What does 2025 hold for dispute resolution?

Looking at the impact of sanctions on cross-border contracts, the complexities of litigation costs, the progress of the Arbitration Bill, and the growing importance of cybersecurity, artificial intelligence (AI), and environmental, social and governance (ESG) in disputes, our contributors provide a comprehensive view of the trends and challenges on the horizon.

Sanctions and shareholder rule under spotlight

2025 will see a new wave of disputes arising from contracts between Russian-connected companies / individuals subject to sanctions and western businesses. The English courts are likely to continue to be asked to determine parties’ rights arising from contracts impacted by sanctions already, or to be, imposed on Russian entities or individuals.

The English Court of Appeal, or potentially the privy council, will likely have to examine the ‘shareholder rule’ that allows shareholders of a company to access legal advice obtained by that company.

Ahmed Abdel Hakam

The evolving landscape of litigation costs

Litigation costs remain a key focus in 2025. After numerous changes, the question remains: how are these developments impacting practice? Courts may increasingly scrutinise counsel fees and may begin to better distinguish between ‘new law’ and traditional firms—or will new law continue to justify costs that are often significantly lower?

Technology is another area of interest. Will AI and similar advancements deliver meaningful, accessible cost efficiencies, or, like electronic trial bundles and expansive disclosure platforms, will they simply add to the already substantial costs of litigation? The interplay of these factors will shape the evolving landscape of litigation expenses.

Alastair Shaw

Hague 19 and emerging trends

With its focus on complex, high-value and international commercial litigation, the London litigation team at Goodwin Procter looks forward to the implementation of Hague 19 (the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters) in the UK this July. Hague 19, already in force in the EU, Ukraine and Uruguay, provides additional and welcome confidence that judgments issued by UK courts will generally be enforced by the courts of other contracting states, subject to certain exclusions. In turn, this helps to support the UK courts’ position as a preferred forum for dispute resolution.

More generally, the team expects to see the trend for mega-trials to continue and, in particular, anticipates an increase in growth in shareholder class actions across all sectors. The team also considers that an uptick in insolvency-related disputes is likely given the uncertain nature of the global economic outlook.

Katherine Harper

The Arbitration Bill: Strengthening England and Wales’ global competitiveness

This year, I’m looking forward to the progress of the Arbitration Bill through the House of Commons to Royal Assent. Unlike the Litigation Funding Agreements (Enforceability) Bill, the Arbitration Bill wasn’t overly derailed by the general election and so, barring any significant upsets, it is likely to come into force relatively soon. The ill makes incremental improvements to the existing law rather than wholesale reforms: confirming arbitrators can make summary awards, clarifying court powers to make orders against third parties in support of arbitration, amending the framework for jurisdictional challenges to awards, and specifying the governing law of the arbitration agreement. Its passage will ensure that arbitration in England and Wales remains competitive on the global stage.

Leah Alpren-Waterman

Cybersecurity, AI, and ESG: Key trends in disputes for 2025

The landscape for disputes in 2025 looks as complex as it has ever been, and there are numerous forthcoming developments that will bring challenges to clients and litigators alike. In terms of disputes trends, we expect to see an increase in litigation concerning cybersecurity and AI disputes, followed closely by ESG-related litigation and the complexities of cross-border regulation in this space. From a procedural perspective, it will be interesting to see whether the judiciary’s increasing focus on mediation and other forms of negotiated dispute resolution drives a meaningful change within the high value, complex work of the Business and Property Courts.

Louise Nicholson

Conclusion

The insights shared by our contributors highlight the dynamic and multifaceted nature of dispute resolution as we move through 2025. Whether it is adapting to new legislation, addressing the financial and procedural implications of technological advancements, or tackling emerging areas of litigation, the legal community faces both challenges and opportunities. By staying attuned to these developments, practitioners and clients alike can better prepare for what lies ahead.