Troubled waters, gain lawyers

Down services to the property sector but is increased demand for advice on conflicts.

In KPMG, the economic crisis caused a dual effect: a decline in demand for legal services and at the same time, increase in other work-related companies that are in a difficult economic situation.

Alonso Arroyo, a partner in this venture, he acknowledged that those most affected by economic contractions also require legal services. For example, to a restructuring in return and even to carry out a liquidation process.

The services have had a drop in demand are those related to tourism and real estate transactions.

However, a balance sheet of the firms consulted a sample from a stable business with an increase in services since the crisis creates new legal requirements on businesses.

According to Arroyo, the amount of tax litigation is maintained as an economic contraction in the state reinforces the search for resources by tax claims to the taxpayers and they have to defend themselves.

Other lawyers, as Rodolfo Alvarado, feel a greater impact. For him, customers now demand less in all types of services.

It is in these situations when the slowness of the legal process has a double weight, as people discover they have more costs than benefits when conducting a trial that may take seven or eight years, said Alvarado.

There is always demand

19,061 Total professionals gathered at the Colegio de Abogados de Costa Rica.

Marco Durante, Managing Partner of BDS Advisors, said it had an atypical behavior in demand for their services, since increased in recent months.

He added that their clients need help to make decisions related to savings in the cost of human resources, for example, in suggesting new compensation schemes.

“We have also experienced an increase in our practice of dispute because some companies have made changes in industrial relations can be considered illegal, mainly under the inalienability of labor rights,” said Durante.

Another of the effects of this migration is firm in the type of payment from customers, because we prefer to cancel packages advice instead of permanent hires for specific projects.

Guanacaste is maintained

Since before 2006, several law firms in San Jose decided to open offices in Guanacaste, in particular by the housing boom that was the area.

Firms like Coto Pacheco, FA Arias & Muñoz, Cordero and Cordero, Montejo and Associates, and André Tinoco y Abogados and BLP were among those who left the coast in search of more customers.

Currently, however, some analysis if they continue with this operation or closed.

KPMG decided to retain that office for the remainder of 2009 and assess whether the keep in 2010.

Pacheco Coto closed its operation in Tamarindo to merge it with another that is in Liberia. Its managing partner, Alejandro Antillon, said that for now remain involved, but explained that close and re-open it later, it’s a simple job that does not require a great investment.

Various effects

Actions taken by legal services firms in the crisis:
Pacheco Coto: Increased litigation because companies face, for example, over breaches of contract. He also asked its customers better payment terms.

Arias & Muñoz: Increase your business disputes and disputes, including demands for administrative law. Internal reorganization implemented and maintained the office in Guanacaste.