04/11/09
Firm reaps benefits of rise in lawsuits
UK businesses are bracing themselves for a big year of court cases with two in five businesses anticipating an increase in legal disputes in the next 12 months, according to latest research.
And in Wales a business litigation firm says it is experiencing growth in the area as the recession drives more businesses into court battles.
Cardiff and London-based Capital Law has seen a 40% increase in litigation work over the past year, which it attributes to more firms in difficult financial circumstances becoming embroiled in conflict with customers, suppliers and employees.
Fulbright's Sixth Annual Litigation Trends Survey Report shows that almost three-quarters (73%) of businesses said that they had at least one lawsuit commenced against them during the past year. The most frequent type of litigation concerned contracts - 41% - followed by employment and labour issues - 36% - and personal injury -23%.
Chris Nott, Capital Law senior partner and head of the commercial disputes team, said: "An economic downturn usually leads to an increase in legal disputes as companies are more likely to pursue contract breaches and less likely to be in the financial position to settle out of court where disputes arise.
"We are seeing an increasing number of cases that would previously have been settled before a court hearing now going all the way because both parties have no choice but to pursue their case and hope for outright victory.
"To meet this rising demand for specialist litigation lawyers our team has already grown and we foresee this upward trend continuing over the next 12 months."
