BTI Litigation Outlook 2015 Executive Summary

Compelling Research. Compelling Results.©2014 The BTI Consulting Group, Inc. All Rights Reserved.

2015

BTI Litigation OutlookChanges, Trends and Opportunities for Law Firms

Executive Summary

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©2014 The BTI Consulting Group, Inc. All rights reserved. +1 617 439 0333 www.bticonsulting.com BTI Litigation Outlook 2015: Changes, Trends and Opportunities for Law Firms

Executive Summary Managing the Risk of Litigation…Facing Law Firms

Navigating the US Litigation Market in 2015 Corporate counsel have pulled out all the stops. 60% have replaced a core law firm in the last 2 years. Clients have one goal in making the switch—managing the increasing caseload while spending the same or less money than prior years. Corporate counsel want law firms who embrace early case assessment and the simultaneous evaluation of settlement strategies and litigation prospects.

Clients have reduced the number of bet-the-company matters by 50% through aggressive settlement strategies and more focus on case elimination than trial. Now clients are chipping away at the complex work as well, with the number of complex matters declining approximately 9%. Long term—these numbers will creep back up; short term—clients are improving management of the complex matters.

The law firms who are winning new work are now winning a greater portion of work than prior years as clients stick with firms who are helping them meet their goals. These firms are taking a lead role in assessing cases early and recommending settlement strategies. In short, these firms are becoming engaged to the point where other law firms can’t get their foot in the door—they have the work before any other firm hears about it.

Corporate counsel expect another jump in litigation cases for 2015: a perfect time to define a process of regular and systematic litigation triage so you are at the head of the line.

BTI Litigation Outlook 2015 is your tool to use today’s market trends and corporate counsel demands to win more clients, more business and higher rates.

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1. Clients settling more matters than ever

2. Clients add new blood—with 60% of corporate counsel replacing a core law firm in the last 18 months

3. More in-house talent increases scrutiny of litigation firms

4. Corporate counsel learning to manage increasing caseload through budgets and AFAs

5. Bet-the-company work drops as corporate counsel embrace early case assessment and settlement strategies

BTI Top Market Drivers for 2015

Executive Summary Driving Trends in Litigation for 2015

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Table of Contents Click on any title to go directly to the chapter

The Litigation Market: Spending Landscape and Emerging Trends 5

• A $20 Billion Opportunity 6

• Volume Is Up…and Rising 7

• Cost Control Fuels Resolution Rates 8

• Bet-the-Company Litigation Impacts Market Size 9

Litigation Forecast 2015 10

• Navigating BTI’s Litigation Roadmap 12

– Class Actions and Torts 14

– IP Litigation 16

– Securities and Finance Litigation 18

– Commercial Litigation 20

– Employment Litigation 22

– Product Liability Litigation 24

• BTI Opportunity Zones 2015: Highest Growth Potential Areas by Industry and Litigation Type 26

Litigation Powerhouses 28

• Managing Outside Counsel for Litigation: Dual-Role Law Firms 28

– Corporate Counsel Cut Core Law Firms, Add More for Smaller Matters 29

– The Law Firm Purge 30

– Clients Seek Single Law Firm for Complex and Routine Litigation 31

– Clients Happiest with Dual Role Law Firms 32

• The Law Firms Clients Most Want on Their Side 33

– Class Actions and Torts 35

– IP Litigation 36

– Securities and Finance Litigation 37

– Complex Commercial Litigation 38

– Routine Commercial Litigation 39

– Complex Employment Litigation 40

– Routine Employment Litigation 41

– Product Liability Litigation 42

• The BTI Fearsome Foursome: Most Feared Law Firms 43

Continued

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Table of Contents Click on any title to go directly to the chapter

Litigation Billing Rates: What Clients Pay 48

• Range of Rates: Senior Partner to Associate 49

• Typical Rates Paid 50

Discounts and Alternative Fee Arrangements 51

• Corporate Counsel Report 15% Discount 52

• Added Value of AFAs 53

• Cost Savings of AFAs Approaches 15% 54

BTI Recommendations 55

About BTI 57

• Research Methodology and Approach 58

• Who We Are 59

• Key Services to Help Our Clients 60

• BTI Research and Publications 61

Index of Law Firms 62

Terms of Use 66

Contact BTI 67

mailto:[email protected]?subject=BTI Litigation Outlook 2015

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About The BTI Consulting Group

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BTI Litigation Outlook 2015 draws on more than 4,000 interviews conducted over the span of 14 years. BTI’s ongoing Annual Survey of General Counsel includes between 50% and 55% of companies participating in prior years. This approach provides for accurate analysis of longitudinal trends while simultaneously allowing for insights into new, changing and up-and-coming opportunities.

