encourage settlement at multiple points, and a substantial share of commercial matters conclude that way rather than by judgment.
Shiharai Tokusoku
The shiharai tokusoku is a demand for payment issued by a Summary Court clerk on the creditor's application, without examining the merits and without a hearing. Once served, the debtor has a short period to object.
An objection converts the matter into ordinary litigation. Where none is filed, the demand can be given enforceable effect. As with equivalents elsewhere, the value lies in the asymmetry: the application is inexpensive, and a debtor who does not object hands over a title cheaply.
Why Provisional Attachment Is Rarely Used
Japanese courts can grant provisional attachment over a debtor's assets before judgment - but they require the applicant to deposit cash security with the court, and the sums are significant, commonly a meaningful percentage of the amount claimed. The deposit is returned in due course, but it is capital tied up for the duration.
For a foreign creditor this reframes the whole file. The pre-judgment freeze that would be the first move in the Netherlands or China is, in Japan, an expensive option reserved for cases where the debtor is genuinely dissipating assets. Everywhere else, the leverage has to come from the strength of the documented claim and from the commercial relationship.
The 2020 Reform: Five Years or Ten
The Civil Code reform in force since 2020 replaced a patchwork of trade-specific periods with a dual rule: a claim is time-barred five years from when the creditor knew it could exercise the right, or ten years from when the right became exercisable, whichever comes first.
For a supplier who knows perfectly well when its invoice fell due, the operative figure is five years. Claims arising before the reform may still be governed by the previous shorter trade periods, so genuinely old files need checking against the transitional rules rather than the new rule.
How Long Does a Japanese Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Formal demand Written demand, often by content-certified post | 3–6 weeks | Low |
| Negotiation Structured settlement discussion | 1–3 months | Low |
| Shiharai tokusoku Application to service, unopposed | 2–4 months | Low |
| Litigation District Court, first instance | 1–2 years | High |
| Enforcement Attachment of accounts and receivables | 2–5 months | Medium |
How Does SXB Global Handle a Japanese Case?
Japanese files reward precision and cost patience. We construct the demand carefully in Japanese - a document that is accurate, complete and correctly pitched achieves more than one that escalates - and we set realistic expectations about pre-judgment measures, because the security deposit requirement rules most of them out. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.