"Up Front Litigation Management -Reducing your costs and risk through tiered strategies."

Size: px

Start display at page:

Download ""Up Front Litigation Management -Reducing your costs and risk through tiered strategies.""

Lucas Simon
5 years ago
Views:

1 "Up Front Litigation Management -Reducing your costs and risk through tiered strategies." Ever wish you could cut through the time and expense once negotiations fail and the matter heads toward litigation? How can you proceed right to the meat of the issue(s) to close out the claim? You will leave this session with a brand-new approach on how to do so. This round table discussion will identify and discuss systematic strategies for avoiding protracted discovery and litigation expenses when negotiations break down. The interactive aspect of this discussion will solicit audience involvement and provide solutions to common issues for risk managers and attorneys. By soliciting examples from the group and "whiteboarding solutions" attendees will be provided with proven, real-life strategies for reducing costs and cycle time, while maintaining excellent indemnity results. The group will provide tiered solutions, including automatic ADR steering, agreed focused discovery plans, and single-issue dispute resolution. Rather than presenting in the abstract, attendees will gain insight from real-world statistical models from litigation management and ADR. The panel will discuss venue concerns, managing opponents expectations, and utilizing available resources in order to achieve success. Presenters: Alex Goodrich Vice President, Risk Management Services, ADR Systems of America Alex Goodrich is Vice President of Risk Management Services at ADR Systems of America where he has worked since He provides ADR (alternative dispute resolution) consulting, marketing and risk management services for various Insurers and law firms throughout the Mid-West. Prior to joining ADR Systems, Mr. Goodrich built and ran the claims department for a start up insurer in Oak Park, IL. In the late 90's Mr. Goodrich worked for a major insurer where he, designed, developed and implemented an internal ADR based risk management program. Mr. Goodrich is the founder of the Post-negotiation Risk Management process, and provides ongoing consultation to clients in conflict resolution and risk management. Mr. Goodrich has expertise in Risk Management and Alternative Dispute Resolution. Steven Donnelly Manager of RCG Litigation Management Group, Liberty Mutual Insurance Company Steven Donnelly currently heads up the Litigation Management Group for Liberty Mutual's Regional Companies. The group is responsible for development of litigation related procedures and protocols,

2 advising on complex and specialized claims and maximizing the effectiveness of the Regional Companies' claims litigation management efforts. Mr. Donnelly joined Liberty Mutual in 2007 with the acquisition of The Ohio Casualty Group. Mr. Donnelly joined the Ohio Casualty Insurance Company in 2001 serving as the Managing Attorney for their Illinois and Indiana staff counsel offices from 2002 to He was then named Director of Claims Litigation for Ohio Casualty during which he led the expansion of their staff counsel operation into Detroit, MI; Hartford, CT; and Seattle, WA; oversaw claims compliance and was ultimately in charge of ten legal offices spanning the country. In 2006 he was named Regional Vice President of Claims for Ohio Casualty's Western Region which covered 14 states spanning from Iowa to Alaska. Mr. Donnelly started his career in 1995 handling insurance defense litigation in Cook County, Illinois for Garretson & Santora and later with O'Connor, Schiff & Myers. Daniel Costello Founder of Daniel P. Costello & Associates, LLC Daniel Costello has years of experience concentrating in complex litigation, construction litigation, litigation management, and insurance coverage. He has successfully handled over 150 major jury trials, arbitrations, and mediations. He has an undefeated trial record, working on significant multi-million dollar cases. Mr. Costello has had handled some of the largest construction and products liability case in the state of Illinois. Additionally, he has litigated and managed cases across the country including Washington, Texas, Louisiana, North Dakota, Wisconsin, Indiana, Missouri, and Illinois. Additionally, he has substantial corporate business experience. In his time working for a Fortune 500 insurance company he became the youngest VP of Claims Litigation in the history of the 90 year old company rising to the position in only five and half years. In his time working as the head of all staff counsel operations, and directing all litigation management programs the company experienced a significant turn around. During this time the company implemented a full range of cost and litigation management tools including the use of active metrics, counsel scorecards, continuous process improvements, and systematic audits. Mr. Costello graduated from Lewis University as an "Honors Scholar" graduating with High Honors with a Bachelor of Arts in Political Science/History. He graduated from Chicago- Kent College of Law with a Juris Doctor and a certificate in Energy and Environmental Law. He also received a post bachelor's Certificate in Leadership from Xavier University.

3 Presentation: 1. Introduction 2. Common Problems and diagramming workflows a. What are the commonalities to the group b. Why have these been the drivers for so long? c. Why nothing changes? 3. Defining the problem a. Inefficiencies in the Current Model b. Scorched Earth Discovery and the Billable Hour leading to Inequity c. Treating the symptoms of the problem and not the root cause. i. Starting from Scratch does not lead to a better result ii. Random ADR vs. a systematic approach to resolving these cases I m going to bill you on a basis in which the clear economic incentives favor prolonging rather than shortening the litigation for which you have hired me. 4. Show Why this matters? A case study from plaintiff's paradise a. Cook County Region Sample- ADR Systems of America b. What do the numbers from Cook County Show Us? c. Chicago If it can happen there it can happen anywhere

Rewarding Performance 20% of litigated claims drive 70% of legal expenses.

4 5. Crafting the solution a. Defining Classifications, Triggers, and Tiers Oh My b. Aligning Goals of Counsel with the Goals of the Carrier. c. Developing Actionable Data d. Rewarding Performance 20% of litigated claims drive 70% of legal expenses. Unfortunately, a substantial portion of this critical 20% are not readily identifiable at first notice of loss/suit and only become known well into the life cycle of the litigated claim. *Source: 2009 Deloitte Development LLC Presentation Selecting the Right Defense Counsel

5 Critical 20% Middle 50% No Legal Expense 30% Highly complex litigated claims require the most experienced and effective defense resources. Litigated claims with standard complexity and a relatively narrow band of outcomes require commensurate defense counsel coupled with a tight budgetary process. Lawsuits with low complexity can represent either very high loss potential or a low value claim. *Source: 2009 Deloitte Development LLC Presentation 6. Discuss Business Practices to Create these resultsa. Cycle Time- Upfront Litigation Management b. Continuously measure individual and organizational performance c. Deliver detailed, objective performance reports that enables management to drive behaviors critical to business success d. Provide management with actionable, quantitatively based analysis of trends, issues and costs

7. Examples of Actionable Improvement For Immediate Results for Your Companya. Pilot Programs b. Quantify Efficiency through Reporting 8. What does the Perfect Model Look Like? a.

6 7. Examples of Actionable Improvement For Immediate Results for Your Companya. Pilot Programs b. Quantify Efficiency through Reporting 8. What does the Perfect Model Look Like? a. Where we want to get to: b. Process that focus only on the actual areas of disagreement rather than the universe of potential areas of disagreement c. Fulcrum of true value resolutions balanced with maximum efficiency d. Firms work and Carrier's = done better, faster, and cheaper, just like the businesses they serve. Super Regional P&C Carrier reduces ALAE from $120mm to $30mm in 6 years: Questions from the Group

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI Cerner Corporation Plaintiff, vs. Columbia Casualty Co.; AIG Specialty Insurance Company (formerly known as Chartis Specialty Insurance