Disruption around Brexit and legal changes could lead to an uptick in the number of partnership disputes reaching the High Court, a law firm has said.
Partnership disputes, defined as those between individual partners and business and commercial partnerships, tend to increase in times of economic disruption, with the law firm warning that tougher trading conditions caused by Brexit could increase the potential for future disputes.
According to Fox & Partners, from this month disclosure requirements will be loosened which could also prompt more litigation. Previously those wishing to litigate had to provide documents that were deemed to be “all relevant”, a process that often lads to higher costs. Under the new rules, the courts will look at individual cases and decide what material needs to be disclosed, thereby bringing costs down.
Fox and Partners partner Ivor Adair said: “Even though disputes have fallen, we can’t be complacent as future Brexit-related economic shocks could result in more litigation, particularly in relation to financial services partnerships.
He continued: “As we enter a period of further uncertainty, businesses may have no option but to pursue cases to protect themselves against team moves of partners and employees. The court may offer the only real solution where not all parties have signed up to arbitration.”