Resolution Strategies John Bohyer, J.D. Linette Ranieri © CLM Litigation Management Institute 2013....

Resolution Strategies

John Bohyer, J.D.Linette Ranieri

© CLM Litigation Management Institute 2013. All rights reserved. The course material presented herein does not represent the views or opinions of any of the individual faculty members or instructors or of any of the companies or entities with which they may be employed or affiliated. Nothing in the course materials presented should be construed as legal or professional advice or the rendering of a legal or professional opinion on any specific factual situation. Always seek appropriate legal and professional business advice in the context of specific cases.


True or False?

94 to 96 percent of all cases settle before trial.


True1. Files settle before trial; however, the

speed to resolution takes too long…

2. So, how do you develop strategies to address resolution speed?


A recent Claims and Litigation Management Alliance study revealed…

“less than 40% of the law firms ‘get it’!”

Such is a predominant example of an unmet expectation.


What’s the one thing you wish your law firms would do a better job of — that would make them stand out among their peers — and that would make your life easier?

Communication and Reporting

Analysis and Strategy

Business Partnering

Faster Resolution


Less focus on “perfect…” Stop “churning” and use your experience… Less time in the discovery “washing

machine…” Earlier identification of settlement vs. trial… Move cases more quickly…

Speed to Resolution

EMAIL ADDRESS

& PHONE

NUMBER

WHAT LAWYERS PUT IN THEIR

BIOS

WHAT CLIENTS LOOK FOR IN LAWYER BIOS

Will you return my calls?Where I went to law school in 1973

The judge I clerked with

Every type of matter I’ve worked on

Courts and bars I’m admitted to

What other lawyers think of me

Law Review articles written

Are you an arrogant jerk?

Do you have experience doing exactly what I need?

Links to blog posts?

What are you really good at?

What do your clients think of you?

Are you on Facebook or Twitter?


Resolution StrategiesLitigation Management

The management of relationships that occur in the course of litigation.

“The litigation manager must anticipate and shape the trajectory of emerging issues or face

being overwhelmed by a perfect storm of key stakeholders — trial attorneys, media, regulators and customers.”

— Steven B. Hantler, Associate General Counsel, DaimlerChrysler. New Core Competencies for the Litigation Manager, Litigation Management, Spring 2003

Resolution StrategiesLearn strategies to: Develop techniques for early resolution.

Understand and manage relationships leading to quicker resolution.

Recognize and understand the impact of data on the resolution process.

Meet and/or exceed client expectations.


New executive team — new strategy Operational issues — expertise — internal v. external

staffing, too many or not enough adjusters, office locations

No longer writing business — ongoing or run-off Too many files — workload standard model New customer/client demand — dedicated team,

special handling instructions, own attorneys Increased indemnity and/or expense — legal,

medical, pharmaceutical vendor

Identify opportunity


Understand the client’s operation — ask for the organization chart or create one yourself.

Learn what the company/client expects from each role — adjuster, supervisor, manager, home office examiner, claims counsel, litigation manager

Determine what each role expects from you — realizing that over time each will formulate an opinion of your services.

Plan how to meet the company’s “official” resolution strategy — Know that the expectations of each party may differ and have a plan to appropriately address where such may be at odds with the official strategy.

Know what client metrics will be used to evaluate your performance — average legal fees, indemnity/loss payments, total cost per case, cycle time, guideline compliance, survey and audit results.

Opportunity presented


True or False

Resolution strategies only involve matters in litigation?


FalseClaims organizations often develop closure

strategies to resolve matters that are not in litigation or create side-by-side resolution strategies for all appropriate claims.


Problem

Data Analysis

Develop Platform

Too many claims, not enough adjusters. Why can’t we get these claims settled?

Number of claims Number of handlers Number of attorneys Average time to resolve Average cost

Convergence/Consolidation

Competitive Bidding

New Billing Methodology


Implement→

Monitor→

File TransferNew CounselTraining Technology

Scorecard Metrics

Complaints RelationshipsGuidelines


True or False

1. Files settle before transfer to new firms?

2. Indemnity will increase?


1. True – 20 to 30 percent of files will settle before transfer to new law firm.

2. False – Loss dollars will be maintained or lower than expected and total cost of claim will decrease (loss + expense).


No Yes0%

10%

20%

30%

40%

50%

60%

70%

80%

71%

29%

In general, does more money spent on the defense of a matter reduce loss costs?

National Litigation Management Study for the Claims and Litigation Management Alliance. Conducted by Revere Advisory, Inc. (2011)


No Yes0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% 89%

11%

In general, do you believe that higher compensation to law firms results in better outcomes?

National Litigation Management Study for the Claims and Litigation Management Alliance. Conducted by Revere Advisory, Inc. (2011)

Resolution StrategiesConsiderations

COMPANY CLIENT Claims Corporate Law Underwriting Actuary Internal Audit Executive Team and Board Marketing Broker/Agent Primary/Excess Co-defendant Reinsurer Vendor

Product Team General Counsel Personal Counsel Litigation Manager Risk Manager CFO Claims Manager Broker/Agent Special Handling Instructions Consent


Simple Individual matter One state or jurisdiction/line of business No client involvement Time and expense Flat fee

Complex Group of matters Multiple states or jurisdictions/lines of business Client involved Alternative fees Time and expense

Resolution StrategiesExamples

• Arrowpoint Capital – Alternative Fee Program• Pfizer – RFP Evaluation Scorecard• Plaintiff Law Firm – 20% Contingency Fee for Early

Resolution• Tyco/UK – Fixed Fee Agreement and Bonus Payment• Eversheds – RAPID Resolution• Marsh – Claims Inventory Workout• Fair Outcomes and Cybersettle – Electronic

Settlement

22

Resolution StrategyBuilding

Strategy RFP Selection Implementation and training Tools and technology Scorecard, assessment and data management


John Bohyer, J.D.Linette Ranieri

Resolution Strategies John Bohyer, J.D. Linette Ranieri © CLM Litigation Management Institute 2013....

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Transcript of Resolution Strategies John Bohyer, J.D. Linette Ranieri © CLM Litigation Management Institute 2013....