Amid COVID-19 Pandemic, a Slump in Federal Commercial Litigation
In the weeks since the pandemic declaration, new cases are down more than 20 percent compared to last year. Examine the data by region and practice area with interactive data visuals from Legal Radar.
April 23, 2020 at 12:30 AM
3 minute read
The COVID-19 global pandemic has affected nearly every aspect of society, including the courts. Across the country, federal and state courts have limited public access, suspended trials, and switched to holding hearings by phone or just deciding matters on the papers. Meanwhile, law firms large and small have also had to alter the way they work as clients cope with disruption and brace for an expected recession.
Amid these shifts, data suggest that new civil filings in U.S. district courts have also been impacted. Using the federal court data that powers Law.com's Legal Radar, we set out to examine how business litigation is faring during this time of uncertainty. The analysis shows that the pace of new filings has tapered nationally since the pandemic was declared and new cases are also down compared to the same period last year.
New filings started to slow in mid-March, the data show. Over the four weeks ending April 12, new civil cases across all U.S. district courts slumped more than 22 percent compared with the same four weeks last year. (This analysis excludes counts of repetitious "mass tort" cases and certain non-commercial litigation, such as social security claims and immigration cases; criminal cases also are not counted.)
The picture isn't the same across all district courts, or across all practice areas. Some courts—like the U.S. District Court for the Southern District of New York, which has courthouses in Manhattan—have been more acutely affected. And while foreclosure lawsuits and accessibility cases under the Americans with Disabilities Act are down sharply year-over-year, securities lawsuits have seen an uptick.
While everyone feels the impact of COVID-19, it's hard to say that the pandemic is entirely to blame for the dip in new case filings. And many court watchers expect the current slump to be followed by a surge in litigation, including bankruptcy filings, worker class actions, consumer cases and insurance suits tied to the coronavirus pandemic.
Gibson, Dunn & Crutcher partner Randy Mastro, co-chair of the firm's litigation practice, says the flood could come in two to three months. "I don't want to say a tsunami, but do I think there will be a lot of litigation that comes out of all of this? Yes, without doubt there will be. Later this year, litigators will be busier than ever."
We'll be updating this analysis to keep pace with the changes, so continue to check back for the latest information.
Infographic design by David Palmer.
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