Commercial Litigation: key trends from 2024 and predictions for 2025
Insight
Supreme Court prefers certainty over flexibility
The English Courts have long grappled with the tension between certainty and flexibility in contract disputes. The unanimous Supreme Court judgment in MUR Shipping confirms that the courts will err on the side of certainty when enforcing commercial contracts.
The Supreme Court held that a contractual requirement to use reasonable endeavours to avoid the effect of a force majeure event did not require a party to accept non-contractual performance. In this case, that meant that a party did not have to accept payment in Euros when the contract required payment in US dollars, even though it would have suffered no financial detriment. The judgment is a warning to commercial parties. The onus is on them to ensure their contracts allocate risks and responsibilities as clearly as possible. Once agreed, the parties will be held to those terms.
Rising tensions in hospitality
Increased costs and shifting travel trends mean that the outlook remains challenging for the hospitality sector.
In the hotel industry, headwinds for profitability cause tension and disputes about the terms of long-term hotel management agreements. Owners often focus on financial returns, while operators also prioritise brand image and customer experience. In the context of complex contractual arrangements that have terms measured in decades, disputes are common.
Mid-market hotels face the greatest risk, squeezed between strong luxury brands and budget chains appealing to cost-conscious travellers. We expect contract disputes to rise in 2025 as business challenges mount.
£3.2 billion – The wage bill increase facing the hospitality sector due to higher national minimum and living wages, according to trade body UK Hospitality (as reported by BDO)
Litigation vs. ADR: which wins in high-stakes disputes?
London’s reputation as a forum for big ticket litigation remains strong but it cannot be taken for granted. 2024 saw the lowest number of new claims issued in the Commercial Court for a decade, according to analysis by Solomonic (2024 snapshot: Commercial Court claims at a decade low — Solomonic). This may be a reflection of cyclical factors or of parties choosing to arbitrate rather than litigate. If the Supreme Court upholds the Court of Appeal’s decision in the motor finance mis-selling case it could lead to a large number of new claims, but it will be interesting to see whether the number of new claims overall continues to fall.
The English Courts are also taking a robust approach to forcing parties to attempt to settle claims before trial. The Civil Procedure Rules were updated on 1 October 2024 to allow the courts to order an unwilling party to engage in ADR. In DHK Retail and others v City Football Group Ltd the Court used that power for the first time to order a compulsory mediation in spite of the objections of the defendant. It emerged in February 2025 that the claim then settled.
The Hague Convention: a new era for cross-border enforcement?
Judgments obtained in English proceedings commenced after 1 July 2025 will be more easily enforceable in 28 countries (including all EU members except Denmark), and vice versa, when the 2019 Hague Judgments Convention comes into force for the UK. This will restore a level of reciprocal enforcement with EU member states that had ended after Brexit.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, February 2025
Dispute resolution trends and predictions
This insight is part of our wider report – "Dispute resolution trends & predictions" – which includes comprehensive analysis from our specialists together with valuable viewpoints from our clients.
