Your client’s litigation spending is anything but uncertain in this uncertain economy.
Litigation is set for its 3rd year in a row of increased spending. Granted it’s more selective than in the last 2 years — and law firms will have to work harder to capture it — but those who do will be handsomely rewarded.
We just released BTI Litigation Outlook 2023: Litigation Spending in the Uncertain Economy and Beyond, based on more than 350 in-depth client interviews. Here are 8 of the key trends:
1. Just over 10% of clients plan to cut their litigation budgets — the majority won’t
Litigation issues are too compelling to withstand reduced spending. The range of issues combined with increasing urgency leaves few clients in a position where they can decrease spending.
2. Caseload growth fuels relentless demand
Reversing last year’s trend, the growth in the litigation caseload exceeds the increase in spending. New spending dynamics invite alternate fees and demand more budget scrutiny. More and more law firms are offering advanced budget monitoring tools to help gain an edge over other law firms.
3. New types of litigation popping up — grabbing client mindshare and budget
Clients are experiencing new types of litigation issues including backlash from social media posts, ESG, workplace dynamics, and the highest union activity in more than 40 years. Law firms are the only place where clients can gain access to such a wide range of resources to deal with each of these issues simultaneously. Not to mention state-level initiatives to regulate data privacy.
4. Covid 19 Litigation is old news
The new cases are unrelated to COVID-19. They may hold a large place in the backlog — but client radar is attuned to learning about and preparing for the new matters today and those to come.
5. Union strikes are up 70% and approval is at a 57-year high
The Cornell IRL reports 180 strikes in the first half of 2022 compared to 102 in the same period in 2021. Gallup reports public approval for unions is at a 57-year high. Clients are forming task forces and teams to prepare. They are looking for law firms to be part of these teams.
6. Workplace issues are approaching a new high
Whistleblowers, investor scrutiny, and public scrutiny are all keeping a keen eye on workplace cultures. Any sign of a hostile, discriminatory, or unjust culture is bringing unwanted litigation and attention. Workforce litigation is having an impact on company valuations and litigation risk. It is receiving the highest priority it has ever received.
7. In-house turnover is impeding progress
Corporate counsel departments face the same turnover rates as law firms. Unlike law firms who can move lawyers around — corporate counsel suffer more delays on cases or higher costs as outside counsel fills the void.
8. 5 areas of litigation commanding premium rates
The impact of the new and higher-risk litigation drives clients to pay more for help in these areas. Clients will still negotiate their rate but are prepared to pay measurably more in the new and more acute areas. Targeting their top needs helps clients and positions you for more work with these same clients.
You can learn exactly where clients are spending their money and see the law firms best positioned to help them — by name — in 8 key segments of litigation in BTI’s just-released BTI Litigation Outlook 2023: Litigation Spending in the Uncertain Economy and Beyond.
You can discover the new business development tactics working in the uncertain economy and how clients are spending their litigation dollars in 2023 for 8 segments and 18 industries.
More than half of clients are increasing their litigation budgets despite what the pundits say about next year. Learn where and how they will spend it. Order today.
Best in the market ahead.
The Mad Clientist