- International arbitration & mediation disputes rose by 59% from 3,339 in 2007 to 5,297 in 2009
- Total UK arbitration & mediation disputes up 78% to 34,541 over 2 years
- Surge in referrals prompted by economic recession and financial crisis
- Opening of new business, property and commercial court in London in 2011 will reinforce UK's position as key international centre for litigation
- UK offering enhanced by new legal framework for arbitration in Scotland
The total number of disputes resolved through arbitration and mediation in the UK reached 34,541 in 2009, up over three quarters from 19,384 in 2007. Disputes mainly involving international parties increased by 59% from 3,339 in 2007 to 5,297 in 2009. These findings are drawn from the report Dispute Resolution in London and the UK 2010 released today by TheCityUK: the new independent membership body promoting the UK financial and related professional services industry.
Duncan McKenzie, Senior Manager Economic Research at TheCityUK, said "The main dispute resolution organisations have experienced a surge in referrals in recent years due to the economic recession and financial crisis. Other initiatives are contributing to growth in use of mediation in the UK."
The CityUK report notes that the resolution of many disputes is administered by a few organisations. The Royal Institute of Chartered Surveyors handled the most referrals, with 8,845 in 2009. It was followed by The Chartered Institute of Arbitrators at 4,659 and the London Maritime Arbitrators' Association with 4,445: both were up around two thirds from 2007. Disputes referred to the London Court of International Arbitration recorded the biggest increase, more than doubling from 137 to 285.
The Centre for Effective Dispute Resolution's (CEDR) two-yearly audit found that a total of 6,000 mediations were conducted in the UK in 2009, also up two-thirds from 3,600 in 2007. CEDR has mediated over 650 disputes a year in recent years, with PIM Senior Mediators undertaking 732 mediations in 2009. Over 9,000 claims were conducted through the Small Claims Mediation Service in 2008/09, a new facility set up in the past two years by Her Majesty's Court Service.
Khawar Qureshi QC, chairman of TheCityUK's Legal Services and Dispute Resolution Group said: "The CityUK report provides a valuable insight into the UK's Dispute Resolution sector, and confirms London's pre-eminent position for international business disputes. The data in the report shows that the ADR sector has grown significantly in the aftermath of the financial crisis. In addition, the new state of the art Business, Property and Commercial Court to be housed in the Rolls Building in London, scheduled to become operative in early summer 2011, will greatly enhance the UK's attraction as an international centre for litigation."
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