Litigation Management is a process whereby a claims professional focuses on the effective delivery of legal services to those to whom a defense is owed with a view toward maximizing the services obtained while controlling the costs in a reasonable fashion.  It involves a spirit of cooperation among the claims staff and chosen counsel, and when implemented effectively, improves the relationships between those parties.  By limiting approved counsel to a few select firms committed to providing legal services under terms agreed upon by the attorneys and claims professionals, the chosen firms increase their revenue without compromising their integrity, and the claims professionals achieve a superior working relationship with their attorneys as well as improved cost effectiveness. 

Litigation management contemplates procedures designed to decrease the cost of legal services within a line of business and/or jurisdiction while at the same time improve the relationship between the attorneys and claims staff.  The process involves:

 

Review of Existing Law Firm Relationships

a.                  Statistical comparison with industry leaders on reported legal fees to determine priorities of focus by line of business and jurisdiction.

b.                  Analysis of dollars spent among approved law firms to determine obvious discrepancies; search for trends; and to narrow focus.

c.                  Conference with claim staff to:

1)                  Look for patterns of abandoning cases to law firms;

2)                  Determine potential for business being “bought” by law firms;

3)                  Evaluate litigation management tools in place as to effectiveness and enforcement.

d.                 Obtain background information on currently used firms followed by meeting with them personally to evaluate their focus and willingness to participate in meaningful reform.

e.                  Review statistically significant sampling of files to determine areas on which to focus.

f.                    Make recommendations as to relationships to terminate.  In consultation with Claims Management, complete draft of Litigation Management and Attorney Billing Agreement.  Appropriate consideration is given to the feasibility of alternative billing arrangements (i.e. flat fees, contingency fees, etc.)Conference with counsel who are being included on the approved panel to go over Litigation Management and Attorney Billing Agreement, and secure appropriate signatures.Set up appropriate management tools to monitor effectiveness of changes.