Press Release: In-house counsel expect increase in Disputes, Debt Recovery work and Fraud in year ahead

Having to ‘do more with less’ and ‘people challenges’ are dominant concerns for GCs amidst the cost-of-living crisis, according to a new Winmark study sponsored by Kingsley Napley 

A recent Winmark survey of General Counsel and In-House Legal teams conducted for law firm Kingsley Napley shows that the majority predict their workload will feature more Litigation, Debt Recovery and Fraud issues in the year ahead as a result of the economic downtown.

The study also finds that Legal departments anticipate increasing internal requests for support and that Employment disputes and HR compliance matters will take up more of their time in 2023.

C-Suite executive network Winmark* surveyed 50 General Counsel, Chief Legal Officers and Senior In-House Lawyers in November 2022 to gauge the type of work they expect to increase as a result of the cost-of-living crisis (i.e. the cocktail of rising prices, inflation and interest rates, coupled with falling household incomes). Participants work for companies across a range of sectors and with substantial UK operations.

The survey found:

• 75% of respondents said an increase in Disputes / Litigation work is likely in the next one to two years; 68% said an increase in Credit Risk / Debt recovery related work is likely; and 49% predicted a likely increase in Fraud related workload in the next 12-24 months.

• More than half (53%) of respondents said they expect an increase in day-to-day legal requests from other internal departments; 46% predict an increase in employment disputes that will cross their desk; and 39% said more HR compliance matters are likely to feature in their workload in the next one to two years.

• Whilst the majority of respondents felt their departments are well prepared for the challenges ahead, a worrying 39% do not feel adequately prepared or are unsure if they are ready to deal with the issues likely to be coming their way. 

In response to the survey findings, Louise Hodges, Head of Criminal Litigation & Investigations at Kingsley Napley, comments:

"As if getting through the pandemic wasn’t hard enough, in-house legal departments now face a series of new challenges due to the cost-of-living crisis and economic downturn.

The consensus amongst in-house lawyers is that this will lead to an increase in levels of fraud, legal disputes and battles to recover debts, regardless of the sector in which a company operates. Yet it is clear many legal teams feel underprepared for the road ahead.

General Counsel should urgently conduct a ‘Downturn Health Check’ to assess whether their functions have the right processes and resources in place to cope with the new landscape we find ourselves in. Training, technology and external support should all be part of this risk review.”

Richard Foss, Head of Dispute Resolution at Kingsley Napley, continues: 

"This study should be a wake-up call for in-house legal teams so that they can get prepared for the workload to come.

Although litigation is largely reactive, there are steps that can be taken to minimise risks and ensure the right processes are in place to deal with disputes that arise. For example, companies should review their approach to fraud prevention and check sensible measures and policies exist to help minimise the risk of fraud. When it comes to debt collection, there should be a clear procedure in place with enough flexibility to ensure the steps taken are proportionate and commercial. There should also be clear policies regarding the collection and preservation of evidence.

There is actually quite a lot companies can do to get ready for the business environment ahead.”

Corinne Aldridge, Head of Employment at Kingsley Napley LLP, adds:

“A notable finding of our study was the extent to which employment issues will consume the time of companies’ legal teams in the next year or so. The 3Rs which many businesses are grappling with right now - recruitment, retention and remuneration - are not only the concern of HR but spill over to legal functions too who are called upon to advise and assist with policies and disputes for their organisations.

Again, it will be incumbent on GCs to ensure employment capabilities are adequately considered in the resourcing of their teams for 2023.

Furthermore pay, flexible working, staff wellbeing, conduct in the workplace and workload will be factors that need to be addressed in team planning to ensure In-House legal functions are able to work optimally to support their employers in the challenging times ahead.”

ENDS

MEDIA ENQUIRIES

To speak to one of the Kingsley Napley experts named above or for general questions, please contact Louise Beeson at Bell Yard Communications: Louise@Bell-Yard.com/ 07768 956997

NOTES TO EDITORS

About the survey

The full Winmark study conducted for Kingsley Napley "Preparing for the Economic Downturn” can be downloaded here. This was an online survey of 50 senior legal professionals completed during November 2022. Two thirds of respondents were CLOs or GCs and a third Senior Lawyers within the In-House legal functions of companies with substantial UK operations.

About Kingsley Napley

Kingsley Napley LLP is a leading UK based law firm providing expertise for clients’ business and private lives, when it matters most. We advise in the following areas: corporate and commercial, criminal litigation, dispute resolution, employment, family & divorce, immigration, medical negligence & personal injury, private client, public law, real estate & construction, and regulatory law. The firm won Law Firm of the Year (Independents) in The Lawyer’s latest awards process (July 2022).

Kingsley Napley has substantial experience of conducting fraud investigations (both those commissioned by companies internally and those involving external enforcement agencies), advising on debt recovery disputes and general litigation. It also has a respected employment team which advises on contentious and non-contentious employment issues.

For more information, please visit www.kingsleynapley.co.uk