Business disputes and litigation are set to rise in the next 12 months, driven by increasing external pressures facing organisations.

New research has found that nearly half of respondents (47%) expect legal action to increase for their business, with rapid development of technology and AI the main cause of potential disputes and litigation.

According to the survey of in-house lawyers, cost pressures on businesses, increased supply chain risks and a rise in cyber-attacks also pose legal challenges to businesses across a range of sectors, including hospitality and leisure, financial services, retail and technology.

The survey found that over the next three years, more than 60% of in-house lawyers surveyed believe there will be a greater risk of commercial and contract disputes, with a similar proportion concerned about an increase in employment disputes. Data, cyber and technology disputes make up the top three concerns, with regulatory and compliance disputes also rating highly.

The findings mirror litigation trends seen over the last 12 months by businesses, with approximately half of respondents admitting that they’ve been involved in significant contractual disputes during the last year. A quarter have been involved in employment and regulatory disputes.

With businesses on high alert, the decision whether to pursue litigation will be influenced by a series of important factors. The value of the claim and the financial impact of legal action top the list of considerations, with reputational damage and the demands on an organisation’s time and resource also playing a significant part in decision-making.

Martin Pennington, dispute resolution partner at Pannone Corporate, which conducted the in-house lawyers research, commented: “Businesses across a wide range of sectors are facing increasing challenges and greater uncertainty than ever before. Those pressures are creating a more litigious environment, with disputes covering a host of business functions, whether that’s commercial and contracts, employment, IP, real estate or M&A.”

He added: “As difficult trading conditions continue, businesses will need to remain attuned to the growing risks that they face, both internal and external. As always, navigating disputes successfully is a vital component of commercial success. Early intervention and proactivity are usually rewarded in the long run. The sooner that companies examine issues which arise, the more options are typically open to them. The disputes which become more difficult to resolve are those where parties have not confronted difficulties between them early enough in the relationship, creating a more intractable situation.”

Commercial litigation refers to any form of dispute that is present within a business environment. Whilst people know what business disputes are, and that lawyers can help, many are still unclear on what a commercial litigator actually does and how they can help a company.

Here at Pannone Corporate, we specialise in commercial disputes in relation to contracts, company affairs, real estate, intellectual property, professional negligence, debt recovery and more. The brief points in this blog may help you better understand the services of a commercial litigator.

What to Do Before Beginning Proceedings?

Achieving the best possible outcome for clients is always the key focus for commercial litigators. It is important to properly understand the situation first to help identify the best course of action.

Typically, all parties must outline their claims and responses in pre-action correspondence. It is vital as a claimant that your claim is correctly articulated from the start. A specialist commercial litigator will first investigate the facts with you and analyse the claims that may be available. They may obtain preliminary expert input where the claim requires expert support.  A similar process of investigation will be needed if someone is making a claim against you, before a response to the claim is set out in correspondence.

Alternative Dispute Resolution

Litigation is typically imagined in the court environment. Whilst a court ruling is necessary in some cases, often Alternative Dispute Resolution (ADR) is used prior to the final court hearing.

ADR refers to the various ways in which disputes can be settled out of court. ADR could be conducted by negotiations verbally or through correspondence, informal or “without prejudice” meetings, or by more structured procedures such as mediation or expert determination. A litigation solicitor will be able to advise you on the route which is appropriate for your case and the time at which ADR ought to be used.

What Happens If ADR Does Not Work?

If the solution cannot be found outside of court, commercial litigation solicitors will be able to work with you to complete the steps needed to bring your case to a final hearing in the courts.

Solicitors will usually prepare the statements of case. This will include a claim form and a particulars of claim for a claimant and a defence for a defendant.  In more complex cases, a commercial litigator will typically instruct a specialist barrier in respect of this step. In part, this is because the barrister will argue the case if a trial is reached. After the exchange of statements of case, a commercial litigation solicitor will complete the procedural steps in the litigation, including attending a case management conference (CMC) at the court, the disclosure of relevant documents, inspection of the opponent’s documents, and the preparation of witness statements and expert evidence.

At the CMC the court will likely require the parties to file budgets of their estimated costs. The court will consider those budgets and make orders in order to manage costs.

Before any hearing or trial, your appointed commercial litigator will brief the appointed barrister to argue the case. Your litigator will attend the trial and will support the barrister.

Finally, after the court judgment has been given or the dispute has been settled, your dispute resolution solicitor will assist you if necessary to ensure that the terms of the judgment or settlement are implemented.

Instructing a commercial litigator from the very beginning of a dispute can ensure that you have the best chance to achieve your desired outcome either in or outside of court.

If you would like more information or help with a current business dispute, please get in touch with our commercial litigation solicitors by using our contact form or by calling 0800 131 3355.