“The Vue”: Managing Rising Defense & E-Discovery Costs.
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Transcript of “The Vue”: Managing Rising Defense & E-Discovery Costs.
““The Vue”: Managing The Vue”: Managing Rising Defense & Rising Defense & E-Discovery CostsE-Discovery Costs
TheThe VVueue
PersonalitiesPersonalities
HOST:
• Jennifer Rothstein, Esq., JD, Insurance Discovery Specialist, ACT Litigation Services, Inc.
SPECIAL GUESTS:
• Andrew Forstenzer, Esq., Executive Vice President & General Counsel, Crump Group, Inc.
• Tony Glenn, MBA, Senior Vice President, U.S. Casualty and Specialty Casualty Claims, Liberty International Underwriters
• Bruce Meckler, Esq., Partner, Meckler Bulger Tilson Marick& Pearson LLP
• Patrick O’Doherty, RPLU, Vice President & Managing Director, Excess & Surplus Lines, ProAssurance Companies
Hot TopicsHot Topics
• Defense costs are increasing and can erode policy limits
• Factors contributing to increase: Increase in litigation (D&O class actions; employment
litigation; coverage litigation) Expert witness costs Discovery costs Exponential growth of electronic documents (types of
cases with largest volumes of documents)
• Underwriting the risks• Questions from the audience
Litigation TrendsLitigation Trends
• Bankruptcy, class actions, and regulatory actions are up – especially in the financial sector 40% of respondents have seen an increase in wage &
hour, multi-plaintiff labor and employment since 2008
• Effects of the economy: 80% of companies surveyed have seen litigation
budgets stay the same or increased since 2008
Source: Fulbright’s 6th Annual Litigation Trends Survey Report
Expert witness costsExpert witness costs
• Vary by discipline
• Vary by venue
• Creative solutions
Discovery v. e-DiscoveryDiscovery v. e-Discovery
• Discovery - “the pre-trial phase of a lawsuit in which each party can request relevant evidentiary information through depositions, interrogatories, requests for admissions and requests for documents.”
• Electronic discovery - any process in which electronic data is sought, located, secured, and searched with the intent of using it as evidence in a civil or criminal case
• Examples of electronic data• What makes electronic data different?• Types of litigation generating highest costs• Large carriers have cited 45% to 75% of defense
costs for D&O claims now come from e-Discovery
e-Discovery Costse-Discovery Costs
• Types of litigation generating highest costs
• 93% of all corporate documents are created electronically
• Predictability
• Hidden costs
• Techniques to mitigate or manage
• Can anyone control this? Who?Source: University of California Berkeley, 1999
e-Discoverye-Discovery
• Trends
• Will e-Discovery affect lawsuits settling versus going to trial?
• Risk management measures
• Effective and defensive management of costs and risks
Controlling the CostsControlling the Costs
• Improved and earlier claims notification by insured to carrier
• Increased involvement by claims professionals in eDiscovery cost and process oversight
• Greater use of alternative dispute resolution
• Ongoing review of document retention policies
• Improved discovery readiness
• Alternative billing practices
• Outsourced review
Underwriting The RisksUnderwriting The Risks
• Can these exposures be effectively underwritten?
• Identifying risks with greater than average vulnerabilities
• Changes needed in risk selection process?
• Impact to rate making – when does the other shoe drop?
Questions from the audience?Questions from the audience?
Follow the “Vue”…Follow the “Vue”…
• Jennifer Rothstein – [email protected]
• Andrew Forstenzer – [email protected]
• Tony Glenn – [email protected]
• Bruce Meckler – [email protected]
• Patrick O’Doherty – [email protected]