Study Commissioned By Fasken Martineau's Litigation & Dispute Resolution Group
Fasken Martineau commissioned an independent research firm, Pollara Strategic Insights, to conduct a benchmarking survey of 300 in-house counsel and senior executives across Canada from companies with 50 or more employees. The purpose of the study is three-fold:
- To develop an in-depth understanding of the current litigation landscape in Canada;
- To determine how many companies employ outside law firms and how satisfied they are with their current firms; and,
- To better understand what factors would cause companies to switch outside legal firms.
Highlights From The Study
- Contrary to the common view that Canada is not a litigious country, the survey results show that over 40% of the respondents have had at least one legal dispute commenced against their company in the last year. Among the companies that were sued, the study shows an average of 8.3 disputes per year.
- The number of companies that have initiated a dispute is also notable (29%). Among the companies that have initiated a dispute, the average number of disputes they have commenced is four.
- The clear majority of the respondents indicate that the level of litigation has been steady in terms of the number of disputes commenced against them and the number disputes that they have initiated in the past year.
- There are significant regional differences in the data. Companies in Ontario and in the western provinces have seen the greatest number of disputes commenced against them in contrast to Québec and the Atlantic provinces. Companies in Québec have filed the fewest number of disputes and companies in Ontario have filed the greatest number.
- Labour and employment related legal disputes followed by contract, personal injury and product liability rank the highest on the list of litigation concerns for companies in Canada in the survey.
- Satisfaction with the outside law firms employed by companies for litigation is common across Canada, including over 50% who are very satisfied and 44% who are somewhat satisfied. Satisfaction is consistent across all regions.
- While companies tend to be loyal to the firms they have chosen, there are factors that would cause companies to switch legal providers. Of the factors that would drive businesses to change their current law firms, poor responsiveness and service are the most noteworthy. The odds of switching law firms is higher when their current firm fails to deliver on results and expertise, more so than if a new firm is more capable in meeting these criteria. Significantly, cost is the least important factor for companies when it comes to switching outside law firms.
Copies of the 2008 Litigation Trends in Canada Study can be found online at www.fasken.com/litigation-trends-2008.
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