The most in-demand practice areas and positions for law firms in 2010 are led by litigation, according to a report issued last week by Robert Half Legal.

Menlo Park, Calif.-based Robert Half Legal said a surge in litigation is generating work for experienced attorneys who can represent corporate clients in areas such as insurance defense and commercial litigation.

The firm said it also expects demand for:

• Regulatory and compliance. The global financial crisis is expected to result in greater government regulation, increasing demand for attorneys with regulatory backgrounds.

• Energy/environmental law. As "green" initiatives make gains, attorneys with expertise in these areas will remain marketable.

• Bankruptcy/foreclosure. The economic downturn has heightened the need for lawyers with experience handling complex bankruptcy and foreclosure matters, including restructuring and litigation.

• Health care. The health-care sector is expected to remain active, due in part to new reform legislation, generating demand for attorneys and paralegals with biotechnology and pharmaceutical expertise.

• Corporate transactions. As legal departments reduce their spending on outside counsel, there is an increased need for attorneys and paralegals with transactional, litigation and regulatory law experience.

Though the economy is showing signs of recovery, many law firms and corporate legal departments are taking a cautious approach to adding staff. They are basing hiring decisions on the need to manage costs and improve efficiencies and are building flexible legal teams that can quickly adapt to changing business conditions, Robert Half Legal said.