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MERSEYSIDE BUSINESS OVEREXPOSED TO INCREASING LEVELS OF DISPUTES
MAJOR
Merseyside businesses are under-prepared to deal with potentially damaging commercial disputes, despite the threat posed by litigation, warns leading law firm DLA.
Only four per cent of the UK's largest companies have not faced some form of dispute in the past two years and their expectations are that the number of disputes will continue to rise, according to a survey conducted by DLA amongst general counsel and board-level executives at the UK's largest 500 companies.
Even though the respondents expect the number of commercial disputes in which they will be involved to increase, they are still generally unprepared to exercise control over the potentially damaging effects of disputes. Only one in three top-ranking UK companies has a formal dispute resolution policy, with only five per cent employing someone dedicated to dealing with dispute resolution.
Mark Goodwin, head of the Liverpool litigation team at DLA, said:- "Business disputes are on the increase but very few companies are seeking to identify the potentially far-reaching risks involved at the outset of a dispute. We have found that companies are aware of the risks associated with the bad management of disputes to their reputation but most do not seem to be sufficiently focused on the issue nor adequately resourced to handle the increasing number of disputes.
The research has supported our observations locally that many companies fail to acknowledge the importance of planning to avoid and manage disputes. In the current difficult economic climate, it is crucial for companies to remain focused on their core business. They cannot afford to be sidetracked by a long drawn-out dispute which may take on a life of its own. Companies need to have early reporting procedures to identify risks and to escalate and report on disputes for the purpose of determining at what point, if at all, the board should be involved in a dispute."
The research indicates that it is the cost of resolving a dispute which is the most significant factor taken into account when deciding on how to handle a dispute, with negative PR perceived to be the next most significant factor. As the media continue to exercise their right to notify the public of disputes they consider to be important, the potential for a dispute to generate damaging PR is greatly increased. Such PR is capable of having a significant impact on a company's balance sheet and share price once it becomes embroiled in a dispute, possibly to a far greater extent than merely the costs usually associated with the handling of the resolution of the dispute itself.
Goodwin added:- "Concern about costs must not be the determining factor. Companies have every right to demand greater certainty from their lawyers to include not only a full assessment of merits but also a transparent budget. The lawyer's role is to come off the fence and give advice on a dispute in the context of commercial reality and this naturally includes costs. Lawyers are paid to provide comprehensive commercial advice and a failure to do so is letting business down."
Although 92 per cent of respondents indicated that they had used litigation for recent disputes, litigation was perceived as the least satisfactory method of dispute resolution, with 40 per cent of respondents stating that litigation was "less than successful". Over 50 per cent of respondents predicted an increase in the use of mediation over the next two years while forecasting a nine per cent net decrease in the use of litigation.
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- There's more to life than work!
GARY Lineker had no choice when his son was diagnosed with Leukaemia, he had to take time off to look after him. This morning, still as active as ever, he has chosen to get into bed with Jodie Kidd and one or two of his mates to mark today's launch of CLIC's (Cancer and Leukaemia In Childhood's) latest event, Win a Day Off Work.
CLIC's celebrity supporters all agree that there is nothing like a relaxing day off. And that is why workers throughout Liverpool are being asked to persuade their bosses throughout November to raffle a day off work for the charity so they too can stay in bed for the day!
Full time employees in the UK work the longest hours in Europe. The average for full timers in the UK is 43.5, whereas in France it's 38.2 and in Germany 39.9. These other countries in Europe have already realised that working excessively long hours is bad for your health and leaves your life out of balance. For the lucky people who win an extra days holiday this balance can be redressed!
By taking part in Win A Day off Work, which is being supported by Best Western Hotels, they will be helping children's health as well as their own. CLIC provide a number of services available to local families including the offer of care grants to help in those difficult financial situations. Last year CLIC awarded care grants to 56 families from the Liverpool area.
Escape long hours and start living again sign up now!
People can register to take part either by logging onto www.winadayoffwork.com
or by telephoning 08451 20 22 32. Win a Day Off Work draws will take place on 12th December 2003.
- Deep sea divers!
LIVERPOOL children who feel low or stressed can forget their worries by taking a calm, relaxing, deep sea dive...
The Mystery Children's Centre in Picton today launched a special 'Sensory Room', where children can go to 'chill out'. The theme of the room is 'Under the Sea' and children will be whisked away to a magical aquatic kingdom in the blink of an eye.
Special projectors beam ultra-violet light and images of fish onto the walls, and there will be calm, relaxing sounds and music. The room is full of cushions, and even has a padded floor, to make children feel they are standing on the sea bed.
The brand new room is aimed at young children, their parents and child minders, to help children cope with emotional problems, raise self esteem and create a calming mood.
Hazel Paterson, Team Manager of Early Years, at the city council, said:-
"I'm delighted we are welcoming children and their carers to the launch of our Sensory Room. It is a fantastic addition to the centre, providing a calming, relaxing area for children, and helping to reduce stress and aggression.
We came up with the 'Under the Sea' theme, because it provides a truly tranquil atmosphere where youngsters can come and get away from it all."
Executive Member for Education and Lifelong Learning, councillor Paul Clein, said:-
"Children do have worries and problems and we are determined to make sure they receive all the help and support they need.
"I'm delighted the Mystery Children's Centre is introducing this new Sensory Room, to meet the educational and emotional needs of children, and help them reach their full potential."
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