litigation management – effective cost containment

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LITIGATION MANAGEMENT – Effective Cost Containment 2002 Conference Branson, Missouri

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LITIGATION MANAGEMENT – Effective Cost Containment. 2002 Conference Branson, Missouri. Litigation Management. A Rand Institute for Civil Justice study of litigation costs shows $.43 on the dollar is paid to plaintiffs; $.57 is for cost of litigation. State of Mississippi. - PowerPoint PPT Presentation

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Page 1: LITIGATION MANAGEMENT –  Effective Cost Containment

LITIGATION MANAGEMENT – Effective Cost Containment

2002 Conference

Branson, Missouri

Page 2: LITIGATION MANAGEMENT –  Effective Cost Containment

Litigation Management

A Rand Institute for Civil Justice study of litigation costs shows $.43 on the dollar is paid to plaintiffs; $.57 is for cost of litigation.

Page 3: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Page 4: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Attorney selected from the Approved Attorney Register• Individual attorney hired, not firm• Payment for services limited to attorney on roster – any other charges are removed prior to payment

Page 5: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Billing Guidelines:

1. Current rate for legal services - $110/hour. 2. Rate for defense of medical malpractice claims

- $125/hour. 3. Paralegal rate not to exceed $60/hour.

Page 6: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Billing Guidelines:

4. One approved attorney may charge for a maximum of two hours for reviewing the original file.

5. Mississippi Tort Claims Board Claim Number is to be referenced on all correspondence and bills.

Page 7: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Billing Guidelines:

6. Description of work detailed separately on the bill showing time for each task.

7. Two approved attorneys may not render separate bills for one action or item.

8. Receipts required for extraordinary expenses that are more than $100.

Page 8: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Billing Guidelines:

9. Each travel expense item must be listed on time sheet, i.e., # of miles traveled, parking costs.

10. Allowable mileage charge - $.365 11. No allowance for meals unless overnight

travel is required.

Page 9: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Billing Guidelines: 12. Photocopy expense must be itemized for

number of copies – allowable rate $.10/copy.

13. Amount of time charged for telephone calls made or received must be accurate. Charges for calls more than .3 hours should be explained in next status letter to the Board.

Page 10: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Mississippi

Billing Guidelines: 14. All billings must be submitted

quarterly. Other bills will be returned without comment.

Page 11: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

Page 12: LITIGATION MANAGEMENT –  Effective Cost Containment

Litigation Management

In North Dakota, 54% of the amount incurred for tort litigation has been paid to claimant/plaintiff; 46% to pay State’s expenses.

$.36 of the dollar to plaintiff; $.64 to both parties’ expenses of litigation

Page 13: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

Liability coverage for state of North Dakota, its agencies and employees provided by the Risk Management Fund.

The Fund was established and is governed by the State Tort Claims Act.

Page 14: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

Solicitor General serves as General Counsel for the Fund.

Attorney General’s office provides a majority of the defense for the Fund’s claims and lawsuits.

Page 15: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

If specific expertise required, the Fund hires Special Assistant Attorney General (SAAG) to handle defense.

State law requires appointment by the Attorney General to represent the State.

Page 16: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

Each biennium we publish an RFP in the Bar Association magazine to update our Roster of defense attorneys interested in representing the State or a state employee.

Roster approved by Attorney General and Director of OMB.

Not required to hire off the Roster.

Page 17: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

As a part of the RFP we provide copies of the Special Assistant Attorney General (SAAG) Appointment and Representation Agreement and the Billing Policy for the Risk Management Fund.

(Both documents attached)

Page 18: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

To be a part of the program SAAG agrees to:

1. Be compensated at the rate of $90/hour.

2. Within 10 days of accepting an appointment submit an initial budget estimating fees and costs.

3. Comply with terms of AG’s Conflict Policy.

Page 19: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

To be a part of the program SAAG agrees to:

4. Agree to the Solicitor General monitoring the litigation.

5. File any dispositive motions early.

6. Obtain approval for all settlements.7. Obtain approval for appeals, counterclaims,

substantive motions.

Page 20: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

To be a part of the program SAAG agrees to:

8. Submit quarterly status reports.

9. Maintain attorney’s professional E&O coverage of $1M/claim and $2M/aggregate.

10.Report disciplinary actions.

11.Use AG’s brief bank and permit work product to be included in AG’s bank.

Page 21: LITIGATION MANAGEMENT –  Effective Cost Containment

State of North Dakota

To be a part of the program SAAG agrees to:

11.Comply with State’s records management requirements.

12.Billing criteria similar to Mississippi’s. (See attached policy.)

Page 22: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Page 23: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Liability coverage for the state of Missouri, its employees, officers and agencies provided pursuant to the statute creating the State Legal Expense Fund. Section 105.711, RSMo

Page 24: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Attorney General's Office provides the defense for the majority of claims made against individuals and entities covered by the Fund.

Attorney General has authority to hire counsel to assist him (Section 27.020, RSMo), including outside counsel with specialized expertise. Section 105.716.4, RSMo.

Page 25: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Attorney General has developed Policies and Procedures for Outside Counsel. Compliance with the Policies and Procedures is required for all outside counsel.

Page 26: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

The Policies and Procedures specify that it is a particular attorney that has been appointed and retained by the Attorney General and preapproval may be required for services rendered by other attorneys within the firm of retained counsel.

Page 27: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Outside counsel must agree to consult with a designated representative of the Attorney General's Office at every significant stage in the litigation.

Page 28: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

The Attorney General's Office maintains the right to (1) review any document prior to filing, (2) require preapproval before incurring or billing any fee, expense or charge, and to (3) control the selection of any expert or investigator.

Page 29: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Billing Rates and Charges: Current standard rate for general legal services

$100.00 p/h Current rate for medical malpractice defense

$125.00 p/h Mileage

$0.31.5 p/m Duplication and fax charges * reimbursed at the

lessor of the standard rate charged to the firm's clients or actual cost.

Telephone charges * reimbursed at actual cost.

Page 30: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Handling conflicts – multiple defendants

Page 31: LITIGATION MANAGEMENT –  Effective Cost Containment

State of Missouri

Ethical issues in supervision