Legal expense management news for February 17, 2012

How much are the legal fees for a high-profile hacking investigation, involving senior management and many other issues? $200 million and counting – an astounding figure, IMHO. And it sounds like no one has any idea how much it will cost in the end: “The bill was substantially higher than News Corp had expected, and the company said that it could not forecast what its expenditure would be on legal fees and external advisers on the hacking scandal for the full year.”

This looks like a useful chart comparing dispute resolution procedures in 30 jurisdictions. But I’d also be interested in seeing comments on “how much will it cost?” – or at least a $, $$, $$$ rating system like one sees in restaurant reviews.

Check out this report on litigation funding in Australia, as well as this summary from The Wall Street Journal. The report highlights the potential conflicts issues: “On the very issues where a client needs a loyal lawyer — such as understanding the fundamental precepts of the funding arrangements, their rights and obligations as set out in the litigation funding agreement — their lawyer goes missing because the conflict of interest is so stark that their lawyer cannot advise.”

Is an effective knowledge management program part of your selection process for outside counsel? Where do your own knowledge management efforts stand? A recent article defined KM in this way: “So what is KM in simple terms? It is perceived as collectively and systematically creating, sharing, and applying knowledge to achieve an organization’s objectives. People, processes, and technology are usually the primary components that comprise knowledge management. Other than that, there is not much consensus on the definition of KM, even though there have been numerous contributions to defining the concept by many information professionals.”

Another Chinese firm opens a London office – the globalization beat goes on….By the way, did you know that the largest Chinese law firm has 2,600 lawyers? And law firm mergers mean compensation changes in most cases – as with King & Wood’s merger with Mallesons, one of Oz’s strongest BigLaw brands. Will billing rates follow suit?

This article about setting billing rates was aimed at small law firms and solo’s, but I’d wager that many GC’s wish BigLaw applied similar creativity to their billing practices.

The potential effects of the proposed Cybersecurity Act on law departments and their law firms – have you put your IT team on notice that your security requirements may be changing? What requirements will you flow through to your law firms? Do you factor cybersecurity into your outside counsel sourcing decisions? If you’re thinking about doing so, here’s a checklist.

ABS news from the U.K. – BT prepares to offer claims management services to other companies. And they are not alone – the Solicitors Regulation Authority says it has received 121 applications from potential ABSs.

And here in the U.S. – in-house leaders, what do you think of IBM’s GC coming out in opposition to non-lawyer investments in law firms?

New study documents the emotional and physical price of 100-hour work weeks for investment bankers. Are the junior associates on your big projects similarly affected, and if so, does it affect the quality of their work? Or is this simply an internal management issues for law firms?

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Legal expense management news for February 10, 2012

GC’s, do you agree that the “four horsemen” of 21st century legal services are LPO, substituting tech for people for certain types of projects, teamwork and measuring quality? As to the last point, Paul Lippe suggests that “Lawyers who embrace the opportunity to measure and improve their quality will win; those who (with little or no empirical support) continue to claim that quality is only in the eye of the provider will do themselves and their clients no good.”

In-house leaders, do you consider yourselves to be “at war” with you law firms? Surely there is another, more collaborative, value-oriented path.

More on e-discovery project management – are you hiring “project managers” or “process managers” – or both?

In-house litigation managers, is “litigation funding is really coming of age with regard to complex commercial disputes“?

ABS news from the U.K.: DLA’s LawVest set to launch; and three U.K. firms sign up investors.

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Legal expense management news for February 3, 2012

Using data mining to drive cost reductions – while this article focuses on e-discovery, it has many other applications as well.

NFF news: NYSBA to study non-lawyer ownership of law firms.

LPO news: U.K. firm to spin off LPO business so that it can market to other law firms. Competition in the LPO market continues to intensify, and the choices for consumers become even more diverse and complex.

GC’s, here’s another acronym for you: e-discovery project management (EDPM). As I’ve discussed elsewhere in the blog, I’m a big believer in adapting proven project management techniques to legal services – as the headline says, I agree that we can “reduce e-discovery costs and risks with project management.”

