CASE STUDIES

NATIONAL TORT LITIGATION/MULTIPLE CORPORATE CLIENTS COMPANY

SAMPLE OF MATTER TYPES: Toxic Tort Litigation, Defense of Product Liability Claims

LENGTH OF TIME IN PROGRAM: 8½ years to date

NATURE OF ASSIGNMENT: Analyzed emerging legal invoices (fee and expense entries) from law firms to determine if they were billed in accordance with client guidelines, accepted industry practices or benchmarks; were being performed at the appropriate staff level; and were reasonable in relation to the type of work being performed.  In addition, LCC attorneys determined, analyzed and reported any anomalies, irregularities, and other observations as appropriate. LCC prepared and submitted final invoice payment recommendation reports to a committee of final approvers representing multiple corporate entities as part of the defense syndicate. LCC participated in discussions with the client regarding those findings and recommendations.  As a result, the law firms agreed to substantial reductions from its billings.

OUTCOMES: Year one program savings 9.9%, Year 9 program savings 6.9%.  Total legal fees = $40.3 Million

CHALLENGES:  This client is a collection of manufactures joined together in a joint defense group against ongoing toxic tort claims.  In addition to their being multiple “clients” within the client group, there are multiple insurers and reinsurers represented.  This required providing multiple access to discreet data.  Also required was multiple routing of payment and management reports, including data transfers to multiple insurers.  Each insurer had different management systems requiring custom data feeds and data links.

Part of the defense group goals was 100% indemnity coverage of legal fees from its insurers.  LCC set up a system that modified data presentation to comply with the required formats of a range of reinsurers conducting their own audits of the fees and expenses. Because of LCC’s peer review process the insurers have accepted the results, and the client has achieved virtually 100% legal fee recovery.  This required months of discussions and data exchange between the insurers, the client and LCC.