Key Point
- Economic conditions, court decisions, and a new Federal
Government all will generate changes.
1. Economic downturn triggers a rise in
litigation
As the economy slowed in 2008, litigation departments became
increasingly busy. Demand for litigation has traditionally been
counter-cyclical. The conventional wisdom is that in boom times,
failed deals are simply put down to the cost of doing business but
when the economy comes off the boil, companies are more likely to
litigate. With deals scarce on the ground, companies are more
inclined to take action to recover their losses.
In addition to advising on failed deals, litigation teams have
been kept busy by insolvency-related litigation and actions mounted
by aggrieved investors, unaccustomed to margin calls and investment
losses.
