2021 New High Court claims down 9%

Despite an influx of over 200 misuse of private data claims, overall new claim activity in the High Court is down 9% year on year. 

As normality returns (apart from the face masks), we look back on the past 9 months of High Court Activity.

By the end of Q3 2021, a total of almost 4,000 disputes had been brought to the High Court. Despite the easing of pandemic restrictions, this is a decrease in claim volume compared to the same period last year, although still higher than 2019. This suggests we are yet to see the full impact of Covid in new claim activity. 

Whilst reviewing the market based on High Court claim volume does not provide the full picture in terms of law firm practice busyness and disputes activity, it does provide some interesting insights into market share and claim trends. The top 15 law firms account for 28% of 2021 claims YTD, compared to 23.6% last year, which indicates meaningful market share growth. 

Interestingly, the magic circle does not feature in the top 15 firms by claim volume. Their total market share YTD is 1.3%, compared to 2.5% for the same period in 2020; though last year was substantially boosted by the multitude of claims against News Group Newspapers Ltd which Clifford Chance LLP represented.

Overall, looking at the claims volume for the year to date, almost all law firms have represented parties in fewer claims that have reached the High Court when compared to last year.

Total claims 

Pure Legal Ltd seized first place for Q1 and had consolidated their position by the end of Q2. This was the result of a slew of low-value Media and Communication list claims, most often focusing on data protection, breach of confidence and misuse of private information. However, these claims came to a halt in late July, coinciding with an order in claim QB-2021-001711. Darren Lee Warren, a claimant represented by Pure Legal Ltd, had his claim struck out, on the grounds that the “pleading contained manifest deficiencies’” and was ordered to pay costs on an indemnity basis.

Maintaining their market leading position since last year in terms of claim volume, Clyde & Co LLP are second, with a 5:6 claimant:defendant ratio. Their total claim volume count gets to 110, with an average claim value of £10.6m. Shipping and Maritime claims continue to account for a large proportion of their High Court work, as do Construction and Infrastructure as well as Insurance disputes. 

Very close behind in third are litigation heavyweights Reynolds Porter Chamberlain LLP (RPC) with 109 claims so far this year. Between April and June, there was a flurry of activity as Pure Legal Ltd brought numerous low-value misuse of private data claims against Transform Hospital Group, whom RPC were defending. Professional Services claims account for almost a quarter of the claims RPC advised on, showing them to be more prominent in this space than any other law firm. 

DAC Beachcroft LLP, currently in fourth position based on claim volume, have seen 104 claims through to the High Court. Insurance giant Kennedys Law LLP follows, just as they did last year, ranked fifth. 

Key themes in private data misuse and group action claims have seen Pure Legal Ltd, Irvings Law and Leigh Day enter the top 15 for the first time. They also make up the top 3 law firms acting on the claimant side. 

On the other hand, Clifford Chance LLP, who are currently instructed by defendants Citibank in a £8.5bn banking claim, has seen the most substantial reduction in High Court issued claim volumes, scaling back by 70% YTD. This can be attributed to the numerous phone hacking claims where they were instructed by defendants News Group Newspapers Ltd, keeping the team busy last year. Allen & Overy LLP, Freshfields Bruckhaus Deringer LLP and Slaughter and May were also down on claim volume. Of the magic circle, only Linklaters LLP saw a rise, increasing their claim volume by 50%. 

Instructed by claimant

There is no surprise that Pure Legal Ltd dominates here. Almost all the claims represented are low-value private data protection related claims, almost identical in structure and nature. 

Misuse of private data claims also account for almost 95% of Irvings Law’s activity this year, putting them in second position. Unlike the Pure Legal Ltd claims, activity for this firm has continued throughout Q3. Public sector organisations are on the receiving end of a fair proportion of their claims, with several against the Ministry of Justice and various Chief Constables from across the country. These too tend to be very low in value, averaging approximately £3k. 

Leigh Day secured third spot by the start of September, after an influx of group action claims related to diesel emission fraud against several automotive giants including Audi Aktiengesellschaft, Daimler AG, Ford Motor Company and Mercedes-Benz AG. Group action claims account for over 25% of their new claim activity this year.

Not far behind are Clyde & Co LLP in fourth; despite a strong position for the most part of the year, a decline in new listings at the end of this quarter has had an impact on their position. Mishcon de Reya LLP follows in fifth, recently representing several unpaid rent claims such as Capital & Counties CG Ltd against L’Oreal UK, Spirit Pub Company (Managed) Ltd, Trinity Brands UK Ltd. 

Instructed by defendant

As the year unfolded, Reynolds Porter Chamberlain LLP gradually established their position as top defendant law firm. Through March to June, they defended several phone hacking claims for MGN Ltd, to add to their pre-eminence in defending professional negligence cases.

In second position are DAC Beachcroft LLP who have a strong market share acting for public sector organisations including universities, hospitals, and social housing providers.

Clyde & Co LLP also appears near the top of this list, with professional services claims contributing almost a third of their total.

DWF Law LLP holds onto fourth with Kennedys Law LLP and Freeths LLP as joint fifth with just one less claim. 

Historically, new claim activity picks up in the run towards the end of the year; it will certainly be interesting to see which of these firms are able to solidify their positions through the final quarter of 2021.

All data correct as at 12:00 6th Oct 21.