Cybersecurity, employment, ESG, and more—rising corporate dispute areas and what it means for your legal team. 

As companies face increasing pressure from regulators, consumers, and courts, litigation risk is shifting—and intensifying. According to Norton Rose Fulbright’s 2025 Annual Litigation Trends Survey, nearly half of corporate counsel expect to see more litigation this year, with specific dispute areas emerging as high-risk hotspots across industries. 

From AI-driven data privacy cases to ESG backlash and rising labor disputes, here are the most important dispute trends for Canadian GCs and corporate legal teams to track in 2025.

1. Cybersecurity and Data Privacy: Increasing Exposure

Cybersecurity and privacy disputes saw the highest increase in exposure across all categories, with 36% of in-house counsel saying their company faced greater risk in 2024—and 33% expecting that risk to grow in 2025. 

What’s driving it? 

• Rising cyberattacks, phishing schemes, and third-party breaches 

• New and evolving privacy regulations (like Canada’s CPPA and Quebec’s Law 25) 

• Legal challenges related to AI training data and data sovereignty 

📊 Key Stat: 61% of respondents anticipating more exposure in this area cited increased use of AI and associated data concerns as a top contributor. 

✅ Caravel Tip: Review data processing agreements, vendor security controls, and AI-related data practices to stay compliant and litigation-ready. It’s not about cutting back on AI, but using it responsibly. 

2. Employment and Labour Disputes: Persistent and Evolving

Employment litigation remains a perennial issue. 34% of respondents experienced more employment/labour disputes in 2024, and 37% expect even more in 2025. 

Top issues include: 

• Harassment and discrimination claims (up to 50% from 44% in 2024) 

• Employee data privacy concerns (48%, up from 36%) 

• Complex contractor classification rules (42%) 

✅ Caravel Tip: Conduct regular employment policy reviews and stay ahead of regulatory updates in classification, data privacy, and DEI programs. 

 3. Intellectual Property (IP): AI and Enforcement Driving Risk

26% of corporate counsel expect increased IP exposure in 2025, with patent and trade secret disputes leading the charge. The rise of generative AI is a major driver. 

Top IP risks: 

• Unauthorized use of copyrighted data for AI training 

• Trade secret disclosure through AI tools and platforms 

• Use of third-party software components and open-source tools 

📊 Key Stat: 55% of respondents expecting increased IP exposure in 2025 cited, again, AI as a primary contributing factor—the highest of any risk category. 

✅ Caravel Tip: Conduct an IP audit of internal tech stacks, AI use, and license compliance, especially if you’re building or deploying automated tools. 

4. ESG Disputes: Environmental and Social Discussions Rising

Once considered a disclosure issue, ESG is now a litigation category in its own right. In 2024, 27% of legal leaders saw an increase in ESG-related disputes—and the same percentage expect that number to rise in 2025. 

What’s changing? 

• Canada’s Competition Act now includes new provisions targeting greenwashing 

• Regulatory frameworks are evolving across Canada, the U.S., and the EU 

• DEI and social justice initiatives are increasingly in the legal crosshairs 

📊 Key Stat: 79% of GCs focused on ESG say they expect more “social” ESG disputes (DEI, labour rights, workplace safety) in 2025, up from 58% the year before. 

✅ Caravel Tip: Review all public ESG and DEI statements for accuracy, consistency, and defensibility under evolving regulatory standards. 

Final Takeaway: Prepare Now, Don’t React Later 

In 2025, the litigation landscape is defined by complexity, cross-functional risk, and regulatory acceleration. The four most pressing dispute areas—cybersecurity, employment, IP, and ESG—are all interconnected and influenced by broader business activity. 

Legal leaders who prepare proactively, update internal controls, and adopt flexible legal support models will be best positioned to manage exposure and avoid costly surprises. 

📩 Need support navigating litigation risk in 2025? 
Caravel Law offers business-aligned, embedded legal support to help you manage disputes efficiently and effectively. Connect with us today. 

Source: 
Norton Rose Fulbright. 2025 Annual Litigation Trends Survey: Perspectives from Corporate Counsel. Read the full report