The financial crisis has seen a surge in dispute resolution cases, with the UK performing well as a venue for hearing international disputes, according to a report published today.

The report Dispute Resolution in London & the UK, compiled by membership body TheCityUK, shows the number of arbitrations and mediations involving international parties carried out in the UK rose by 59% in the two years from 2007 to 2009, to 5,297 disputes.

Disputes involving UK parties also grew 82% in the same period, to 29,244 in 2009, taking the total number of disputes resolved through arbitration and mediation in the UK to 34,541 in 2009 – a 78% rise since 2007.

The report attributes the growth to the effect of the recession, and predicts that the opening of the new Business Property and Commercial Court in London will reinforce the UK’s position as a key international centre for litigation.

It also expects the Arbitration (Scotland) Act 2010, which introduces a codified set of arbitration rules, will make Scotland a venue of choice for conducting arbitrations.

Of the UK organisations that administer dispute resolution, the Royal Institute of Chartered Surveyors handled the most, with 8,845 in 2009, down slightly from the 9,063 in 2007.

It was followed by the Chartered Institute of Arbitrators at 4,659 and the London Maritime Arbitrators Association with 4,445 – both up around 2% from 2007.

Disputes referred to the London Court of Arbitration recorded the biggest increase, more than doubling from 137 in 2007 to 285 in 2009.

The Centre for Effective Dispute Resoultion’s two-yearly audit found 6,000 mediations were conducted in the UK in 2009, up by 66% from 2007.

As for the more traditional form of dispute resolution, the report shows that 1,259 claim forms were issued in the Commercial Court in 2009, 76% of which involved foreign parties.

Khawar Qureshi QC, chairman of TheCityUK’s legal services and dispute resolution group, said: ‘The report provides a valuable insight into the UK’s dispute resolution sector and confirms London’s pre-eminent position for international business disputes.

‘The data in the report shows that the ADR sector has grown significantly in the aftermath of the financial crisis.’

He added: ‘In addition, the new state of the art Business, Property and Commercial Court to be housed in the Rolls Building in London, scheduled to become operative in early summer 2011, will greatly enhance the UK’s attraction as an international centre for litigation.’

TheCityUK is an independent membership body to promote London’s financial and professional services overseas. Formed earlier this year, it is chaired by Clifford Chance senior partner Stuart Popham and supported by UKTI and the Corporation of London.