How much does it cost to defend Justice Department lawyers? About $1.8 million – it’s never cheap when you hire BigLaw, even if you get a government rate.

High-profile bankruptcy assignments seem to generate hourly rate discounts of around 10%. It’s not what I’d call a real AFA, but I suppose it’s better than paying the rack rate.

GC’s, have you found the right mix of people, processes and technology for e-discovery projects that get you to your chosen balance cost of risk? LTN has identified four basic models.

LSA news from the U.K. – firm appoints non-lawyer executive chairman as part of transition to ABS. GC’s, do you think that such hires can affect how a firm manages projects or otherwise deals with the “business side” of their interactions with you?

Cost and project management issues for doc reviews – do you have a plan for avoiding the “seven deadly sins“?

The “Coffee Machine Contract Conundrum” – a good example of one of the key principles of Right-Tasking: how to identify, manage and resource (or not) tasks based on their value and risk profile.

And finally, in recognition of the Super Bowl this Sunday: the NFL Players Association is a very good client for BigLaw. (One can only wonder at what the owners might have spent….)

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Introducing BLAST™, the Boosting Legal Alignment Schematic Tool

We have released BLAST™, the Boosting Legal Alignment Schematic Tool. BLAST enables General Counsels and other law department leaders to quickly and easily create a schematic of how well their internal and external legal expenses are aligned with their most important value creation and risk mitigation opportunities and needs. The BLAST chart will facilitate strategic, data-driven discussions with C-suite executives and Boards of Directors.

BLAST is available at no charge at www.Right-Tasking.com/BLAST.

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Legal expense management news for January 27, 2012

U.K. BigLaw deal with LPO vendor includes significant financial engineering, to the tune of millions of pounds. Reminds me of a lot of IT outsourcing and BPO deals I worked on in the ’90′s – which taught me that this kind of financial engineering can have lots of follow-on consequences for the relationship, not all of them good. (The information in U.K. BigLaw’s financial disclosures is often interesting, eh?)

Big-time patent litigators switch from defense to NPE’s (WSJ sub. req’d). GC’s, does this trend affect your views on budgeting for defending against the claims of “trolls”?

GC’s looking at e-discovery costs that can swamp the value of small disputes – and affect strategy accordingly – may be relieved to know that lower-cost products for smaller cases are emerging in the EDD market.

U.K. firm appoints local “champions” to help with crossborder work. A reasonable idea, but it also highlights the difficulty of making these BigLaw mergers work from the client’s perspective.

The continuing search for the right balance between the roles of technology and humans in e-discovery. GC’s, given the high cost of these projects, this dialogue and debate is worth monitoring.

The benefits of applying project management competencies to e-discovery. “Lawyers are trained to analyze and strategize — not to categorize, prioritize, and quantify. Categorizing and prioritizing tasks and goals and quantifying results are absolutely critical to the success of any e-discovery project, but are considered beneath the ken of practicing law by many lawyers. So how should e-discovery tasks be managed, and who should be responsible? Lawyers should look to forms of management that have been tested and proved successful, such as project management.”

LPO vendor opens new on-shore center in the U.K. to provide “document review, contracts, M&A, due diligence and 
compliance support.” In-house leaders, how are your views on the “right” mix of off-shore and on-shore evolving?

Should you purchase insurance against cyberattacks? The ABA Journal reports that the cost can be “staggering.”

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Legal expense management news for January 20, 2012

D.C. Court of Appeals opines on UPL issues for NFF’s.

Alternative fee arrangements in the news…but is a discount really an AFA?

E-discovery industry M&A continues – Symantec headed to the cloud with LiveOffice.

For those of us with an inner tech geek – LTN’s CES update.

The “Tesco law” rolls on: U.K. firms of various sizes review possible ABS conversions.

GC’s, are you budgeting for the cost of an “all-out war” approach to patent litigation?

Panel review news from across the Atlantic: A BigLaw partner’s perspective on U.K. panel selection processes. Sometimes the panel is being appointed by the law firm, as in this LPO panel review. And there’s more EU panel news here.

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Legal expense management news for January 13, 2012

Litigation funding news – new spin-out from Credit Suisse.

