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United Kingdom

Avoiding Litigation in Commercial Contract Disputes: Relationship Management, Contract Analysis, Termination, ADR, Costs, Pre-action Protocols, and Disclosure Duties (England and Wales)

Practice notes
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This Practice Note on avoiding civil litigation sets out what to weigh up and what to do as a contractual dispute develops, so as to reduce the likelihood of the matter progressing to court proceedings (litigation) in England and Wales.

For related guidance, see Practice Note: Resolving a dispute—initial considerations.

Why avoid litigation?(the ‘litigation cost’)

Litigators do not always acknowledge it, but for many clients, once a contract dispute is litigated (ie ‘we go to court’), there is, to some extent, already a failure.

The reason is that the overall ‘litigation cost’ can be immense, including:

  • financial outlay—covering the client’s fees with you (and any experts needed to support their case) and, potentially, the other side’s costs too (see Practice Note: Costs orders—the general rule)
  • lost management time—with senior personnel and other staff diverted from productive business work while meeting the demands of the process (the disclosure exercise, drafting witness statements, giving evidence in court)
  • reputational harm—even a successful outcome at court may still harm reputation, which can be a key consideration for...
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Web page updated on 21/05/2026

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