Covers the material for the commercial dispute resolution elective on the LPC at ULaw!
Exam ready, colourful, detailed and easy to understand notes!
Written in the 2021/2022 academic year!
Contents
NATURE OF COMMERCIAL DISPUTE RESOLUTION ........................................................................................................................................ 2
Commercial Litigation Case Analysis......................................................................................................................................................... 4
Early Considerations In Commercial Litigation ......................................................................................................................................... 6
Complex Actions ....................................................................................................................................................................................... 9
The Chancery Division And Nuisance Claims .......................................................................................................................................... 13
INJUNCTIONS............................................................................................................................................................................................... 14
INTERIM PROHIBITORY INJUNCTIONS .................................................................................................................................................... 16
Interim Injunctions – Procedure ........................................................................................................................................................ 18
Normal Procedure With Notice .......................................................................................................................................................... 19
Applications Without Notice .............................................................................................................................................................. 20
Enforcement....................................................................................................................................................................................... 22
FREEZING INJUNCTIONS ......................................................................................................................................................................... 23
Obtaining The Injunction.................................................................................................................................................................... 24
Setting Aside + Variation .................................................................................................................................................................... 26
SEARCH ORDERS .......................................................................................................................................................................................... 28
Terms Of The Order ................................................................................................................................................................................ 29
Advising The Respondent ....................................................................................................................................................................... 30
ALTERNATIVE DISPUTE RESOLUTION (ADR) ................................................................................................................................................ 31
MEDIATION ............................................................................................................................................................................................. 35
ARBITRATION .......................................................................................................................................................................................... 37
Staying Litigation Where There Is An Arbitration Clause ................................................................................................................... 44
THE TECHNOLOGY AND CONSTRUCTION COURT ........................................................................................................................................ 46
DRAFTING WITNESS STATEMENTS IN SUPPORT OF INTERIM APPLICATIONS ............................................................................................. 47
Interim Applications ............................................................................................................................................................................... 47
Witness Statements ................................................................................................................................................................................ 48
Service Outside The Jurisdiction ............................................................................................................................................................. 51
ENFORCEMENT – INSOLVENCY ................................................................................................................................................................... 54
Pros And Cons Of Insolvency As An Alternative To Litigation ................................................................................................................. 56
Insolvency Proceedings And Arbitration Agreements ............................................................................................................................ 56
THE COMMERCIAL COURT .......................................................................................................................................................................... 57
Overall Procedure ................................................................................................................................................................................... 58
Statements Of Case ................................................................................................................................................................................ 59
Case Management + The Cmc ................................................................................................................................................................ 59
Case Management Information Sheet (Cmis) .................................................................................................................................... 62
Interim Applications In The Commercial Court....................................................................................................................................... 65
The Trial .................................................................................................................................................................................................. 66
Costs Management In The Commercial Court ........................................................................................................................................ 67
PART 20 CLAIMS .......................................................................................................................................................................................... 68
EXPERT EVIDENCE ....................................................................................................................................................................................... 70
NEGOTIATED SETTLEMENTS ........................................................................................................................................................................ 75
Calderbank Offers ................................................................................................................................................................................... 75
The Use Of Part 36 .................................................................................................................................................................................. 76
, NATURE OF COMMERCIAL DISPUTE RESOLUTION
Commercial disputes come in all shapes and sizes, ranging from fairly straightforward debt collection cases to
extremely complex international disputes involving a multitude of parties.
The 3 main types of commercial dispute resolution covered are:
1. Commercial litigation;
2. Arbitration (the most well-established form of ADR);
3. Other methods of ADR, such as Mediation.
The solicitor needs to keep in mind numerous points, including:
→ What is the appropriate method of dispute resolution to best achieve the client’s aims?
→ Is the client’s priority a quick settlement – possibly to avoid incurring legal costs ‘unnecessarily’?
→ Does the client want to preserve the business relationship with the other party?
→ How will the dispute, and possibly the chosen method of resolution, affect relationships with other
customers or suppliers? Clients will not generally want to be seen as a ‘soft touch’.
→ Will the knowledge that your client is willing to resort to litigation in order to enforce or preserve his rights
deter others from attempting to infringe those rights?
→ Is the other party involved in the dispute solvent?
→ Does the client want the legally correct solution to the dispute, the cheapest solution, the quickest solution,
or the best combination of the three?
COMMERCIAL COURTS:
The Commercial Court Intended as a court with great familiarity with the subject matter of
(London) commercial and mercantile disputes, and to provide procedures which would
enable those disputes to be determined justly, expeditiously and efficiently.
The Admiralty Court (London) Deals with shipping and maritime disputes.
The London Circuit Commercial Commercial claims where the most convenient venue is London, but which
Court are less complex or smaller value than those dealt with in the Commercial
Court.
Regional equivalents are the Circuit Commercial Courts in the High Court
district Registries of Birmingham, Bristol, Cardiff, Leeds, Liverpool,
Manchester and Newcastle.
The Technology and Deals with construction and engineering disputes, as well as those of a
Construction Court (TCC) ‘technical’ nature such as computer disputes. The TCC is part of the High
(London) Court in London.
Outside of London, TCC claims should be issued in one of the district registries
in which a TCC judge is usually available – Birmingham, Bristol, Cardiff,
Chester, Exeter, Leeds, Liverpool, Manchester, Newcastle Upon Tyne and
Nottingham.
