The overall increase in litigation, including frivolous lawsuits, was the top concern cited by UK corporate counsel, in Norton Rose Fulbright’s 2015 Litigation Trends Annual Survey, conducted by Acritas, a global legal services market business research firm.
The global firm’s 11th survey, published last week, polled more than 800 corporate counsel representing companies across 26 countries on disputes-related issues and concerns. UK respondents reported increased regulatory pressures and a rise in banking and financial litigation. Class action lawsuits were the main concern of counsel in the US, Canada and Australia.
Nearly one quarter of respondents from the UK (23%) had faced more than five lawsuits in the previous 12 months. Just 42% of UK respondents reported no lawsuits in the previous year.
UK counsel prefer alternative fee arrangements (AFAs) such as capped fees, fixed fees or blended rates. Conditional fee arrangements have become more popular, with 22% compared to 9% in 2012 preferring this method. More than a third predicted their use of AFAs to increase.
Cross-border disputes, particularly those of a regulatory nature, are also on the upswing, according to 48% of UK respondents, the highest figure of any region.
Deirdre Walker, partner at Norton Rose Fulbright, says: “Regulatory matters and banking and financial litigation are primary concerns for UK in-house counsel.
“Respondents are spending more time on investigations and enforcement proceedings. However, this comes at a time when litigation budgets in the UK are being squeezed and companies are not dramatically increasing their outside counsel rosters. Companies are demanding innovation and expect real value for money with alternative fee arrangements identified as of prime importance.”
