The current economic slump will lead to an increase in lawsuits against U.S companies in the upcoming year, according to a latest litigation trends survey released on Thursday by Houston-based law firm Fulbright & Jaworski LLP.
The survey, initially launched by Fulbright in 2004, is the largest canvas of corporate counsel on litigation issues and trends.
“Generally, litigation rises in an economic downturn, as regulators tend to step up enforcement, laid-off workers head to court and companies need to file more suits in order to collect on money owed,” said Stephen C. Dillard, who heads up Fulbright's global litigation practice.
The latest litigation trends survey was conducted from May through July of 2009, and covers litigation practices over the prior 12-month period.
Fulbright hired Houston-based research firm Greenwood Associates to conduct the survey. Greenwood polled 408 corporate counsel from public and private companies in a variety of industries and revenue brackets.
"Some 83 percent of the attorneys surveyed said their companies had been sued in the past year, up from 79 percent a year ago. The number who expected litigation to further increase — 42 percent — was also up over last year’s number — 34 percent," said Fulbright & Jaworski L.L.P., one of the largest law firms in the United States with nearly 1,000 attorneys and more than 50 integrated practice areas.
Earlier Fulbright survey found that insurance companies were most vulnerable to litigation — with at least 66 percent of these firms facing six or more new lawsuits. Next was the retail industry, with 55 percent of this sector facing at least six new lawsuits.
These top targets were followed by manufacturing, with 54 percent of the companies facing six or more new lawsuits, and health care providers, with 52 percent of its businesses facing at least six new lawsuits.
Founded in 1919, Fulbright & Jaworski L.L.P. has developed to an international law firm serving the needs of businesses, governments, non-profit organizations and individual clients in 16 countries and regions.
