Commercial disputes that cross borders will be a major headache after Brexit

Picture the situation where a British company does business with another company somewhere else in the EU. Let’s say, for example, that a German manufacturer supplies vital components for a British maker of boat engines. The British company has a big order coming up from the US that has to be satisfied by such and such date but the Germans fail to deliver. It costs the Brits a seven-figure sum in lost business and in the end, they decide to sue.

Providing a UK court finds in its favour, the company currently has an excellent chance of recouping the damage. This is because all UK businesses and citizens enjoy access to an EU system known as the Brussels Ia regulation that automatically allows court judgments in one member state to be enforced in another.