UK Firms Settle Early To Avoid Litigation, Survey Reveals

by Robin Pilgrim, LawAndTax-News.com, London

02 February 2005

According to the most recent edition of the Legal Director Benchmarker Survey, conducted by the Legal Week news service in association with law firm Barlow Lyde & Gilbert, companies in the United Kingdom are increasingly likely to settle disputes early in order to avoid lengthy litigation.

The poll revealed that 32% of the in-house lawyers questioned have settled more than 90% of the cases that their companies have faced in the last five years.

26% of those questioned also stated that between 71% and 100% of their companies' cases have been settled in the past year alone.

The majority of the in-house counsel who participated in the survey felt, however, that a 'claims culture' is increasingly taking hold in the United Kingdom, and that the early settlement of cases is at least partly to blame.

The survey also revealed that mediation is growing in popularity as an alternative to litigation. However, BLG litigation partner, Simon Willis explained to Legal Week that:

"An important part of advising any client is deciding which claims are appropriate for mediation and which are not. It would be unfortunate if it became another inevitable and costly part of the litigation process."

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