The Texas market is suffering a significant double blow because of the COVID-19 crisis and plunging energy industry. The institutions that form the backbone of our economy, including in health care and oil and gas, are seeing staggering losses that are reverberating throughout the state. The economic fallout is worse than anything Texas has ever seen, and it has hit fast, with unemployment at 12.8% and over 1.3 million jobs lost since March.

Not surprisingly, disputes are on the rise, as financial stress, reduced demand and forced closures prevent many companies from meeting their legal obligations, prompt some to look to insurance for relief, and force others into bankruptcy. The uptick in legal fights comes just as companies are seeing revenues shrink and struggling to streamline costs. Litigation inevitably puts a strain on their legal spend, even to pursue the strongest of cases. Meanwhile, law firms, experiencing reduced collections and billable work, are feeling the strain and can only tolerate limited risk in the form of contingency or alternative fee arrangements.

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