The rate of commercial litigation decreases but the statistics obscure legal disputes involving insurers
The number of commercial cases in the High Court fell by 30% last year. There were 47,884 in 2010 down from 68,084 in 2009 according to law firm Reynolds Porter Chamberlain (RPC).
The official figures do not take into account the high number of major commercial disputes that are being fought outside the courts.
“The effects of the international financial meltdown and recession are still being felt in disputes against insured professionals in particular. Cases are increasingly settled at the pre-action stage, whether by way of negotiation or more formal mediation, particularly as early settlement discounts are available to insured defendants who are often the paying party in the dispute,” said Paul Castellani, Partner at RPC.
“The fall in new court claims may look like good news for businesses and insurers hoping to avoid time-consuming litigation, but the data should not make insurers complacent,” added Castellani.
