What is Commercial Litigation?

Commercial litigation refers to the process of resolving disputes in the business world through legal proceedings. It encompasses a full range of issues including contract disputes, shareholder issues, and partnership disputes. The aim is to resolve these conflicts either through negotiation, mediation, or in court.

Commercial litigation can cover various areas such as:

• Contract disputes
• Shareholder disputes
• Partnership disputes
• Intellectual property issues
• Debt recovery
• Employment disputes
• Real estate disputes

The process typically starts with a thorough investigation of the facts and gathering of evidence. This is followed by filing a claim, serving it to the defendant, and going through the stages of pre-trial, trial, and potentially appeal. Alternative dispute resolution methods like mediation and arbitration may be used to avoid going to court.

Engaging professional legal services in commercial litigation is crucial due to the complex nature of business law. Skilled solicitors can provide expert advice, represent your interests, and work towards achieving a favorable outcome. They can also help in negotiating settlements out of court, which can save time and costs.

Commercial litigation covers a full range of business disputes resolved through the civil courts, including contract disputes, debt recovery, professional negligence claims, partnership and shareholder disputes, property and lease disputes, and intellectual property disputes. The common thread is that they involve business parties and that resolution is sought through the court system, mediation or arbitration.

Most commercial disputes start with correspondence between solicitors. A pre-action letter sets out the basis of the claim and gives the other side a chance to respond within a set period. Failure to engage with pre-action correspondence can lead to costs penalties later, even if the substantive claim is successful.

If correspondence does not resolve the matter, formal proceedings are issued in the County Court or the High Court, depending on the value and complexity of the claim. The case then moves through directions, disclosure, witness statements, expert evidence and on to trial. Settlement remains possible at every stage and the majority of commercial cases settle without trial.

The general rule is that the losing party pays the winning party's legal costs, although the court has discretion to depart from that rule, particularly where one party has unreasonably refused to engage with mediation or has run unmeritorious arguments.

For commercial claims we use a mix of hourly rates, fixed fees for stages of work, and where appropriate, success-related fee structures. We give a clear costs estimate before every stage of the work.

The court system is slow and expensive. Many commercial disputes are better resolved through mediation, where an independent mediator helps the parties negotiate a settlement, or arbitration, where an independent arbitrator makes a binding decision in a more confidential and often quicker process than litigation. The court actively encourages parties to use alternative dispute resolution, and costs penalties can follow a refusal to engage.

Early. The pre-action stage often determines the outcome of a case. Solicitors who get involved at the first warning sign can prevent disputes from escalating, narrow the issues, and position the case for a favourable settlement. Once proceedings have been issued, options narrow and costs rise. If a dispute is brewing in your business, take advice now, not later.