Legal Cost Containment 5 11 2010
11
Claire Louis For Society of CPCU - Central New Jersey Chapter May 11, 2010 1
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Transcript of Legal Cost Containment 5 11 2010
Claire Louis
For Society of CPCU - Central New Jersey ChapterMay 11, 2010
1
The economy
Transforming change
A major shift: the client
as driver of legal costs
Legal cost-control practices
Considerations
Resources
Discussion
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Legal budgets cut by 10% to 25% Focus on predictable legal costs delivering
greater value Increasing shift from billable hours to AFAs Convergence: consolidation of matters with
fewer law firms Companies moving to smaller law firms with
lower rates; larger law firms feeling the pressure
Is this a cycle or will the changes become permanent?
3
Global forces are radically changing the way law firms and companies do business◦ Technology
◦ Legal process outsourcing
◦ Off-shoring
◦ Influx of private equity:
2007 U.K. Legal Services Act
◦ Legal education
Corporations are leading
the charge
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The new focus is on how legal services
are delivered.
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Law firm panels
Negotiated billing rates
Case budgets
Legal billing guidelines
Electronic billing
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Use project management and workflow analysis to introduce efficiencies into the litigation process
Outsource routine, repetitive legal work such as document review and contract drafting to lower-cost offshore law firms (Rio Tinto)
Leverage knowledge-sharingtools to reduce redundancy
Emphasize performance and cost-effectiveness when evaluatinglaw firms
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Be a leader: educate yourself about the innovations in legal services delivery and identify opportunities for reducing your company’s legal costs
The key to achieving optimal legal cost-control results is a long-term relationship with the law firm built on mutual trust: start the dialogue now!
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The Association of Corporate Counsel web site, www.acc.com, provides substantial public information on the ACC’s Value Challenge project for increasing the value of legal services from outside counsel.
Law 21: Dispatches from a Legal Profession on the Brink, www.law21.ca, a blog authored by Joshua Furlong, consultant on legal services delivery
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DISCUSSION
