COMPREHENSIVE LEGAL COST
CONTROL PROGRAMS

A ccountability
Services, a legal auditing and legal
cost control specialist, can help
you dramatically reduce your legal
fees without sacrificing quality. We
are distinguished in the market
place by an approach to litigation
management and legal cost control
that acknowledges the importance of
the attorney-client relationship. In
fact, one of our clients told the
Pittsburgh Post-Gazette
that our legal cost control
techniques strengthened its ties to
its law firms.
There is no question that legal fees
are higher than they should be.
Legal costs are no different from
any other cost. If unmanaged, they
will skyrocket. Legal cost control
and litigation management does not
have to be an adversarial process.
However, clients need the tools to
actively manage their attorneys.
Experience has shown that clients
who use traditional managerial
techniques with their attorneys can
manage litigation costs and
dramatically reduce their legal fees
without adversely affecting the
attorney/client relationship.
While legal auditing is certainly
appropriate in a number of
situations, our experience has shown
that prospective legal management
programs that create and maintain a
relationship of trust and mutual
respect with outside counsel are the
most effective.
In essence, our legal cost control
techniques can help you identify the
problems, define the objectives and
implement your quality control and
cost control solutions.
Identifying the Problems that
Increase Your Legal Bills
Before you take bold or even modest
initiatives to reduce legal fees,
you need to know how wisely you have
spent and are spending your legal
dollars. To get this information,
you might consider:
Legal Auditing:
Legal audits are designed to quantify
the financial impact of any legal fee
billing abuse, inefficiency or fraud
that may have taken place. Our attorneys
scrutinize all time charges and expenses
with the assistance of our proprietary
software. Underlying documentation
is reviewed to assist our attorneys in
determining, among other things, whether
the time taken to complete particular
tasks was reasonable. Our audits
culminate in a written report that
provides a solid foundation for
negotiating a settlement with your law
firm. In the event that your case goes
to trial, Accountability Services stands
ready to give
Expert Testimony
regarding attorney's fees at
depositions, hearings or trials.
Legal auditing
is an effective response to a number
of situations, including:
● Legal
Fee disputes that cannot be resolved
● Statutory legal fee applications
● Suspected fraud or billing abuses
● Third party payment of legal bills
Historic Review
of Legal Bills:
These reviews focus on law firms’ compliance with
your legal management and billing
policies, the efficiency of the law
firm, the productivity of each
timekeeper, the patterns or
practices that artificially
increased your legal bills, and the
potential for cost-saving measures.
The historic review will provide you
with the insights necessary for
sound legal cost management and cost
reductions and will immediately
change the way your firms bill and
staff your matters.
Benchmarking Law
Firms' Costs and Efficiencies:
Benchmarking is a popular management tool, either
standing alone or as part of a total
quality management program.
Accountability Services uses this
technique to reduce outside attorney
fees by identifying the most
efficient law firms and then
improving on their efficiencies. By
developing a data base containing
staffing information, the number of
hours to complete similar tasks and
the effective blended rate for the
tasks, Accountability Services can
help you understand and control
legal costs. The analysis provides
guidelines for future review of
legal bills to determine if expenses
are "out of kilter" and aids in
creating realistic legal budgets
based on historical data. You find
out not only what legal fees you
have paid in the past but what legal
fees you should have paid. If you
are considering alternative legal
fee arrangements, this will give you
the information you need to
intelligently explore fixed fees or
other billing arrangements.
Defining the Objectives
After the problems have been
identified, your objectives must be
communicated to your law firms.
Specifically, you should consider
drafting and implementing these
Billing Guidelines that establish an explicit, up-front
understanding with your law firms,
holding them accountable for
cost-effective legal representation.
The billing policy should address
billing formats, record keeping,
billing rates, staffing issues,
appropriate use of attorneys and
paralegals, reimbursable expenses
and other issues that affect legal
costs, such as when travel time,
research and clerical tasks can be
billed.
Prospective Budgets should ensure that your attorneys
engage in a cost benefit analysis to
determine what is necessary to
accomplish your goals. The budgets
should include the name, billing
rate and status of each person who
will be working on the matter during
the applicable quarter, an estimate
of cost for the matter and each
phase or component, the anticipated
number of partner, associate and
paralegal hours for the matter and
each phase or component, as well as
the motions anticipated and the
likelihood of success of such
motions.
Implementing the Quality and Cost
Control Solutions
Legal Cost Control Policies:
The best billing policy will
have little effect on legal fees if
it is not actively monitored.
Although such reviews may be time
consuming, it is an indispensable
part of a legal cost control
program. Outsourcing this function
is always an option for clients and
often is the most cost-effective
manner of review.
Monitoring Compliance with Legal
Cost Control Policies:
Accountability Services will review
your legal bills to make sure your
law firms are in compliance with
your billing policies and budgets
and that the bills are otherwise
reasonable. Accountability Services
will issue a Deviation Report that
addresses departures from your
billing policies and budgets and
will make recommendations for
reductions, if appropriate. The
Deviation Report can be sent to your
in-house counsel or directly to your
law firms to inform them of the
reductions. Senior personnel at
Accountability Services will be
available to discuss the Deviation
Report with in-house counsel and/or
the law firms if there are any
questions concerning the validity of
the reductions.
Seminars/Workshops to Reduce Legal
Fees:
Accountability Services’ seminars
provide training on how to retain
lawyers wisely, how to create
realistic prospective budgets and
how to manage lawyers to assure
value, efficiency and quality in the
delivery of legal services. At the
seminar, Accountability Services
will explain what managers should
expect from their lawyers and how to
uncover and correct inefficiencies.
Checklists will be distributed so
that managers can put the
suggestions into action with ease
and efficiency.
For more information about
Accountability Services and its
executives, please go the
Company Profile.
For applicable case law, please
go to
Case
Law- Reasonable Attorney's Fees. |