In a significant majority of lawsuits, legal fees outweigh the cost of indemnity. This doesn't mean conceding cases because of the anticipated defense expenses. John Beringer stresses the importance of developing an effective strategy to anticipate defense costs and prepare for the process before it occurs.
1. Create an internal litigation management profile with an outline of what fees and expenses you will and won't pay, the acceptable rate, and how the fees will be paid.
2. Create a contract for the engagement of counsel and then use it to manage counsel. Include provisions for dispute management through arbitration/mediation, an agreement as to the payment of travel expenses, and policies on experts and consultants.
3. Use a careful selection process to create a counsel panel before it's needed. Remember, it's not the hourly charge that determines counsel's value; it's the performance in the task given.
4. Once involved in litigation, empower a single, experienced individual to serve as the primary contact for counsel. With one contact, extraneous charges will be significantly reduced.
5. Monitor the case on a monthly basis. Examine fees and settlement opportunities closely.
6. Adjusting attorney fees after counsel has been engaged is expensive, time consuming, and distracting. Doing so beforehand not only conserves your economic resources, but promotes the long-term interest in your products or services as well.
Developing a strategy and implementing tactics to manage claims and litigation requires general counsel or personnel with the knowledge and time necessary to succeed. If this is not possible through in-house staff, consider retaining an outside litigation management professional.