The disputes landscape is being reshaped by new legislation, ongoing court challenges and emerging technologies.
Fraud Prevention
Fraud remains a central theme, with the Economic Crime and Corporate Transparency Act 2023 introducing several new measures. It brings in a strict liability offence: “failure to prevent fraud”, under which organisations with over 250 employees or turnover of more than £36 million can be held liable for fraud committed by employees, agents or associated persons for the organisation’s benefit. It also replaces the “directing mind and will” test with a more extensive “senior manager” test. In addition, mandatory reimbursement rules for authorised push payment fraud are set to drive further claims where losses fall outside the new regime.
A New Precedent?
Consumer-finance disputes remain in focus as the landmark motor finance commission case heads to the Supreme Court, a decision likely to have wide-ranging implications across lending and consumer sectors.
Litigation Funding
Class actions continue to rise, supported by litigation funders such as www.novo-modo.co.uk/litigation-funding. A number of recent rulings have clarified how collective claims can progress through the courts. These include Commission Recovery Ltd v Marks & Clerk LLP and Merricks v Mastercard.
Alternative Dispute Resolution
ADR is gaining traction, with courts now empowered to require parties to explore settlement options, while AI is generating both opportunities and risks. Its role in litigation strategy is growing, but questions around liability, misuse and regulatory oversight are expected to drive new disputes.
Elsewhere, ESG-related challenges, sanctions enforcement and investment treaty arbitration in a more protectionist climate all suggest a busy year ahead for litigators.
