Chapter 17
The resolution of business disputes
Throughout this book, we have studied rights and obligations. Ultimately, these rights and
obligations can be enforced only by taking a case to court. For all business organisations this
is a last resort. The process is lengthy and expensive, and it is also likely to cause ill will.
If a business sues a customer then, win or lose, the customer is unlikely to deal with the
business again.
The vast majority of legal disputes do not go to court. They are settled between the
parties themselves. This saves time and money and perhaps keeps a business relationship
alive. If a civil dispute does reach the stage of going to court then it will begin either in the
county court or in the High Court.Jurisdiction of the county court
There are around 220 county courts in England and Wales. Each county court has at least
one circuit judge and at least one district judge. These judges hear civil disputes. The county
court can hear any contract or tort cases, and 90 per cent of civil cases are heard in the
county court. However, some 10 per cent of civil cases are heard in the High Court. There
are three main reasons why a case would be heard in the High Court rather than in the
county court. First, the case may be very complex. Second, the amount of damages claimed
might be so large that the High Court is more appropriate. Third, the case might be likely
to set an important precedent. This last reason reflects the fact that High Court decisions
have force as legal precedents, whereas county court decisions do not. (The system of pre-
cedent is explained in Chapter 1 at p. 11.)
Appeals from district judges go to circuit judges and a second appeal goes to the
Court of Appeal. Appeals from a circuit judge go to a High Court judge unless they are
against a final decision in a multi-track case, in which case they go to the Court of
Appeal.
County court judgments are registered with the Registry of County Court Judgments and
can remain on the register for six years. However, if the judgment is satisfied (complied
with) within one month, then the judgment debtor’s name is altogether removed from the
register. Unsatisfied judgments remain on the register. If the judgment is satisfied more
than one month after the judgment is given, the judgment debtor’s name remains on the
register, along with a note stating that the judgment has been satisfied. Those who have
judgments registered against them are unlikely to be granted credit by a commercial lender.
The county court does not directly enforce its judgments, although it does provide the
machinery by which judgments can be enforced.