Litigation Trends for 2024: Insights from our Disputes and Investigations Team
2024 Litigation Trends: What to Expect in the Disputes Landscape
In the legal world of England and Wales, the year 2023 brought about significant changes and developments in the disputes landscape. From mandatory ADR rules to judicial guidance on AI use in courts, the legal market has been evolving amidst a challenging macro-economic and political climate. As we step into 2024, members of our Disputes and Investigations team have analyzed the current market to predict the upcoming litigation trends for the year.
Anticipated Areas of Dispute Activity
Our team has identified six key areas where we expect to see increased dispute activity in 2024:
1. ADR
The Court of Appeal’s judgment in the case of James Churchill v Merthyr Tydfil County Borough Council [2023] EWCA CN1416 has paved the way for courts to order parties in dispute to engage in ADR, including mediation. This decision marks a significant shift in the approach to dispute resolution and is likely to lead to further changes in the Civil Procedure Rules to reflect this new development.
2. AI
The use of AI in dispute resolution has been a hot topic in 2023, with discussions around the legal framework and potential impact of AI on the process. While there are limitations to using generative AI, we can expect to see more instances of AI being integrated into the dispute resolution process. The legal and regulatory uncertainty surrounding AI in the UK, as well as the upcoming AI Act and amended Product Liability Directive in the EU, will continue to shape this area of litigation.
3. Class Actions
There has been a rise in class actions and group litigation cases, with several high-profile cases involving millions of claimants. The proactive approach taken by the courts in managing these large-scale claims demonstrates the English courts’ ability to handle disputes of significant size and complexity.
4. ESG Litigation
ESG-related litigation, particularly concerning directors’ duties and derivative actions, is expected to remain a prominent issue in 2024. Claims for redress from multinational companies for alleged ESG-related harm within their supply chains will also put pressure on companies to conduct thorough due diligence on their suppliers.
5. Fraud
Civil fraud claims have been on the rise, with businesses facing increasingly sophisticated fraud schemes, including tech and AI-enabled fraud. The Government’s Fraud Strategy aims to reduce fraud levels by 10% by December 2024, with legislative changes such as the Economic Crime and Corporate Transparency Act playing a key role in combatting fraud.
6. Litigation Funding
The litigation funding industry has seen turbulence in 2023, with the Supreme Court’s ruling on litigation funding agreements raising questions about compliance with DBA regulations. The proposed amendment to the Digital Markets, Competition and Consumers Bill aims to address these issues and provide clarity on the use of LFAs in litigation funding.
As we move further into 2024, these trends are expected to shape the disputes landscape and influence the way legal disputes are resolved. For more information on these trends and how they may impact your business, feel free to reach out to our dispute resolution experts.