Two-thirds of lawyers say strong legal claims are dropped because of cost

Burford Capital and The Lawyer report says litigation risk, board scrutiny and uncertain recoveries are reshaping commercial disputes

Two-thirds of senior UK lawyers say strong commercial legal claims are often abandoned because of cost or risk concerns, according to new research.

The London Disputes Report 2026, published by Burford Capital in association with The Lawyer, found that economic factors are increasingly shaping whether companies pursue litigation or arbitration.

The report said legal merits remain important, but businesses are paying greater attention to legal costs, case duration, enforcement risk, recoverability and likely return on investment.

It said disputes are increasingly being treated as business assets and liabilities, with boards and executives taking a closer interest in whether claims are worth pursuing.

The research was based on a survey of senior UK lawyers and interviews with general counsel, heads of legal departments and law firm partners.

It found that 67 per cent of respondents agreed that many strong claims are never pursued because of cost or risk concerns.

The report also found that 73 per cent agreed boards are becoming more sophisticated in viewing disputes as financial assets.

A further 84 per cent said businesses expect greater cost certainty than law firms can provide.

Some 85 per cent said risk-transfer tools such as legal finance improve litigation decision-making, and 73 per cent of in-house and private practice lawyers reported direct experience with legal finance.

The report also found that 60 per cent agreed settlement decisions are often driven by management fatigue, rather than case strength.

Philipp Leibfried, managing director at Burford Capital, said: “The London Disputes Report 2026 highlights a significant shift in how businesses approach disputes.

“Boards, executives and legal teams are increasingly evaluating litigation and arbitration as business assets and liabilities that require the same financial discipline applied to any other corporate investment.

“Cost, risk, cash flow and recoverability now sit alongside legal merits at the heart of dispute decision-making.”

Leibfried added: “The research shows that disputes are increasingly being evaluated through the same lens companies apply to other business investments.

“Organisations want a clearer understanding of likely outcomes, costs, risks and recoverability before committing capital and management attention to a dispute.”

READ MORE: The UK’s first sex-based harassment conviction shouldn’t have taken this long. While the first conviction under Britain’s new sex-based harassment offence is a significant legal milestone, barrister Raj Joshi argues that it exposes how long women have been expected to tolerate behaviour that should always have been recognised as criminal.

Do you have news to share or expertise to contribute? The European welcomes insights from business leaders and sector specialists. Get in touch with our editorial team to find out more.

_{Main image: The Royal Courts of Justice on the Strand in Westminster. Credit: sjiong/Wikimedia Commons/CC BY-SA 2.0}