Legal Business

Leader: A challenging time for disputes teams in a polarised market

The return of our Disputes Yearbook finds the wider outlook for contentious work considerably changed over the last 12 months. The flood of disputes that were not so long ago carrying along pretty much all vessels has receded on both sides of the Atlantic. Limitation periods have dramatically slowed the flow of litigation linked to the banking crisis, while rising business confidence has turned the mind of executives to deal-doing rather than cleaning up old messes. It is a more challenging time for the run-of-the-mill disputes team.

Nevertheless, it remains a more-than-respectable environment in which to ply the services of high-end disputes shops. Even if the march of more proactive enforcement and regulation across many sectors has paused for breath, the long-term trends show no suggestion of abandoning the global-wide push towards a more regulated business environment. The creeping extension of corporate liability and the vogue for developing economies to start clamping down on at least the most flagrant corruption look set to continue for years to come.

Unsurprisingly, as the Serious Fraud Office this summer secured a much-touted first conviction for Libor manipulation, these remain busy times for banking disputes and regulatory teams. As knowledge-heavy and technology-driven industries take up larger slices of economies, IP litigation obviously benefits. The arbitration boom continues with little apparent reference to business cycle, meanwhile, even as its emergence in the headlines brings fresh controversy for affecting policy-making and corporate users grumbling ever louder about rising costs and delays. Falling energy and commodity prices and the current re-allocation of investment from developing economies to western markets will stoke further disputes.

Still, in comparison to recent years, the consensus is that the market is currently polarising in favour of leading litigation teams to the detriment of those handling mid-range work. Notably, in a slightly softer market there was no evidence of slowing momentum at the leading disputes boutiques that have emerged in the UK and US.

If one thing hasn’t changed it is the confidence in London’s position as a global dispute resolution centre, which is viewed as strengthening in recent years even amid concerns regarding rising court fees and the pipeline of talent into the judiciary (though the latter issue looks certain to become a more pressing matter in the years ahead).

These are all issues addressed in the 2016 Yearbook but for our cover feature we focus on the individuals set to shape the litigation and arbitration market of the future as we report on the standout young partners at the major disputes teams in London. Challenges aside, it is undoubtedly a great time for such practitioners to be establishing their names.

alex.novarese@legalease.co.uk

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