Litigation & ADR annual report more aware of the importance of a good lawyer and good lawyers cost money – we have lost some cases on price , but we have won others with little discussion on fees ; Portuguese entities recognise the importance of a good lawyer .” Lawyers say mortgage-related litigation will be an opportunity in the coming , while it is anticipated that class actions will also increase . “ Class actions are coming to Portugal , it is cheap to file a class action here ,” says one partner .
There will be a steady growth in litigation in the next 12 months and there will be more lateral moves between law firms involving litigators , according to some lawyers . “ Forty per cent of our firm ’ s revenue comes from litigation – firms will try to reinforce their departments in the coming year ,” says one partner .
MLGTS ’ De Almada says his firm is increasingly involved in international disputes , including arbitration with no direct relation to Portugal . The prospect of Portugal having to have a second
European Union / International Monetary Fund bailout is a concern among lawyers . “ If there was a new bailout for Portugal , that could mean more litigation ,” says Rui Tabarra e Castro , associate at FCB Sociedade De Advogados . He adds : “ Fees might become a problem [ for litigation and ADR work ], clients want capped fees .” Pena
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Disputes says he is “ concerned about the possibility of a second bailout for Portugal , the last bailout deterred investors in Portugal ”.
Disputes related to debt transactions represent an opportunity for law firms , according to Garcia Alves . She adds : “ Compliance is also leading to an increase in litigation because regulators are becoming more effective , especially in areas such as health and hospitals .” Cuatrecasas , Gonçalves Pereira partner Miguel Esperança Pina related to indemnity claims connected to the violation of competition laws are increasing .
Maria José de Tavares SRS Advogados ”
says : “ The number of cases will decrease [ in the coming year ]; there will be a decrease in arbitration activity – I don ´ t see the Portuguese economy growing , though I think the real estate sector will generate more work .” However , De Tavares says litigation departments will
keep growing , but the number of disputes will decrease . She adds : “ Our work is not only related to the courts , we also analyse [ for clients ] the risk of disputes , as well as liability , in relation to transactions .”
Use of arbitration in Portugal in decline
While there has been an increase in court disputes in Portugal – particularly in relation to banking and capital markets – the use of arbitration in the country is in decline , according to Miguel Esperança Pina , partner at Cuatrecasas , Gonçalves Pereira .
He explains that the decrease in the amount of arbitration is largely due to the absence of major transactions in Portugal . Disputes relating to large deals are generally the types of cases that go to arbitration , with small scale contentious matters more likely to go to court , according to Esperança Pina . “ We are feeling the consequences of the economic crisis now due to the lack of big transactions and contracts ,” he says . “ Although companies are in favour of alternative dispute resolution ( ADR ) and include arbitration clauses in their contracts , the decrease in large deals in the Portuguese market means there is little arbitration taking place .” Esperança Pina adds that the strict confidentiality rules associated with arbitration open it up to a lot of political criticism and , consequently , there is a lack of governmental support .
However , Esperança Pina believes there is strong support for ADR among legal professionals and clients alike . This is partly because of the challenges litigation poses for clients , such as the increase in court fees in recent years and the fact it is a more lengthy process , which makes it a more expensive choice . That said , the increase in real estate investment in Portugal has resulted in greater demand for litigation lawyers . “ Most of our work used to originate from corporate matters but now we are finding a wider range of work related to banking , capital markets and real estate , for example .” Meanwhile , Esperança Pina says that , in addition to the domestic market , Portuguese litigation lawyers are also in demand in other Portuguesespeaking jurisdictions .
Miguel Esperança Pina
www . iberianlawyer . com January / February 2017 • IBERIAN LAWYER • 43