Resolving Commercial Disputes: A Practical Guide for Brighton & Hove SMEs
If you run a business in Brighton or Hove, you will face a dispute sooner or later: a supplier misses a deadline, an invoice goes unpaid or a shareholder falls out with the board. The question isn’t whether disputes happen; it’s how quickly you restore calm and protect cash.
As a Brighton & Hove firm, this is the approach we use with local SMEs because it saves time, money, and often, relationships.
Start Well: Get the Facts Straight and Lower the Temperature
In the first 48 hours, resist the urge to fire off an angry email. Instead, write a simple timeline, collect the contract and key messages and note what a practical outcome would look like for you. “Get paid within 60 days” or “agree to a staged delivery and a discount” is far more useful than “win.”. Clear thinking at the start narrows the issues later.
Know the Ground Rules Before You Escalate
Civil disputes in England and Wales start with pre-action conduct. Before you sue, the court expects both sides to explain their positions, share enough information to understand the dispute and consider settlement or another form of alternative dispute resolution.
Handled properly, this process focuses everyone on the real issues and the likely costs - and the court can penalise a party that unreasonably refuses.
Use Mediation Early -Sometimes It’s Now Required
Since 22 May 2024, parties in small money claims (under £10,000) must attend a free, one-hour appointment with HMCTS Small Claims Mediation Service. It is designed to settle straightforward disputes quickly and at minimal cost.
Even when your case sits outside the scheme, a short, structured mediation can unlock a commercial deal far faster than a hearing.
If Court is Necessary, Plan Around Tracks and Costs
Some disputes do need a claim - because limitation is looming, an injunction is needed, or the other side will not engage.
From 1 October 2023, fixed recoverable costs apply to the fast track and into a new intermediate track for simpler cases up to £100,000. This change affects how much of your legal spend you can recover and should influence your settlement strategy.
In short: choose offers and tactics with the likely track and fixed costs table in mind.
Don’t Miss the Clock
Limitation periods are absolute. Most breach of contract claims must be issued within six years of the breach, or twelve years if your contract is a deed. There are different rules for other claim types, and exceptions are narrow. If time is tight, take advice at once so that protective steps can be taken without cutting corners in pre-action conduct.
Special Point for Debt Against Individuals and Sole Traders
When a business pursues an individual debtor (including a sole trader) the Pre Action Protocol for Debt Claims applies. It sets out that your letter before action must include, builds in a 30-day reply window, encourages affordable repayment where appropriate and expects both sides to consider ADR. Courts look dimly on non-compliance, so following the protocol is both good practice and good tactics.
Evidence that Moves the Dial
Mediators and judges are persuaded by contemporaneous paperwork and clear arithmetic.
Keep:
- The signed contract and any variations
- Purchase orders, delivery notes and confirming emails
- A running loss schedule showing figures, dates and the calculations
Ensure legal advice is kept out of business email chains and mark genuine settlement communications “without prejudice” to protect them.
When to Involve a Solicitor
Involve a commercial dispute solicitor early if:
- Sums are significant
- Relationships are sensitive
- There are allegations of misrepresentation or fraud
- Termination or limitation deadline is close
Early advice pays for itself: it sets the tone, preserves the evidence, and selects the best route - mediation, robust negotiation, or proceedings.
How Acumen Law Works with Brighton & Hove Businesses
We start with a short scoping call to understand the facts and what “good” looks like for your business. Where ADR can achieve the result, we’ll say so.
If a claim is needed, we build a clear case plan and review settlement opportunities at sensible intervals. Our aim is always the same: resolve the dispute quickly and cost-effectively so you can get back to running the business.
FAQs
- Is court always the best way to resolve a business dispute in Brighton& Hove?
No. Most cases settle. With mandatory mediation now integrated for many small money claims, and the court’s general expectation that parties consider ADR. Settlement is often the faster, cheaper and lower-risk path.
- Can we recover our legal costs if we win?
Cost recovery depends on the track and the court’s discretion. The post-October 2023 fixed-costs regime for fast-track and many intermediate-track cases give you a ceiling on recoverable costs, so your litigation budget and your offers should reflect that reality.
- What should I do today if a dispute has just arisen?
Write a timeline, collect the key documents, define a realistic outcome, and avoid emotional emails. Then speak to a solicitor to guide you through the pre-action process to shape the discussion and, if needed, line up mediation quickly.
If you’re a Brighton or Hove SME dealing with a contract, payment or shareholder issue, speak to our Commercial Dispute Resolution team in Hove. Our experts offer an initial conversation to map the quickest, most cost-effective route to a result.
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