FAQs about Commercial/Business Litigation

North London Commercial and Business Litigation FAQs

What things should I consider when tackling a legal dispute/litigation?

You should consider:

  • Getting legal advice to ascertain your own legal position
  • Acting as quickly as possible, as it is generally easier to solve a dispute the earlier it is caught
  • Using the cheapest and quickest modes of dispute resolution, including negotiating through your solicitor, mediation and arbitration
  • Whether the legal costs are offset by what you stand to gain (if you are suing someone)

What is ADR?

ADR is an abbreviation of Alternate Dispute Resolution.  ADR encompasses mediation and arbitration.  For ADR to work, parties will usually have to agreed to be bound by any settlements or decisions that are reached.  However, it is possible to enter into ADR on a “prejudice basis”, meaning the content of any ADR proceedings will not prejudice any litigation if ADR proves fruitless.

What is mediation?

The emphasis of mediation is compromise.  The two parties to the dispute come together at a pre-agreed place and negotiate a settlement through a third party called a mediator.

What is arbitration?

Arbitration is similar to a court setting, albeit less formal.  A third party (the arbitrator) acts as a judge and comes to a decision on the case.

What are my options for recovering a debt?

The best way to try and recover a debt is through a solicitor.  In our experience, a solicitor’s letter maybe enough to get the debtor to pay up.  However, if the debtor refuses to pay, you have the options of:

  • Using statutory demands (although you should be prepared to follow up with bankruptcy proceedings – for this reason, only applicable to debts larger than £750)
  • Make an application to the County Court, which has three tracks:
  • Small Claims – for debts less than £5,000
  • Fast Track – £5,000 – £25,000
  • Multi Track – >£25,000

I am being sued, but I believe the claimant has no grounds.  What can I do?

It is, of course, highly advisable to seek legal advice.  A solicitor will be able to pin-point any holes in the claimant’s case and apply to the court to have the case thrown out on the basis of having no reasonable prospects of success.