Litigation Culture on the rise in the Manufacturing Industry

Litigation culture is on the rise in the manufacturing industry, a recent survey has shown, with over 60% of all companies questioned stating that they have had to use solicitors to resolve business disputes at least once in the past three years. 68% of companies who responded said that the amount of disputes they had faced had risen in the past 3 years.

The independent research, commissioned by Manchester based JMW Solicitors, looked at the various legal issues faced by companies in Greater Manchester and Cheshire via telephone questionnaires with Managing Directors or other Senior Management of nearly 60 companies in August of this year.

The study also revealed that almost 60% of companies did not anticipate that the dispute was going to arise. Of these, two-thirds ended up having to instruct solicitors to deal with the matter.

Family Business
Family owned businesses appear to be more at risk from fraud than non-family run businesses in certain areas. The survey showed that family businesses need to ensure adequate systems are in place in place to protect them against fraud by third parties, shareholders and customers, although they are far less vulnerable to fraud perpetrated by employees.

Red Tape
The area of ëred tapeí which most concerns businesses is Health and Safety regulations. Over 75% of respondents said that they found this the most complex, and hence concerning to their business.

John Risk, Assistant Policy Director at Greater Manchester Chamber of Commerce, adds, ìThis survey reinforces what our members have often said in the past, there is a need for better advice and information on Health and Safety regulationsî.

Tony Winterburn, Head of Commercial Services at JMW, comments, ìThe findings which have come out of this survey make very interesting reading. We knew that disputes were on the rise in this region and this survey has confirmed the scale of the increase. We anticipate that the findings will help us meet the changing needs of both our commercial and private clientsî

Tony joined JMW in January 2006 as a Commercial Litigation Partner and is based at the firmís Manchester and Altrincham offices. Formerly a Partner at international law firm DLA Piper, where he spent 18 years, Tony is a recognised leader in his specialist field (Chambers Guide to the Legal Profession) of commercial litigation.