A majority of disputes launched by companies are led by executives' hearts rather than their heads, according to new research published today (29 October).

Almost half of the respondents (47%) to a poll conducted by mid-tier City law firm Field Fisher Waterhouse conceded that a personal dislike of the other side had led their company into expensive litigation.

Eighty-eight percent said unrealistic expectations frequently acted as a barrier to the resolution of a dispute, while an overwhelming 97% majority said the business community often underestimated the time and cost required to do battle in court.

Meanwhile, over half (53%) of the 75 company executives and in-house lawyers polled in the survey said the adversarial stance taken by their external lawyers had contributed to the escalation of a commercial dispute.

The rise in popularity of alternative methods of dispute resolution (ADR) was highlighted, with every single respondent pointing to the growing importance of ADR avoiding lengthy disputes.

Commenting on the findings of the survey, Field Fisher commercial litigation chief Peter Stewart said: "One of the major factors contributing to the escalation of disputes is the emotion involved. Whether it's personal pride, dislike of the other side or a point of principle, these emotions will inevitably distract from rational decision-making."

The research comes after the annual Fulbright & Jaworski survey of litigation trends found that regulatory work has increased its significance for the litigation departments of UK and US firms over the last year.

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