Commercial Litigation Procedure UK: A Practical Guide

Overview

Commercial litigation is the formal court process used to resolve disputes between businesses, or between a business and an individual, where the matter relates to trading, contracts, company affairs or commercial obligations. In England and Wales, most commercial claims are heard in the County Court, the Business and Property Courts of the High Court, or specialist lists such as the Commercial Court, the Technology and Construction Court or the Chancery Division, depending on the value, complexity and subject matter.

The process is structured by the Civil Procedure Rules (CPR), which set out the steps each party must take, the deadlines that apply, and the standards of conduct expected throughout. Before any claim is issued, parties are generally required to comply with a pre-action protocol, which encourages early exchange of information and genuine attempts to settle.

If the dispute cannot be resolved, a claim can be issued, defended, tested through disclosure and witness evidence, and ultimately determined at trial. Alternative dispute resolution runs alongside the whole process and can be used at any point to reach a negotiated outcome.

Key steps

1. Pre-action conduct and protocols. Before issuing a claim, you are expected to follow the Practice Direction on Pre-Action Conduct or any specific protocol that applies to your dispute. This usually means sending a detailed letter of claim, giving the other side a reasonable window to respond, exchanging key documents and considering alternative dispute resolution such as mediation or negotiation. Failing to engage properly at this stage can result in costs penalties later.
2. Issuing the claim form. If the dispute cannot be resolved, proceedings are started by completing a claim form and filing it at the appropriate court, along with the court fee. The claim form identifies the parties, summarises the nature of the claim and states the remedy sought, whether that is a money judgment, an injunction or a declaration. Particulars of claim setting out the detailed case may be served with it or shortly afterwards.
3. Service, acknowledgement and defence. Once issued, the claim form must be served on the defendant in accordance with the rules on service. The defendant then has a limited period to file an acknowledgement of service and, after that, a defence responding to each allegation. A counterclaim may also be brought at this stage. If no response is filed within the permitted time, the claimant may be able to apply for judgment in default.
4. Case management and disclosure. The court takes an active role in managing the case, issuing directions on how it will progress, allocating it to a track and fixing a timetable. Disclosure requires each party to identify and produce relevant documents, including those that are unhelpful to their own case. Witness statements are then exchanged, and expert evidence may be directed where the issues require specialist input.
5. Trial, judgment and enforcement. If settlement is not reached, the case proceeds to trial, where the judge hears evidence, considers submissions and delivers judgment. The losing party is usually ordered to pay a proportion of the successful party's legal costs. Where a money judgment is not paid voluntarily, enforcement options include charging orders, third party debt orders, attachment of earnings and instructing enforcement agents.

Common questions