Overview

With the initial shockwave of the COVID-19 pandemic now behind us, Dentons litigation experts were able to weigh in on risks and trends present in the tide of disputes that have arisen since the start of the pandemic, and suggest effective strategies to navigate these uncharted waters.

The webinar began with a broad overview by Louise Massey of key trends driving the litigation market in the remainder of 2020 and in 2021. Nine industries are expecting to increase litigation spending, with only 15% of companies planning to cut spending, and the bulk of this increased funding going to four of the biggest litigation areas (such as labour and class actions); employment litigation is at an all-time high; complex commercial litigation has increased in nine industries; settlements are expected to soar in order to lower risk and legal spending; more AFAs (fixed fees, or fixed fees by phase) are expected to be used to manage budgets as they add certainty; risk is predicted to grow up to 24% in the next year; and demanding caseloads are driving clients to look for new law firms to supplement their primary choices.

Next, speakers shared their insights on what to expect for 2021 and the regulatory interventions being implemented in their respective jurisdictions.

New Zealand

Hayden Wilson explained how COVID-19 has impacted the New Zealand litigation scene in terms of privacy and cyber security, the construction sector, developments in class actions, and a tightening insurance market. Significant regulatory activity is expected, with changes having already been made to the legislative framework for cartel criminalisation. More broadly, New Zealand’s financial sector has seen a shift in culture and conduct.

Malaysia

Zain & Co.’s own Vatsala Ratnasabapathy spoke on trending areas of practice in Malaysia – commercial contracts, construction, employment, insolvency, and cybercrimes – as well as dispute resolution mechanisms that have come into play and/or seen an uptick in use, such as “Spartacus” orders, virtual hearings, Alternative Dispute Resolution processes, and amendments to the Rules of Court 2012. She also elaborated on the implementation, scope and key provisions of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020, its link to measures under the Prevention and Control of Infectious Disease Act 1988, and its extended operation until the end of 2021 by the Extension of Operation Order 2020.

Hong Kong

Richard Keady explained that disputes in Hong Kong have centred around supply chain disruption, insolvency, cybercrime and money laundering, and returning Chinese listings from the US, all set against a backdrop of political risks which have created a rapidly changing environment. Further, while the status of litigation funding has remained the same, third party funding for arbitration has been made available. Richard also touched on the increased use of regulatory ‘freezing’ orders by the SFC and the possibility of intervention by Mainland regulators.

Singapore

Kia Jeng Koh discussed the impact of most temporary reliefs under Singapore’s COVID-19 (Temporary Measures) Act coming to an end by 31 March 2021. The Simplified Insolvency Programme (SIP) is set to kick in to aid in rehabilitating/restructuring and winding-up small companies, while more M&A-related disputes are likely to arise. Singapore also saw an increase in cyber-fraud and cyber-theft cases in 2020.

Indonesia

Indonesia, Sartono highlighted, has experienced changes in the employment sector as Job Creation Law regulations have been implemented to address the rise in employment disputes. International arbitration enforcement and the e-court hearing process have also been affected, while the number of disputes over non-performance of contracts and loans are predicted to grow in certain sectors (construction, hospitality, financial services, and aviation). Regulatory intervention in the form of the bankruptcy/suspension of payment scheme has also provided more options to consider in respect of debt collection claims and bilateral restructuring.

Australia

Finally, Amy Barwick canvassed the Australian litigation landscape, flagging disputes relating to banking and finance recoveries, insurance indemnity, fraud and misappropriation of funds (including cybercrime), and insolvency as areas likely to continue to surge in 2021. She also discussed the different dispute resolution mechanisms being put to use, and effective litigation strategies going forward. In terms of regulatory intervention, both short- and long-term changes to bankruptcy and insolvency laws are being implemented, including changes to threshold and timing, with more predicted to come. As a result, litigation funding is likely to increase.

The webinar concluded with a lively and engaging question and answer session.

Event: Dentons Cross-border Webinar

Title: Litigation in the time of COVID-19: What now?

Speakers: Louise Massey, Hayden Wilson, Vatsala Ratnasabapathy, Richard Keady, Kia Jeng Koh, Sartono, Amy Barwick

Date: 4 March 2021, 9.00 a.m.–10.30 a.m. SGT

Location: via Zoom