Associated Electric & Gas Insurance Services Limited ("AEGIS") has sponsored the development of AEGIS Litigation Cost Control Service (ALCCS) to assist its members in management and control of attorneys' fees and other litigation costs.
The service recommends specialized firms to help monitor litigation costs and to assist with proactive management and cost-control programs designed to improve communication between in-house counsel and defense counsel. Cost management firms recommended by AEGIS work selectively with the member and law firm to establish billing procedures, budget, and to manage litigation costs from case inception through completion.
AEGIS Litigation Cost Control Service
AEGIS provides its members with a state of the art electronic invoicing and legal bill review service that will allow members to better anticipate and manage litigation costs as well as ensure adherence with billing protocols for defense counsel.
Effective Litigation Cost Management
Management of legal costs is best undertaken at the onset of litigation. ALCCS firms will work with members and their defense firms to establish billing guidelines, protocols, and litigation budgets to allow members to anticipate costs. Additionally the ALCCS firm will review law firm, expert witness, and other vendor invoices to ensure accuracy and compliance. The following are a few examples of how ALCCS firms can assist members and local defense counsel:
Establish Appropriate Terms of Retention for Defense Counsel
ALCCS firms will work with the members to establish the terms of retention with the member's defense counsel, including negotiating hourly rates and developing/implementing billing guidelines and other protocols so both the member and the law firm know what constitutes compensable legal fees and costs. ALCCS firms will also assist members and their defense counsel to develop budgets both for the overall matter and within various subsets (i.e., investigation, expert witnesses, etc.). Should the matter require more than one defense firm, the ALCCS firms will work with the member and all firms to define firm roles and responsibilities and thus prevent duplication of effort.
E-Billing
Once billing guidelines and protocols are in place, defense firms are trained by the ALCCS firm on the procedure to submit their invoices via an online billing interface. This simple-to-use application provides immediate feedback to the law firm regarding format or computational errors. The e-billing application also provides feedback to the firms regarding the status of their invoices from the time of submission through final payment. This service is provided at no additional cost and only requires Microsoft Internet Explorer 5.0 or greater.
Comprehensive Invoice Review
ALCCS firms review and evaluate each legal fee and expense entry for potential billing issues and for compliance with the established billing guidelines and protocols. A report is then generated for each invoice with detailed explanations regarding any non-compliant or otherwise questionable entry. The member may then use the report to issue payment of the unquestioned amount while, as appropriate, the ALCCS firm will work with the member and law firm to address questioned items.
Management Portal
ALCCS firms will provide the member with a portal interface where the client can access all of their legal cost management data in one secure and convenient location. The portal allows the member to perform the following tasks: review invoice and exception reports; accept, reject, or modify report findings, establish, edit and track litigation budgets, and view categorized costs. The advanced analytics offered through the portal allow the member to monitor and report on their overall legal budgeting, and cost analysis.
How the ALCCS Program Works
Contact one of the following AEGIS professionals.
Lawrence DeRogatis
Senior Litigation Counsel
AEGIS Insurance Services, Inc.
1 Meadowlands Plaza
East Rutherford, NJ 07073
201.508.2641 PHONE
201.508.1255 FAX
After the contact, a teleconference will be scheduled between the member and an ALCCS firm, with AEGIS participation. THIS CONFERENCE IS FREE TO THE MEMBER, WHETHER OR NOT AN ALCCS FIRM IS ULTIMATELY RETAINED. The purpose of the initial conference is to facilitate the possible retention of the ALCCS firm. Additionally, AEGIS will also set up a FREE AUDIT. Again, there is no obligation or cost to the member. This will allow the member to evaluate the value of the services before retaining the ALCCS firm.
If the member decides to utilize the service, the member will retain the ALCCS firm directly and will maintain control over the cost management process. The member is free to terminate the ALCCS relationship at any time.
Payment of ALCCS Costs
As noted previously, the initial consultation with an ALCCS firm is free to members. However, if a member decides to utilize the service, the member will be responsible for paying the subsequent fees and costs of the ALCCS firm.
The ALCCS Firms
STUART MAUE
3840 McKelvey Road
St. Louis, Mo 63044
Contact: James Quinn
Phone: 314.291.3030
ALLEGIENT SYSTEMS
Wilton Executive Campus
15 River Road, Suite 300
Wilton, Ct 06897
Contact: Jim Ulrich
Phone: 203.761.1289
Both firms have been in the legal cost control and management business since the 1980s. The companies utilize cutting edge technology to analyze and report on legal invoices, monitor litigation budgets, and provide cost trend analysis. Addition, the firms employ teams of experienced attorneys to evaluate the legal fees and expenses, to work with clients to establish appropriate billing terms and guidelines, and to work with outside law firms to train and educate firm personnel on the software and procedures as well as to ensure implementation of billing guidelines, budgets, and other cost control measures.
