Senior corporate counsel are looking for ways to control their litigation costs following a surge in court actions, regulatory proceedings and arbitrations.
The annual Litigation Trends Survey by Fulbright & Jaworski International LLP reveals a sharp rise in activity. Nearly one-third of UK businesses say they faced a regulatory proceeding in the last year, compared with nine per cent in the previous survey. Respondents say they expect this trend to continue.
Lista Cannon, managing partner of Fulbright’s London office, says: “The potential ramifications of a regulatory investigation can be extremely severe on both sides of the Atlantic.
“Recently, businesses have been subject to increasingly large fines. Senior management are under close scrutiny and face significant criminal penalties. Regulatory proceedings can also adversely affect a company’s share price and increasingly are a precursor to litigation against the company.”
Half of UK companies say they have had at least one court action commenced against them in the previous year, and 16% of UK companies say this involved more than US$20m. One in four (26%) businesses say they expect an increase in legal disputes in the next 12 months.
Nearly one-third of UK companies have had an arbitration commenced against them and one-quarter have filed an arbitration proceeding in the last year, more than double the number in the previous year.
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