Fixed-fee arrangements for specified kinds of lawsuits against LyondellBasell

LyondellBasell has agreements with certain outside firms to pay them a “negotiated annual fee for handling all litigation in specified areas such as toxic tort and personal injury litigation,” as further described in an article in the ACC Docket, Vol. 26, Nov. 2008 at 35. The firms and the company reconcile at the end of the year, if a major problem develops.

I endorse the technique: “Compelling outside counsel to perform below the flat fee – and thus make more money only if they are more efficient—is the best way to reduce litigation fees and expenses” (See my post of March 1, 2008: fixed or flat fees with 36 references.).

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