One third fewer litigants appeared in the courts compared to 2020-21, and there was a 20% decrease in the number of judgments handed down (to 234), according to Portland’s Commercial Courts Report 2022, published last week. However, the proportion of international litigants returned to pre-pandemic levels, with non-UK litigants accounting for 54% of the total number and 75 different nationalities represented.
Moreover, the proportion of Russian litigants was the highest it has ever been, with 41 Russian litigants listed, double the number appearing in 2017. Russian accounted for the second largest group of litigants in the courts, behind the UK.
The report notes that Brexit, judgments no longer being readily enforceable in the EU, and financial institutions and businesses shifting from London to EU27 centres, and competition from new commercial courts in Singapore, Qatar and elsewhere may be a ‘plausible explanatory narrative’ for the decline. It also highlights that the report is based only on results up to March 2022 and the impact of the Russian invasion of Ukraine, sanctions and the withdrawal by London law firms from Russia is ‘likely to be profound’. Consequently, next year’s results may look very different and it may be the ‘end of an era’ for the dominance of Russian litigants. A poll commissioned by Portland found a majority of the public opposed to English courts and law firms accepting Russian litigants while the invasion of Ukraine is ongoing.
Philip Hall, senior partner at Portland, said: ‘It’s too early to tell if we are on the precipice of a decline brought on by the delayed consequences of Covid-19 and other factors―or whether this is a once-off.
‘However, based on the breadth of international litigants choosing London, the city's position as a centre for dispute resolution remains as strong as ever.’
Read the full report here (subscription required).
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