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The New Reality : Turning Risk into Opportunity through the DuPont Legal Model 5th Edition SILVIO J. DECARLI Associate General Counsel & Chief Litigation Counsel ANDREW L. SCHAEFFER Managing Counsel, Operations and Partnering Editors:

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Page 1: The New Reality - Canadian Bar · PDF fileThe New Reality: Turning Risk into Opportunity through the DuPont Legal Model 5th Edition ... The corporate legal industry has experienced

The New Reality: Turning Risk into Opportunity through the DuPont Legal Model

5th Edition

Silvio J. DeCaRliassociate General Counsel & Chief litigation Counsel

aNDRew l. SChaeffeRManaging Counsel, operations and Partnering

Editors:

Page 2: The New Reality - Canadian Bar · PDF fileThe New Reality: Turning Risk into Opportunity through the DuPont Legal Model 5th Edition ... The corporate legal industry has experienced

iMPoRTaNT DiSClaiMeR aND liMiTaTioN of liaBiliTY

This book is intended only as a description of the DuPont Legal Model. It is not an offering of services, or a description of services, by either DuPont or any Member of the DuPont Primary Law Firm Network to any user of legal services other than DuPont.

The description of the relationship between DuPont and its PLF Network Members in this booklet is not intended to describe any PLF Network Member’s present or proposed relationship with any client other than DuPont.

This booklet uses the terms “partners” and “partnering” only to convey an attitude and approach among DuPont and the Members of the PLF Network, specifically a desire to be collaborative and focused on their mutual benefit.The terms are not intended to have any legal meaning.

The DuPont Primary Law Firm Network is not a partnership. Each Member of the PLF Network is a separate entity that performs its own work independently for its clients and is solely responsible for the quality of its work. No PLF Network Member represents that it relies on any other Member in performing its legal work or any other services. No PLF Network Member accepts legal responsibility for any other PLF Network Member’s work.

To order copies of this book, please visit www.dupontlegalmodel.com

The New RealiTyTurning Risk into opportunity

through the DuPont legal Model5th Edition

S ILvIo J . DECarLIassociate General Counsel & Chief Litigation Counsel

aNDrEw L . SChaEFFErManaging Counsel, operations and Partnering

a DuPont Legal Function Publication

Copying Strictly Prohibited

Copyright © 2009

E.I. du Pont de Nemours and Company

all rights reserved

Page 3: The New Reality - Canadian Bar · PDF fileThe New Reality: Turning Risk into Opportunity through the DuPont Legal Model 5th Edition ... The corporate legal industry has experienced

iMPoRTaNT DiSClaiMeR aND liMiTaTioN of liaBiliTY

This book is intended only as a description of the DuPont Legal Model. It is not an offering of services, or a description of services, by either DuPont or any Member of the DuPont Primary Law Firm Network to any user of legal services other than DuPont.

The description of the relationship between DuPont and its PLF Network Members in this booklet is not intended to describe any PLF Network Member’s present or proposed relationship with any client other than DuPont.

This booklet uses the terms “partners” and “partnering” only to convey an attitude and approach among DuPont and the Members of the PLF Network, specifically a desire to be collaborative and focused on their mutual benefit.The terms are not intended to have any legal meaning.

The DuPont Primary Law Firm Network is not a partnership. Each Member of the PLF Network is a separate entity that performs its own work independently for its clients and is solely responsible for the quality of its work. No PLF Network Member represents that it relies on any other Member in performing its legal work or any other services. No PLF Network Member accepts legal responsibility for any other PLF Network Member’s work.

To order copies of this book, please visit www.dupontlegalmodel.com

The New RealiTyTurning Risk into opportunity

through the DuPont legal Model5th Edition

S ILvIo J . DECarLIassociate General Counsel & Chief Litigation Counsel

aNDrEw L . SChaEFFErManaging Counsel, operations and Partnering

a DuPont Legal Function Publication

Copying Strictly Prohibited

Copyright © 2009

E.I. du Pont de Nemours and Company

all rights reserved

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ii

ACKNOWLEDGEMENTSContinually improving DuPont Legal is an ongoing, cooperative effort

by many individuals and teams throughout the law department, the

DuPont Company and among our dedicated strategic partners. We

wish to thank all those in DuPont and in our Primary Law firms and

Service Providers who contributed the ideas, time and energy that have

made the DuPont Legal Model an innovative and successful program.

The corporate legal industry has experienced dramatic change in

the last two decades, and in the coming years, we will face “The

New Reality: Turning Risk into

Opportunity through the DuPont

Legal Model.” DuPont Legal will

remain at the forefront of this

transformation. Through the

creative thinking and hard work

of those in our department and in

our Network, we hope to stay in

the vanguard of the dynamic and

challenging world of corporate

law practice.

Some individuals are especially

deserving of mention. Without

the day-to-day efforts of each of

the managers of law firm partnering – Dan Mahoney, John Dickey,

Jim Shomper, Julie Mazza, Ramona Romero and Andy Schaeffer, the

program would not have been successful. Former General Counsel,

Stacey Mobley deserves special recognition for his leadership in

taking the Model to the next level.

We also thank all those who contributed to the drafting of this book,

their knowledge and experience has made this book possible and has

made the Legal Model a success in practice. In addition to all the PLFs

and PSPs who shared ideas and quotes for the book, the contributions

of Dov Seidman, of LRN® Corporation and Andrew Schirrmeister of

Schirrmeister Diaz-Arrastia Brem, LLP are noteworthy and greatly

appreciated. Finally, but not least, many thanks to Nancy Miller, Sue

Slayton, Cathy Kleimann, Kelly Burns, Eileen Dougherty, Joan Byrne

and Mary Tuke for their tireless support over the years of the program.

