This allows them to create a virtual firm
or team of lawyers who will handle the
specific aspects of a case that are best
aligned with their strengths and abilities
to achieve cost efficiency. For example, in
a complex litigation, one firm may act as
discovery counsel, while another handles
substantive motion practice and yet a
third is designated as trial counsel. Law
departments also use their consortium of
firms to provide value outside the context
of a specific case. By using technology,
law departments can further facilitate
the virtual law firm model. Firms can
be required to participate in a secure
web portal where they share knowledge
and make their work-product produced
for the mutual client, or if not otherwise
confidential, available to other firms in the
consortium.
are another useful tool to align cost with
large and beyond the scope of this article.
However, caution should be exercised in
any AFA to ensure that the firm selected
is the one most appropriate for the matter.
An AFA with a firm that is not structured
to realize a profit from the AFA could
produce a poor outcome for everyone.
Think of an AFA as an appropriate fee
arrangement.
managed is one of the most crucial areas
where cost and value can be aligned.
Nothing is more valuable than early case
assessment. Get your outside counsel on
the same page in terms of your business
goals for a case. Clearly define what a
successful outcome will be. Is it settle
early and get out, or is it to take a strong
case to the end as precedent to discourage
other potential plaintiffs? Define the
scope of the case, what are the key issues
to defend or pursue, how can discovery
of alternative dispute resolution (ADR)
appropriate and when?
Of course the best strategy to align
cost with value in litigation is to invest
in activities that can reduce or even
eliminate the incidents of litigation. A
proactive risk avoidance program can
provide high value returns. Employee
training, a robust compliance program,
review of form contracts to eliminate
repetitive cases or require mediation,
are all effective methods to reduce a law
department's expenditures.
"The times they are a-changin'."
Thinking more expansively, striving
to innovate and moving away from the
traditional legal services supply chain will
help to align cost with value in the new
economic reality.