Litigation in 2026: what accountants need to know

Litigation risk is creeping closer to the finance function. Lorna McAuliffe explains why accountants are now crucial to identifying disputes before they escalate

Accountants are often the first trusted advisers in the room.

Long before a client calls a solicitor, they will raise an issue with an accountant.

A supplier relationship starts to deteriorate. A landlord becomes difficult. A former employee begins to hint at a claim. A customer suggests legal action. Or a business has made public environmental, social, and governance (ESG) commitments and now feels exposed.

The numbers might still look fine, but you can sense risk building in the background.

In 2026, litigation risk in Ireland is changing shape. Court processes are being modernised. Expectations regarding governance are rising. Businesses are being held to higher standards in how they document decisions and stand over public statements.

We are seeing a more structured and front-loaded litigation environment. Businesses have less time to react once a dispute begins, so preparation and documentation matter more than ever.

For accountants in practice and in industry, an awareness of these developments is useful. Not because you need to become legal advisers, but because clients will increasingly expect you to be able to identify the early warning signs and guide them towards sensible, proportionate action.

A changing system, and earlier pressure

Civil litigation reform in Ireland is moving disputes towards earlier clarity, structure and disclosure.

In practice, litigation is becoming more front-loaded. Key documents, emails, contracts and internal decisions may need to be produced quickly once a dispute begins. Businesses that are informal in documenting decisions could find themselves at a disadvantage earlier than expected.

Very often, the outcome of a dispute is shaped by what a business can show in the first few weeks. If the records are clear and consistent, the commercial conversation is very different.

For accountants, this directly links to governance and record-keeping. It is no longer simply best practice.

Accountants are not always on the sidelines

It is worth noting that accountants are not always advising from a distance.

In a more front-loaded litigation environment, professional advisers can find themselves drawn into disputes earlier, whether through requests for records, witness evidence or third-party disclosure.

In some situations, accountants may also face fee disputes or allegations arising from wider commercial or shareholder conflict.

When a business relationship breaks down, it is not unusual for professional advisers to be drawn into the dispute. Good documentation and clear engagement terms can make an enormous difference if questions arise later.

This is not about anticipating problems, but about recognising the signs of risk before they happen. Clear engagement letters, strong file discipline and consistent documentation support both client outcomes and professional protection.

ESG is now a litigation issue

For many organisations, ESG has been framed primarily as a reporting and compliance challenge—this is changing.

Regulators, investors and advocacy groups are increasingly prepared to test ESG commitments through legal channels.

Public statements, sustainability claims and governance frameworks can all come under scrutiny. Where there is a gap between messaging and evidence, litigation risk increases.

If a company is making commitments publicly, it needs to be able to stand over them internally. Litigation risk often arises where there is a gap between messaging and evidence.

Accountants are already advising clients on frameworks, disclosures and internal controls. It is worth remembering that inconsistencies may carry legal, as well as reputational, consequences.

Contract disputes remain the everyday reality

Disputes still begin in familiar places: contracts, property, payment, performance or commercial relationships that deteriorate over time.

Often, the early signs of trouble are commercial rather than legal, and they appear in day-to-day operations before any formal action is taken.

Most disputes do not start in court; they start with frustration. The earlier a business steps back and assesses its position calmly, the more options it usually has.

For accountants, those early commercial pressure points are often visible first.

Reputation risk is sharper than ever

Defamation reform and the realities of online communication mean reputational issues can escalate quickly.

A poorly judged public response, an unguarded comment or an internal issue becoming external can create both legal and commercial risk.

For many clients, reputational damage is the real cost, even before legal fees or management time is considered.

Sometimes, the most valuable intervention is not aggressive action, but clear advice on proportionality. Not every dispute belongs in court, but every dispute benefits from a strategy.

This focus on proportionality and commercial outcome is particularly relevant for owner-managed businesses, where cost, time and reputation are all at stake.

What accountants can watch for

In day-to-day client conversations, accountants may notice:

• A dispute that begins as “a misunderstanding” but keeps resurfacing;
• Informal arrangements with limited written evidence;
• Vague contractual terms around termination, pricing or scope;
• ESG claims that are not supported by internal documentation;
• Growing tension with landlords, suppliers or former employees; or
• Difficulty producing a clear paper trail when challenged.

These are not legal conclusions. They are commercial signals and they can be valuable prompts for earlier, more structured risk management.

Where legal expertise fits

For accountants, this is not about learning litigation procedure. It is about understanding how the environment is shifting and recognising when early legal input may protect a client’s position.

Early clarity almost always improves the commercial outcome. Even a short conversation at the right time can prevent unnecessary escalation.

This early clarity may be one of the most valuable safeguards a business can have, and a practical way to protect commercial value before positions harden and costs increase.

Lorna McAuliffe is Head of Insurance and Litigation at Whitney Moore