Spending, budget and practice assessments for 2014 and 2015 are based on 300 new one-on-one telephone interviews with decision-makers at top-spending companies:

• Average revenue of $17.5 billion

• Median revenue of $4.5 billion

This year’s new analysis relies on interviews conducted between March 13, 2014 and September 16, 2014 with legal decision-makers, including:

• Head of Litigation

• Chief and Vice President of Litigation

• General Counsel

• Direct report to General Counsel

BTI conducts all interviews using multiple techniques. These include:

• Structured questions

• Quantitative questions

Research Methodology and Approach

• Forward-looking questions

• Experience-based questions

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About BTI: Who We Are

BTI dissects each and every aspect of the client experience through more than 14,000 independent interviews with C-level executives and systematic analysis. BTI has helped professional services firms boost client service for 25 years.

BTI is the leading provider of strategic research to the legal community—performing more market research about law firms than virtually anyone. BTI has helped more than 200 law firms and professional services firms improve client service through compelling research and advice. We conduct the only continuous benchmarking market study in the legal services industry, now in its 15th year.

More than 70 of the 100 largest law firms use BTI’s services and research to:

• Implement robust client feedback programs

• Assess brand awareness and market positioning

• Target market opportunities

• Establish best practices and benchmarks to drive performance

BTI conducts the most insightful, custom client surveys as part of world-class client feedback programs to drive consistent client service delivery for leading professional services firms. Clients use BTI’s fact-based approach and powerful decision-making tools to drive change, create urgency and substantially boost performance.

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About BTI: Key Services to Help Our Clients

Client Insight Briefings

BTI also offers private briefings both in person and via the web. Chock full of client-based insights, perspectives and facts, BTI briefings draw from our research, experience and other resources to provide provocative, constructive insights to help you boost client satisfaction, increase client retention and improve your performance. We can tailor our briefing to include specific feedback on your firm.

Please call Michael B. Rynowecer at +1 617 439 0333 to learn more about BTI’s custom research and services.

BTI performs a broad range of services for its clients, including:

Research & Services

• Custom Client Feedback Research

– Client Satisfaction Studies

– Client Needs Assessment

• Business Development

– Strategic Business Planning

– Client-Focused Business Practices

– Custom Training

• Benchmarking Your Performance

– Your Firm’s Client Satisfaction Score

– Financial and Market Performance

– Competitive Analysis

• Market Assessment

– Brand Health & Market Awareness Studies

– New Market Entry Assessments

• BTI Client Focus Boot Camps

– Highly Targeted 1½ Hour Sessions—Designed for Senior Partners and Attorneys

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BTI Research and Publications

BTI Brand Elite 2014: Client Perceptions of the Best-Branded Law Firms http://www.btibrandelite.com More than 3,700 in-depth interviews with corporate counsel reveal 9 distinct dimensions of law firm brand drive hirability—and are proven to generate new business and higher profits. See exactly how clients perceive nearly 450 law firms and which 26 enjoy the best brand image.

BTI Client Relationship Scorecard 2014: Ranking Law Firm Client Relationships http://www.bticonsulting.com/clientrelationships Profitability. Market share. Growth. Revenue. Law firms track their performance against any number of metrics, but at the heart of each of these is one vital component: client relationships. In the BTI Client Relationship Scorecard 2014, corporate counsel gauge the strength of their current relationships with law firms—by name—to provide you with the most accurate measure of your law firm’s breadth and strength of client relationships—and those of your competitors.

BTI Client Service A-Team 2014: Survey of Law Firm Client Service Performance http://www.bticlientserviceateam.com 17 activities drive superior client relationships. 4 matter most. Discover how clients rate more than 250 law firms in these key activities—including Client Focus, Commitment to Help, Legal Skills and Provides Value for the Dollar. Learn which firms rank best, The BTI Client Service 30.

BTI Client Service All-Stars 2014 http://www.bticlientserviceallstars.com Corporate counsel’s keen assessment of outside counsel separates the attorneys who deliver excellent client service from those simply delivering good client service. This year, 330 attorneys step up to meet—and exceed—clients’ expectations and earn recognition, by name, from corporate counsel for delivering the absolute best client service.

You can order these and other compelling BTI research or publications at www.bticonsulting.com.

http://www.btibrandelite.com/

http://www.bticonsulting.com/clientrelationships

http://www.bticlientserviceateam.com/

http://www.bticlientserviceallstars.com/

http://www.bticlientserviceallstars.com/

http://www.bticonsulting.com/

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Index of Law Firms

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Index of Law Firms

A

Adams and Reese 39

Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing 38, 46

Akin Gump Strauss Hauer & Feld 38, 46

Alston & Bird 35, 36, 37, 38

Altshuler Berzon 46

Arnold & Porter 35, 42

B

Baker & McKenzie 38, 39, 40, 41, 46

Baker Botts 36, 42, 46

Baker Donelson 35, 37, 38, 39, 41, 42

BakerHostetler 35, 40, 41

Ballard Spahr 36, 37

Barnes & Thornburg 36, 38, 39, 42

Bartlit Beck Herman Palenchar & Scott 35, 38, 46

Bass, Berry & Sims 36

Beirne, Maynard & Parsons 40

Bereskin & Parr 36

Bingham McCutchen 35

Blank Rome 40, 41

Bodman 38

Boies, Schiller & Flexner 46

Bowman and Brooke 46

Bracewell & Giuliani 36, 46

Bradley Arant Boult Cummings 38, 39

Brinks Gilson & Lione 36

Bryan Cave 35, 38, 39, 42

Buchanan Ingersoll & Rooney 40, 41

Burr & Forman 38, 39

Butler Snow 42

C

Carlton Fields Jorden Burt 35, 38, 39

Cleary Gottlieb Steen & Hamilton 37

Coblentz, Patch, Duffy & Bass 35, 39

Constangy, Brooks & Smith 40, 41

Cooley 35, 36

Covington & Burling 40

Cozen O’Connor 40, 46

Cravath, Swaine & Moore 37, 46

Curtis 36, 37, 38, 39

D

Davis Polk & Wardwell 35, 36, 37, 38, 39

Davis Wright Tremaine 38

Dechert 35, 38, 39

Dentons 46

Dilworth Paxson 37, 38, 39

DLA Piper 35, 37, 38, 39, 40, 42

Dorsey & Whitney 38, 40

Duane Morris 46

Dykema 46

E

Eckert Seamans Cherin & Mellott 39, 40, 41, 42

Edwards Wildman Palmer 38, 39

Epstein Becker Green 38, 39, 40, 41

F

Faegre Baker Daniels 36, 37, 38, 39, 40, 41, 42

Finnegan 36

Fish & Richardson 36

Fisher & Phillips 35, 40, 41, 46

Foley & Lardner 36, 37, 38, 39, 40, 41, 42, 46

FordHarrison 40, 41

G

Gibson, Dunn & Crutcher 35, 37, 38, 40, 41, 45

Greenberg Traurig 36, 39, 40, 42, 45

Gusrae Kaplan Nusbaum 46

H

Hanson Bridgett 46

Herrick Feinstein 38, 39

Hinshaw & Culbertson 35, 40, 41

Hogan Lovells 35, 38, 46

Holland & Knight 36, 38, 39

Honigman Miller Schwartz and Cohn 36, 42

Hughes Hubbard & Reed 36

Hunton & Williams 35, 38

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Index of Law Firms

I

Ice Miller 41

Irell & Manella 46

J

Jackson Lewis 40, 41

Jenner & Block 37, 38

Jones Day 35, 36, 37, 38, 39, 40, 41, 42, 45

Jones Walker 40, 41

K

K&L Gates 35, 36, 37, 38, 39, 46

Kelley Drye & Warren 36, 37, 42

Kenyon & Kenyon 36

King & Spalding 35, 37, 38

Kirkland & Ellis 35, 36, 37, 38, 39, 42, 45

Koeller, Nebeker, Carlson & Haluck 38, 39, 42

Kutak Rock 36

L

Latham & Watkins 35, 38, 40

Lathrop & Gage 39

LeClairRyan 39

Lewis Brisbois Bisgaard & Smith 39, 42

Lewis, Rice & Fingersh 39

Littler Mendelson 35, 40, 41

M

Mayer Brown 35, 36, 37, 38, 39, 42, 46

McAndrews, Held & Malloy 36

McDermott Will & Emery 42

McGuireWoods 35, 39, 40, 41

McKool Smith 36, 46

McNees Wallace & Nurick 41

Merchant & Gould 36

Metzger Law Group 46

Miller & Martin 38, 39, 40, 41

Miller Canfield 38, 40, 42