This book is dedicated to the memory of Daniel W. Luczak for his boundless vision, creativity and dedication to DuPont and its Network of law firms and suppliers.

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Introduction .............................................................. iv 1. overview of the DuPont Legal Model ......................... 1 2. accomplishments and results ................................... 7 3. Benefits of Strategic Partnering to DuPont ............... 12 4. Benefits of Strategic Partnering to the Network ........ 15 5. Knowledge Management and Decision Support........ 20 6. Early and Strategic Case assessment ........................ 24 7. Strategic Budgeting and Forecasting ......................... 31 8. Diversity ................................................................... 37 9. Paralegal Utilization .................................................. 43 10. IP – Life after Convergence in the Global Marketplace ........................................ 48 11. E-discovery, outsourcing, offshoring ....................... 53 12. Metrics ..................................................................... 57 13. recoveries ................................................................ 61 14. Ethics and Compliance ............................................. 65 15. Benchmarking .......................................................... 68 16. Public Policy Network .............................................. 72 17. Doing Business Globally ........................................... 75 18. Lessons Learned ....................................................... 78 19. Epilogue – The Evolution Continues ....................... 83

Contents DuPont Contributors to the new book on the DuPont Legal Model

Maria S. AngeloSenior Counsel

David H. BurtCorporate Counsel

Mary Kate CampbellSenior Counsel

Vincent M. Catanzano Discovery Counsel and Litigation Support Manager

Marybeth D. DaviesManager, Paralegal Program

Gerry F. DeeryLegal Finance Manager

Mark A. EdwardsCorporate Counsel

Van H. LeichliterIntellectual Property Leader/Corporate Counsel

Sharon Ann LeyhowAssociate GC, Chief International Trade Counsel & Chief Product Compliance Counsel

James T. Lynn, IIICorporate Counsel

Pamela C. MartinManager – IT Legal and Compliance

Martha L. ReesVP, Assistant GC, Chief Antitrust Counsel and Chief Environment Counsel

Anita M. SchmittCorporate Counsel and Legal Six Sigma Champion

Robert SavaApplications and Data Specialist DuPont IT – Legal and Compliance

James D. ShomperCorporate Counsel

Lynn A. SimpsonDuPont Legal Knowledge Manager and Six Sigma Master Black Belt

Ernest A. TuckettCorporate Counsel

Michael WalkerVP, Assistant GC and Chief IP Counsel

Nancy H. YoungAssistant Business Manager

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The DuPont Legal Model is the culmination of a process

that began in late 1992, a process that continues to

evolve to this day. although its origins were in finding

ways to reduce costs, the Legal Model has evolved well

beyond a one-dimensional, cost-cutting program. at its core,

the Legal Model is an integrated approach for managing

change within the law department and for continuously

improving how legal services are provided to DuPont

businesses in terms of quality, cost and efficiency.

The core elements of the Legal Model were established in the

first several years of the program and have remained constant.

as it evolved, the Legal Model incorporated other components

— of equal importance — that permeate all of its core

elements. These additional initiatives include performance

metrics, practice groups, Six Sigma, strategic case

assessment, recovery opportunities, offshoring and risk

management. Each will be discussed in detail in the

following pages. The Legal Model is dynamic. after

more than a decade and a half of success, the Model

continues to break new ground.

Overview of the DuPont Legal Model1

The keys to the success of the legal Model are its founding principles, which are also its

defining characteristics:

1. The legal Model is founded on strategic partnering.

Strategic partnering, the cornerstone of the Model, emphasizes long-term relationships based on mutual

trust, sharing of risks and rewards, working collaboratively toward common objectives to the ultimate

benefit of DuPont and a mutual commitment to each other’s financial success. It is the driver that makes

the Model work.

2. The legal Model is business focused.

From its emphasis on disciplined work processes and risk sharing to strategic partnering and global

networks, the Legal Model is highly business-oriented and client-driven.

3. The legal Model requires ongoing reengineering of work processes.

Managing cases individually — no matter how effectively done — is not enough to adequately control

costs or quality of legal services. a more “strategic” or “systems” approach — with its focus on process,

consistency and discipline — is needed. The Legal Model provides a shared framework for the inside

and outside DuPont counsel to create and implement disciplined systems and processes (such as

budgeting, rate adjustments, alternative fees, Six Sigma and early and strategic case assessment) to

improve overall quality of legal services, to contain costs and to ultimately better serve DuPont businesses.

4. The legal Model maximizes the use of cutting-edge technology.

Technological advances permit increased efficiency in management of outside legal costs and improved

results. The DuPont Legal Model relies heavily on the latest technology as a collaborative tool as well

as a communications tool. Both DuPont Legal and its Primary Law Firms (PLFs) and Primary Service

Providers (PSPs) have invested greatly in cutting-edge technology in traditional areas such as electronic

mail, and in more sophisticated areas such as electronic invoicing, integrated matter and knowledge

management, electronic discovery and document imaging.

5. The legal Model emphasizes efficiency and cost control.

The Legal Model is results-oriented, and both inside and outside lawyers for DuPont have adopted

a shared culture of efficiency in the way they practice law. These Primary Law Firms and Service

Providers understand the DuPont goals for cost-effective and client-centered legal services, and

they embrace those goals in everything they do for DuPont. This focus on the bottom line has led to

improved and cost-effective legal services for DuPont. Most importantly, the Legal Model enlists the

active support of a select group of innovative and progressive outside law firms and suppliers that are

equally committed to efficiency and to the delivery of quality legal services to DuPont business clients.

