Law firm Hammonds in Birmingham is warning the construction sector in the West Midlands that the way courts deal with litigation costs could be about to significantly change.
That's according to Jeff Brown, a construction partner, who predicts that cost capping orders are likely to have a major impact on how disputes are resolved and how parties approach dispute resolution.
Approximately five years ago such orders were introduced into the UK's legal system in group litigation cases. These orders gave judges the power to limit the parties' recoverable costs at different stages along the way.
Now it seems that cost cap-ping orders may become more mainstream and are predicted to have a big impact on the construction sector, which is notorious for disputes.
Mr Brown said: "If what we are predicting comes to fruition it could eventually lead to a reduction in deep pocket litigation cases in the construction sector."
But he warns that it could be a double-edged sword for both claimants and defendants.
He went on: "Defendants could find that they are no longer able to fight a dispute in court by relying on a bottomless pit of money and grinding a claimant into submission."