Litigation & ADR report 2015 | Page 3

Litigation & ADR annual report successfully encouraged hundreds of companies to adopt a policy statement saying they will consider alternative dispute resolution [ADR]. Hendel adds that the simple, cost-free statement (the so-called `CPR Pledge´) has proven very effective in overcoming the “typical reluctance of an executive or in-house counsel to suggest an attempt at mediation, for fear that the suggestion might be considered an acknowledgement of weakness”. Lawyers say that the move to more inexpensive methods of resolving disputes is not bad news for law firms in terms of potentially declining revenues. As one partner says: “What´s good for my client is good for me,” while another remarks that “if you solve cases quickly, you solve more cases”. Lawyers remark that, in the UK, there are extremely specialised, industry-focused litigators but, in contrast, according to Málaga, “in Spain, litigators are considered specialists in all fields”. González adds that pharmaceutical litigation is very specialised and that litigators in this field need “certain skills not everyone can have”. According to Ester, clients need their lawyers to understand their business and how it works. She adds: “Clients appreciate that their lawyers have expertise in that area of business and experience in handling similar cases.” Hendel agrees that international clients will increasingly look for specialist litigators, but adds that clients expect less specialisation from lawyers in Spain where clients tend to “greatly appreciate general expertise”. No major litigation in 2015 López de Argumedo says he expects revenue from litigation to plateau in 2015 as “big litigation will not be a feature of the coming year”. Spain: What are the major challenges law firms face in relation to litigation and ADR? “Continuing to provide excellent services while fees are decreasing due to strong competition, and some law firms dropping prices to gain work.” Íñigo Villoria, partner, Clifford Chance “In some cases, the international client may have no legal structure in Spain and may need to be managed very carefully. We have seen a necessity to do more work in terms of explaining the mechanisms of the legal system in Spain, as well as the legal work itself.” Mercedes Fernández, partner, Jones Day “Reconciling the intensive work required in meeting clients’ expectations with cost optimisation.” Eduardo Soler-Tappa, partner, Herbert Smith Freehills “The main challenge would be to take advantage of the big opportunities that this complex area is offering – this can only be done by the creation and consolidation of consistent and highly experienced teams.” Alfredo Guerrero, partner, King & Wood Mallesons “In the arbitration and mediation sector, the issue is always to make clients aware of the advantages of arbitration for certain cases – it is our impression that Spanish clients are not very familiar with these formulas and it is not easy to persuade them to include arbitration or a mediation clause in a contract.” Alejandro Touriño, partner, Ecija “The biggest challenge is to persuade customers the advantages of ADR and achieve a professional reputation as arbitrators.” Patricia Gualde, partner, Broseta “Coping with the flow of new legislation and continued reforms, as well as delays caused by the workload of many courts and tribunals which frustrates all professionals in litigation.” John Gustafson, managing partner, Rivero & Gustafson Abogados www.iberianlawyer.com Ester adds that pure commercial litigation is not yet increasing: “You need deals to have an issue and there haven´t been many deals in the past, though this year there has been an inflection and the situation has changed.” Meanwhile, López de Argumedo says that while dispute resolution teams currently have a “great burden” of financialrelated litigation, this load will not increase as the volume of this type of litigation has now peaked. Iglesia says that in the area of litigation and arbitration, there is an opportunity to grow abroad. López de Argumedo says that his firm, Uría Menéndez, is expanding abroad as demonstrated by its recent formal link-up with law firms Philippi and Prietocarrizosa, located in Chile and Colombia respectively, to create Phillippi, Prieto, Carrizosa & Uría. González says there has been a growth in “commercial strategy- “It´s important to analyse, together with the client, the strategy to be followed and the steps to be taken – sometimes you should avoid court proceedings trying to close an agreement, other times you should recommend initiating court actions.” Pablo Albert Albert, legal director, BDO Abogados “Restrictions on budgets for any single proceeding, which are also largely linked to success fees.” Joan Vidal de Llobatera, partner, Jausas “Uncertainty regarding judicial resolutions – we have to take into account that those depend on First Instance Courts, which are pretty numerous – as First Instance Courts are rarely coordinated, their resolutions are highly unpredictable.” Santiago Gastón de Iriarte, president, AC&G Asesores Legales “Clients have become more assertive in their fee discussions – furthermore, firms must now align their economic interests with their clients, and alternative fee arrangements seem to be the preferred strategy.” Fernando Marín Riaño, partner, Mavens “Overcoming the client´s reluctance to litigate due to increasing costs, which has given rise to a fee that needs to be paid in order to be able to exercise their fundamental right to things such as judicial protection.” Ignacio Benejam, partner, Rousaud Costas Duran “Being really able to meet clients´ demands for sophistication, dedication, strategy, creativity, thorough legal counsels, and senior lawyers who roll up their sleeves.” Jesús Almoguera, partner, J Almoguera y Asociados “For big international firms, how to manage together the function of arbitrator and of counsel (conflict of interests) and, for national firms, how to be visible in an arbitration world where some leading firms are perceived as the most trustful because of their arbitral knowledge.” Jean-Marie Vulliemin, partner