Font Size: 
In-House Counsel See Litigation Spike in Next Year
The National Law Journal
October 16, 2008
Corporate in-house counsel anticipate a litigation spike next year to reverse a two-year dip in lawsuits and regulatory proceedings, according to Fulbright & Jaworski's 2008 Litigation Trends Survey.
Among U.S. respondents to the fifth annual survey, 34 percent expect an increase in lawsuits involving their company and 25 percent anticipate more regulatory proceedings.
In contrast, only 8 percent of U.S. survey participants foresee a decline in legal disputes in the coming year.
The results illustrate the shift from a long period of prosperity to the start of "a period of serious economic challenge that is likely to fuel litigation over who is to blame and who should pay for the consequences," said Stephen C. Dillard, who chairs the global litigation practice at Fulbright.
Companies' worries about lawsuits varied according to the company's size, region and whether the firm is public or private.
Smaller companies, for example, indicated more concern about securities, insurance and real estate litigation than middle-market companies or companies with at least a billion dollars in revenue. Private companies worry more about contract, labor and personal injury lawsuits than public companies.
Lawsuit fears also vary across the United States: California companies have qualms about employment cases; Northeastern companies worry about environmental cases; and Southern companies expressed concerned about class actions and products liability lawsuits.
The survey responses indicate that lawsuits filings ultimately vary by industry.
During the past year, two-thirds of insurance companies reported at least six new lawsuits, followed by 55 percent of retail companies.
Manufacturing companies were the third most sued industry, with 54 percent facing six new claims. Health care providers followed closely behind with 52 percent reporting a half dozen new cases.
Two industries were far less likely to face multiple lawsuits in one year.
Thirty-seven percent of financial services companies reported six new lawsuits compared with 30 percent of technology firms.
Companies expect to add in-house litigation expertise to handle the higher anticipated case volume. Nineteen percent of survey respondents expected to increase hiring, compared with only 2 percent anticipating a litigation staffing decrease.
Business research firm Greenwood Associates conducted the survey of 358 in-house counsel in the United States and United Kingdom.
