The number of large scale commercial disputes has increased “significantly” in the last three years, according to law firm Eversheds.

In a report Eversheds says corporate entities with sales topping £1 billion generally had between two and five disputes since 2011.

But 16 per cent of these firms had more than 10 disputes. The figures hint at a more litigious corporate world.

Most disputes were about recovering financial loss, but managing reputation was also a driving factor.

"The solution to this impasse is not new: insistence on a contractual, multi-tier dispute resolution clause, combining negotiation, mediation and, as a last resort, litigation or arbitration,” said Professor Renato Nazzini, professor of law at King’s College London and co-author of the study.

He added: “Such clauses ensure that neither party can initiate proceedings without an attempt to negotiate and mediate the dispute.”