SAMPLE OF MATTER TYPES: Global Financial Professional Services/Real Estate
LENGTH OF TIME IN PROGRAM: 10 ½ 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 Invoice Reports in support of its findings and recommendations (converted from foreign currencies to U.S. dollars where appropriate), and participated in discussions with the client regarding those findings and recommendations. As a result, the law firms agreed to substantial reductions from its billings. Billings originate from U.S. firms and from firms in Australia, Austria, Hong Kong, Singapore, Sweden and, United Kingdom.
OUTCOMES: Year one program savings 9.9%, Year 9 program savings 6.9%. Total Legal and Professional Fees = $40.3 Million (foreign currencies converted to U.S. Dollars)
CHALLENGES: Most recent challenges relate to designing and implementing an Hourly Rate Approval system whereby the submission of an invoice with either a new timekeeper or new rate for an existing timekeeper, generated a Timekeeper and Rate approval process. This sophisticated program begins an approval process immediately upon submission of an invoice, presenting client approvers not only with the petition for new timekeeper/rate, but also with historic and comparative data for decision making.
PRICING CHALLENGES: This client charges its law firms a “processing fee” that exceeds LCC’s fee to the client; see, the “Pricing Challenges” note below.