Italy: A Litigation: Elite Overview

Italy’s civil litigation landscape is undergoing significant transformation. Over the past two years, Italy has seen a surge in collective redress mechanisms, a rise in litigation derived from inflation and sanctions, including supply chain litigation, the emergence of ESG-driven disputes, and third-party funders have begun to view Italy as an emerging opportunity for litigation finance. These developments are unfolding alongside procedural reforms and digital innovation aimed at improving court efficiency.

Below is a snapshot of the key trends shaping civil litigation in Italy and their implications for clients operating in Italy.

Expanding Use of Collective Litigation in Italy

Class actions are becoming a much more common feature in the Italian litigation landscape. In 2021 a reform became effective, which broadened standing and expanded the scope of admissible claims. As a result, nearly 100 class and representative actions were filed in 2025, with a steep increase compared to 2024.

These cases range mostly between consumer finance, technology, and product liability. Notably, Italy’s largest consumer class action to date, the diesel emissions case, was settled in 2024. Courts have also admitted high-profile suits, such as one against a carmaker over defective airbags, reinforcing the judiciary’s openness to collective redress.

For clients, this trend signals a need for enhanced compliance and early dispute resolution strategies. Businesses with large consumer bases should anticipate increased exposure to collective litigation and consider proactive engagement to mitigate reputational and financial risks.

Emerging Opportunities in Litigation Finance

While litigation funding remains relatively underdeveloped in Italy compared to other jurisdictions, interest in third-party funding is gradually increasing, particularly in the context of collective actions and high-value commercial disputes. Although Italy lacks a comprehensive legislative framework on the matter, litigation funding is permitted under current law, with specific provisions in areas such as insolvency and arbitration offering useful reference points.

Clients considering third-party funding should conduct careful due diligence and seek legal advice to assess the suitability and potential implications of funding arrangements in the Italian context.

Rising Disputes in Projects, Supply and Distribution Chains

Economic volatility, persistent inflation, as well as geopolitical instability, including sanctions regimes and trade restrictions, have contributed to a marked increase in disputes across project execution, supply and distribution chains.

Many companies are increasingly seeking to renegotiate or exit long-term contracts, citing force majeure or hardship (eccessiva onerosità) under Italian law to address unforeseen cost escalations or disruptions in performance. Multi-tier supply chains have also generated complex litigation, with parties seeking to shift liability up or down the chain.

Clients are advised to review contract terms carefully, particularly around termination rights, price adjustment and risk allocation mechanisms, to ensure resilience in the face of ongoing macroeconomic and geopolitical uncertainty.

ESG Litigation Becomes a Strategic Priority

ESG issues are increasingly going to court litigation. In 2025 Italy’s Supreme Court allowed a landmark climate change lawsuit to proceed against a major energy company, while lower courts addressed labour exploitation in supply chains, with some companies placed under judicial administration for failing to monitor subcontractors. Consumer associations are also challenging greenwashing and misleading sustainability claims.

Although the number of ESG-related cases remains limited, these developments underscore the growing legal relevance of ESG compliance. Companies operating in Italy should ensure robust environmental and social governance frameworks are in place, as stakeholders are increasingly willing to pursue legal remedies for perceived shortcomings.

Sector-Specific Litigation Trends

Banking and financial services continue to generate significant disputes, including in relation to wealth management, mis-selling of complex financial products, and legacy issues linked to interest rate benchmarks such as LIBOR and EURIBOR (where the European Court of Justice is expected to set the new standard for follow-on claims in Q2 2026). On the corporate side, shareholder disputes, directors’ liability actions, and post-M&A litigation are among the most active areas, often involving issues of governance, valuation, and earn-out mechanisms.

These cases are typically fact-intensive and may involve parallel arbitration or cross-border elements, requiring careful coordination and strategic planning.

Increased Efficiency Under Italy’s Procedural Reform Agenda

The “Cartabia Reform”, implemented in 2023, introduced changes to civil procedural rules aimed at reducing delays and improving case management. Key measures include stricter timelines for pleadings, a simplified trial track for straightforward disputes, and expanded mandatory mediation. Judges are now required to hold early case management hearings and encourage settlement where appropriate.

While early data suggests some improvement, the system remains slow due to structural issues, particularly the shortage of judges and administrative staff. Parliament has taken steps to address these gaps and bring Italy closer to the European average in terms of judicial capacity, but the full impact of these efforts will take time to materialise.

Technology Enhances Judicial Administration

Digital transformation has complemented procedural reform. Electronic filing and certified email (PEC) communications are now standard nationwide, improving transparency and reducing administrative delays. Courts are increasingly using videoconferencing and taking practical steps to improve efficiency (eg, replacing “procedural” hearings with rounds of short, written submissions).

Notably, the Ministry of Justice launched a pilot programme in late 2025, providing 1,000 judges with access to Microsoft Copilot, an AI-powered assistant. The tool is used strictly for administrative support (such as drafting routine documents or summarising case files) and operates within a secure, closed system. Judges retain full decision-making authority, and participation in the programme is voluntary.

These developments reflect a broader shift towards a more efficient and technologically enabled judiciary. For clients, the reforms mean faster case progression, greater predictability, and improved access to justice. However, they also require parties to approach litigation with great preparation and attention, in that the Cartabia Reform (i) demands greater upfront effort, with parties required to complete up to four rounds of written submissions within three to five months before the first hearing, (ii) reduces procedural flexibility (for example, limiting the ability to introduce new evidence or arguments at later stages of the proceedings), and (iii) increases cost exposure, as the losing party is more likely to bear a greater share of legal fees under the updated cost allocation rules.

Judicial Framework Remains Stable

In March 2026, Italian voters rejected a constitutional referendum that proposed separating the careers of judges and prosecutors and restructuring the judicial council. The outcome preserves the current unified magistracy and signals continuity in the judiciary’s institutional framework.

For litigants, the referendum’s defeat means that structural changes are off the table for now. The focus will remain on incremental improvements through legislative and administrative measures, such as continued investment in court staffing and refinement of procedural rules.

Strategic Considerations for Litigating in Italy

The Italian litigation environment in 2026 is marked by both opportunity and complexity. Procedural and digital reforms are beginning to deliver tangible improvements in court efficiency, while new forms of litigation, particularly in the areas of collective redress and ESG, are reshaping the risk landscape.

Clients operating in Italy should adapt their legal strategies accordingly. Early case assessment, robust compliance frameworks, and readiness for alternative dispute resolution are increasingly essential. As the system continues to modernise, those who engage proactively with the evolving litigation landscape will be best positioned to navigate disputes effectively and protect their interests.

Lastly, although this overview focuses on civil and commercial litigation, it is worth noting the following:

• Arbitration remains a widely used alternative dispute resolution mechanism, especially in cross-border commercial and M&A disputes, as well as mandatory mediation, which was expanded under the Cartabia Reform. Both arbitration and mediation play an increasingly important role in reducing court congestion and encouraging early settlement in civil and commercial matters.
• Criminal proceedings, particularly those involving corporate liability, financial misconduct and tax-related offences such as undeclared permanent establishments, continue to attract significant attention in Italy, and it is not uncommon for some of these criminal cases to represent a parallel track to damages claims before the civil courts (eg, in the field of securitisations of healthcare receivables).