Litigation is the process of taking someone to court for a final decision over a disputed issue.

ADR, on the other hand, stands for Alternative Dispute Resolution, and is a method in which all involved parties can reach a mutual agreement without the need for court proceedings.

ADR has always been preferable if individuals would like a swift, inexpensive solution to the debated issue. However, after recent changes in the law, courts are now mandated to impose ADR early on in the process where necessary.

This is an attempt to avoid unnecessary legal battles that are costly to the British justice system.

Generally, commercial litigation cases follow five key steps:

1. Pre-action: The parties and their representatives attempt to solve the issue before court proceedings begin. This is where ADR would first come into play.
2. Pleadings: If an agreement can’t be reached, a file is filed with the court and documents are created which outline each side’s legal arguments.
3. Disclosure: Both sides share all documentation and evidence related to the case with each other.
4. Trial: Again, if no settlement can be reached at this stage, court proceedings will begin, and a judge will deliver a final verdict.
5. Enforcement: Should the losing party fail to comply with the judge’s order, further steps may be taken on behalf of the winning party.

The length of time commercial litigation takes depends on a variety of factors, including the specifics of the issue, how much money is at stake, etc. But, as a rule of thumb:

• Small claims (less than £10,000) take 3 to 6 months, or even less with a quick settlement.
• ‘Fast track’ claims (£10-25,000 in value) take between 6 and 9 months to get to court.
• ‘Multi-track’ claims (£25,000+) can take anywhere from 18 months to 3 years, or even longer, to be resolved.

For more information on how long your commercial litigation case will take, speak to the experts at St Helens Law today.

Damages you can claim for in a commercial litigation case take many forms, including:

• Compensatory damages: Covering losses accrued through an inappropriate act or breach of contract.
• Expatational damages: Covering benefits or profits lost when compared to a situation where such an issue did not take place.
• Reliance damages: Covering losses that are incalculable for several reasons – these are estimated based on available evidence.
• Punitive damages: These are damages designed to punish a defendant if their conduct had been explicitly malicious, though they are exceptionally rare.
• Liquidated damages: Where a pre-determined figure, often outlined in a contract, is paid to someone in the event a contract is breached.

Do you believe you may be entitled to one of the above? Speak to St Helens Law today.

Civil litigation covers legal disputes between individuals, while commercial litigation deals specifically with disputes involving businesses or companies. The issues at stake in commercial cases tend to be different too: rather than personal matters, they typically involve things like breach of contract between suppliers and clients, shareholder disagreements, partnership disputes, or debt recovery between businesses.

In practice, the processes are largely the same. Both follow the same court tracks and procedural rules. The distinction matters mainly because commercial disputes often involve larger sums, more complex contractual relationships, and a greater number of affected parties, which is why it’s worth instructing solicitors who deal specifically with business disputes rather than a general practice firm. Read our blog on the differences between civil and commercial litigation.