A top legal expert has shared his advice for the best ways to deal with commercial property disputes.
Latest data from insurance brokers Gallagher show there has been a significant increase in the number of UK businesses hit by litigation since 2019.
Contractual disputes were among the biggest concerns, experienced by 35% of the 750 senior leaders surveyed.
For the property sector this is a particular concern as disputes involving commercial premises can be costly, time-consuming and burdensome for landlords, tenants, and businesses alike.
SAFEGUARDS
Oliver Maxwell (main picture), Senior Associate within the dispute resolution team at Smith Partnership, says: “A property is probably the most valuable asset you’ll ever own, and if you let it out to a commercial tenant, you need to make sure there are safeguards in place to encourage them to look after it.
“It is vital to take precautions and seek professional support at an early stage when dealing with commercial property disputes. Whilst every dispute will inevitably turn upon its own facts, having an understanding the various factors in play and the underlying causes that can lead to disputes arising can often help a party to get on the front foot.”
BACKLOGS AND DELAYS
Maxwell says current backlogs and delays in the court system have made it even more important to seek expert advice if you find yourself in the midst of a dispute.
He adds: “Involving the court can often result in delays. The court system is not functioning properly at present, predominantly due to a lack of funding and judicial time. Court proceedings are also expensive and can pose significant risks to both parties involved.
“It is much better to seek a resolution by settlement as quickly and as amicably as possible.”
“No matter how well a claim is framed or pleaded, the outcome of any dispute is ultimately given to a judge (effectively as a third party) to decide the outcome if the matter proceeds to a trial. Because of this, it is much better to seek a resolution by settlement as quickly and as amicably as possible because, ultimately, that’s what most people will want.
“If you are faced with a dispute, you should seek advice at an early stage and have a clear objective in mind. Whilst sometimes the law will support your aims, you should have an appreciation that sometimes it will not.
“Not all disputes will require the intervention of the court, so you should consider alternative forms of dispute resolution such as mediation, strategic correspondence or joint settlement meetings.”
