What, in your opinion, is the most likely growth area for disputes for the next five years?
Litigation & Dispute Resolution
A trend in recent years has been the increasing numbers of major professional negligence claims brought before the Swedish courts. This trend is expected to continue, especially in relation to financial and legal advisors in M&A transactions, and we also expect to see more post M&A disputes. Construction disputes are also expected to increase as a result of extensive production during the last few years in combination with falling real estate prices on the Swedish market and a potential recession. Furthermore, a recession or higher interest rates would most likely result in an increased number of disputes concerning distressed debt. Regulatory disputes are expected to increase as well, especially as regards banks and other financial institutions, as a result of increased activity from the Swedish regulator within these fields and additional compliance frameworks taking form.
We had been seeing a growth in insolvency proceedings over the past few years due to the economic and financial crisis Portugal was going through. However, the economy is slowly recovering and businesses are getting on track. Typically, this means that commercial disputes will become trendy again, namely proceedings against banks from investors that felt mislead, proceedings for medical malpractice, and proceedings related to property investments and loans.
Real estate in this jurisdiction has been the largest sector for litigation in the past ten years, and it will be the main growth area for disputes for the coming 5 years in my opinion.
We anticipate that new bankruptcy legislation, coupled with a current downturn in business, may result in increased bankruptcy proceedings over the next five years. Also, the emergence of a market in real estate mortgages is likely to result in increased real estate litigation over time.
In the recent past, we have seen an increase in litigation related to environmental issues, and there is reason to expect that this trend will continue.
There has been a rapid increase in the amount of federal securities class actions filed over the last five years. We expect this trend to continue, particularly as plaintiffs increasingly target a broader range of firms than before.
In our opinion, the most likely growth areas lie in the fields of construction as well as banking and insurance.