Will The Federal Shutdown Have Implications For Commercial Litigation?

By IMS Consulting & Expert Services

The government shutdown is now the longest in U.S. history, spawning issues with federal agencies and setbacks in litigation.

According to the Administrative Office of the U.S. Courts, federal courts could only sustain paid operations until January 18th—it is now past that date. So, what does this mean for your practice? IMS spoke with elite experts in economics and finance for perspective on how the shutdown is impacting litigation. Despite the standstill, many experts don’t foresee a long-term effect stemming from the shutdown.

“From my perspective, zero effect. There will be an effect for attorneys doing securities work as the SEC has only limited people working,” states William Purcell—an IMS Elite Expert in investment banking. Since December 27th, 2018, the SEC has operated with most employees on furlough per accordance with the agency’s plan. However, there is staff on hand to handle emergency situations including investor protection and market integrity. According to the SEC, most matters of litigation are at a halt. Although, there are matters that “continue in order to comply with schedules that have been set by domestic and foreign courts and/or to avoid a delay that would prejudice the Commission’s litigation position.”

Cases involving the U.S. Department of Justice are already being delayed, as criminal cases are prioritized due to public safety. Although the degree is unclear, every court, including the U.S. Supreme Court, will be affected. Many of the courts have granted suspensions or stays in litigation. However, the shutdown is being handled differently from district-to-district and judge-to-judge.

“In the short-term, the impact of the shutdown is minimal,” opines IMS Elite Expert in securities, Dan Castro. “In the long-term, the shutdown in and of itself does not look like it will have any lasting effects. However, if any legislation arises from the shutdown, that could have a long-term impact.”

Amid uncertainty, IMS remains steady in support of your litigation needs by providing top experts to advise, consult, and testify when you need them the most. Contact us today to get started.

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IMS Consulting & Expert Services

IMS Consulting & Expert Services delivers consultative trial and expert services for the most influential global firms. For nearly thirty years, the company has been dedicated to helping clients tell clear and persuasive stories that educate jurors and decision-makers. Through more than 20,000 cases and well over 1,000 trials, attorneys have trusted IMS to equip them with the perspective and tools they need to help their clients succeed. With offices in New York, Dallas, Oakland, and Pensacola, the company provides persuasion strategy, expert witness, jury consulting, trial graphics, and trial presentation services. IMS has been recognized as an industry leader by several notable publications, receiving nine consecutive rankings on the Inc. 5000 list, standing in ten categories of The National Law Journal’s “Best Of 2021” awards, and positioning in the National Law Review’s prestigious “Go-To Thought Leader” awards for three consecutive years. More at expertservices.com.

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