Five Commercial Litigation Trends Reshaping Australian Business Disputes in 2025

Have you ever been preparing for a major contract negotiation when a breaking news alert pops up regarding a competitor for misleading green claims? Suddenly, you’re questioning whether your own business is exposed. Commercial litigation in Australia is constantly growing, with new risks and opportunities emerging almost monthly.

For business owners and executives, especially in Queensland and Victoria, understanding these trends is essential for survival. Here are five commercial litigation trends you can’t afford to ignore in 2025.

1. The Continued Rise and Evolution of Class Actions

If you don’t already know, class actions are when a group of people band together to bring a single lawsuit against an organisation. No longer confined to product defects or shareholder disputes, they now reach into financial services, employment, privacy, government dealings, and consumer law.

So, what’s driving this surge?

• Regulatory crackdowns, especially on misleading conduct and consumer protection, are fuelling new claims.
• Greenwashing (false or exaggerated environmental claims) and climate-related actions are making headlines. In 2025, expect more businesses to be targeted over sustainability credentials or alleged failures to meet new climate disclosure rules.
• Recent High Court decisions, most notably in the Ford and Toyota class actions, are reshaping how damages are assessed. These rulings clarified that damages for defective goods must reflect the diminished value at the time of supply.
• Victoria’s Supreme Court has become a preferred forum for class action filings, driven by favourable procedures and recent legislative tweaks.
• The ongoing debate about Common Fund Orders (CFOs), which allow litigation funders to claim a share of settlements from all group members, remains unresolved. If CFOs are restricted or banned, it could disrupt the funding dynamics and viability of class actions, potentially reducing their frequency or changing settlement strategies.

Why does this matter for your business?

If you operate in sectors like finance, retail, tech, or resources, your exposure to group litigation risk is higher than ever. The cost of getting it wrong, financially and reputationally, can be huge. You need to ensure you have robust compliance and prompt responses to complaints. 

For Queensland and Victorian businesses, understanding the hot spots for class actions can help you anticipate risks before they snowball.

2. The Growth of Technology-Related Disputes

As businesses go digital, technology disputes are rising fast. More recently, cybersecurity incidents have become regular business risks.

Here’s what’s driving the trend:

• ASIC and the ACCC are laser-focused on cyber resilience. Companies that suffer data breaches or engage in questionable digital marketing are under scrutiny like never before.
• Technology-related class actions are increasingly common. We’re seeing customers join forces to seek compensation after major data breaches.
• The move to remote work and cloud-based service contracts in Queensland and Victoria has led to a spike in disputes over contract performance and privacy lapses.

Scenario:

A Queensland healthcare provider suffers a ransomware attack. Sensitive patient data is leaked, triggering not only regulatory investigations but also a class action from affected individuals. The consequences of this are business interruptions and lasting reputational damage.

Practical tips for business leaders:

• Audit your tech contracts and make sure they clearly define responsibilities and liability for data breaches.
• Invest in up-to-date cybersecurity measures and train staff on best practices.
• Have an incident response plan that includes legal and public relations experts.
• Regularly review compliance with privacy laws and update policies as regulations change.

3. Increasing Use of Alternative Dispute Resolution (ADR)

It’s no secret that going to court is time-consuming and often made public. That’s why more businesses are opting for Alternative Dispute Resolution (ADR), methods like mediation and arbitration that resolve disputes out of court.

Why the change?

• ADR offers cost savings, faster resolution, confidentiality, and flexible solutions compared to traditional litigation.
• Courts are actively encouraging parties to attempt ADR before proceeding to trial. In Queensland and Victoria, this means mediation is often a mandatory step in commercial proceedings.
• Online Dispute Resolution (ODR) platforms and hybrid models allow parties to resolve issues virtually, which is especially valuable for geographically dispersed teams or when swift decisions are needed.

Case example:

A Victorian manufacturer and a national distributor hit a brick wall over supply delays. Rather than a costly court battle, they engage a mediator who helps them reach a compromise.

Benefits for your business:

• ADR keeps sensitive disputes private, protecting your reputation.
• It supports ongoing commercial relationships, which can be vital in tightly networked industries.
• You retain more control over outcomes instead of leaving decisions to a judge.

4. Impacts of Recent High Court and Appellate Decisions

The last 18 months have seen landmark rulings from the High Court and appellate courts, significantly changing the commercial litigation outlook.

Key decisions to know:

• Greenwashing, the High Court clarified how damages should be calculated for defective products, emphasising diminished value at delivery. This sets a tougher precedent for businesses defending consumer claims.
• In cases like Worley and CBA, courts have sometimes sided with defendants, highlighting the unpredictability of outcomes. The result is that both sides are recalibrating their litigation strategies.
• Pending rulings in 2025 are expected to address unresolved issues around funding and liability standards, with the potential to reshape commercial risk further.

What this means for you:

For business leaders in Queensland and Victoria, it’s more important than ever to stay on top of legal developments. One adverse decision can set a precedent that impacts your entire industry. Many businesses now engage legal advisors for regular litigation risk reviews to avoid nasty surprises when a new judgment drops.

5. Changes in Case Management Procedures in Australian Courts

Courts across Australia are streamlining how commercial disputes are managed, aiming for faster and more efficient litigation.

What’s changed?

• Courts have introduced stricter timetables, requiring parties to meet deadlines and avoid unnecessary delays.
• Technology adoption, like virtual hearings and digital evidence management, has become the norm, reducing paperwork and travel costs.
• Judges are taking a more hands-on approach to active case management, setting clear expectations for cooperation and early resolution.

Regional perspectives:

• In Victoria, Supreme Court practice notes have accelerated timelines for commercial cases, with many matters now managed almost entirely online.
• Queensland courts have followed suit, embracing virtual hearings and more proactive judicial involvement. This means a faster dispute resolution but increased pressure on parties to be prepared from day one.

How this affects your business:

• Quicker timelines mean less time to ‘get your house in order’ once proceedings start.
• Technology levels the playing field but also exposes gaps if your team isn’t tech-savvy.
• Efficient case management cuts costs, but failing to comply can lead to penalties or unfavourable judgments.

The Future of Business Disputes

In today’s market, understanding the latest commercial litigation trends is imperative for businesses. Proactively assessing your risk exposure and fine-tuning your dispute resolution strategies can mean the difference between a quick, confidential resolution and a long, public ordeal.

Your Legal Ally, Every Step of The Way

Our experienced Commercial Litigation team is available 24/7 to help with your issues and become your legal ally. Contact Kingsford Lawyers on 1300 244 342 for practical advice tailored to your industry anywhere in Australia.