ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget
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Transcript of ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget
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ACC Spring SymposiumMay 21, 2009
Litigating on a 2009 Budget
Prepared by:
Mark Habbinga, Esq.
Director of Discovery Solutions
(O) 214 \– 470-9142
(C) 214-893-2220
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Agenda
• Introduction
• Corporate Counsel Survey
• Top Ten Corporate Counsel Strategies for Litigating on a 2009 Budget
• Top Five Things Law Firms are doing to “Feel Your Pain”
• Conclusion
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Introduction – Your Humble Speaker
Mark Habbinga, Esq.
Director of Discovery Solutions
Office: 214-470-9142
Cell: 214-893-2220
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Introduction – Epiq Systems
• IGlobal Reach and ExperienceLocal eDiscovery experts and multilingual staff bring a consistent approach to multinational matters.
Public CompanyEpiq Systems has been a publicly traded company since 1997.
Full financial information is available at WWW.EPIQSYSTEMS.COM.
Epiq is Safe Harbor certified and fully compliant with the security requirements for ITAR data.
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Introduction – Epiq Systems
eDiscovery Solutions Full Life Cycle Litigation and electronic discovery services & software – Collections, Forensics, Processing, Hosting, Review Services, Data Repositories
Corporate Restructuring SolutionsChapter 11 case management, administration and consulting services
Bankruptcy SolutionsChapter 7 and Chapter 13 case management software and solutions
Class Action and Claims Solutions Technology based solutions for class action and mass litigation case management services
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Corporate Counsel Survey
• Unofficial and Non Scientific Poll• 25 Corporate Counsel Polled (20 GCs)• Dallas and Ft Worth• Industries include: Banking,
Entertainment, Hotel, O&G, Outsourcing, Professional Services, Retail, Transportation
• Department sizes ranging from 2 staff members to 300 members of legal team
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Litigating on 2009 Budget
Standard Questions Asked:1. Workload Increase? – 100%
2. Litigation Case Load Increase? – 50% (100% future)
3. Internal Department Budget Frozen/Cut? – 92%
4. Directed to Reduce Outside Counsel Budget? – 100%
5. Team Reductions? – 30%
6. Changes to OC Fee Arrangements? – 80%
7. Changes in OC? – 35% / 80% consider
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Strategy #1:Bring It In House
• Keep More Legal Work In-House• Bleeding the Turnip / Whipping a Dying Horse• Headcount v. Outside Counsel Spend
– Build a profit center + plus incentive program– Virtual Members of your In-house Team– Secondment (Law Firm Associates on a Term
Basis)• Firm pays salary + company pays a bulk rate• Company pays salary only• First Pick of Larger Cases
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Strategy #2: Take the Controls
• More Management of the Litigation Process– Clear Guidance from the Outset– Set Performance Metrics
• Ask for and monitor litigation budgets– Budget through Trial– Monthly and Annual budgeting – Litigation Phase budgeting
• More Detailed Billing– Running and annual case totals– Break down every person billing
• Limit number of attorneys / experience level
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Strategy #3: Pick Your Fights – Early Case
Assessment• Manage the business peoples unreal
expectations• Determine in advance your Litigation Size
thresholds• Risk Benefit Analysis for each case – what
is your true exposure• Settle v. Blood in the Water Consideration• Standardize Pre-dispute DR / Offer
Limited Discovery
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Strategy #4:Negotiate Multiple LF Rate
Options• Reduce Hourly Fees / Volume Discounts• Flat Fee (High Low Gamble)• Blended Rates (Easier to Budget, Seniority
Issues)• Performance Based Options
– Reduced Hourly plus Bonus– Hybrid – Reduced Hourly plus Contingency
• Loss Leader Approach – Routine work for free• No Long term contracts / Competition /MFN
Clauses
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Strategy #5:Re-Evaluate Your Firm
Relationships• More Firms on the list
• Competitive Bid Larger cases / Case Types in bulk
• Boutiques and Smaller Firms
• Multiple Firms per case (Lead and Discovery Counsel)
• Secondment / Term Attorneys
• Virtual In-house Attorneys
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Strategy #6: Drive the eDiscovery Process
• Select a Full Life Cycle Partner (Economies of Scale)• Engage your Partner Early
– Narrow Collections– Prioritize Your Discovery – Staged Discovery with eye on Settlement/MSJ
• Use an Advanced Non-Linear Review Platform – 50-73% Man Hour Savings– Tighter Timelines
• Consider Document Review Services – 50-75% Cheaper Per Hour
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Elements of Electronic Discovery
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Elements of Electronic Discovery
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Elements of Electronic Discovery
C
Efficiency, PredictabilityRisk, Cost, Volume
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Strategy #7:Require The Use of Technology
• Litigation Tracking Platforms• Automated Hold Processes• Advanced Review Platforms w/ Accelerators
that reduce the man hours needed• Shared Data Repositories = Cost Sharing• Communications
– More Teleconferences– Video Conferences in lieu of traveling
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Strategy #8:Re-Consider Alternative Dispute
Resolution• Be Involved in Negotiating Contract Terms• Mediate Early and Often• Consider Hybrid Models
– Med/Arb– High/Low Expedited Arbitration
• Consider a Special Master– Discovery Master– Settlement Master– Special Trial Master
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Strategy #9:Perform Post Mortems Every
time• Root Cause Analysis
– Examine Prelitigation Complaints– Reduced Litigation / Better Customer Services
Scores• Review Budget v. Actual Total• Review Case Benchmarks and Goals• Engage OC to help with more training of
employees – Brown Bag Lunches– CLE– Audits
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Strategy #10:Improve Your Network
• Build a Network of Trusted Colleagues– Same & Different Industries
• Attend Corporate Counsel Organization Events– Association Of Corporate Counsel– TxGCF– DBA / FWBA Corporate Counsel Section– Texas Bar Association
• Professional Networking Communities– Linked- In– Texas Bar Circle Connections– Others
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The View from the Outside (Counsel)
1. Proactively Talking to You2. Offer Multiple Litigation Solutions3. Offer and Use Outsourcing4. Put the Counsel Back Into Legal Counselor
– Complimentary Training / Brown Bag lunches– Neutral Assessments – Risk/Reward Analysis– Standing Update Calls– Absorbing Travel
5. Doing Routine Work for Free / Nominal Fee
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Special Thanks To:
Whitaker, Chalk, Swindle & Sawyer LLP
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Questions
Mark Habbinga, Esq. Director of Discovery [email protected]: 214-470-9142 Cell: 214-893-2220