The Chancery Division Specialist parts of the High Court are part of the Queen’s Bench Division
(QBD). Many commercial claims are of a nature which makes them suitable
for trial in the Chancery Division (e.g. commercial or intellectual property).
The Senior Courts Act, Schedule 1, para 1 allocated some commercial
matters to the Chancery Division. This includes:
(a) Bankruptcy;
(b) Dissolution of partnerships and taking partnership or other accounts;
(c) Patents, trade-marks, registered designs and copyright;
(d) Matters affecting the affairs of a company.
,ALTERNATIVES TO LITIGATION:
Litigation can be very expensive, slow, and cause antagonism. Often, business clients will need to continue to deal
with the person after the dispute, so litigation is likely to strain this in the future.
Mediation Enables a neutral 3rd party to discuss the problem and possible solutions with both parties.
Can lead to a quick and painless solution – disputes are often cased by misunderstanding
rather than bad faith, so a mediator can help the parties to realise this and reach an
agreement.
Courts have become increasingly supportive of using ADR to resolve disputes even after litigation has commenced.
→ CPR 1.4(2)(e) – one of the court’s case management powers is ‘encouraging the parties to use an alternative
dispute resolution procedure if the court considers that appropriate and facilitating the use of such a
procedure…’
→ A solicitor who fails to advise about the availability of ADR may be negligent, and could amount to a breach
of Principle 7 of the Code of Conduct.
Arbitration Many business contracts contain an arbitration clause, and if not, the parties will often agree
to refer a dispute to arbitration in preference to litigation.
The dispute is decided by one or more arbitrators who are usually experts chosen from a
particular field or professional body. The decision of the arbitrator is binding on the parties
and enforceable through the courts.
Advantages:
✓ Parties can choose their own arbitrator from within the specific trade/profession.
They will be experts, so there is little risk of a wrong decision and less need for expert
reports, there is also a saving of time and costs.
✓ Can be conducted for convenience of the parties. There are no fixed rules of
procedure, so the parties can work out their own timetable to suit themselves.
✓ Can take place at a time and place that suits the parties, rather than being fixed by
the court system.
✓ Disputes can be resolved in total privacy (protects trade secrets).
✓ Arbitration is binding on the parties, if the decision is not complied with, it can be
enforced through the courts.
✓ Offers a range of procedures, the parties may opt for a formal hearing, and informal
site meeting, or for the case to be resolved on documents only.
✓ Greater finality as there is no appeal on questions of fact.
✓ Can be easier to enforce in different jurisdictions than a court judgement.
Disadvantages:
Not all cases are suited to arbitration, if the dispute is on a point of law, it is best
resolved in the courts.
May want remedies that only a court can give.
Not always cheap, lawyers will usually be instructed and charge just as much as for a
court case. There is also the cost of hiring a room, and the arbitrator’s fee.
, COMMERCIAL LITIGATION CASE ANALYSIS
Overview 1. Analyse the facts and prepare a chronology.
2. Analyse the legal position.
o What is the cause of action?
o What defences are available?
o Consider any other parties or claims.
o Consider where/how proceedings should be issued.
3. Prepare an action list
o e.g. the steps to be taken to investigate the case further and protect the client’s
position (see WS task)
Chronology ➢ Helpful to prepare a glossary defining terms involved in the litigation in alphabetical order.
➢ Helpful to prepare a list of the key parties involved and who they are.
➢ List key events in a table giving a chronology.
Legal ➢ What is the cause of action?
Analysis o Breach of contract:
▪ Is there a contract? Written? Oral?
▪ What are the terms?
• Implied terms under the SGSA 1982 and SOGA 1989.
▪ Have they been breached?
▪ Remedies – Damages / Rescission
o Negligence:
▪ Did one party owe another a duty of care?
▪ Has the duty been breached?
▪ Has it caused loss?
o Negligent Misstatement:
▪ Wronged party must show they have:
• Acted upon negligent advice given by the other party.
• That it was reasonable to rely upon this advice, and
• That the party giving the advice knew or should have known that they would rely
upon the advice.
▪ Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465
o Misrepresentation:
▪ Only available where there is a contract.
▪ One of the parties must have made a false representation which induces the other
party to enter into the contract.
▪ Wronged party may be entitled to rescind the contract and/or damages.
o Breach of fiduciary/other duty:
▪ Applies to partners; company directors; trustees.
▪ E.g. duty not to make a secret profit; duty not to allow personal interests to conflict.
o Nuisance and trespass:
▪ Is a neighbouring property causing an unreasonable interference with the claimant’s
use and enjoyment with their land?
▪ Has another party intruded upon their land without permission?
▪ Damages and injunctions available.
o Conversion and trespass to goods
▪ Conversion is a tort committed where another party does something inconsistent
with the ownership rights of a client e.g. removing goods from the client’s premises.
▪ Trespass to goods occurs where a party uses goods belonging to another party
without permission.
o Intellectual Property Claims
▪ Trademark disputes; patents, copyrights etc.
➢ Which facts support the cause of action?
➢ Do any of the facts indicate that there is a defence?
o Has the cause of action been made out?
o Are the alternative causes for the client’s loss e.g. wider economic factors?
o Consider evidence needed to indicate the strength or otherwise of the defence.
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