More helpful strategies from Barbara Galluppi, CPCU, Senior Vice President Claims, Arthur J. Gallagher Risk Management Services ….
If it has been determined that assignment of defense counsel is needed, it is important to remember the “billable hours” concept by which attorneys are paid and the motive this may represent to over work a file and to prolong litigation.
Some keys to control litigation costs:
- There is usually no need to pay attorney’s fees to negotiate. This is the adjuster’s job, although participation in the process may vary somewhat by venue.
- Adjusters know the case better than the attorney because it was the adjuster who did the up-front investigation and has had much more contact with the players.
- Adjusters are trained negotiators and negotiate far more cases than attorneys because they handle more cases. Adjusters have motivation to settle, and they know the cases better.
- Do not let the adjuster abandon the case to counsel because of a heavy workload or other reasons.
- Request that the adjuster does the investigation and negotiation, even after suit is filed, rather than paying an attorney to do it.
- If it is a case to settle — the sooner the better.
- The value of a case increases with age. It is the perception of the arbitrator (however erroneous) that the longer the claimant is treated, is off work or has to wait for settlement, the more serious the claim.
- The longer the case continues, the more legal fees and attendant costs are incurred.
- Make sure the adjuster is held accountable for litigation management and cost containment.
- The case must not be allowed to drift with counsel. The adjuster should stay active on the case.
- Call for case status periodically.
Questions for Barb can be submitted in the box below. Excellent information, Barb. Thank you! Look forward to more tomorrow. For more information about Barb’s services, click here: http://www.ajg.com/portal/server.pt?open=512&objID=462&PageID=53927&cached=true&mode=2&userID=21938
