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Keep matter budgets in line with exposure estimates

During a teleconference hosted this month by ACC’s Law Department Management, Litigation and Small Law Department committees, a litigation lawyer for American Express Travel Related Services explained that they ask outside litigation counsel to estimate the range of the company’s exposure on a case. The purpose is not to set a reserve, but to stratify cases by their risk.

With exposure estimates, the in-house litigators can also review budgets more insightfully (See my post of Jan. 25, 2006 about Amex litigation budgets.). They can also keep outside counsel spending on a case in line with the company’s exposure risk.