Origins of the Legal ModelTo put it into historical context, in 1992 the DuPont chairman, Edgar woolard, Jr., challenged his staff

to slash more than $1 billion in operating costs. Determined to do its part, DuPont Legal launched a

“ This model (the DuPont Legal Model) has become one of the most powerful forces for

change in the legal services market in the U.S. and its influence is spreading to all

international markets.” — adrian Preston, “Clients Take Control of Billing Process,” international financial Review, 9th edition.

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The DuPont Legal Model is the culmination of a process

that began in late 1992, a process that continues to

evolve to this day. although its origins were in finding

ways to reduce costs, the Legal Model has evolved well

beyond a one-dimensional, cost-cutting program. at its core,

the Legal Model is an integrated approach for managing

change within the law department and for continuously

improving how legal services are provided to DuPont

businesses in terms of quality, cost and efficiency.

The core elements of the Legal Model were established in the

first several years of the program and have remained constant.

as it evolved, the Legal Model incorporated other components

— of equal importance — that permeate all of its core

elements. These additional initiatives include performance

metrics, practice groups, Six Sigma, strategic case

assessment, recovery opportunities, offshoring and risk

management. Each will be discussed in detail in the

following pages. The Legal Model is dynamic. after

more than a decade and a half of success, the Model

continues to break new ground.

Overview of the DuPont Legal Model1

The keys to the success of the legal Model are its founding principles, which are also its

defining characteristics:

1. The legal Model is founded on strategic partnering.

Strategic partnering, the cornerstone of the Model, emphasizes long-term relationships based on mutual

trust, sharing of risks and rewards, working collaboratively toward common objectives to the ultimate

benefit of DuPont and a mutual commitment to each other’s financial success. It is the driver that makes

the Model work.

2. The legal Model is business focused.

From its emphasis on disciplined work processes and risk sharing to strategic partnering and global

networks, the Legal Model is highly business-oriented and client-driven.

3. The legal Model requires ongoing reengineering of work processes.

Managing cases individually — no matter how effectively done — is not enough to adequately control

costs or quality of legal services. a more “strategic” or “systems” approach — with its focus on process,

consistency and discipline — is needed. The Legal Model provides a shared framework for the inside

and outside DuPont counsel to create and implement disciplined systems and processes (such as

budgeting, rate adjustments, alternative fees, Six Sigma and early and strategic case assessment) to

improve overall quality of legal services, to contain costs and to ultimately better serve DuPont businesses.

4. The legal Model maximizes the use of cutting-edge technology.

Technological advances permit increased efficiency in management of outside legal costs and improved

results. The DuPont Legal Model relies heavily on the latest technology as a collaborative tool as well

as a communications tool. Both DuPont Legal and its Primary Law Firms (PLFs) and Primary Service

Providers (PSPs) have invested greatly in cutting-edge technology in traditional areas such as electronic

mail, and in more sophisticated areas such as electronic invoicing, integrated matter and knowledge

management, electronic discovery and document imaging.

5. The legal Model emphasizes efficiency and cost control.

The Legal Model is results-oriented, and both inside and outside lawyers for DuPont have adopted

a shared culture of efficiency in the way they practice law. These Primary Law Firms and Service

Providers understand the DuPont goals for cost-effective and client-centered legal services, and

they embrace those goals in everything they do for DuPont. This focus on the bottom line has led to

improved and cost-effective legal services for DuPont. Most importantly, the Legal Model enlists the

active support of a select group of innovative and progressive outside law firms and suppliers that are

equally committed to efficiency and to the delivery of quality legal services to DuPont business clients.

Origins of the Legal ModelTo put it into historical context, in 1992 the DuPont chairman, Edgar woolard, Jr., challenged his staff

to slash more than $1 billion in operating costs. Determined to do its part, DuPont Legal launched a

“ This model (the DuPont Legal Model) has become one of the most powerful forces for

change in the legal services market in the U.S. and its influence is spreading to all

international markets.” — adrian Preston, “Clients Take Control of Billing Process,” international financial Review, 9th edition.

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campaign to achieve high-quality legal services at reduced costs. a Legal Department Team, composed

of corporate counsel, senior management and assisted by outside consultants, conducted an analysis of

escalating expenses.

Under the direction of senior legal management, the Team then developed strategies and approaches, based

on established business techniques, to accomplish the objectives of the program. The Team concluded

that litigation would be the initial focus of the Legal Model and established objectives to reduce costs and

increase productivity.

after completing this analysis, the Team critically examined work processes. DuPont Legal was paying a

high price for thoroughness. Time was often spent researching every issue and taking every conceivable

deposition, usually in the interest of avoiding risk, and as though every lawsuit was a “bet-your-company”

case. In addressing this concern, the Team emphasized the need to move from thoroughness to

appropriateness, where not every rock is turned over, just enough of the right rocks. appropriateness

in this instance meant recognizing case objectives and obtaining cost-effective results. To determine

appropriateness, both outside counsel and DuPont counsel, in consultation with the business client,

would be required to strategically assess the value of the case and determine the most efficient,

cost-effective means to resolve it.

Selecting the Primary Law Firms and Primary Service Providersonce the Team identified its needs and determined how work processes could be improved, it began the

task of selecting which firms would become Primary Law Firms (PLFs) and Primary Service Providers (PSPs).

