2023 UK Litigation Forecast: 5 key changes to watch out for and how they’ll affect you

Adele Whaley, Partner, based in our Peterborough office specialising in high-value commercial disputes
‘The current state of the global economy, and particularly here in the UK with the energy and cost of living crises (including rising interest and inflation rates), will inevitably mean businesses are facing unprecedented challenges. This is at a time when many businesses have only just got back on their feet after the Covid-19 pandemic. These challenges are likely to result in significant debts, legal disputes and even insolvencies during the next 12 months. Liquidators and administrators will play a critical role in helping businesses to survive or to maximise the return for creditors. Similarly, insurers and funders will be on standby to help facilitate legal claims with good prospects of success, but where immediate cash-flow is an issue.’

Euan Palmer, Partner, Head of Oil & Gas, based in our London office, also with a particular focus on fraud
‘Add the ever-improving sophistication of technology to a global recession and what do you get? More and more fraud. Many businesses and individuals will find themselves the victims of increasingly sophisticated fraud – and the fraudsters will continue to use the banks to move their ill-gotten gains around the world. The case of Phillipp v Barclays Bank Plc is due to be heard in the Supreme Court this year. It will consider (amongst other things) whether a third party (in this case, a bank) is expected to protect its customers in certain circumstances where a fraud may be at play, the so-called ‘Quincecare duty’. What we can hope for is the courts being asked to re-consider whether the bank that holds an account for the fraudster and receives the victim’s money also owes a duty to the victim. I wrote about this last year too but remain pretty confident it’s going to be a hot topic again in 2023.’

Jamie McConnell, Partner, based in our Peterborough office, specialising in high-value commercial disputes
‘The ongoing political and economic challenges – within the UK and globally – inevitably mean that commercial relationships and industry supply chains will continue to be tested as market conditions bite and businesses recalibrate.  In addition to an increased willingness and – in some cases – no real choice other than to litigate, there’s likely to be a large growth in high value commercial disputes.  A bespoke strategy that works (in terms of cost, timeframe and other wider commercial considerations) is therefore going to be essential for those that find themselves being a party to those disputes in the current climate (which I am pleased to say that our team of experts already provide as a matter of course).  And, I anticipate seeing an increasing proportion of cases relying upon third party litigation funding.

ESG cases, international and supply chain disputes (including challenges to force majeure and price variation clauses), fraud claims, and disputes relating to the fall-out from Russian sanctions are likely to hit the headlines in the coming year or so.  It’s not all doom and gloom though as businesses will no doubt adapt (they always do) following an unprecedented decade of low interest rates, abundant liquidity and relatively – Brexit, Covid and the Ukraine conflict aside – calm markets.’

Russell Strong, Partner, Head of Marine & International Trade, based in our London office
‘If the first week of 2023 is anything to go by, it’s going to be a good one for our team! Last week, we secured our first significant win of the year for our client, Mr Spooner. This high-profile case has been ongoing for a few years and involved us proving the existence and terms of an oral agreement – which can be notoriously tricky. You can read our full update about this case here.’

Huw Wallis, Partner & Head of Disputes
‘I agree with everything my team has said. The only topic we haven’t mentioned so far is cryptocurrencies – I expect to see more fall-out in this sector for a variety of reasons.

Economic and technological changes mean we often get to litigate about new, developing issues – it’s fascinating and really keeps us on our toes.

I was also delighted with the outcome of Russell’s case last week. Russell, Sara Roden and Eleni Nicolaou deserve full credit for their tenacity in this case, which required forensic attention to detail, tactical focus and teamwork to bring it to a successful conclusion”.

It’s going to be another exciting year for the whole team.’