LAWSUITS AS
MANAGEABLE PROJECTS
Systems for Controlling Costs in Litigation
John M. Johnson
Lightfoot, Franklin & White
Birmingham, Alabama
Litigation Management in a New York Minute
A One-Day NETWORK OF TRIAL LAW FIRMS SuperCourse
August 8, 2003
WHY ARE WE TALKING ABOUT BUDGETS?
“Clients expect lawyers to manage the legal
work, not simply perform it. They expect
lawyers to become project managers. . . .
Business executives now subject legal costs
budgets to the same scrutiny as they do other
parts of the business concern.”
Committee on Corporate Counsel
Newsletter, Vol. 17 No. 2, Page 11 & 12`
02
WHY ARE WE TALKING ABOUT BUDGETS?
1. There are no legal budgeting systems on
the market that work adequately.
2. Will be presenting two systems today that
will work:
A. System based on Microsoft Excel
B. System based on Microsoft Project
3. Both are based on ABA’s Task Based
Billing Code.
4. We have templates for both that we can
provide.
03
BUDGETING USING MICROSOFT EXCEL
04
BUDGETING USING MICROSOFT EXCEL
04
BUDGETING USING MICROSOFT EXCEL
05
BUDGETING USING MICROSOFT EXCEL
06
BUDGETING USING MICROSOFT EXCEL
1. Advantages
A. Most lawyers and clients have software
and are familiar with it.
B. Relatively easy to use.
2. Disadvantages
A. Only allows tracking of fees and
expenses.
B. Less flexible.
C. Harder to adjust budget when things
change.
07
BUDGETING USING MICROSOFT EXCEL
1. Forms
A. Will be posting forms and instructions on
our website www.lightfootlaw.com.
B. Can request forms now by sending an e-mail
to jjohnson@lightfootlaw.com.
08
BUDGETING USING MICROSOFT PROJECT
1. Why?
A. Because it lets you see everything that is
planned in the case.
B. And everything that happens in the case.
C. Provides much greater flexibility.
D. Provides a realistic framework for
incentives and alternate fee arrangements.
09
BUDGETING USING MICROSOFT PROJECT
1. What is Microsoft Project?
A. It is a project planning software designed
to be used on construction projects,
product development projects,
engineering projects and others.
B. It does not have a legal template, but we
have developed one which we will also
share.
2. Clients like it because it works by treating
lawyers like pieces of equipment.
10
11
BUDGETING USING MICROSOFT PROJECT
1. Define the tasks – task type must be “fixed
work”
2. Define resources and assign to tasks
3. Define task work hours
4. Define task start due date
5. Define task duration
6. Finish date will be calculated
7. Cost Fields
A. Total costs = Costs
B. Expenses = Fixed costs / Custom cost field
C. Fees = Custom cost field
12
BUDGETING USING MICROSOFT PROJECT
Defining tasks using ABA codes
13
BUDGETING USING MICROSOFT PROJECT
Defining tasks using ABA codes
13
DEFINE RESOURCES
14
BUDGETING USING MICROSOFT PROJECT
Define Resources
15
BUDGETING USING MICROSOFT PROJECT
Define Resources
15
BUDGETING USING MICROSOFT PROJECT
Define Work Hours
16
BUDGETING USING MICROSOFT PROJECT
Define Work Hours
16
BUDGETING USING MICROSOFT PROJECT
Define Start Date and Duration
17
BUDGETING USING MICROSOFT PROJECT
Define Start Date and Duration
17
BUDGETING USING MICROSOFT PROJECT
Identify Costs
A. Experts
B. Data Bases
C. Travel
D. Transcripts
18
BUDGETING USING MICROSOFT PROJECT
Identify Costs
19
BUDGETING USING MICROSOFT PROJECT
Identify Costs
19
BUDGETING USING MICROSOFT PROJECT
Reports
1. Entire Case Budget
2. Breakdown by year, quarter, month
or week
3. Actual Cost Tracking
4. Total Case History at anytime
20
BUDGETING USING MICROSOFT PROJECT
Reports
21
BUDGETING USING MICROSOFT PROJECT
Reports
22
BUDGETING USING MICROSOFT PROJECT
Projected Cash Flow
23
BUDGETING USING MICROSOFT PROJECT
Actual Cash Flow
24
OTHER ADVANTAGES
1. Lets you see all work that is planned.
2. Lets you see who is scheduled to perform
work.
3. Lets you track critical path work.
4. Allows easy adjustment.
5. It requires the legal team to plan their
strategy and work early, and that, by
itself, saves money.
25
Resource Usage
26
BUDGETING USING MICROSOFT PROJECT
1. Most companies with engineering
departments have software.
2. For those that don’t it is readily available.
3. Instruction sheet on how to enter data is
included in handout.
4. Templates and forms are available by
emailing jjohnson@lightfootlaw.com.
28