To begin, the number of outside law firms and suppliers with which DuPont Legal did business was significantly

reduced through a three-and-one-half year convergence process. In their place, the Legal Model established a new

Network of Primary Law Firms and Service Providers based not on the old client-vendor paradigm, but on a true

partner relationship with each side sharing goals and visions — and enjoying mutual benefits.

The Team selected PLFs through extensive interviews with each firm. The Team looked, of course,

for outstanding firms whose practice matched the DuPont needs and standards for high-quality service.

Even as practice areas and the needs of the DuPont businesses have changed, law firms are chosen for

inclusion in the Network based on these criteria.

The Team also evaluated DuPont Legal’s need for services such as document management, copying, court

reporting, temporary lawyers and legal assistants, financial analysis, jury research and demonstrative

evidence. In the past, many of these service providers were retained directly by the DuPont outside law

firms, leading to a highly varied level of quality and cost-effectiveness. By centralizing the retention

of key PSPs and forging strategic relationships with them, the Team sought to achieve the same goals

of efficiency and quality that they hoped to attain with the PLFs. added to this mix have been legal

service providers for legal research; medical record retrieval management, review and analysis; additional

litigation support; and document review services.

The Legal Model TodayThis convergence process originally reduced the number of outside law firms DuPont used from more

than 350 to 34, plus four legal services providers. as the needs of DuPont have changed, so have the

number of PLFs and PSPs. In october 2009, the Legal Model Network comprises 40 PLFs, including ones

in the United Kingdom, Canada and Mexico, and 10 PSPs. By virtue of its design, the convergence process

became the foundation to solidify relationships among the PLFs, the PSPs and DuPont Legal. Each shares a

common vision of the practice of law. This relationship is based on new ideas of mutual benefit, trust and

a willingness to work together to solve problems.

what guided the PLFs, the PSPs and DuPont Legal in their relationship building was the DuPont

Legal Model. In principle, the Legal Model establishes a shared vision that enables every member

to effectively participate in managing change. In philosophy as well as practice, the Legal Model truly

represents a radical redefining of the entire practice of corporate law — from the relationships forged to

the technologies employed. and in a most fundamental way it has irreversibly altered the practice of law

for DuPont and its outside law firms.

as DuPont legal moves beyond the first decade of the 21st Century, it has focused its actions under

these strategic initiatives:

1. Meet the changing demands of the DuPont global businesses through a disciplined approach to skill

enhancement, leadership development and resource deployment.

2. Improve top-line growth and risk mitigation through proactive and disciplined processes.

3. advance the transformation within Legal to a robust knowledge management organization.

4. Continue to improve cost performance through differentiated but integrated strategies to enhance the

Company’s bottom line.

Following are lists of the Primary Law Firms and Service Providers in the DuPont Network as of october 2009.

Primary Law Firms (PLFs)allen Guthrie & Thomas, PLLC, Charleston, wv

alston + Bird LLP, Los angeles, Ca

Ballard Spahr LLP, Philadelphia, Pa

Bartlit Beck herman Palenchar & Scott LLP, Chicago, IL and Denver, Co

Basham, ringe Y Correa, S.C., Bosques De Las Lomas, Mexico

Boies, Schiller & Flexner, LLP, washington, DC and New York, NY

Cotten Schmidt & abbott, L.L.P., Fort worth, TX and New orleans, La

Crowell & Moring LLP, washington, DC

Objectives of the Legal Model1. Reduce the number of outside law firms and suppliers.

2. Employ more sophisticated purchasing practices such as value billing agreements.

3. Leverage internal and external resources.

4. Fully utilize technology to facilitate collaboration and sharing of work product, to coordinate handling of similar cases and to promote knowledge transfer.

5. Increase the hiring, retention and contributions from women and people of diverse racial and cultural backgrounds.

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in the United Kingdom, Canada and Mexico, and 10 PSPs. By virtue of its design, the convergence process

became the foundation to solidify relationships among the PLFs, the PSPs and DuPont Legal. Each shares a

common vision of the practice of law. This relationship is based on new ideas of mutual benefit, trust and

a willingness to work together to solve problems.

What guided the PLFs, the PSPs and DuPont Legal in their relationship building was the DuPont

Legal Model. In principle, the Legal Model establishes a shared vision that enables every member

to effectively participate in managing change. In philosophy as well as practice, the Legal Model truly

represents a radical redefining of the entire practice of corporate law — from the relationships forged to

the technologies employed. And in a most fundamental way it has irreversibly altered the practice of law

for DuPont and its outside law firms.

As DuPont Legal moves beyond the first decade of the 21st Century, it has focused its actions under

these strategic initiatives:

1. Meet the changing demands of the DuPont global businesses through a disciplined approach to skill

enhancement, leadership development and resource deployment.

2. Improve top-line growth and risk mitigation through proactive and disciplined processes.

3. Advance the transformation within Legal to a robust knowledge management organization.

4. Continue to improve cost performance through differentiated but integrated strategies to enhance the

Company’s bottom line.

Following are lists of the Primary Law Firms and Service Providers in the DuPont Network as of October 2009.

Primary Law Firms (PLFs)Allen Guthrie & Thomas, PLLC, Charleston, WV

Alston + Bird LLP, Los Angeles, CA

Ballard Spahr LLP, Philadelphia, PA

Bartlit Beck Herman Palenchar & Scott LLP, Chicago, IL and Denver, CO

Basham, Ringe Y Correa, S.C., Bosques De Las Lomas, Mexico

Boies, Schiller & Flexner, LLP, Washington, DC and New York, NY

Cotten Schmidt & Abbott, L.L.P., Fort Worth, TX and New Orleans, LA

Cravath, Swaine & Moore, L.L.P., New York, NY

Objectives of the Legal Model1. Reduce the number of outside law firms and suppliers.

