LAW OFFICE OF
LAVERN A. PRITCHARD

 

Litigation Risk and Cost-Effectiveness Assessment
WHAT'S THE PROGRESSIVE THINKING THESE DAYS ABOUT HOW TO ASSESS MAJOR LITIGATION RISK?

In May 1995, the New York State Bar Association Corporate Counsel Section issued a report on litigation management, more recently published as a comprehensive guidebook for corporate counsel. See Haig, R.L., Corporate Counsel's Guide published by the New York State Bar Association (1996).

One recommendation: corporations should use risk-benefit analysis in evaluating litigation and in considering litigation strategy. According to the report:

"A more sophisticated approach is provided by formal litigation risk-benefit analysis. Intuition alone can easily result in counsel significantly overvaluing or undervaluing cases of even moderate complexity. The qualitative terms traditionally used by lawyers to describe uncertainty ... can ... make proper lawsuit evaluation even more difficult."

Corporate Counsel's Guide at 29.

Shortly after that endorsement, the American Corporate Counsel Association held a June 1996 "Legal Leadership Summit" in Memphis, Tennessee. Among the conclusions:

"It may be helpful to translate some aspects of litigation into numbers, which is the world clients live in."

Report on Litigation Management, ACCA Docket 60, 61 (September/October 1996).

More recently discussion of litigation risk and cost-effectiveness assessment surfaced on TechnoLawyer, an E-mail legal technology list server discussion group. About 1500 lawyers in the country subscribe because it is one place (among many others) where technologically capable lawyers are exchanging information these days. Particularly provocative and helpful postings to the list are awarded the "TechnoPost of the Week Award."  On July 31, 1998, New York lawyer Ellis Mirsky received such an award for describing how he uses technology to analyze and communicate litigation risks.

Neil Squallante, who presides over the TechnoLawyer, wrote in introduction to the award for the posting that:

"If you represent corporate clients in complex litigation, this TechnoPost will give you a birds-eye view of litigation management in the next century -- as if you were looking into a crystal ball at the future." 

You can find the posting and introduction at Hocus Pocus: Using Crystal Ball to Bring Litigation into Focus.

We use software especially created for technologically proficient lawyers who understand the underlying methodology of decision analysis.

We've used the technique for several years including on litigation involving claims of hundreds of millions of damages.

We've taught the technique to other lawyers, formally and informally, and written a booklet about how and why it can be a valuable addition to your collection of litigation management techniques.

Should your organization be interested in implementing a program of litigation risk and cost-effectiveness assessment on some or all of your litigation portfolio, we've been through it, and can share and teach lessons learned.

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For further information, please contact: LaVern A. Pritchard, 1350 Rand Tower, 527 Marquette Avenue South, Minneapolis, Minnesota 55402, ph. 612-332-0102, fax 612-332-3225, E-mail: lpritchard@prilaw.com.

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