Monday, April 21, 2014

Companies Spending More on Regulatory Enforcement Legal Work

Businesses in Texas and across the country are spending more money on legal fees to fight high stakes litigation and deal with a growing number of local and federal agency enforcement actions. 

Norton Rose Fulbright's recently released 10th annual Litigation Trends survey indicates 71% of corporations spent $1 million or more on litigation costs in 2013, up from 53% the two previous years.

More than 26% of companies saw their litigation legal costs exceed $10 million last year.  Median costs for Texas businesses in 2013 exceeded $2 million and 20% of energy company GCs polled said they spent $10 million or more on legal costs.

It is reported an increasing amount of discovery in business-to-business litigation focuses on communications made from mobile devices and social media.

General counsel at health care and energy companies reported the highest litigation costs.  More than 1/3 of the companies surveyed said they now employ five full time lawyers in-house to work exclusively on litigation matters.  Sixteen percent of Texas corporations reported they will add litigators to their legal department staffs in 2014, while less than 1% said they plan to decrease the number of lawyers they have working on litigation matters.

Click here to download the full report.

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