After the storm

Internal investigations

Businesses are also carrying out increased numbers of internal investigations. Two in five businesses, both UK and US, sought assistance from outside counsel with internal investigations in the past year. As the need for these investigations inevitably increases in line with the current downturn in the economy, and the closer scrutiny from government and their regulators, businesses should prepare strategic policies for carrying out this type of investigation, including having in place the appropriate financial and management resources to limit the impact on their day-to-day business.

Conclusion

The calm economic waters of 2007 have been replaced by the storm of 2008 that shows little sign of blowing over just yet. Consequently, sharp increases in litigation are yet to be seen. However, leading corporate counsel on both sides of the Atlantic expect marked changes in the number of actions their businesses will face over the next year.

The fallout from unprecedented events such as the sub-prime collapse, the insolvency of Lehman Brothers, the turmoil of the Icelandic banks and the part-nationalisation of leading banks means that the financial services sector is likely to experience the greatest impact, in volume of disputes and more intense regulatory interest from the UK and overseas.

Chris Warren-Smith is a partner and co-chair of Fulbright & Jaworski International LLP's global litigation practice and Ian Pegram is a professional support lawyer in the disputes practice for the same firm