Commercial dispute resolution

Commercial dispute resolution: litigation

Guide

Litigation is a formal court-based resolution process where the claimant must prove, with over 50 per cent probability, that its version of events is true. The process of litigation is governed by a set of rules and procedures which parties must follow.

Public information

Generally, all information from the litigation process, including at trial, becomes public.. Unless restricted, the public and media can attend and report hearings. The judgment will be a matter of public record which anyone may access.

Resorting to litigation

More than 90 per cent of litigation cases settle before reaching court. The pre-action protocol for commercial actions requires parties to meet and consider whether other means of dispute resolution are possible. This is to encourage the resolution of issues as quickly as possible. However, courts cannot compel the parties to settle by other means.

Litigation process

In a breach of contract case, most claims must be issued within six years of the date of the event giving rise to the claim.  An action for defamation must begin within one year, and in cases involving deeds or recovery of land, the action must begin within 12 years.

Judges make decisions, and depending on the circumstances, may be appealed to a higher court by either party.

Litigation will usually involve both a solicitor (who typically prepares the case) and a barrister (who presents the case before the court). The case will be decided on the law and on the strength of the arguments presented. It may involve the production of evidence and the calling of relevant witnesses. The party being sued (the defendant) may carry insurance against certain risks, so an insurer may be involved, and may have sole authority to settle a case.

In terms of remedy, the successful claimant can expect to be put back in the position that it would have been in had the event giving rise to the claim not occurred. For example, a judge will normally award compensatory damages, however, if appropriate, the judge may require or prohibit certain action on the part of the other party.

Litigation in Northern Ireland

The courts in Northern Ireland operate a system which is known as 'The Commercial List'. Commercial cases are transferred into the list and benefit from being actively managed by the Commercial Judge. The aim of this system is to process commercial cases through the courts of Northern Ireland more quickly than non-commercial cases. 

Further information about the court process can be found at: