Beverly G. Baughman Assistant General Counsel Pfizer Inc June 7, 2007 “Selecting and Managing a Virtual Law Firm in Global Mass Tort Litigation”
Jan 14, 2016
Beverly G. BaughmanAssistant General Counsel
Pfizer Inc
June 7, 2007
“Selecting and Managing a Virtual Law Firm in Global Mass Tort Litigation”
Virtual Firm: What is it?
Characteristics:
• Integrated group of law firms with expertise
• Represent same client in matters pending across several jurisdictions
• Work collaboratively with national, regional, and local firms and co-defendant
• Flexible organizational and management tool
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Virtual Firm Selection: National Coordinating Counsel
• Direct line to client
• Quarterback, manager, director
• Ensures single, consistent litigation strategy
• Uses state-of-the art technology to cost-effectively manage multi-state litigation
• Important role in budget management
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Virtual Firm Selection: Regional and Local Counsel
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PA WV
NJ
• Regional and Specialty Counsel
• Counsel organized geographically or by specialty – Case work-ups
– Expert development and discovery
– Trial counsel
• Local Counsel
• Key for hellhole jurisdictions (IL, MS, PA, NJ, WV)
• Politics play a key role
IL
MS
Virtual Firm Management: Cooperation is Key
Key is to obtain talented lawyers with a cooperative spirit
• Can be challenging
• Selection process is key
• Reputation and track record are important
• Ask potential counsel what firms they would recommend
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Virtual Firm Management: Budgeting
The 5 Step Budgeting Process:
Step 1: Set the Budget
Step 2: Track Fees and Expenses
Step 3: Analyze Data
Step 4: Respond to Challenges
Step 5: Results: Predictability and Savings
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Setting the Budget: A 3-Step Process
AssumptionsAssumptions ResourcesResources CostCost
What work needs to be done?
Who will do the work?
How much will it cost to pay for
resources?
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Tracking Litigation Fees and Expenses
What to Track:
• Projected Costs
• Actual Costs
• Both Outside Counsel and Vendors
Methods:
• Electronic Systems
• Inquiries to Counsel
• Monthly monitoring is key
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Type Total Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
Budget
National Counsel 797,000$ 9,400$ 9,400$ 76,800$ 76,800$ 59,300$ 59,300$ 159,300$ 159,300$ 9,400$ 84,300$ 84,300$
Local Counsel 193,750$ 1,500$ 1,500$ 36,750$ 36,750$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 36,750$
Law Firm Exps 79,260$ 872$ 872$ 9,084$ 9,084$ 4,864$ 4,864$ 12,864$ 12,864$ 872$ 6,864$ 9,684$
Document Produc -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Support Vendor 123,844$ 1,363$ 1,363$ 14,194$ 14,194$ 7,600$ 7,600$ 20,100$ 20,100$ 1,363$ 10,725$ 15,131$
Indemnity -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Budget 1,193,854$ 13,135$ 13,135$ 136,828$ 136,828$ 73,264$ 73,264$ 193,764$ 193,764$ 13,135$ 103,389$ 145,865$
Projected/Actual
National Counsel 218,725$ 9,325$ 9,400$ 95,000$ 105,000$ -$ -$ -$ -$ -$ -$ -$
Local Counsel 97,857$ 1,457$ 1,400$ 45,000$ 50,000$ -$ -$ -$ -$ -$ -$ -$
Law Firm Exps -$ 500$ 530$ 12,000$ 9,000$ -$ -$ -$ -$ -$ -$ -$
Document Produc -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Support Vendor 46,655$ 1,355$ 1,300$ 21,000$ 23,000$ -$ -$ -$ -$ -$ -$ -$
Indemnity -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Projected/Actual 363,237$ 12,637$ 12,630$ 173,000$ 187,000$ -$ -$ -$ -$ -$ -$ -$
Variance
National Counsel (46,325)$ 75$ -$ (18,200)$ (28,200)$ -$ -$ -$ -$ -$ -$ -$
Local Counsel (21,357)$ 43$ 100$ (8,250)$ (13,250)$ -$ -$ -$ -$ -$ -$ -$
Law Firm Exps (2,118)$ 372$ 342$ (2,916)$ 84$ -$ -$ -$ -$ -$ -$ -$
Document Produc -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Support Vendor (15,543)$ 8$ 63$ (6,806)$ (8,806)$ -$ -$ -$ -$ -$ -$ -$
Indemnity -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Variance (85,343)$ 498$ 505$ (36,172)$ (50,172)$ -$ -$ -$ -$ -$ -$ -$
Mass Tort: Litigation Tracking Tool
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Mass Tort Budgeting: Analyze Data
• Identify variances
• Identify reasons of variances
• Collaboration between OC, house counsel and Legal Finance
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Respond to Challenges
• Readjust Priorities/Strategy
• Readjust Timing of Work
• Readjust Workload
• Improved Management/Coordination
• Renegotiate Fee Arrangements
• Seek Alternative Counsel/Vendors
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• Predictability
• Year end budget goals and/or savings
• Early identification of problems (no surprises)
Budgeting Results
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Requires in-house and outside counsel commitment to:
• Adequate staffing / resources devoted to budget
• Budget tracking and analysis
• Monthly monitoring regime
Results (cont’d)
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The End