61% say the uncertain economic climate is impacting their likelihood of considering legal financing solutions, and 57% are likely to finance enforcement and collection services.
NEW YORK, September 19, 2023 /PRNewswire/ — Burford Capital, the leading legal-focused global finance and asset management company, today releases new independent research that reveals how businesses are finding solutions to extract greater value from claims and legal judgments, based on a survey of 350 GCs, litigation managers and senior corporate lawyers in the United States, Europe, Asia, Australia and the Middle East.
The economic climate has amplified long-standing pressures on businesses, including legal services. As research published earlier this year by Burford shows that governments expect commercial litigation to increase over the next two years, how businesses pay for and extract value from their meritorious claims is more important than ever . Burford’s new report on the economics of commercial litigation and enforcement demonstrates the desire of experienced corporate lawyers to maximize the value of unenforced claims, judgments and awards, without increasing costs. Notably, 61% of respondents said uncertain or difficult conditions would impact their propensity to consider legal financing solutions.
Christopher BogartCEO of Burford Capital, said: “Corporations today represent well over fifty percent of Burford’s business, including the world’s very largest Fortune 500 companies. As a former chief executive of such a company, I am aware of the financial pressures facing legal services face, especially in uncertain economic times. confirms the desire of GCs to obtain optimal financial results with their claims, judgments and awards. At Burford, we are strategic partners for businesses seeking to reduce risk and maximize value through both our legal finance offerings and our enforcement and collections services. Lawyers are realizing the innovative ways we can help them avoid leaving money on the table, and research backs it up.
In line with its growing business with leading companies, Burford, group-wide, recently entered into an agreement $325 million transaction with a Fortune 500 company to fund a portfolio of cases as part of its affirmative recovery program, allowing the company to immediately recognize the value of these claims.
Key research findings include:
Economic pressures are impacting how customers manage their costs and partners, with the majority of respondents likely to seek cost-sharing solutions.
- More than half (52%) say they are likely to seek cost-sharing solutions with lawyers or legal finance providers to mitigate the impact of the current economic climate.
- Although many say they are likely to implement cost-saving measures to mitigate these impacts (44%), in-house lawyers appear to favor cost shifting rather than cost reduction.
- In addition to relevant legal expertise, the top qualities in-house lawyers look for in outside counsel are efficiency and timeliness (89%), ability to provide accurate budgets (87%), and knowledge of legal finances (69%).
Unenforced sentences remain a problem for businesses, and even more so in the current climate.
- A very small number (2%) say they have recovered 100% of the value of their judgments and awards over the past five years and a clear majority (61%) say their opponents voluntarily pay their unpaid judgments and awards in less than 50 % of cases. .
- The consequence of late or non-payment by judgment debtors translates into a multi-million dollar loss in value for businesses, at a time when legal teams want to minimize costs and maximize recoveries.
Enforceability is a key consideration for litigation and arbitration strategy.
- The main perceived barriers to law enforcement are jurisdiction and cost.
- More than three-quarters (77%) view ease and likelihood of recovery as important factors in whether to pursue claims.
- Immediate liquidity is a key advantage for financed execution and collections.
- More than half (57%) say they are likely to use funded enforcement and recovery services for an ongoing judgment or award.
The 2023 Commercial Disputes and Enforcement Survey can be downloaded from the Burford website. The independent research was carried out by GLG in June 2023.
About Burford Capital
Burford Capital is the world’s leading legal-focused finance and asset management company. Its activities include litigation finance and risk management, asset recovery and a wide range of legal financing and advisory activities. Burford is listed on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and works with businesses and law firms around the world from its offices in new York, London, Chicago, Washington DC, Singapore, Dubai, Sydney And Hong Kong.
For more information, please visit www.burfordcapital.com.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy any shares of Burford’s common stock or other securities.
SOURCE Burford Capital
