Are U.S. law firms losing international business opportunities because a surprising number of in-house lawyers prefer to seek counsel in other countries?
That's the conclusion of a survey that suggests global companies would rather be advised by British firms. Which is especially bad news for their U.S. counterparts because this is an area of explosive growth.
According to an advance copy of a summary that will be released next week, 88 percent of the companies surveyed now require international legal advice -- up from 70 percent in 2009. They seek it in an average of six countries outside their home jurisdictions, and they're spending more to get it.
The growth of their legal bills for international matters is about five times the growth of their domestic expenses -- much of it attributable to the so-called BRIC countries (Brazil, Russia, India and China).
But the Brits seem to have the edge over the Yanks.
About 53 percent of the companies use English law for international work, while only 34 percent use U.S. law. When asked to name law firms they would consider for multijurisdictional deals or litigation involving three or more countries, only 30 percent named U.S. firms compared to 70 percent who preferred firms in the U.K.
So, what's going on? Is it all a function of the well-established fear and loathing of U.S. litigation? Could be.
In essence, the companies are pointing to their choice of jurisdiction for the contracts they sign. And the prospect of litigation is certainly on their minds. But that's only one of the likely factors, according to Acritas, the U.K.-based research and advisory firm that conducted the survey.
"I think it's a mix of factors," said Lisa Hart, the firm's CEO. "There's definitely an image that the U.S. is a litigious society," she noted. But the U.K. firms' marketing savvy and geographic proximity to key international markets may also play roles, she said.
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Source: Law.com
By: David Hechler
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1 comments:
As a Charlotte Business Attorney it is becoming more and more necessary to get the advise of over seas counsel.
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