Who is to blame and who should pay?

Fulbright & Jaworski’s unique annual Litigation Trends Survey  provides a detailed “situation map” of the U.S. and international litigation scene. (Discussion of last year’s survey here.)  Fulbright  polled more than 350 corporate law departments on the state of global litigation.  According to the survey, 43% of corporate counsel surveyed said they expected an upswing in lawsuits (only 22% of survey respondents felt that way in 2007).  As Stephen Dillard, Fulbright’s head of litigation, put it, we are in “a period of economic challenge that is likely to fuel litigation over who is to blame and who should pay for the consequences.”

Unfortunately, the extra-fluid nature of the ongoing financial mess renders the findings of any such annual survey immediately stale.   The Fulbright survey was conducted between mid-May through mid-July of this year.  In other words, post-Bear Stearns’ demise and the start of the subprime implosion yet before the bloodbath of the last two months.  Were the survey conducted today, presumably far more than 22% of financial services sector respondents and 15% of insurers would say they were bracing for a subprime action or investigation in 2009.

                                       -posted by brian

This chart refers to lawsuits, not ROE