The commercial disputes landscape in 2026

The commercial disputes landscape continues to evolve rapidly, shaped by technological advancement, regulatory change, and a shift in business practices amid economic and political uncertainty. TLT's Disputes Outlook 2026 and our commercial disputes report identifies the key issues and emerging trends that will impact commercial litigation in the year ahead.  

Here are the top 10 takeaways:

1. Verifying AI-generated work – a new burden for legal teams

Recent High Court judgments, including R (Ayinde) v Haringey LBC and Hamad Al-Haroun v Qatar National Bank, have emphasised how lawyers must verify all AI-generated work before submitting it to court. Both cases involved GenAI tools producing legal arguments and witness statements containing false information.  

Legal teams cannot necessarily take documents or case references at face value, and must scrutinise their own AI-assisted work and watch out for other parties.

2. Post-termination restriction claims and confidential information disputes on the rise

The increase of injunction applications reported last year in the King's Bench Division is reflected in our litigators’ caseloads: a steady stream of injunctions and claims brought by organisations across different sectors against departing former employees and directors.  

The risk of departing employees deploying technology to take company information and setting up in competition is increasing, and organisations should ensure that safeguards are in place to restrict access to sensitive information and to closely monitor its use, and act quickly when anomalies are detected.

3. All data breaches now represent a litigation risk – no minimum threshold

In Farley v Paymaster (1836) Ltd, the Court of Appeal confirmed that damages for distress and fear of data misuse are recoverable in data breach claims and there is no minimum threshold of seriousness. This means even minor breaches could lead to litigation and low value court claims.

 No data breach claim can be disregarded as trivial, and legal teams should actively review data handling practices and policies, and consider the impact of any data breaches at an early stage to reduce the risk of claims.

4. Contract management to the fore in supply chain disputes

Bigger, more complex and more valuable contracts are more likely to end in conflict, and we’ve seen further increase in supply chain disputes, often driven by unclear terms, ill-defined KPIs and misaligned expectations. A failure to follow contractual procedures and poor communication about delays or lack of progress are also factors.

The lawyer’s role goes beyond contract drafting - consider obtaining advice at the first sign of tension to get clarity and help determine a commercial strategy before litigation becomes likely.  Our Navigating supplier performance hub is essential reading.

5. Procurement Act 2023 brings new challenges

An increase in procurement litigation is anticipated as authorities and suppliers adapt to the Procurement Act 2023. Supplier performance is now referenced against KPIs with performance data being made publicly available, making it easier to hold underperforming suppliers to account.  

New provisions relating to supplier performance management come into force on 1 January 2026 and keeping on top of developments is increasingly important.  For an overview of the practical implications for both authorities and supplier, see our CDR in 10 video.

6. Greater public access to court documents – protecting your sensitive information

A two-year pilot scheme in the Commercial Court (including the Circuit Commercial Court) and Financial List launched this year allows wider public access to court documents, with the press, members of the public – and so your business competitors - having access to more documents on the Court file, without obtaining the Court's permission.  

You must assume documents such as witness statements and skeleton arguments may become public, and sensitive information should be identified early – the ability to protect it may influence strategy, and arbitration could prove a better option if available.

7. Social media amplifies reputational risk and demands a clear commercial strategy

Defamation and harassment claims are rising, driven by social media and online reviews. Businesses are increasingly facing criticism from customers, competitors, and ex-employees. We are also seeing more representative actions - where an employee brings a claim on behalf of a wider group - adding a new layer of strategic and reputational considerations for businesses.

Monitoring social media content and responding quickly and thoughtfully to criticism is key. Involve senior management, PR advisors, and lawyers early to ensure that any reaction is appropriate and protects your reputation, without attracting further attention.

8. Arbitration continues to grow in popularity

The Arbitration Act 2025 is intended to ensure that UK arbitration remains an attractive alternative to litigating in the courts. Our caseload reflects that businesses are increasingly choosing arbitration. It offers privacy and confidentiality, and increased flexibility.

Consider including arbitration agreements in your contracts now, and seek guidance if you are unsure of the procedure and advantages.

9. Group proceedings

Group proceedings will continue to have implications for organisations across multiple sectors in 2026 and beyond, propelled by multiple factors including claimant law firms, litigation funders, evolving court strategies, increased regulatory scrutiny across the industry and consultations including the Scottish Civil Justice Council’s call for evidence on Scottish group procedure.  

Organisations who might be affected should closely monitor developments and engage with consultations where you can. Prepare for more strategic and better‑funded claimants, as funders and claimant firms evolve their approaches. Also see our Financial Services report and our Competition report.

10. Preparing for what comes next

The 2026 litigation landscape demands a proactive approach. We recommend:

• Reviewing your contracts, policies, and procedures.
• Investing in training for legal and commercial teams on new legislation and emerging risks.
• Building strong relationships with external advisors who can support you at the first sign of tension before disputes escalate.
• Developing robust crisis management and communications strategies.

Our team is here to support you in navigating these challenges. For further practical guidance, download our 9 specialist reports from our website - TLT Disputes Outlook 2026.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at January 2026. Specific advice should be sought for specific cases. For more information see our terms & conditions.