INTRODUCTION Contributed by: Gary Born and Matteo Angelini, WilmerHale
Litigation in 2026 The global economy is facing substantial headwinds in 2026 that are likely to generate a new wave of trade- related litigation. Increased trade tension, escalating trade barriers and supply chain disruptions caused by a tariff war have combined with inflationary pressures and high national debt levels to create an unstable environment: the World Bank estimates that global GDP growth in 2025 will be just 2.3%, the slowest growth rate since 2008. This has led to macro-eco- nomic uncertainty and, for many corporations, an increased appetite for litigation. The sectors that are seeing the most disputes are the construction, min- ing, transport and energy sectors, which are all heav- ily affected by trade fragmentation and supply chain disruptions. Against this economic backdrop, the global litigation landscape continues to be dominated by significant geopolitical and regulatory risk: sanctions against Russia, Belarus and Iran have impacted commercial activity across the globe, while energy and climate change-related regulation and conflicts in Ukraine and the Middle East continue to be politically polarising London remains a popular choice for dispute resolu- tion. It is the world’s leading centre for international dispute resolution by litigation and, equally with Sin- gapore, by arbitration, according to the Queen Mary University of London International Arbitration Survey. In Europe, one major change is the facilitation of collective or class actions. Under the Representa- tive Actions Directive, all EU member states are now required to have at least one procedural mechanism in place for consumers to seek collective redress. Recent data shows a continuous and dramatic rise in class actions being filed in Europe in recent years, with 97 class actions filed in 2024 for a value well in excess of EUR380 billion, an 800% increase in value since 2020. The UK has experienced a similar relentless growth in class actions. According to one recent survey, up to the end of 2024, competition class actions involving over 655 million class members were filed in the UK, issues. Europe
with claimed quantum now exceeding GBP155 billion. One of the largest sets of proceedings before the Eng- lish courts is the Pan-Nox Emissions Group Litigation (also known as “Dieselgate”) involving claims against in excess of 2,000 retailers and finance companies, as well as against different vehicle manufacturers. In Europe, a number of EU member states continue to seek to attract litigation cases that traditionally go to the English courts. France and the Netherlands have created their own specialist commercial courts where judges have experience in private international law to cater to international disputes. Germany has estab- lished English-speaking commercial courts, and Swit- zerland is taking similar steps. Starting from 1 January 2025, cantons in Switzerland have been permitted to establish international commercial courts where pro- ceedings can be conducted in English. Despite these new arrivals, the impact on the English courts that some considered would result from Brexit has not materialised: UK exports of legal services con- tinue to grow exponentially, second in size only to the United States. Middle East and Asia The establishment of international-facing courts in Europe follows an earlier trend in the Middle East and Asia. In the UAE in particular, the courts of the financial free zones of the Dubai International Financial Centre and Abu Dhabi Global Market, and the Qatar International Court, are starting to rival London as the commercial courts of choice for many international litigants. Else- where in Asia, the Singapore International Commercial Court, the Astana International Financial Centre Court and the China International Commercial Court all spe- cialise in the resolution of cross-border commercial disputes and, for the most part, use English as the language of proceedings. Cases in these courts are often decided by senior judges and lawyers drawn from multiple jurisdictions (except in the China Inter- national Commercial Court, where the judges are exclusively Chinese). The establishment of international courts in the Middle East and Asia certainly reflects the eastward shift in
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