11 July 2012

Recession-related litigation booming

Recession-related litigation is rocketing, with the number of contract claims in the UK's High Court increasing by nearly 50 per cent last year, recently released government figures show.

London High Court: Chancery Division claims up by 44 per cent

London High Court: Chancery Division claims up by 44 per cent

According to the Chancery Division, in 2011, 982 claims were issued, compared to 683 the year before – representing a rise of 44 per cent. Breach of contract and debt were the main causes of action.

Difficult situations

The annual court statistics – published by Britain’s Ministry of Justice – revealed similar trends across other courts. There was a 44 per cent increase in contract claims in the Queen’s Bench Division and a 49 per cent rise in contract, agreement and debt claims in the Commercial Court.
Nick Rowles-Davies, of leading third-party litigation funder Vannin Capital, said: ‘Our own experience – from the ever-growing number of approaches for funding we receive – matches the trends identified by these statistics. The kinds of disputes the courts are seeing are often caused by the difficult situations people find themselves in during a recession; this is compounded by the fact that, by definition, they struggle to get the money together to take their case to court.’

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