My colleagues and I are frequently asked by lawyers at all levels of post admission expressing interest in the market for legal services which areas of practice are busier than others? Reliably and consistently – it remains Commercial Dispute Resolution/CDR. Also referred to as Commercial Litigation, Commercial Disputes or Commercial Recoveries as a matter of semantics.
At the core of what’s involved there’s a commercial agreement and there’s claimed to be a breaching of its terms and conditions.
More pertinently, the follow to our response is – why the continuing upward trend of CDR activity?
We attribute the ongoing consistency of CDR and the resulting demand for lawyers practicing in the area to be as follows:-
- Spending or the budget for external legal service providers by businesses continues to grow;
- Due to lack of expertise, resourcing to conduct larger disputes and risk management considerations – CDR is an area readily outsourced to external legal service providers by companies;
- Complex and higher stakes claims are experiencing the highest growth. Many smaller claims tend to be negotiated and settled without escalation and proceedings issuing;
- Though clients remain settlement minded – there’s resistance to their settling when an aggressive and soundly defined prospects for success is made, or conversely a case for defending a claim is established on the evidence available. There’s neither black nor white in the assessment of prospects process. Unresolved issues require adjudication and proceedings then become inevitable;
- As the number of disputes rise, so too are the array of legal service providers. From the “big law” firms, to accomplished and capable CDR divisions of State based independent firms. Add to the mix of providers the highly specialised micro expert or boutique CDR practices. The latter attract instructions directly from clients based on reputation alone as well as via other firms lacking CDR capabilities knowing their clients will be well cared for during the conduct of the dispute and without being lured away.
These micro firms also need not rely on being referred disputes from their transactional and advisory colleagues in non-litigious practice groups such as Commercial & Property, Banking & Finance and Corporations & Capital Raising;
- Clients are demonstrating they’re prepared to spend their way through the uncertainties and associated risks of the litigation process rather than die wondering. Directors (both Executive and non-Executive which is another relatively new development) of companies will readily address their duties to act in the corporation’s best interests and do whatever’s required of them to optimise the prospect of the best outcome. This will often mean being rigorous and unrelenting in efforts to recover or defend a major claim. Commonly with significant sunk costs soon committed to the process, the parties reach a point of no return and feel obliged to see the action out at any cost;
- Robust and significantly increased budgets are being struck to fund the major claims;
- We’ve witnessed the rise and rise of litigation funders including ASX listed players; and
- In addition to resourcing the claims by investing in the recruitment and development of litigators for servicing the increasing workloads the savvy firms are investing in state of the art litigation management software to streamline and automate the administration which is delivering internal costs savings. There’s also the emerging and relatively unexplored capabilities of Artificial Intelligence/AI along with the efficiencies, competitive advantage and tactical edges to be derived from using AI for claims/litigation process.
The upshot from such factors is Focus Legal Recruitment/FLR continues to be inundated with compelling briefings for Graduate Lawyers through to equity Partner level within the CDR space.
Concurrently, with the diversity of opportunities we’re being approached by career savvy CDR lawyers who appreciate there’s never been a better time to capitalise on market conditions thus ensuring they’ve aligned with the right firm where their professional potential and the recognition and returns which follow can be realised and achieved.
In the best interests of making fully informed, unbiased and objective career enhancing moves – FLR have been engaged with and directing CDR lawyers for over 30 years. Whether it’s clever and astute moves by lawyers, or conversely on the demand side of the market the organizations requiring CDR lawyers practicing in the arena there’s no substitute for proven experience, professionalism and unsurpassed market knowledge.
Ian Dhu
Ian Dhu is an Executive Director at FOCUS Legal Recruitment & Executive Search.
For a confidential and obligation free conversation about growing your CDR capabilities or making a clever and considered CDR career move contact Ian in confidence on:-
Direct Mobile: 0414 32 88 64 or
