In-house counsel favouring UK firms over US rivals for international work
In-house lawyers around the world are increasingly turning to UK law firms ahead of US competitors for their international legal work, according to new research. A survey of corporate counsel at 1,000 large companies around the world has found that 53% now use English law for international work, while only 34% use US law. When asked to name law firms they would consider for multijurisdictional deals or litigation involving three or more countries, only 30% named US firms, compared to 70% who preferred firms in the UK.
August 13, 2010 at 06:32 AM
2 minute read
In-house lawyers around the world are increasingly turning to UK law firms ahead of US competitors for their international legal work, according to new research.
A survey of corporate counsel at 1,000 large companies around the world has found that 53% now use English law for international work, while only 34% use US law.
When asked to name law firms they would consider for multijurisdictional deals or litigation involving three or more countries, only 30% named US firms, compared to 70% who preferred firms in the UK.
Eighty-eight percent of the companies surveyed now require international legal advice, up from 70% in 2009. They seek it in an average of six countries outside their home jurisdictions, and they are spending more to get it.
The growth of their legal bills for international matters is about five times the growth of their US expenses – much of it attributable to the so-called BRIC countries (Brazil, Russia, India, and China).
Many companies pointed to their choice of jurisdiction for the contracts they sign, while the well-established fear of US litigation was also cited. But that is only one of the likely factors, according to Acritas, the UK research and advisory firm that conducted the survey.
"I think it is a mix of factors," said Acritas CEO Lisa Hart (pictured). "There's definitely an image that the US is a litigious society," she noted. But the UK firms' marketing savvy and geographic proximity to key international markets may also play a role, she said.
"There's a perception that US firms are very expensive," Hart added. "But when you compare the rates, they're actually less expensive than the UK firms."
The 1,000 companies surveyed represented a wide range of industries, with 92% of the interviewees holding in-house legal roles – more than half were their company's chief legal officer.
Forty-one percent of the companies were based in the Americas (36% in the US), while 35% were based in Europe and the remaining 24% in Asia-Pacific.
This article first appeared in Corporate Counsel, a US affiliate title of Legal Week.
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