Commercial Disputes – What you need to know

Commercial disputes can arise quickly and escalate just as fast. When contracts are breached, debts go unpaid, or business relationships break down, parties often turn to the courts to protect their interests. But litigation is not a step to take lightly.

The litigation team at Askews Legal LLP have outlined some frequently asked questions about the commercial litigation process in England and Wales.

What Is Commercial Litigation?

Commercial litigation is the process of resolving business-related disputes through the courts. It covers claims between companies or between individuals and companies over matters like contracts, finance, and commercial fraud.

What often sets commercial litigation apart is the complexity and scale of the disputes, often involving high-value claims or industryspecific issues. The Commercial Court, part of the High Court, hears many of these cases and is known internationally for its expertise and efficient handling of commercial matters.

What Types of Disputes Are Handled in Commercial Litigation?

Typical claims include:

• Breach of contract (supply, distribution, consultancy)

Agency and partnership disputes

Banking and financial services litigation

• Insurance and reinsurance claims

• Shipping, transport, and logistics cases

• Technology and digital commerce disputes

• Allegations of commercial fraud

Which Courts Hear Commercial Litigation Cases?

The court used depends on the complexity and value of the claim. The main venues include:

• The Commercial Court, part of the King’s Bench Division of the High Court, for high-value or complex cases

Circuit Commercial Courts, based in major regional centres, offering a more accessible route for lower-value claims

The County Court, for straightforward claims up to £100,000

• The High Court, for cases valued at more than £100,000 or with significant legal issues

If your claim involves technical matters, urgency, or cross-border elements, the Commercial Court in London may be the most appropriate venue.

What Is the Process for Bringing a Commercial Claim?

The commercial litigation process begins before you ever set foot in court. The pre-action stage includes:

Drafting and sending a letter of claim, outlining the dispute and the remedy sought

Engaging in early discussions or alternative dispute resolution (ADR), such as mediation, adjudication, or arbitration.

• If the matter cannot be resolved, proceedings start by issuing a claim form and serving particulars of claim, setting out the legal and factual basis for the claim.

• The defendant then files a defence and, if appropriate, a counterclaim. Both parties may then engage in disclosure, witness statements, and possibly expert evidence, leading up to trial unless the case settles out of court (which a majority do).

How Long Does a Typical Commercial Litigation Case Take?

The timeline depends on the case’s complexity, the court’s availability, and whether Alternative Dispute Resolution is attempted.

Simple claims may resolve within six to 12 months

• Complex, high-value cases can take 18 months or more to reach trial

Delays may arise if the parties need more time for evidence or settlement talks. Courts encourage settlement throughout, and many disputes conclude long before a final hearing.

What Are the Possible Outcomes of Commercial Litigation?

Outcomes may include:

A court judgment in favour of one party, possibly including damages, injunctions, and a legal costs award

• Settlement, either formally through mediation or informally via negotiation

• Discontinuance, where one party drops the claim

Appeal, if there is a dispute over legal findings or procedural fairness

After judgment, the winning party may need to enforce the order through methods like charging orders, third-party debt orders, or insolvency proceedings.

Conclusion

Commercial litigation can be a powerful tool for resolving business disputes, but it should be approached with care. Early advice from a specialist solicitor from a firm like Askews Legal LLP will provide you with a clear understanding of the commercial litigation process in England and Wales, and careful attention to costs and alternatives can help you make informed decisions.

If you need litigation support and guidance, please email enquiries@askewslegal.co