Like any construction or business project, a solid litigation plan starts with tasks, dates, and people. The first phase builds the foundation for everything else. Just like a building foundation, which includes concrete, rebar, and tiles, a great litigation plan has several key components.
In recent weeks, we’ve discussed starting with a project management mindset and adding milestones to the plan. The plan should also include cost estimates and billing guidelines. Just like in construction, the project plan sets the budget and payment schedule for each phase. We will discuss any out-of-scope issues in team meetings and approve adjustments to the budget or team—no surprises. This format helps us monitor and adjust as the project progresses.
A critical part of a good litigation plan is clear billing guidelines. These guidelines, usually set by the Corporate Legal Department, apply to all legal engagements. Successful clients often use specific best practices for these guidelines in their litigation plans.
Billing Format
A good litigation plan includes a consistent billing format for everyone to follow. Law firms typically submit billing electronically using the LEDES format with the correct UTBMS task codes. This consistency saves time and ensures the project stays on track, keeping billing in line with the original plan. One invoice per month, per matter, with approved timekeepers and rates keeps things standardized. Any changes must be submitted and reviewed. This approach gives law firms and corporate teams a clear forecast and shared understanding of billing from the start.
Technology
Sometimes, the technology challenge arises. The law firm may use technology they’re experts in for doc review and case management, but this often excludes the client team. Alternatively, the client team might need to learn new technology for every outside counsel they engage. Increasingly, we see all parties involved in litigation using the corporation’s technology platforms and service providers. This ensures everyone updates and informs the same platform. More importantly, it fosters collaboration within that single platform. Beyond the consistency it offers, this approach provides the corporation with easier access for monitoring, reporting, and oversight on the project.
Staffing and Expenses
Good litigation plans document the number of resources expected to be involved. They specify how many timekeepers will join the litigation team, who those individuals are, and their acceptable rates. Billing guidelines typically include details on litigation expenses, such as travel costs and the number of attorneys attending meetings and depositions. These aspects are monitored throughout the billing process with real-time metrics and reporting.
Multiple Billing Models
Accommodating different billing types is essential. Flat rates may suit certain expenses, so billing guidelines should include a mix of methods used in the litigation.
A Final Thought on Billing Guidelines
Construction and litigation projects often stretch out much longer than expected. Laying out billing expectations and guidelines from the start will pay off on projects that last two or three years or even longer. At the end of the litigation, the plan will reflect scope changes, which can apply to future cases.
If you’d like to explore the concept of billing guidelines in more depth as part of managing your litigation spend, feel free to request a demo on eDiscovery / Litigation Support or on Enterprise Legal Management here, or watch for our upcoming workshop webinars for an in-depth look at Litigation Plan Best Practices.If you’d like to explore the concept of billing guidelines in more depth as part of managing your litigation spend, feel free to call us anytime at 302-798-7500, sign up for a demo on eDiscovery / Litigation Support or on Enterprise Legal Management here or watch for our upcoming workshop webinars for an in-depth look at Litigation Plan Best Practices.