2. Employ more sophisticated purchasing practices such as value billing agreements.

3. Leverage internal and external resources.

4. Fully utilize technology to facilitate collaboration and sharing of work product, to coordinate handling of similar cases and to promote knowledge transfer.

5. Increase the hiring, retention and contributions from women and people of diverse racial and cultural backgrounds.

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Crowell & Moring LLP, Washington, DC

Davis, Cedillo & Mendoza, Inc., San Antonio, TX

Dickinson Wright PLLC, Detroit, MI

Dickstein Shapiro LLP, Washington, DC

Dillingham & Murphy, LLP, San Francisco, CA

Eversheds, London, United Kingdom

Fasken Martineau DuMoulin, LLP, Toronto, Canada

Glynn & Finley, LLP, Walnut Creek, CA

Hornblower, Manning, Ward, Harrison, Venecia & Rodriguez, Corpus Christi, TX

Kaye Scholer LLP, New York, NY

Kilpatrick Stockton LLP, Atlanta, GA

K&L Gates LLP, Pittsburgh, PA

Leader & Berkon LLP, New York, NY

Lewis and Roca LLP, Phoenix, AZ

Lewis, Rice & Fingersh, L.C., St. Louis, MO

Lightfoot, Franklin & White, LLC, Birmingham, AL

McGuireWoods LLP, Richmond, VA

MehaffyWeber, Beaumont, TX and Houston, TX

Morris James LLP, Wilmington, DE

Murtha Cullina LLP, Hartford, CT & Boston, MA

Phillips Lytle LLP, Buffalo, NY

Porzio, Bromberg & Newman, P.C., Morristown, NJ

Potter Anderson & Corroon LLP, Wilmington, DE

Price, Okamoto, Himeno & Lum, Honolulu, HI

Schirrmeister Diaz-Arrastia Brem LLP, Houston, TX

Schwabe, Williamson & Wyatt, Portland, OR

Shook, Hardy & Bacon L.L.P., Miami, FL and Kansas City, MO

Spilman Thomas & Battle, PLLC, Charleston, WV

Squire, Sanders & Dempsey L.L.P., Cleveland, OH

Stites & Harbison, PLLC, Louisville, KY

Wildman, Harrold, Allen & Dixon LLP, Chicago, IL

Wyatt, Tarrant & Combs, LLP, Louisville, KY

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Primary Service Providers (PSPs)DuPont Legal Service Providers offer services including (but not limited to) expert witnesses; court

reporting; computer forensics; document management; jury research and trial support; temporary staffing;

transcription and copying services; economic damages and financial consulting; legal research; medical

record retrieval, management, review and analysis; document review services; and external marketing

and communication services.

Alderson Reporting Company, Inc.Crosby Marketing Communications, Inc.EED, a DTI CompanyDeloitte Financial Advisory Services LLPIKON Office SolutionsKelly Law RegistryLRN® CorporationMRC RR Donnelley Global Services

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T he Legal Model, by all measures, has been a true

success story for DuPont Legal. although far

from perfect and always a work in progress, it has

provided an outstanding framework that has allowed

DuPont Legal’s inside lawyers and outside counsel to

jointly achieve a remarkable record of achievement and

innovation in the delivery of legal services.

A Record of AchievementThe Legal Model clearly works and has consistently

produced significant and unprecedented results for DuPont.

a few examples include:

• Cost savings. Total cost savings in the first three years

of the program were $13.2 million, and annual savings

range from $8 – 12 million. after its first fifteen years, it

is estimated the total savings from the program exceed

$175 million.

• Reduced cycle time. Cycle time (from filing to resolution)

was cut in half and remains less than 22 months.

• Better forecasting of staffing needs. Legal staff

requirements can now be forecast more accurately.

2

• Leveraged purchasing power. Purchasing power has been leveraged with both Primary Law Firms

and Service Providers.

• Capacity. The breadth and depth of the Network enable DuPont Legal to effectively scale up, resource

and manage a wide range of business clients’ needs.

• Flexibility. The Model has consistently enabled DuPont Legal to meet the requirements and needs of an

ever-changing corporate environment.

• More diverse representation. PLFs and PSPs have employed more women and minorities to handle

and take a leading role on DuPont matters.

• Better distribution of work. Legal work in the vast majority of matters is performed by those at

the most appropriate levels of professional responsibility, thereby better leveraging both internal and

external resources.

The DuPont Litigation Docket• Reduced case docket. The rapid expansion of the docket was halted in 1995. as of 1999, the number of

matters on DuPont Legal’s docket was down nearly 70% compared to its peak year. In the past thirteen

years the docket has been very stable, and with few exceptions, total cases are less than 3,300 annually,

the bulk of which are asbestos cases.

• Reduced settlements and payouts. over time, the amount of settlements and payouts has been

drastically reduced, well below historic averages.

• Better utilization of paralegals. Paralegals are being more fully utilized, and as more work is delegated

to them, valuable attorney time is maximized.

• Partnering relationships established. True partnering with PLFs and PSPs has been achieved to an

unprecedented degree.

• Improved quality of legal services. although difficult to quantify, the overall quality of legal services

that DuPont receives from its dedicated network of PLFs and PSPs is considered markedly improved

compared to those received prior to the Legal Model.

