Dispute resolution | 07 May 2024
What is litigation?
In the UK, litigation in the context of construction contracts involves resolving disputes through the formal court system. This process is subject to the laws and procedures of the United Kingdom and is typically used when parties cannot reach a resolution through negotiation, mediation, adjudication, or other alternative dispute resolution (ADR) mechanisms. Litigation in construction contracts follows the legal framework established by the UK court system.
Key aspects of litigation in construction contracts in the UK include:
- Court Proceedings:
If a dispute arises between parties to a construction contract and they are unable to resolve it through other means, one party may initiate litigation by filing a claim with the appropriate court. - Jurisdiction:
The jurisdiction in which the dispute is brought depends on the terms of the contract and the location of the project. The Technology and Construction Court (TCC) is a specialist court in the UK that often handles construction-related disputes. - Pleadings:
Formal legal documents known as pleadings are filed with the court. These documents outline the legal and factual basis of each party's case, including the claims and defences. - Disclosure:
The disclosure process allows each party to gather evidence and information relevant to the case. This may involve document disclosure, interrogatories, and other legal procedures. - Hearings and Trial:
The case may proceed to court hearings where legal arguments are presented. If the dispute is not resolved through settlement or pre-trial motions, a trial may take place, involving witness testimonies, the presentation of evidence, and legal arguments. - Judgement:
After the trial, the court issues a judgement, providing a formal decision on the merits of the case. The judgement is legally binding and outlines the rights and obligations of the parties. - Appeals:
If a party is dissatisfied with the judgement, they may have the right to appeal to a higher court. The appellate process involves a review of legal arguments but generally does not entail a retrial of the case. - Enforcement:
Once a judgement becomes final, it can be enforced through various legal mechanisms, such as seizing assets or placing liens on property.
It is important to note that while litigation is an available option, many construction contracts in the UK include ADR clauses, such as adjudication or arbitration, to encourage quicker and more cost-effective resolution of disputes. The choice between litigation and alternative methods depends on factors such as the complexity of the dispute, the desired level of formality, and the speed at which a resolution is needed.
