Litigation Facts
Tuesday/August/19 20:36 Filed in: litigation | lawsuit
WARNING: Reading this list may cause high-blood pressure, nausea, or uncontrollable tears
WARNING: Reading this list may cause high-blood pressure, nausea, or uncontrollable tears
90% of all companies are currently engaged in a lawsuit.* More than half of all companies have filed a lawsuit in the last year.* Personal injury claims average 358 days of litigation.* 40% of corporate counsel can’t quantify what it will cost to defend a pending lawsuit.* The average company in the U.S. juggles 37 lawsuits at once.* 74% of large companies and 32% of small companies initiated a lawsuit in the past year.* Two-thirds of companies were served with a lawsuit in the past year; one-third of companies received between 6 and 20 summons and complaints.* U.S. companies filed 2.5 times the number of lawsuits as U.K. companies.* When small businesses have been sued, in only 25% of the cases, the small business was able to settle in advance of trial.* More than half of U.S. companies have been to trial in the last year.* The percentage of companies with over 50 lawsuits pending doubled in the past year.** 40% of companies in litigation had lawsuits against them in which more than $20 million is at stake.** Average business litigation expenses increased 50% in the past year – not including settlement or payment of judgments.** Litigation costs represent more than 70% of overall legal spending by the average U.S. business.** The Top 5 Issues resulting in legal dispute are: 1) Labor/Employment matters,
2) Contracts,
3) Regulatory issues,
4) Intellectual property and patents,
5) Class Actions.**
The Top 5 Greatest Concerns that businesses have about pending litigation are: 1) Legal costs,
2) Punitive damages,
3) Complexity of the legal system,
4) Juries,
5) Liberal discovery rules.**
17% of the smallest companies in the U.S. have been in litigation over matters involving $20 million or more.*** The 3 most active U.S. jurisdictions for lawsuits are: 1) California,
2) Texas, and
3) New England.***
Contingency fees are twice as prevalent in the U.S. as elsewhere.*** Class Action lawsuits have increased by 72% compared to the prior year.**** The U.S. has over 1.1 million licensed, practicing attorneys – that is approximately 1 licensed attorney for every 300 men, women and children in the country. U.S. law schools graduate over 40,000 new attorneys every year. The costs associated with lawsuits and litigation that are built into every product or service we buy totals over $2,400 per person per year – which is 2.2% of U.S. Gross Domestic Product. 78% of lawsuit defendants never thought it would happen to them. The FBI reports that a quarter million criminals make their living through lawsuits. The average income for targeted lawsuits is under $200,000 per year. The corporate veil is pierced 45% of the time it is challenged in California.***** The corporate veil can only be pierced in Nevada if a Nevada court finds either fraud or manifest injustice, judgments that have been found only four times in state history. Call us at 1-800-638-2320
*2005 Litigation Trends Survey, published by Fulbright & Jaworski, LLP
**2006 Litigation Trends Survey, published by Fulbright & Jaworski, LLP
***2007 Litigation Trends Survey, published by Fulbright & Jaworski, LLP
****Fulbright Briefing, April 15, 2008