• Improved Client Satisfaction. an independent study by The hackett Group indicated business clients

were highly satisfied with the quality and collaborative, proactive business partnering initiative by

the Function. The businesses view the Legal Function as a valued business partner and through the

recoveries initiative to be a potential profit center.

• A more strategic role for inside counsel. DuPont inside counsel have taken on a more strategic role

in the legal process. rather than micro-managing and duplicating the work of outside counsel, inside

counsel are encouraged to be leaders in formulating overall case strategy, understanding business

objectives, and defining and achieving success.

Accomplishmentsand Results

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T he Legal Model, by all measures, has been a true

success story for DuPont Legal. although far

from perfect and always a work in progress, it has

provided an outstanding framework that has allowed

DuPont Legal’s inside lawyers and outside counsel to

jointly achieve a remarkable record of achievement and

innovation in the delivery of legal services.

A Record of AchievementThe Legal Model clearly works and has consistently

produced significant and unprecedented results for DuPont.

a few examples include:

• Cost savings. Total cost savings in the first three years

of the program were $13.2 million, and annual savings

range from $8 – 12 million. after its first fifteen years, it

is estimated the total savings from the program exceed

$175 million.

• Reduced cycle time. Cycle time (from filing to resolution)

was cut in half and remains less than 22 months.

• Better forecasting of staffing needs. Legal staff

requirements can now be forecast more accurately.

2

• Leveraged purchasing power. Purchasing power has been leveraged with both Primary Law Firms

and Service Providers.

• Capacity. The breadth and depth of the Network enable DuPont Legal to effectively scale up, resource

and manage a wide range of business clients’ needs.

• Flexibility. The Model has consistently enabled DuPont Legal to meet the requirements and needs of an

ever-changing corporate environment.

• More diverse representation. PLFs and PSPs have employed more women and minorities to handle

and take a leading role on DuPont matters.

• Better distribution of work. Legal work in the vast majority of matters is performed by those at

the most appropriate levels of professional responsibility, thereby better leveraging both internal and

external resources.

The DuPont Litigation Docket• Reduced case docket. The rapid expansion of the docket was halted in 1995. as of 1999, the number of

matters on DuPont Legal’s docket was down nearly 70% compared to its peak year. In the past thirteen

years the docket has been very stable, and with few exceptions, total cases are less than 3,300 annually,

the bulk of which are asbestos cases.

• Reduced settlements and payouts. over time, the amount of settlements and payouts has been

drastically reduced, well below historic averages.

• Better utilization of paralegals. Paralegals are being more fully utilized, and as more work is delegated

to them, valuable attorney time is maximized.

• Partnering relationships established. True partnering with PLFs and PSPs has been achieved to an

unprecedented degree.

• Improved quality of legal services. although difficult to quantify, the overall quality of legal services

that DuPont receives from its dedicated network of PLFs and PSPs is considered markedly improved

compared to those received prior to the Legal Model.

• Improved Client Satisfaction. an independent study by The hackett Group indicated business clients

were highly satisfied with the quality and collaborative, proactive business partnering initiative by

the Function. The businesses view the Legal Function as a valued business partner and through the

recoveries initiative to be a potential profit center.

• A more strategic role for inside counsel. DuPont inside counsel have taken on a more strategic role

in the legal process. rather than micro-managing and duplicating the work of outside counsel, inside

counsel are encouraged to be leaders in formulating overall case strategy, understanding business

objectives, and defining and achieving success.

Accomplishmentsand Results

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9 10

1992 1995 19971996 1998 1999 2000

• CEO Woolard calls for $1 billion cost cuts

• Legal team develops strategy for strategic partnerships

• Selecting the U.S. Partners: convergence begins

• First Benchmark Survey and Challenge Awards begun

• Second edition of the book, “A New Era,” revised and expanded

• Global IP Convergence begins

• 5 Elements of the DuPont Legal Model developed:

– Strategic Partnering – Early Case Assessment– Strategic Budgeting– Leverage Technology (the Knowledge Base)– Alternative Fee Arrangements

• Third edition of book, “Leaps & Bounds: Moving Ahead with the DuPont Legal Model “ is published

• dupontlegalmodel.com goes live

• First J. Michael Brown Award is given by the Minority Counsel Network

• First edition of the Legal Model book, “A New Era,” is published

• An era of new leadership: emergence of practice groups

• First Minority Counsel Network Conference

• Global convergence-complete with Canadian, Mexican and European PLFs selected

• First DuPont Women’s Network Conference• Six Sigma applied to Legal Function• First Paralegal Utilization Conference

Timeline of DuPont Legal’s Evolution

2001 2004

• First Themis Award given by the DuPont Women Lawyers Network

• First Leadership Circle Award given

2003

• Initiative to promote DuPont products to Network clients

• DuPont Legal celebrates 100th anniversary

2005 2006 2008 2009

• Fourth edition of the book “The Competitive Edge: The Growing Power of the DuPont Legal Model” is published

• Knowledge Management Initiative launched

• STREAMline projects begun in Legal Function

• “ The New Reality: Turning Risk into Opportunity through the DuPont Legal Model” is published

• Global document management begun

• Five corporate legal departments surpass goal to send business to minority and women-owned law firms

• Strategic Risk Management Process begins

• Public Policy Practice Group created

• Minority and women-owned law firms website goes live – minorityandwomenlawfirms.com

2007

• Recoveries Initiative launched• Creation of The EDGE =

Technology for a “New Era” • DuPont commissions research

on “The Status of Minority and Women-Owned Law Firms.” A meeting was held with many stakeholders to discuss the research findings and devise solutions to increase corporate usage of these firms

2002

• Marketing and Referral Committees of the Network begun

• DuPont Legal Model celebrates 10th anniversary

These significant, quantifiable results, along with many other factors, have fostered a continuous-improvement

mentality. The Model continues to be examined, discussed, refined and modified to meet the needs of

an ever-changing global environment.

