What is Commercial Litigation?

Commercial litigation is an area of law involving legal disputes between two or more businesses or companies, or between businesses and individuals. Commercial litigation solicitors deal with a wide range of business disputes including disputes arising from breach of contract, shareholder disputes, intellectual property infringement, employment disputes, and fraud.

The main aim of commercial litigation and dispute resolution is to resolve the dispute through the Court system or via alternative dispute resolution (ADR) methods, such as mediation or arbitration.

Commercial litigation can be complex, time consuming and often involves large amounts of money and intricate legal arguments. Many businesses employ specialised litigation lawyers, dispute resolution teams, or or law firms to represent them in commercial litigation cases.

Expert Commercial Law have a panel of commercial litigation experts on hand to assist in the resolution of commercial disputes.

ARC Costs maintain an extensive legal network of expert Solicitors and commercial dispute lawyers, and we would be happy to pass on your details to assist on your case.

Commercial disputes

Commercial disputes are conflicts that arise between businesses or individuals during the day to day running of their business activities. These disputes can include breach of contract, partnership, intellectual property, professional negligence, real estate, product liability, and securities disputes. Resolving these disputes may require the assistance of legal professionals or other experts.

Commercial litigation is the legal process that arises from such disputes and is initiated by filing a commercial lawsuit in court. It can involve various issues such as partnership disputes, contractual disputes, property disputes, and other business disagreements.

Alternative Dispute Resolution (ADR) is often preferred before taking a case to court, as it can be time-consuming, expensive, and stressful for all involved.

Expertise in commercial litigation is essential to understand and manage risks to businesses and to resolve disputes effectively.

How to resolve a commercial dispute

When dealing with a commercial dispute, parties should attempt to resolve the issue directly, or make use of their complaints procedures. If this doesn’t lead to a satisfactory outcome, it can be helpful to consult a team of commercial litigation solicitors.

Your solicitor will assess your case and advise on the likelihood of success. They will typically attempt to negotiate an out-of-court agreement with the other party.

If this is unsuccessful, they may recommend alternative dispute resolution, such as mediation or arbitration. If alternative dispute resolution fails, the case is likely to proceed to court for a judge to make a decision. If the parties disagree with this decision, they may choose to appeal to the Court of Appeal

Commercial litigation costs

The cost of a commercial solicitor can vary depending on a number of factors such as the experience of the solicitor, the complexity of the matter, the location of the solicitor, and the amount of time spent on the case.

It is important to discuss fees arrangements with your solicitor before engaging their services so that you have a clear understanding of the costs involved. You may also wish to obtain a quote or estimate for the work you require to be done, and make sure to clarify any additional expenses or disbursements that may be incurred.

The general rule on costs in commercial litigation is that the losing party pays the winning party’s costs; however, the Court can apply their discretion in making an alternative cost order in litigation.

Should there be express costs awards stated within the damages settlement, then this will usually apply to the case, for example, if the main action was to be settled by way of Part 36 Offer.

The Court applies its discretion in making a Costs Order and will usually consider the following factors when assessing how costs are to be awarded:

• Conduct of the case before and during proceedings.
• The reasonableness of the issues raised.
• The way in which the issues in the case have been presented or defended.
• Whether the successful party has exaggerated their claim. 

Law firms typically bill clients on an hourly basis for the legal advice they provide and work they do. As a client, you are responsible for paying these invoices, and the amount you owe will depend on the complexity of the case. If you win, the court will determine the amount you can recover from the other party.

If you can’t agree on the costs, the court will assess the level of costs you’re entitled to. This assessment can be based on the standard or indemnity basis. In some cases, fixed costs may apply, such as in residential possession and debt claims.

Given the uncertainty of the award or the amount likely to be recovered, it’s important to consider Alternative Dispute Resolution (ADR) before going to court. ADR methods, such as mediation and arbitration, can be a more cost-effective way to resolve commercial disputes.

If you are the successful party to commercial litigation, it is likely that you will be entitled to recover all or some of your legal costs incurred. In this case, a Bill of Costs will need to be prepared and submitted to the paying party to recover your legal costs and disbursements. The paying party may wish to negotiate costs by serving their points of dispute, which you can further negotiate using points of reply.

If an agreement cannot be reached, parties may proceed to detailed assessment hearing to have their costs assessed by a Judge.

How can ARC Costs assist?

ARC Costs maintains an extensive legal network of expert commercial litigation solicitors with a track record of success on these types of cases, and we would be happy to pass on your details to assist in your case. 

In addition to introducing you to a commercial litigation solicitor, we can also assist in the recovery and negotiation of legal costs in commercial cases, whether you are the paying or receiving party.

ARC Costs are highly experienced in advising and assisting with costs issues and disputes in different areas of law. As Costs Draftsman and Costs Lawyers, we can assist in your Commercial Litigation Costs issues.

If a costs award has been made, allowing you to recover costs from your opponent, we can assist with preparing a Bill of Costs on your behalf to ensure maximum recoverability. We can also assist in Costs Negotiations and represent you at detailed assessment proceedings which can determine the amount of costs you may be able to recover.

If you have been ordered to pay costs to your opponent, we can assist in disputing costs which may be sought and which you may deem to be excessive and unreasonable. We can do this by way of preparation of  Points of Dispute and also through negotiations to ensure you will only pay for costs which are reasonably incurred and not exaggerated.

Should you wish to discuss your costs query with us, please contact us on 01204 397302 or via email at info@arccosts.co.uk. Alternatively, you can complete our online query form and we will contact you to discuss your query further. We can provide expert legal advice on costs in our free, no obligation initial consultation.

We may receive payments from third party solicitors on our panel to whom we may refer your claim. We will never charge you for any referrals made to our panel of third parties.