Related topics

Texas businesses facing fewer lawsuits: survey

November 28, 2018 GMT

Texas companies are facing fewer and fewer lawsuits, and the lawsuits they are facing are costing them less, according to a survey of corporate general counsel by the global law firm Norton Rose Fulbright.

An overwhelming majority of corporate in-house lawyers in Texas, however, say they are increasingly worried that cybersecurity attacks and data breaches will lead to a significant amount of litigation in the future.

The Norton Rose Fulbright 14th Annual Litigation Report found that the largest percentage of litigation facing Texas businesses involves contract disputes with other companies. Labor and employment lawsuits and personal injury claims ranked second and third, respectively. Energy companies surveyed said that 56 percent of their litigation docket involved contract disputes with other companies.


Texas corporate lawyers say the number of regulatory matters they faced in 2018 remained essentially the same as the year before, but concerns about future regulatory actions declined slightly, according to the survey by the Houston-founded law firm.

“I found it surprising that general counsel saw a decrease in the number of civil lawsuits they are facing,” said Gerry Pecht, a Houston lawyer who leads the Norton Rose Fulbright global litigation practice.

Norton Rose Fulbright litigation partner Adam Schramek, who has worked on the firm’s litigation study since it was started in 2004, said there are several surprises in this year’s result, including a decrease in legal spending. Companies spent $1.2 million in litigation costs per $1 billion in corporate revenues, down from $1.5 million in 2018.

“The amount of legal spend is down a good bit from last year,” Schramek said.

The category with the biggest difference between 2017 and 2018 is data privacy.

“The amount of concern by businesses over cybersecurity hacks and subsequent litigation is extraordinary and real,” Schramek said. “Two-thirds of companies feel more exposed than they did a year ago.”

For a longer version of this article, please visit TexasLawbook.net.