A Record of InnovationThe strategic partnership between DuPont Legal and its PLFs and PSPs has been directly responsible for

developing several industry-leading programs and initiatives.

Specifically, DuPont legal has been the first, or among the first, to introduce and implement:

• Convergence. It successfully converged law firms and suppliers and created a collaborative network to

bring competitive advantage to DuPont;

• Strategic partnering. DuPont Legal created a new legal model based on strategic partnering that

incorporates an integrated approach to case and project management;

• Use of cutting-edge technology. Even before the Internet made it feasible to establish secure links with

outside law firms, DuPont Legal established a dedicated information technology knowledgebase for the

transfer of information between inside and outside counsel and has developed portal technology to take

the collaboration of outside and in-house counsel to the next level;

• Benchmark surveys. It conducts annual benchmark surveys to measure PLFs’ and PSPs’ efforts in areas

such as cost savings, diversity, referrals and technology usage;

• Revenue generation. It creates opportunities for Network members to have a full knowledge of the DuPont

product offerings as well as the capabilities of peer members. This frequently results in Network members

collaborating with their clients, DuPont, and other network members to generate new revenue opportunities;

• Financial incentives. It created a financial incentive program for PLFs and PSPs that make

extraordinary contributions;

• Collaborative networks. It established meaningful networks for minority attorneys, women attorneys

and paralegals;

• Innovative diversity programs. It conducts annual minority job fairs and created a legal industry

diversity video, both of which won national awards; and produced a Pipeline Kit for the association of

Corporate Counsel to help corporate legal departments develop outreach programs to attract minority

high school students to pursue professions in the legal industry.

• Paralegal utilization. It established a retreat for paralegals at DuPont Legal and its PLFs to integrate

improvements of the Legal Model throughout their profession.

• Paralegal book. a team of DuPont Legal and PLF paralegals published a book outlining the best

practices for paralegal utilization for both litigation and non-litigation work.

• Effective resource utilization. DuPont Legal expanded its Network to include resources with

cost- effective capabilities to retrieve and manage medical records and those having off-shore

resource capacity.

• Website. It created a website — www.dupontlegalmodel.com — to help spread the principles of the

Model throughout the legal industry and gather feedback on the use and value of these principles

within the legal industry. visitors to the website are able to purchase two books about the Legal Model

— this book and The Dollars and $ense of Paralegal Utilization: The DuPont Paralegal Utilization Model,

view a 12-minute video on the first 10 years of the development of the Legal Model and register for

CLE seminars offered by DuPont Legal.

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9 10

1992 1995 19971996 1998 1999 2000

• CEO Woolard calls for $1 billion cost cuts

• Legal team develops strategy for strategic partnerships

• Selecting the U.S. Partners: convergence begins

• First Benchmark Survey and Challenge Awards begun

• Second edition of the book, “A New Era,” revised and expanded

• Global IP Convergence begins

• 5 Elements of the DuPont Legal Model developed:

– Strategic Partnering – Early Case Assessment– Strategic Budgeting– Leverage Technology (the Knowledge Base)– Alternative Fee Arrangements

• Third edition of book, “Leaps & Bounds: Moving Ahead with the DuPont Legal Model “ is published

• dupontlegalmodel.com goes live

• First J. Michael Brown Award is given by the Minority Counsel Network

• First edition of the Legal Model book, “A New Era,” is published

• An era of new leadership: emergence of practice groups

• First Minority Counsel Network Conference

• Global convergence-complete with Canadian, Mexican and European PLFs selected

• First DuPont Women’s Network Conference• Six Sigma applied to Legal Function• First Paralegal Utilization Conference

Timeline of DuPont Legal’s Evolution

2001 2004

• First Themis Award given by the DuPont Women Lawyers Network

• First Leadership Circle Award given

2003

• Initiative to promote DuPont products to Network clients

• DuPont Legal celebrates 100th anniversary

2005 2006 2008 2009

• Fourth edition of the book “The Competitive Edge: The Growing Power of the DuPont Legal Model” is published

• Knowledge Management Initiative launched

• STREAMline projects begun in Legal Function

• “ The New Reality: Turning Risk into Opportunity through the DuPont Legal Model” is published

• Global document management begun

• Five corporate legal departments surpass goal to send business to minority and women-owned law firms

• Strategic Risk Management Process begins

• Public Policy Practice Group created

• Minority and women-owned law firms website goes live – minorityandwomenlawfirms.com

2007

• Recoveries Initiative launched• Creation of The EDGE =

Technology for a “New Era” • DuPont commissions research

on “The Status of Minority and Women-Owned Law Firms.” A meeting was held with many stakeholders to discuss the research findings and devise solutions to increase corporate usage of these firms

2002

• Marketing and Referral Committees of the Network begun

• DuPont Legal Model celebrates 10th anniversary

These significant, quantifiable results, along with many other factors, have fostered a continuous-improvement

mentality. The Model continues to be examined, discussed, refined and modified to meet the needs of

an ever-changing global environment.

A Record of InnovationThe strategic partnership between DuPont Legal and its PLFs and PSPs has been directly responsible for

developing several industry-leading programs and initiatives.

