A series of landmark English court rulings in 2025 sets new parameters for litigation in 2026
A succession of major English court decisions in 2025 has reshaped key areas of litigation, providing important guidance for businesses and legal practitioners as they move into 2026. Judgments handed down by the Commercial Court, the Supreme Court and the Privy Council addressed issues ranging from fraud and good faith to privilege, arbitration, environmental liability and collective actions, reinforcing the courts’ emphasis on clarity, accountability and contractual certainty.
Set out below are the principal rulings that defined UK litigation during the year 2025.
1. Commercial Court Dismisses Fraud Allegations in Vatican Property Case
In Athena Capital and others v Secretariat of State of the Holy See [2025] EWHC 355 (Comm), the Commercial Court upheld the validity of agreements arising from the Vatican’s 2018 purchase of a London property at 60 Sloane Avenue. The court rejected claims of fraud, dishonesty and conspiracy but declined to grant a declaration that the claimants had acted in good faith. Mr Justice Knowles concluded that aspects of the claimants’ conduct lacked frankness and fell short of acceptable standards, while confirming that the transaction itself remained lawful and enforceable.
2. Privy Council Abolishes the Shareholder Rule
The Privy Council brought an end to nearly 140 years of legal authority in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd (No 2) [2025] UKPC 34 by abolishing the “Shareholder Rule”. The ruling confirmed that companies are entitled to assert legal advice privilege against shareholders, aligning the law with the principle of separate legal personality and removing a long-standing exception to corporate privilege.
Embed from Getty Images3. Law of Deceit Clarified Through Subconscious Reliance
In Credit Suisse Life (Bermuda) Ltd v Ivanishvili [2025] UKPC 53, the Privy Council clarified that a claimant does not need to demonstrate conscious awareness of a misrepresentation to establish deceit. The Board held that inducement may be established where a misrepresentation influences conduct at a subconscious level, provided causation and resulting loss are proven. The decision departed from recent English authority and clarified the correct approach to reliance on deceit claims.
4. Supreme Court Rejects Deemed Fulfilment Doctrine
The Supreme Court unanimously held in King Crude Carriers SA v Ridgebury November LLC [2025] UKSC 39 that English law does not recognise the doctrine of deemed fulfilment of contractual conditions precedent. Where fulfilment is prevented by breach, the appropriate remedy lies in damages rather than a debt claim. The judgment reaffirmed a strict approach to contractual interpretation and formally rejected the long-debated Mackay v Dick principle.
5. High Court Finds BHP Liable for Brazilian Dam Collapse
In Município de Mariana v BHP Group (UK) Ltd [2025] EWHC 2935 (KB), the High Court found BHP liable under Brazilian law for the collapse of the Fundão tailings dam in 2015. The court held that BHP exercised sufficient control over its joint venture, Samarco, to give rise to liability. The assessment of damages remains outstanding, with potential exposure running into tens of billions of pounds.
6. Assignment of ICSID Awards Barred
The High Court ruled in Operafund Eco-Invest SICAV plc & Schwab Holding AG v Kingdom of Spain [2025] EWHC 2874 that arbitration awards issued under the ICSID regime and the Energy Charter Treaty cannot be assigned to third parties. Enforcement in England is restricted to the original investor, placing England at odds with approaches adopted in some other jurisdictions.
7. Anti-Suit Injunction Refused in Cross-Border Dispute
In FH Holding Moscow Ltd v AO UniCredit Bank [2025] EWHC 3111 (Comm), the High Court declined to grant an anti-suit injunction in relation to foreclosure proceedings in Russia. The court held that the dispute fell within a separate mortgage agreement governed by Russian law and emphasised principles of comity and the parties’ contractual allocation of jurisdiction.
8. Third-Party Enforcement Confirmed in Loan Case
The High Court confirmed in HNW Lending Ltd v Lawrence [2025] EWHC 908 (Ch) that a non-party could enforce a £1.52 million loan under the Contracts (Rights of Third Parties) Act 1999. The decision underlined the significance of careful drafting in finance and security arrangements.
Taken together, these rulings demonstrate a judiciary unwilling to dilute established legal principles, while remaining equipped to manage complex, cross-border and high-value disputes. As 2026 unfolds, the decisions are set to continue shaping litigation strategy, risk management and contractual drafting across the UK legal market.