In-house lawyers expecting a surge in legal disputes amid wage and union pressures
Businesses are anticipating a rise in legal disputes, however, they need to also be prepared for the rising costs of litigation.
A report by law Firm Shoosmiths stated that 82 per cent of in-house senior lawyers expect an increase in spending on dispute resolution over the next three years.
Those surveyed say they will consider third-party litigation funding, will restrict their cross-jurisdictional reach and will handle more disputes in-house.
However, the data marked a difference in appetite for third-party funding between different sectors such as those in the tech sector were more keen than those in fainancial services businesses.
The report also noted that more than three in four general counsel are expected to increase the headcount of their teams.
This comes on the back of a large proportion (82 per cent) of these respondents have said they anticipated more disputes over the next three years. Companies have becoming increasingly more concerned about environment, supply chain and employment disputes as well as group litigation.
Employment disputes topped the list of potential dispute concerns for business as the report noted this was “unsurprising”. The report stated: “Significant pressure on wages owing to inflation and recessionary threats have given rise to more union activity and strike action in recent times.”
The firm surveyed 360 general counsel that worked for companies with revenues exceeding £100m.
The report highlighted that there is a broad agreement between company boards and their legal teams on emerging areas of risk. Most general counsel have a feeling that their organisations can deal well with disputes at every level.
Focusing on sector trends the report quotes data that shows that the financial services have the highest number of disputes, with regulatory activity a particular theme.
While in the automotive sector, group claims have reduced in the past year after a spike (likely resulting from the emissions group actions).
Commenting on the report, Alex Bishop, partner and head of dispute resolution and litigation at Shoosmiths said: “We hope our report will help businesses to prepare for the inevitable disputes that will arise, and to minimise the associated costs, risks and reputational damage.”