UK panel review update – some are procurement-oriented reverse auctions, while others focus on other factors; and offshoring/nearshoring requirements are here to stay. These panel reviews are likewise putting heavy pressure on rates.

GC’s, will new efforts from law schools to teach transactional skills affect your views on hiring new graduates?

How much does it cost to litigate a CDO-related breach of contract case in the U.K.? Seems to be not all that different from the U.S.

That’s one way to address billable hour concerns on M&A deals – handle the entire project in-house like Apple.

Allegations of overbilling don’t support a libel claim. Seems obvious to me, but good to know.

E-discovery vendor announces monthly subscription pricing. Will we see other new pricing strategies in this market?

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Legal expense management news for January 6, 2012

We’re back after a week off for the holidays.

The ICC is updating its rules to reduce the cost of arbitration – and seeking in-house input along the way.

If you’re interested in the law firm perspective on value-billing, check this article out.

Chancellor Strine’s comments on his $35,000/hour fee award to plaintiff’s counsel.

FCPA enforcement activity remained at a high level in 2011 – GC’s, where do FCPA compliance and risk mitigation fit into your staffing and budgeting for 2012? How will these trends affect your budgets for due diligence on M&A deals?

Law firms work on lowering op ex. Interesting nuggets include applying e-billing to law firm vendors, and perspectives on data mining for AFA’s.

The Wall Street Journal‘s Law Blog proposes some New Year’s resolutions for us to ponder….

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Legal expense management news for December 23, 2011

The interesection of e-discovery and baseball statistics? Performance studies test methods and tools: “…the contests pit teams of document reviewers, using their choice of software, all working on the same data set to learn which methods are the fastest and most thorough. Such benchmarks may be the e-discovery equivalent of sabermetrics in professional baseball — the concept that computers and measurements are more useful than a veteran leader’s intuition.”

Plaintiffs’ counsel awarded $285 million in shareholders derivative suit – that’s about $35,000 per hour.

In-house leaders – is litigation funding on your radar as you balance budget constraints and legal objectives?

Big money for lawyers in social security disability cases – there’s gold in them there hills….

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Legal expense management news for December 16, 2011

BigLaw lobbyists get out from under the billable hour. Doesn’t the same thinking apply to other types of BigLaw tasks? And check out this headhunter’s take on the short- and long-term implications for outside and in-house lawyers of the “death of hourly billing.”

Chinese and Australian BigLaw to merge. GC’s, will the increasing global capabilities of Chinese firms affect your sourcing strategies for your outside counsel for deals in China? And here’s more information on King & Wood Mallesons.

In-house survey on technology issues and priorities, including social media, compliance, LPO and e-billing.

Fees for securities class action lawyers are down – way down. In light of the King & Wood news, I also found it interesting that the “big story in securities class actions has been the explosion lawsuits against Chinese companies,which have accounted for 39 of the shareholder class action filings so far this year.”

A new study on the state of the LPO industry. It’s a small sample size, but there are some interesting takeaways, including the thesis that “Law firms do not appear to be the entities driving legal outsourcing. Rather, corporations and other non-law firm entities may be driving legal outsourcing.” The doc review billing rate data is noteworthy as well.

Using Sharepoint in your law department, or thinking about doing so? For an example of what you could do, check out this extremely practical article on creating checklists. Also, here’s a compilation of other Sharepoint-related articles.

The Wall Street Journal has a summary of another LPO industry survey, including the diminishing labor arbitrage play as well as the potential of the combination of technology with LPO.

Legal project management news: the second edition of a “quick reference guide” to LPM.

Some interesting comments from a GC on the value of benchmarking, the use of paralegals and contract managers, and the benefits of applying sourcing strategies to outside counsel’s services.

More start-ups in the legal services vertical – free document templates, reverse auctions and more. Further pressure on the billable hour as the primary metric for lawyer billings….

Panel news from Qatar. 46 firms were invited to make proposals – that’s a lot of reviewing and ranking.

Hourly billing plus annual quotas allegedly leads to overbilling – who woulda thunk it?

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