Claim volumes hold steady despite market uncertainty
New claims activity remains notably consistent despite global instability - with professional services, finance and the construction sectors driving activity.
2022 has continued the pattern of pandemic-era volatility. So far this year, Covid-19 restrictions have been lifted, the UK government has continued to be rocked by scandals and, most alarmingly, Russia has invaded Ukraine, strengthening the already worrying rate of inflation and driving global market uncertainty.
By contrast, our data shows relatively consistent ligation activity when compared to the last two years. While the start of the year saw a dip in new claim activity, volumes began to rise substantially through March, which correlates with previous years. 2022 so far is certainly busier than before the pandemic (2019) but it has slowed recently.
Compared to last year (January to April), at a sub-court level, the volume of newly issued claims in the TCC and Intellectual Property court have remained remarkably consistent (only approximately 5% down). There has been a slight rise in Business List claims - up 10% - and a collapse in the Admiralty Court - down 35%. Personal injury disputes account for approximately two thirds of claims in this court. The Commercial Court has also seen 27% less claims.
Claims Issued by Sector
When it comes to which sectors dominate, professional negligence, delayed construction projects and disputed financial transactions lead the charge as ever year-on-year.
Between January and April, the banking & finance sector remained consistently high and the most active for newly issued claims. Professional services and insurance have experienced significantly fewer disputes, with the public sector also down around 20% versus last year. By contrast, technology, media & telecoms (TMT), consumer products and, in particular, manufacturing & industrials have all risen.
We have started to see a meaningful rise in major cryptocurrency disputes in the banking sector as they continue to challenge the global monetary system. Several of these claims have landed in the intellectual property courts - self-proclaimed ‘Bitcoin inventor’ Craig Steven Wright issued passing off claims against digital currency exchanges Kraken (Payward) and Coinbase. These actions 'are likely to be worth several hundred billion pounds' as reported by The Law Society Gazette - the highest potential value seen in the High Court to date.
Compared to the same period last year, professional services claim volumes are down, but still amongst the most active. Notably, healthcare giant NMC Health has issued a professional negligence claim against auditors EY LLP valued at $2.7billion. There are also a multiplicity of new claims against solicitors and barristers - a sign of further pressure on legal advisors in a time of economic pressure.
TMT continues to bustle with a variety of insalubrious media spats. Newspapers are a hot target: Prince Harry is suing Associated Newspapers for libel, while News Group Newspapers (publisher of The Sun) is the most-claimed-against party YTD, as high-profile claimants (including Hugh Grant, Gillian Anderson and Kate Winslet) continue to flood the courts with phone hacking claims. Meanwhile, Sir James Dyson is suing Channel 4 for defamation.
In the public sector The Gambling Commission faces significant legal proceedings over the revocation of Camelot's National Lottery licence. Several anonymised judicial review claims were also launched against the Home Office.
In manufacturing and consumer products, diesel-gate emission claims continue to account for a plethora of activity week-by-week.
Insurance claims have spiked with some of England's biggest football clubs launching Covid-19 business interruption proceedings against insurance giants Allianz, Liberty, MS Amlin, Aviva, CNA and Zurich. Many similar claims are already in train across the business world, with more likely to follow.
Claim Activity by Sector
While new claims issued is a valuable indicator of litigation hotspots, another measure of market status is ongoing case activity. Again, existing professional services, banking & finance and construction & infrastructure disputes take the lead. A continued rise in manufacturing can be accredited in part to large-scale automotive disputes.
Most interesting is that activity levels across the topmost active sectors are up compared to the same period last year (when we were in our third lockdown) by 18%, suggesting litigators are becoming increasingly busy.
Notable in this are banking disputes, up by 17%, consumer products by 30% and manufacturing jumping by 60%
Marks & Spencer and Aldi settled their Colin the Caterpillar passing off dispute in January, although their festive gin bottle design rights saga continues.
Carillion’s claim against KPMG for negligent auditing was valued at almost £1.4bn.
Railway contentions roll on, with Siemens procurement dispute against High Speed Two (HS2) resulting in several active claims.
In the music industry, singer-songwriter Ed Sheeran won his ‘Shape of You’ copyright case against Sami Chokri and Ross O’Donoghue.
Activity continues in UK pub tycoon Stonegate’s Covid-19 disruption dispute against three major insurers, valued at £845m.
Yet, there are still claims yet to rear their head in the courts. In a major environmental action, oil major Shell is expected to be sued by ClientEarth over alleged failure to prepare for net zero. A slew of employment claims are also anticipated following the scandal surrounding the mass sacking of P&O Ferries staff.
Lastly, we wish the best of luck to the ex-student claiming for lost earnings against his alma mater after not making the grade for a placement at a magic circle law firm. However, historically, breach of statutory duty claims have failed roughly two-thirds of the time. It might be worth him trying to seek a settlement.
All data correct as of 12:00 18th May 22.
*NB: Our analysis includes all publicly available Queen’s Bench and Chancery Division claims but currently excludes Insolvency & Companies List, Property, Trusts & Probate List, Personal Injury & Clinical Negligence cases and Queen’s Bench Appeals.