The core of effective litigation management is goodcommunication with everyone involved in a case.

“With good communication, you can eliminate most surprises,whether you deal with one case a year or hundreds,” says MichaelZeoli, litigation management manager, claims group, Chubb Group ofInsurance Companies, Warren, N.J.

W. Brett Mason, special counsel in the Baton Rouge, La., officeof Stone Pigman Walther Wittman LLC agrees. “You have to start withand maintain an open line of communication between the risk manageror claims litigation manager and the trial attorney,” he says. “Thetrial attorney has to understand the litigation manager’s goals fora given case at the outset.”

Every organization, regardless of size, is likely to facelitigation sooner or later. What makes a difference is the way theorganization handles its legal matters and how everyone involvedworks together. Here are some best practices to help yousuccessfully manage litigation for your company.

(Photo: Shutterstock/dizain)

1. Establish a process before you need it

Although every case is different, it should follow the sameworkflow, Zeoli advises. Start with a case assessment, then createa road map of where the case is going and have all stakeholdersagree on a strategy.

It’s helpful if the case manager has a litigation background,but it’s not strictly necessary. Zeoli believes that someone whohas worked in claims and with attorneys for several years can besuccessful at litigation management. Both the manager and litigatorhave to understand that the claims process is different than thelegal process.

If you have the litigation management workflow in place, Zeolisays, handling a class action or major catastrophe litigation isall a matter of scale. Although a class action may requireheightened awareness and attention, it should stay within the sameworkflow.

(Photo: Shutterstock/Andrey_Popov)

2. Select a panel of attorneys

Zeoli recommends that you establish a relationship with a panelof firms to minimize potential conflicts of interest or lack ofavailability. He calls this “one of the greatest tools” forlitigation management.

Look at the capabilities of the entire firm, not just thepartner with whom you’re accustomed to dealing when selecting thepanel. Depending on the business you’re in, you likely will needsubject matter expertise for some cases—like intellectualproperty—not just experts in insurance coverage.

Large multistate or multinational organizations also needattorneys in the major areas in which they do business. If a casecomes up in a jurisdiction where you don’t have retained counsel,attorneys with whom you already have relationships can help youfind local counsel.

(Photo: Shutterstock/Alexander Supertramp)

3. Assess the case quickly

Zeoli recommends that you set a time limit, such as 60 days, fora case assessment from the lead attorney on the case, whetherin-house or outside. The initial assessment usually provides ahigh-level overview of the case including:

• The factual basis of the claim
• Any significant legal issues
• Any potential defenses
• The likelihood of success
• An initial estimate of the time and cost, subject toadjustment.

Mason finds that most litigation managers conduct a cost-benefitanalysis before deciding to litigate or settle. But attorneysbelieve that the longer they avoid paying a settlement the better.“It can be a good strategy,” he says, “but it may not meet yourclient’s needs.” A company with a large deductible and self-insuredretention may be more interested in settling, partly to avoid badpublicity or distractions, regardless of the case’s merits.

(Photo: Shutterstock/Andrey_Popov)

4. Review budgets and invoices carefully

Make sure there are budgets in place that correspond to theproject plan, Zeoli says. The budget should be based on the list oftasks to be done and who will do them—for example, an associate, apartner, a staff attorney from your company or the claimsprocessor.

Zeoli recommends that you review invoices carefully because theytell a story. For example, you may see a line item for a depositionthat you didn’t expect, requiring you to reach out to the attorneyfor an explanation. “Everyone has to work together so the casesdon’t go off track,” he adds.

Mason asks for a meeting with the litigation manager to reviewbilling guidelines at the outset so he can understand what themanager’s goals are. Most managers need regular updates and invoicereviews for their reports to their management team. At the sametime, managers need to understand the worst-case scenario so theycan budget for that. Mason believes that when the trial attorneyunderstands the information the litigation manager needs and why,the attorney can be more responsive.

(Photo: Shutterstock/Stuart Miles)

5. Get organized, stay organized

The better organized you are, the easier litigation is tomanage, Zeoli points out. Have all the information in one place, hesays, and accessible to everyone who is involved in the case. Youcan use whatever tools you like—a checklist, for example—tomaintain all of the key information, including:

• The names and contact information of the parties, theirattorneys and the firms involved in the case as well as theirstatus as defendants or co-defendants
• Names and contact information for claims processors,investigators, or expert witnesses
• A calendar of critical dates and deadlines,
• A list of all of the documents that are needed for the case,including insurance policies, contracts, certificates of coverageand
• statements of value.

Mason agrees that organization is important. “If you haveelectronic tools in place, such as matter management or billingsoftware, be sure to use them,” he adds. He recommends developing achecklist, especially for standard cases, and assigning someone oneach side to manage the list. It should become part of the projectplan and be reviewed regularly. Generally, you can use the reportsin the litigation management tool to create your checklist.

(Photo: Shutterstock/www.BillionPhotos.com)

6. Use data effectively

Jason Parkman, CEO of Mitratech, a provider of enterprise legalmanagement solutions based in Austin, Texas, says that companiesshould take advantage of the data they have to help make decisionsabout the management of legal matters, including litigation. Herecommends comparing the expertise, time management skills and caseresults of staff attorneys against outside attorneys to determinecost effectiveness. Some of Mitratech’s clients, which include sixof the 10 largest property and casualty carriers, have found thatin some cases they received the same result with staff attorneys athalf the cost. The carriers now use staff attorneys exclusively forsome matters unless the case is likely to reach a certain liabilitythreshold or for another strategic reason.

Parkman also believes that the best understanding of how lawyerswork is a data-driven one. He advises that litigation managers,especially those who are new to a company, spend a lot of timereviewing the data and how long repeatable cases take. Then, thelitigation manager can determine averages or ranges and use thedata for more effective early case assessment. The data can alsoprovide information about liability in a typical case.

Zeoli agrees that you should have a centralized resource toleverage the data to make good decisions. At a minimum, he says,you need a system to manage all the documents a case generates,whether you buy one or build it yourself.

(Photo: Shutterstock/Kzenon)

7. Expect regular updates

Although the value and complexity of the case will vary, Zeolisays, try to have a uniform approach about status updates. Hebuilds monthly updates into the plan with the expectation thatupdates will occur whenever something happens in the case, such asa filed motion or a judge ruling on the motion. He also recommendsreviewing and updating the budget and the schedule when the casetakes an unexpected turn.

You also can use the reports available in your litigationmanagement system to review the status of a case at any time. Afteryou review the reports, you can call your attorney with specificquestions; you don’t have to wait for the attorney to formallyupdate you.

(Photo: Shutterstock/frank_peters)

8. Establish trust and loyalty

By using the same firms repeatedly, the attorneys get to knowthe organization better and can be more effective at staffing andhandling cases. “The client has to trust the managing attorney toknow who is best suited for a specific task,” Mason says. Forexample, a more experienced attorney may be able to write a briefon a complex subject in far less time than an associate, even at ahigher billing rate. When clients use their attorneys consistentlyand don’t shop around for every case, they’re less likely to havebilling issues and the churn will be minimized.

Zeoli agrees that with a panel, you’ve already had conversationsabout billing guidelines, when to use associates versus partners,and what issues are important to your organization. You’ve built uptrust on both sides.