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Legal Cost Containment 5 11 2010


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Provides overview of factors impacting cost and delivery of legal services to corporations, insurers, and others

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Legal Cost Containment 5 11 2010

  1. 1. Claire Louis For Society of CPCU - Central New Jersey Chapter May 11, 2010 1
  2. 2.  The economy  Transforming change  A major shift: the client as driver of legal costs  Legal cost-control practices  Considerations  Resources  Discussion 2
  3. 3.  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
  4. 4.  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 4
  5. 5. The new focus is on how legal services are delivered. 5
  6. 6.  Law firm panels  Negotiated billing rates  Case budgets  Legal billing guidelines  Electronic billing 6
  7. 7.  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-sharing tools to reduce redundancy  Emphasize performance and cost- effectiveness when evaluating law firms 7
  8. 8.  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! 8
  9. 9.  The Association of Corporate Counsel web site,, 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,, a blog authored by Joshua Furlong, consultant on legal services delivery 9
  10. 10. DISCUSSION 10
  11. 11. Claire Louis Insurance Claims Consultant 201-675-1141 11