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo 38, 39

Morgan Lewis 35, 36, 37, 40, 41, 46

Morrison & Foerster 36, 37, 45

N

Neal, Gerber & Eisenberg 37

Nelson Mullins 36

Niro, Haller & Niro 36

Nixon Peabody 38, 40, 41, 42

Norton Rose Fulbright 37, 38, 46

Nutter McClennen & Fish 36

O

Ogletree, Deakins, Nash, Smoak & Stewart 35, 40, 41

O’Melveny & Myers 35

Orrick, Herrington & Sutcliffe 35, 36, 37, 38, 40

P

Parsons Behle & Latimer 36

Patterson Belknap Webb & Tyler 46

Paul Hastings 35, 36, 40, 41

Paul, Weiss 37, 45

Pepper Hamilton 46

Perkins Coie 36, 46

Pillsbury Winthrop Shaw Pittman 37, 40

Polsinelli 36, 38, 40, 41

Porter, Rogers, Dahlman & Gordon 39, 41

Proskauer Rose 35, 39, 40, 41

Pryor Cashman 38

Q

Quarles & Brady 46

Quinn Emanuel Urquhart & Sullivan 35, 45

R

Reed Smith 35, 36, 38, 40, 41, 42

Robbins Geller Rudman & Dowd 46

Robins, Kaplan, Miller & Ciresi 36

Ropes & Gray 35, 36

Rothwell, Figg, Ernst & Manbeck 36

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Index of Law Firms

S

Schiff Hardin 36

Scopelitis, Garvin, Light, Hanson & Feary 35

Seyfarth Shaw 35, 36, 40, 41

Sheppard Mullin Richter & Hampton 36

Shook, Hardy & Bacon 35, 37, 42

Sidley Austin 37, 38, 39, 41

Simpson Thacher & Bartlett 35

Skadden, Arps, Slate, Meagher & Flom 35, 37, 42, 45

Smith, Currie & Hancock 38, 39

Squire Patton Boggs 46

Steptoe & Johnson 38

Stinson Leonard Street 40

Stites & Harbison 38, 39

Stoel Rives 40

Strasburger & Price 38, 39, 42

Sullivan & Cromwell 37, 38

Susman Godfrey 46

Sutherland 36, 38

T

Thompson Coburn 35, 38, 39, 40

Thompson Hine 37, 38, 41, 42

Troutman Sanders 35

U

Ulmer & Berne 39

V

Van Ness Feldman 46

Venable 41

Vinson & Elkins 37, 45

W

Wachtell, Lipton, Rosen & Katz 35, 46

Warner Norcross & Judd 46

Weil, Gotshal & Manges 36

Wheeler Trigg O’Donnell 35

Wiley Rein 46

Williams & Connolly 46

Willkie Farr & Gallagher 37

WilmerHale 36, 37

Wilson Elser Moskowitz Edelman & Dicker 42

Wilson Sonsini Goodrich & Rosati 37, 40, 41

Winston & Strawn 35, 46

Womble Carlyle 35, 42

Y

Yukevich | Cavanaugh 42, 46

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This copy of BTI Litigation Outlook 2015: Changes, Trends and Opportunities for Law Firms is licensed to you for private, non-commercial use for internal company purposes. No portion of this information may be copied or transmitted in any form, shape or manner without the prior written consent of The BTI Consulting Group, Inc., of Wellesley, MA. Any violation of this license may be punishable by applicable federal statutes and subject the user to additional and compensatory licensing fees. Copyright © The BTI Consulting Group, Inc., 2014.

Address any questions to:

The BTI Consulting Group, Inc. 396 Washington Street Suite 314 Wellesley, MA 02481 +1 617 439 0333

Terms of Use

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Please contact Michael B. Rynowecer, BTI President, at +1 617 439 0333 or at [email protected] with your questions, thoughts and comments.

Contact BTI

mailto:[email protected]?subject=BTI Litigation Outlook 2015

The BTI Consulting Group, Inc.396 Washington Street, Suite 314Wellesley, MA 02481-6209

Tel: +1 617 439 0333Fax: +1 617 439 9174

www.bticonsulting.com

BTI Litigation Outlook 2015 Executive Summary

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