Glossary
The process by which each party to litigation reveals to the other the documents relevant to the issues in dispute.
Anatomy of a Commercial Dispute
from Commercial Disputes
Before proceedings are issued, parties are expected to comply with the relevant Pre-Action Protocol, which encourages early exchange of information and attempts at settlement. Once proceedings begin, the key stages include filing of statements of case (particulars of claim and defence), disclosure (each party revealing relevant documents to the other), exchange of witness statements and expert reports, and finally trial. The Civil Procedure Rules (CPR) govern the process and emphasise proportionality, case management, and active judicial involvement. Most commercial disputes settle before trial — often at a mediation — but the litigation process shapes the negotiating dynamics throughout.
Recent Trends
from Commercial Disputes
Litigation funding — where a third party finances a claimant's legal costs in exchange for a share of any recovery — has transformed access to justice for complex commercial claims, though the Supreme Court's decision in PACCAR (2023) temporarily disrupted the market by classifying certain funding agreements as damages-based agreements. Group litigation and collective proceedings (particularly under the Competition Act 1998) are growing in scale and frequency. The rise of remote and hybrid hearings, accelerated by the pandemic, has permanently changed court procedure. Disclosure reform — particularly the mandatory use of the Disclosure Pilot Scheme in the Business and Property Courts — aims to reduce the cost and burden of the traditionally most expensive stage of litigation.
Injunction
A court order compelling a party to do something (mandatory) or refrain from doing something (prohibitory), breach of which is contempt of court.
Freezing Order
A court order preventing a party from dealing with or dissipating its assets, designed to preserve funds for a potential future judgment.
Arbitral Award
The binding decision issued by an arbitral tribunal, enforceable internationally under the New York Convention.
Seat of Arbitration
The legal jurisdiction governing the arbitration proceedings (as distinct from the physical venue), determining the courts with supervisory jurisdiction.
Third-Party Funding
An arrangement where an external funder finances a party's legal costs in exchange for a percentage of any damages recovered.
Pre-Action Protocol
Rules requiring parties to exchange information and attempt settlement before issuing court proceedings, with cost penalties for non-compliance.
Without Prejudice
A legal privilege protecting statements made in genuine settlement negotiations from being disclosed to the court.