Why Commercial Litigation Matters in The UK in 2023?

Commercial Litigation Matters – What are they?

Commercial litigation is a legal proceeding that arises from disputes between commercial or business entities. Commercial disputes can involve companies, partnerships, or individuals and can relate to many issues, such as contract disputes or disputes involving intellectual property and employment issues.

Commercial litigation is initiated by filing a commercial lawsuit in court. The claim will outline the alleged legal breaches and relief sought, for example, by way of monetary damages against the other party (or parties). If a commercial dispute cannot be resolved through negotiation or mediation, it may proceed to trial.

Commercial and civil litigation usually follow the same process. All commercial litigation falls under the ambit of civil litigation (to distinguish it from criminal litigation), but all civil litigation is not necessarily commercial litigation. For example, personal injury claims are part of civil litigation, but they are not commercial disputes but disputes falling under the ambit of negligence or rather the law of Tort.

The person who is suing (the plaintiff) usually instructs a solicitor or a barrister if they are prepared to deal with direct access work. There will then be a pre-action letter written by the plaintiff’s lawyer to the defendant or their solicitors if they have one at that stage. The party being sued is the ‘defendant.’ Then both sides investigate what happened and look for laws, either statutory or common laws, that might apply. If they can, they try to settle the case. If they can’t, the plaintiff’s lawyer files a lawsuit. Then there is an exchange of pleadings, such as, for example, a statement of claim filed by the plaintiff followed by a defense or defense and counterclaim filed by the defendant. There are strict time limits for these processes. Both sides make a discovery (ask each other for evidence), and then there is an inspection of those documents given by the parties. If it still can’t be resolved, there’s a trial.

Examples of Commercial Litigation Matters

There are many examples of commercial litigation, but here are some of the most common:

1. Breach of Contract disputes: Contract disputes are one of the most common types of commercial litigation. Contract litigations arise when parties to a contract dispute disagree about the terms or performance of the contract. For example, parties may dispute the amount of money owed under an agreement or whether a particular task was completed following the contract.
2. Consumer fraud: when consumers are victims of false or misleading advertising, defective products, or other deceptive business practices, they may file a commercial lawsuit seeking damages.
3. International trade issues and anti-trust: these matters are also familiar sources of commercial litigation. For example, a company may file a commercial lawsuit alleging that another company has engaged in anti-competitive behavior.
4. Construction Cases: commercial litigation may also arise from construction disputes when a contractor fails to complete a project on time or within budget due to poor quality or other issues.
5. Debtor or Creditor Actions: commercial litigation often arises when a company or individual owes money to another party and there is now a process of debt recovery in progress. For example, it may arise between two companies who have agreed on the terms of an agreement, but then one party does not pay for services rendered according to those terms.
6. Employment Cases: commercial litigation often arises from employment cases. For example, it may occur when an employee alleges that they were discriminated against based on their race or nationality.
7. Intellectual Property Issues: commercial litigation often arises due to intellectual property issues, for example, the infringement of a trademark or breach of copyright or passing off. Intellectual property rights are a type of legal right granted by law for original creations such as inventions and trademarks
8. Shareholder Issues: commercial litigation may also arise from shareholder issues. For example, when a company is sued by its shareholders for alleged wrongs such as mismanagement or fraud. For more info, read our article called, how to sue a company. 
9. Tax Disputes: commercial litigation may also arise from tax disputes. For example, a dispute between a company and the Inland Revenue as to the tax issues.

What Does a Commercial Litigator Do?

A commercial litigator is a lawyer specializing in representing clients in commercial problems and disputes. Commercial litigators are typically usually experienced in cases that focus on business practices.

Why Does Commercial Litigation Matter in 2023 and Beyond?

Commercial disputes are becoming increasingly common in the UK. This is partly due to the ever-changing business landscape and the growing trend of commercial transactions. A recent study found that commercial disputes account for over 50% of all litigation in the UK.

Another reason is commercial litigation can impact businesses and individuals alike as they deal with complex legal issues that arise from commercial transactions or disputes between parties involved.

For example, a commercial property development case can result in a commercial dispute where the development company may have to pay out $20 million to settle claims made against them by a group of homeowners who had been affected by the commercial property project.

Commercial litigation can have a significant impact on the business and individuals involved. Therefore, it is crucial to understand the basics of commercial litigation so that you can make informed decisions about whether or not to file a commercial lawsuit. In addition, if you are currently involved in a commercial litigation legal problem, it is essential to understand the process and what to expect.