Companies embroiled in “recession” disputes are increasingly turning to alternative methods
of resolution
According to City law firm Reynolds Porter Chamberlain, the number of commercial cases launched in the High Court fell by almost a third, from 68,084 in 2009 to 47,884 in 2010.
However, the firm says this fall masks the real number of disputes, which are increasingly being resolved through arbitration and mediation.
Geraldine Elliott, a commercial disputes partner at Reynolds Porter Chamberlain, said “a lot of hard fought commercial disputes are taking place that will never end up in court.
“The effects of the international financial meltdown and recession are still being felt in widespread, high-value disputes between businesses,” she said.
“If anything, more businesses were working through claims stemming from the credit crunch
last year than in 2009.
Some institutions are making the commercial decision to settle early at a discount and on a strictly confidential basis—those types of disputes never reach the light of day.”
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