A large national health care provider was involved in litigation that included multiple parties, cross-complaints and damages, as well as an associated sharp and unexpected increase in outside counsel fees and expenses. However, the provider was unable to identify the cause of the increase and found it extremely difficult to manage the strategic aspect of the suit while continuing to contain costs.

The provider knew they didn't have the information necessary to analyze and make business decisions on the progress of the action, which was partially attributable to the non-standard billing practices of the law firm, as well as the complexity of the case. When the provider came to Legalbill, their objective was to identify and control the variables that contributed to the increase in fees and expenses, and to identify a more efficient strategic approach to the management of the case.

In order to achieve the client's objectives, Legalbill first processed the outside counsel's invoices using its fair and objective three-tier review process - objective paralegal review, subjective peer review, and a relational database review based on client guidelines. The data gathered from this rigorous review process produced detailed billing trends of individuals, expenses and categories.

Legalbill then provided customized reports containing trend analyses of fees and expenses, a strategic assessment of the situation and associated recommendations, which would increase the efficiency of the management of the case.

Using Legalbill's recommendations from the review and analysis, the provider found its current approach to be economically unfeasible, and that the matter could be litigated in a much more cost effective and simplified manner.

The health care provider's general counsel and the board of directors made a joint decision to restructure the direction and strategy of the pending matter based on Legalbill's recommendations - a decision which ultimately reduced outside counsel fees and expenses on the case significantly.

In-house counsel for a national automobile manufacturer became overwhelmed by a complicated, multi-state asbestos complaint that included more than 5,000 cases covering multiple plaintiffs and four major disease types. Because of the enormous scope of the case, multiple outside law firms were employed, making it nearly impossible for general counsel to manage law firm bills without hiring additional support staff.

When the manufacturer came to Legalbill, the stated objectives were to simplify and control billing processes and to compare the overall effectiveness of the various firms representing the company.

Outside law firms were directed by the general counsel to submit all invoices to Legalbill for its fair and objective three-tier review process. Legalbill reviewed and tracked fees and costs and provided the client with electronic summaries and payment information for each firm. Additionally, Legalbill's further analysis of critical data - fees, costs and time billed ratios across outside counsel for similar cases - clearly demonstrated variances in the progression of cases by disease type, as well as differences in levels of fees billed at each stage of litigation. This information would ultimately be used by the general counsel to determine which cases to settle and which to litigate.

As a result of the Legalbill Review and Management Solution and subsequent recommendations, the manufacturer realized an immediate short-term reduction in expenses billed by all outside counsel, and was able to make strategic, cost-saving decisions about the course of individual cases. Additionally, the client used data, analysis and associated reporting provided by Legalbill to develop a strategy that would integrate data and share information between firms more effectively - ultimately reducing overall costs associated with the action and eliminating the need for additional in-house staff.

Outside counsel also benefits as the Legalbill Review and Management Solution allows the manufacturer to pay legal fees on a more timely basis.

A case that went to trial cost the client far more than forecasted, and this large consumer service company wanted to gain some perspective on the matter from a budgeting standpoint, understand why the trial cost more than originally planned, and learn how to prepare in the event that a similar matter in the future should require litigation.

Legalbill examined all outside counsel invoices using Legalbill's fair and objective three-tier review process and associated budget components for each invoiced line item. The invoices were also reviewed and analyzed for "approved" versus "actual" billing rates charged by outside counsel, and "approved budget" versus "actual amount spent" for each budget component.

The data gathered from the legal bill review yielded strategic and tactical analysis in the form of custom reports that detailed the rate summary of approved versus actual billing rates charged, as well as a comprehensive budget summary of the approved budget against actual spending.

The general counsel took the information compiled using Legalbill's Review and Management Solution directly to the CEO and other senior level exectives for further examination.

This data, along with Legalbill's strategic recommendations helped the company redefine its legal strategy for the future, while providing a clear and accurate representation of outside counsel fees and expenses and how to contain them.

Partners in a mid-sized law firm realized they weren't able to empirically show which areas of their practice produced the highest profits, nor were they able to directly link each of their attorney's direct efforts to the bottom line. When they approached Legalbill, their main objectives were to develop a more cost efficient staffing ratio - the mix of partners, associates and paralegals - and to identify the firm's most profitable practice areas. This would then be used to develop a more effective business model which would help achieve and maintain an acceptable level of profitability, and increase the operational efficiency of the firm overall.

Legalbill recommended the development of a cost allocation model based on an analysis of the firm's direct and indirect costs, which was then used to generate hourly profitability figures for all billing employees at the firm.

This profitability data was aggregated to generate overall profitability figures by timekeeper position, and was also compiled at a case and case type (practice area) level.

Legalbill's analysis delivered hourly profitability estimates for each timekeeper at the firm and calculated the average profit earned by each timekeeper position. Clear indications of which practice areas were the most profitable for the firm were also generated.

Legalbill developed a customized financial model that was used by the firm to identify not only the level of profit generated by each timekeeper, but also to determine the most profitable practices within the firm. This information was used by the client to build a business plan that included strategies for the development and expansion of the firm's most profitable practice areas.