Litigation in 2026: Why More Disputes Are Escalating in Ontario
Litigation in 2026 is increasingly defined by one clear trend – more disputes are progressing further through the legal system instead of resolving early. Across Canada, businesses and individuals are finding it harder to bring conflicts to a quick conclusion, and many matters that once would have settled are now continuing deeper into the litigation process. Court delays, economic pressure, and regulatory uncertainty are all contributing to this shift.
What, Exactly, Does Litigation Look Like in 2026
Before looking at why litigation in 2026 is escalating, it is helpful to understand what litigation involves. Litigation does not automatically mean going to court, it refers to the entire legal process used to resolve a dispute once a formal claim has been started. While litigation can lead to a trial, most cases are resolved long before a judge or jury ever becomes involved.
The litigation process begins when a dispute cannot be resolved informally and one party files a lawsuit. From there, the focus is often on exchanging information, understanding each side’s position, and exploring ways to settle. Negotiation, mediation, and arbitration are common during this stage, and they account for the resolution of most lawsuits. Courtroom proceedings are the exception rather than the rule, even though filing a claim formally starts the litigation process.
A lot of litigation happens before trial. This includes document exchange, questioning witnesses, filing motions, and ongoing settlement discussions. Only if those efforts fail does the matter proceed to court, and even then, not every case reaches a final judgment. In short, litigation in 2026 still primarily takes place outside the courtroom, even as more disputes move further along the process than they once did.
Court Delays Are Pushing Disputes Forward
One of the biggest forces shaping litigation in 2026 is delay within the court system itself. Criminal matters continue to take priority following the Supreme Court of Canada decision in R. v. Jordan, which requires criminal cases to be completed within strict timelines. As a result, civil and commercial cases are frequently postponed, sometimes for years, while parties wait for court availability.
Judicial understaffing has intensified this issue. Ongoing vacancies mean fewer judges are available to hear civil matters, leading to repeated adjournments and uncertainty. When parties cannot access timely decisions, settlement becomes more difficult, and disputes often continue simply because there is no practical path to resolution.
Litigation in 2026 Is Shaped by Economic and Financial Pressure
Economic conditions are also driving the rise in litigation in 2026. Many businesses are finding that their dispute resolution budgets do not reflect current levels of risk. Inflation is another important factor. Rising costs are increasing damage awards, deductibles, and overall exposure. For plaintiffs, the financial impact of delay can feel too high, making the pursuit of a full judgment more attractive than early compromise.
At the same time, global trade uncertainty, tariffs, and supply chain disruption are placing strain on industries such as construction, mining, and energy. These pressures increase the likelihood of contractual disputes and make litigation a more common tool for resolving them.
The Rise of Regulatory and Technology Risks
Regulatory change is adding new layers of complexity to litigation in 2026. Environmental, Social, and Governance claims continue to grow, particularly those involving allegations of greenwashing. These disputes often involve technical evidence, regulatory oversight, and reputational risk, which makes early settlement more difficult.
Technology is also reshaping the litigation landscape. The rapid adoption of artificial intelligence and the increase in cybersecurity incidents have created uncertainty around liability and compliance. In many cases, court involvement is required to clarify legal responsibilities, which pushes disputes further into formal litigation.
Changing Legal Procedures in Litigation in 2026
In Ontario, proposed civil rules reforms aim to resolve cases within two years. While intended to improve efficiency, some practitioners are concerned that requiring evidence and expert involvement earlier in the process could increase upfront costs. When parties must commit significant resources early, settlement discussions may be delayed rather than encouraged.
The Role of Alternative Dispute Resolution
In response to these pressures, alternative dispute resolution continues to play an important role in litigation in 2026. Mediation and arbitration offer speed, flexibility, and discretion that traditional court proceedings often cannot.
Technology, including AI-assisted document review and evidence management, is also being used to streamline these processes. Even with these tools, the broader trend suggests that more disputes are escalating before they are resolved.
Litigation Support from the Boardroom to the Courtroom
If you are considering litigation as part of your dispute resolution strategy, experienced legal guidance is crucial. The experienced litigation team at Gionet Fairley Wood LLP represents clients across Simcoe County, Muskoka, Grey Highlands and surrounding areas. To discuss your situation and better understand your legal options in litigation in 2026, contact us through our website, or call us today at 705-468-1088.
***The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.