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Managing COVID-related risk

COVID-19 has created some of the most challenging business conditions in generations. Historically, we know that this sort of economic pressure substantially increases the likelihood of disputes as companies seek to react and initiate change.

Against the backdrop of changing state intervention and substantial economic uncertainty, we have advised numerous clients on their response to a variety of disputes. That experience, coupled with our own insights, has been used to compile this report into emerging litigation trends under English law. While we know all of our clients have been impacted by the pandemic, we hope you will find our perspectives in this report useful in helping to prevent and prepare for what may come.

Please explore the resources available in the report or contact us for more specific advice around your issues.

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supplychain

Supply chain disruption

Complex supply chains span the globe. Economic pressures and lockdown interventions have added strain and in some cases even broken the chain. We look at legal defences to mitigate the impact of such disruption.
finance contract

Financial contracts

New legislation has been used to introduce temporary measures to deal with the economic disruption arising from COVID-19 as well as some permanent changes.
insolvency

Insolvency and restructuring

Virtually every business has been affected by COVID-19 but as the temporary restrictions on the economy ease and trading resumes there will be acute risk in the short-term.
healthy and safety

Health and safety issues

As much of the workforce works from home, companies must ensure the physical and mental wellbeing is being properly assessed and monitored whilst they are preparing COVID-secure environments in the workplace.
pensions

Restrictive covenant enforcement

Businesses will look to either enforce post termination restrictive covenants in relation to departing employees, or prepare to have them enforced against them in relation to new recruits.
employment tribunal

Employment tribunal litigation

Increased employment litigation is arising due to disputes over pay, alleged inequality and unfair dismissal during the pandemic.
employee relations

Employee relations litigation

ER have come under pressure during COVID-19. Claims to be watchful of include detrimental treatment or dismissal on protected grounds, or failure by the employer to inform and consult during restructuring and redundancies.
insurance

Insurance considerations

Many businesses have looked to their insurers to recoup losses resulting from COVID-19. The general response of the global insurance industry to these claims – that they are not insured – has come as an unwelcome surprise.
fraud

Fraud risks

The COVID-19 pandemic had a particularly swift and dramatic impact upon workplaces. Increased employment litigation is arising due to disputes over pay, alleged inequality and unfair dismissal during the pandemic.
Construction work

Class action claims

The legal framework and market for group claims in England and Wales is still developing, particularly when compared to jurisdictions such as the US. However, group claims inevitably seek large sums so it is important to be alive to the potential risks.
litigation funding

Litigation funding

In these challenging economic times, the preservation of cash is a key priority for most businesses. Reducing or eliminating the legal costs associated with litigation and arbitration is therefore an increasingly attractive proposition.
Construction work

Construction issues

COVID-19 has delayed and disrupted (and will continue to disrupt) construction projects globally. For many projects that disruption is severe and contracts do not provide answers to questions posed by these unprecedented circumstances.
real-estate

Real estate considerations

COVID-19 legislation has insulated bricks and mortar retailers against the enforcement measures available to landlords but after the likely Autumn “shakedown,” what will a landlord and tenant relationship look like going forwards.
operational-resilience

Operational Resilience

Prior to the coronavirus pandemic there was a growing concern within governments and amongst regulators internationally that the financial sector was vulnerable to significant disruption caused by major incidents affecting technology.
pensions

Digital transformation and data disputes

The pandemic has accelerated the rate of digitalisation for all companies. The risks, and the potential for disputes include cyber, system outages, and new products and services. All of which contribute to a challenging management environment.

Should you need to discuss any issue in more detail please get in touch with your usual Eversheds Sutherland Litigation contact.

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