UK plc is bracing itself for a rash of legal disputes, say Chris Warren- Smith & Ian Pegram
While predictions abound about the impact of recent economic turbulence, Fulbright & Jaworski LLP’s fifth annual Litigation Trends Survey confirms that businesses expect their litigation exposure to rise over the next year.
The survey, which canvassed the views of over 300 senior corporate counsel, including 100 from the UK, revealed that nearly one in three businesses anticipate an increase in the number of legal disputes (including 43% of large businesses). Only one in 12 expect a decrease.
Litigation
Inevitably, businesses in the financial services sector are feeling most vulnerable in expecting increased litigation. However all sectors seem apprehensive. Significant numbers in the healthcare, retail/wholesale and insurance industries share those fears. While the expected wave of sub-prime cases has yet to materialise in the UK, this may be explained by financial institutions preferring behind-the-scenes negotiation to avoid reputational fallout.
Two-thirds of UK respondents expect greater numbers of disputes arising out of contractual agreements. Businesses will be well-served to monitor closely their contractual requirements. A significant proportion of in-house counsel