Specifically, DuPont legal has been the first, or among the first, to introduce and implement:

• Convergence. It successfully converged law firms and suppliers and created a collaborative network to

bring competitive advantage to DuPont;

• Strategic partnering. DuPont Legal created a new legal model based on strategic partnering that

incorporates an integrated approach to case and project management;

• Use of cutting-edge technology. Even before the Internet made it feasible to establish secure links with

outside law firms, DuPont Legal established a dedicated information technology knowledgebase for the

transfer of information between inside and outside counsel and has developed portal technology to take

the collaboration of outside and in-house counsel to the next level;

• Benchmark surveys. It conducts annual benchmark surveys to measure PLFs’ and PSPs’ efforts in areas

such as cost savings, diversity, referrals and technology usage;

• Revenue generation. It creates opportunities for Network members to have a full knowledge of the DuPont

product offerings as well as the capabilities of peer members. This frequently results in Network members

collaborating with their clients, DuPont, and other network members to generate new revenue opportunities;

• Financial incentives. It created a financial incentive program for PLFs and PSPs that make

extraordinary contributions;

• Collaborative networks. It established meaningful networks for minority attorneys, women attorneys

and paralegals;

• Innovative diversity programs. It conducts annual minority job fairs and created a legal industry

diversity video, both of which won national awards; and produced a Pipeline Kit for the association of

Corporate Counsel to help corporate legal departments develop outreach programs to attract minority

high school students to pursue professions in the legal industry.

• Paralegal utilization. It established a retreat for paralegals at DuPont Legal and its PLFs to integrate

improvements of the Legal Model throughout their profession.

• Paralegal book. a team of DuPont Legal and PLF paralegals published a book outlining the best

practices for paralegal utilization for both litigation and non-litigation work.

• Effective resource utilization. DuPont Legal expanded its Network to include resources with

cost- effective capabilities to retrieve and manage medical records and those having off-shore

resource capacity.

• Website. It created a website — www.dupontlegalmodel.com — to help spread the principles of the

Model throughout the legal industry and gather feedback on the use and value of these principles

within the legal industry. visitors to the website are able to purchase two books about the Legal Model

— this book and The Dollars and $ense of Paralegal Utilization: The DuPont Paralegal Utilization Model,

view a 12-minute video on the first 10 years of the development of the Legal Model and register for

CLE seminars offered by DuPont Legal.

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11

• Six Sigma: DuPont Legal has a ten-year record of applying Six Sigma globally and in all legal competency

areas to improve or design legal processes that focus on client needs, greater efficiency and savings, and

enhanced risk management. PLFs and PSPs have participated in or supported this process work.

• STREAMline: DuPont Legal has also joined the company’s STREAMline initiative launched in 2005.

STREAMline uses Six Sigma and an end-to-end business process view to simplify, standardize and

eliminate complexity and unnecessary cost.

• Knowledge management. DuPont Legal developed a comprehensive view of knowledge management

in which disciplined practices enable Legal to better serve its DuPont clients.

• Recoveries. DuPont Legal created the global recoveries initiative which sought to assert the legal

rights of DuPont through the intervention of its legal team; to recoup cash or other quantifiable rights

owed to DuPont; to educate and inform DuPont businesses about potential recoveries; and to develop

resources to facilitate future recoveries.

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Primary Law Firms (PLFs)Allen Guthrie & Thomas, PLLC

Alston + Bird LLP

Ballard Spahr LLP

Bartlit Beck Herman Palenchar & Scott LLP

Basham, Ringe Y Correa, S.C.

Boies, Schiller & Flexner, LLP

Cotten Schmidt & Abbott, L.L.P.

Crowell & Moring LLP

Davis, Cedillo & Mendoza, Inc.

Dickinson Wright PLLC

Dickstein Shapiro LLP

Dillingham & Murphy, LLP

Eversheds

Faegre & Benson LLP

Fasken Martineau DuMoulin, LLP

Glynn & Finley, LLP

Hornblower, Manning, Ward, Harrison, Venecia & Rodriguez

Kaye Scholer LLP

Kilpatrick Stockton LLP

K&L Gates LLP

Leader & Berkon LLP

Lewis and Roca LLP

Lewis, Rice & Fingersh, L.C.

Lightfoot, Franklin & White, LLC

McGuireWoods LLP

MehaffyWeber

Morris James LLP

Murtha Cullina LLP

Phillips Lytle LLP

Porzio Bromberg & Newman, P.C.

Potter Anderson & Corroon LLP

Price, Okamoto, Himeno & Lum

Schirrmeister Diaz-Arrastia Brem LLP

Schwabe, Williamson & Wyatt

Shook, Hardy & Bacon L.L.P.

Spilman Thomas & Battle, PLLC

Squire, Sanders & Dempsey L.L.P.

Stites & Harbison, PLLC

Wildman, Harrold, Allen & Dixon LLP

Wyatt, Tarrant & Combs, LLP

Primary Service Providers (PSPs)Alderson Reporting Company, Inc.

Crosby Marketing Communications, Inc.

Daticon EED

Deloitte Financial Advisory Services LLP

FTI Consulting, Inc.

IKON Office Solutions

Kelly Law Registry

LRN® Corporation

MRC

RR Donnelley Global Services

This book is dedicated to the stars of the DuPont Legal Model — the Primary Law Firms and Service Providers and all the individuals at DuPont who truly deserve the credit for transforming the DuPont Legal Model from a novel, untested theory into a dynamic, practical model that has, in many respects, exceeded our greatest expectations.

Following is a list of the Primary Law Firms and Service Providers in the DuPont Network as of October 1, 2009.