A lack of investment in the Commercial Court is undermining the attractiveness of the UK court system for settling commercial disputes, solicitors warned this week as the court published its annual report.

Statistics for 2003-04 showed that the number of trials heard dropped to 58, almost a third fewer than the previous year. The number of applications to the court also fell by almost 100 to 1,663.


In its report, the court admitted that 'out-dated technology, very poor accommodation and a scarcity of resources continue to impede the ability of the court to serve its users'. It insisted that it was optimistic that improvements in technology would continue. There is an ongoing battle to move the court to new premises.


Anthony Maton, executive committee member of the London Solicitors Litigation Association and litigation partner at McGrigors in London, said: 'Non-investment in the Commercial Court over the last four to five years has meant that the court is a less attractive venue for clients. St Dunstan's House is a pretty grotty place to go and there are no modern IT facilities.


'Clients appreciate the quality of English justice, but facilities in, say, Dublin or Frankfurt are a lot better.'


However, the court showed a high success rate in encouraging cases to settle, which it cited as one of its aims. Out of 222 cases that were given dates for trial last year, 164 settled or were adjourned at the request of the parties.


The court was generally able to meet its target lead times of four to five months for trials scheduled for two days or less, and just 11 to 12 months for major litigation likely to last four weeks or more.


Mr Maton said the Commercial Court was one of the most pro-active at managing cases and encouraging parties to settle. The court is currently preparing amended guidance to promote the use of alternative dispute resolution after a Commercial Court judgment has been given, before parties incur the expense of preparing for a Court of Appeal hearing.


The court had nine judges at its


disposal for most of the year, and was strengthened by the appointment of Mrs Justice Gloster last summer. The ongoing action brought by the liquidators of bank BCCI against the Bank of England occupied one judge for an entire year.