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ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget PowerPoint Presentation
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ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget

ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget

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ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget

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  1. ACC Spring Symposium May 21, 2009 Litigating on a 2009 Budget Prepared by: Mark Habbinga, Esq. Director of Discovery Solutions (O) 214 \– 470-9142 (C) 214-893-2220 mhabbinga@epiqsystems.com

  2. 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

  3. Introduction – Your Humble Speaker Mark Habbinga, Esq. Director of Discovery Solutions mhabbinga@epiqsystems.com Office: 214-470-9142 Cell: 214-893-2220

  4. Introduction – Epiq Systems I Global Reach and Experience Local eDiscovery experts and multilingual staff bring a consistent approach to multinational matters. Public Company Epiq 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.

  5. Introduction – Epiq Systems eDiscovery Solutions Full Life Cycle Litigation and electronic discovery services & software – Collections, Forensics, Processing, Hosting, Review Services, Data Repositories Corporate Restructuring Solutions Chapter 11 case management, administration and consulting services Bankruptcy Solutions Chapter 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

  6. 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

  7. Litigating on 2009 Budget Standard Questions Asked: Workload Increase? – 100% Litigation Case Load Increase? – 50% (100% future) Internal Department Budget Frozen/Cut? – 92% Directed to Reduce Outside Counsel Budget? – 100% Team Reductions? – 30% Changes to OC Fee Arrangements? – 80% Changes in OC? – 35% / 80% consider

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. Elements of Electronic Discovery

  15. Elements of Electronic Discovery

  16. Elements of Electronic Discovery C Efficiency, Predictability Risk, Cost, Volume

  17. 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

  18. 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

  19. 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

  20. 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

  21. The View from the Outside (Counsel) Proactively Talking to You Offer Multiple Litigation Solutions Offer and Use Outsourcing Put the Counsel Back Into Legal Counselor Complimentary Training / Brown Bag lunches Neutral Assessments – Risk/Reward Analysis Standing Update Calls Absorbing Travel Doing Routine Work for Free / Nominal Fee

  22. Special Thanks To: Whitaker, Chalk, Swindle & Sawyer LLP

  23. Questions Mark Habbinga, Esq. Director of Discovery Solutions mhabbinga@epiqsystems.com Office: 214-470-9142 Cell: 214-893-2220