Why Litigate in London?

London has long been recognised as the pre-eminent centre for the resolution of commercial disputes whether by litigation, arbitration or mediation. English commercial law has for a long time been the global commercial law of choice. It is vital to the financial trading and business community of the City of London and internationally that disputes can be resolved efficiently and as quickly as possible.

Disputes in the Commercial and Admiralty Courts remain predominantly international in flavour.  The jurisdiction of the Commercial Court extends to any claim relating to the transactions of trade and commerce, including commercial agreements, import and export, carriage of goods by sea, land and air, banking and financial services, insurance and reinsurance, markets and exchanges, commodities, construction of ships, agency, arbitration and competition matters.  The Admiralty Court has exclusive jurisdiction over maritime claims, including the arrest of ships, collisions and salvage.

The work of the Commercial and Admiralty Courts have an international flavour with over 70 per cent of cases involving foreign parties. Parties choose the English courts to resolve their dispute because they have either specifically provided in their contracts for the application of English law or the jurisdiction of the English courts or alternatively because they regard the court as the most suitable one in which to bring claims.

The number of claims issued in the Commercial Court in the year to 31 July 2006 was 1005 and in the year 231 July 2007 was 1661. In the Admiralty Court, the figures were 94 and 98 respectively. In both courts, the settlement is approximately 70 per cent.

The Commercial Court is looking forward to some exciting changes which will enhance the service it can provide.  A “modern dedicated business court” is being constructed and is expected to open in 2010.  It will provide up to date facilities for high value and high profile business disputes mainly with international connections. The building will provide 29 courtrooms with enhanced natural daylight and modern acoustic standards, an additional 12 hearing rooms and 44 public consultation rooms and better waiting facilities for parties involved in proceedings. In addition, there will be enhanced IT systems.

London is also well established as a centre for international arbitrations.

The London Court of International Arbitration (“LCIA”) can trace its history back to 1883. The resolution of trading disputes has been taking place in the City for hundreds of years. The first English Arbitration Act was passed in 1697, although by that time, arbitration was common with the existence of Alderman arbitrators of the 15^th century and committees of bodies such as the Stock Exchange and the Corn Exchange.

In addition to arbitrations pursuant to the LCIA, many arbitrations in London take place under the rules of the ICC and other international laws as well as ad hoc arbitrations.

An alternative means of resolving disputes is by mediation. In 2004, the Centre For Effective Dispute Resolution, CEDR, published a revised definition of mediation as “a flexible process conducted confidentially in which a neutral person assists the parties in working towards a negotiated agreement of a dispute or difference with the parties in ultimate control of decision to settle and the terms of resolution.”

A mediation can be conducted in parallel to an arbitration or litigation and has many advantages. It is an informal voluntary process and can often preserve or restore good relationships with the other party to a dispute and further, the resolution of the dispute can involve a much wider range of remedies than the court can offer. However, mediation is not appropriate for all cases, for example, where it is important for some reason to have established particular legal rights.

If you would like to receive further information on the above, or have any general queries with regard to the services Steptoe & Johnson offers, please feel free to contact either Fiona Laurence or Ray Werbicki.