Litigation need not be a makeor-break moment

Businesses can enforce their rights without diverting financial

The true financial impact of the Covid-19 pandemic has yet to be seen, but many sources agree that its impact on the Scottish economy will be significant. Both the UK Office for Budget Responsibility and the Scottish Government have predicted that GDP could fall by a third.

As Scottish businesses look to begin financial recovery, they may face an additional challenge with litigation and disputes on the rise in an economic downturn. For businesses already feeling the hit from lockdown, or for others which may not have budgeted for an unforeseen increase in litigation, this could seem like a make-or-break moment. But it doesn’t have to be, with the right support and a fresh approach.

The right support: New regulations came into force in Scotland at the end of April 2020 which allow law firms to offer more flexible approaches to fees including deferring payment until there is a successful outcome in return for a percentage of the amount recovered. When combined with the availability of disputes funding through large firms like Clyde & Co, this offers a risk-free path for litigation if required, with the business paying fees only if their litigation is successful. After all, a law firm should be willing to consider sharing the risk, with their client, of their advice being both unsuccessful and successful.

A fresh approach: While many firms provide excellent legal services to their clients, some firms may not