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A Guide to Disputes in the Commercial Court

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There are many reasons why businesses may fall into a commercial dispute with another company. Unfortunately, these disputes can be complex and difficult to avoid during commercial activities. When your company has a disagreement with another, you must resolve it as quickly and amicably as possible to avoid it escalating into a commercial claim and court case. If not, it may result in litigation, and this process can be lengthy and expensive. This article will give you a brief guide to commercial disputes and court proceedings.

What is a Commercial Dispute?

A commercial dispute is where you and another business disagree on an issue. It does not matter what sector or industry a business is in, disputes may still occur. These can be a result of:

  • issues with the exchange of goods or services;
  • a company not performing contractual terms correctly;
  • a misunderstanding between two businesses;
  • problems with pricing;
  • delays in performance; or
  • mismanagement by a business.

What are Common Commercial Disputes?

There are various types of commercial disputes, such as:

  • contractual disputes;
  • shareholder or director disputes;
  • insolvency disputes between parties affected by an insolvency;
  • professional negligence;
  • partnership disputes;
  • construction disputes;
  • intellectual property disputes; and 
  • debt disputes. 

How Can I Resolve a Commercial Dispute?

If your business faces a dispute, there are several methods for resolution, with the goal of avoiding court litigation where possible. For example, your business may decide to have a legal discussion or carry out a form of Alternative Dispute Resolution (ADR) such as:

  • arbitration, where both parties to the dispute choose an independent arbitrator to look at the issues and make a binding decision;
  • mediation, where a mediator’s confidentiality helps you both resolve the dispute; or
  • conciliation, where a counsellor helps you and the other party settle the dispute through negotiation.
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What is the Commercial Court?

A commercial court deals with litigation to resolve a business dispute. The commercial court often hears complex cases or those where the business dispute could result in significant repercussions. For example, the commercial court may listen to:

  • insurance issues;
  • commercial contract disputes;
  • financial document disputes such as investment funds;
  • disputes about the carriage of goods such as import and export;
  • appeals against arbitration awards;
  • financial service disputes;
  • disputes about agency agreements or management agreements;
  • shipping and aviation matters; and
  • enforcing judgments and arbitral awards made in other jurisdictions. 

What is Commercial Litigation?  

One way to resolve a business dispute is through litigation involving a commercial court. Here, a judge will look at the dispute and make a legal decision on how to resolve it. This decision is binding and can be an expensive and lengthy process.

Where is the Commercial Court?

The commercial court is located in London as part of the High Court of Justice. It is a specialist court within the Business and Property Courts, specifically operating in the Rolls Building in London. It resolves City of London disputes and has been doing so for over 125 years. The court consists of 13 specialist judges with experience in resolving commercial disagreements. 

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Guide to Resolving UK Business Disputes

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Key Takeaways

A business dispute occurs when two businesses disagree on a matter, typically related to the delivery of services or goods. There are a variety of disputes that may occur, such as contractual or debt disagreements. Notably, there are different ways to resolve such disputes, such as through ADR methods. Another way is through litigation using the commercial court. The commercial court listens to complex cases, including issues on financial document disputes, such as investments. It is in London as a part of the High Court of Justice with 13 expert judges with experience in commercial litigation. 

If you need help with your dispute, experienced disputes and litigation lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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Clare Farmer

Clare Farmer

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