Aic 32 – Liability Claim Practices Chapter 11

Front 1

Tripartite relationship

Back 1

The relationship between the insurer, the insured, and defense coun­ sel. Both the insurerand defense counselhave obligations to protect the interests of the insuredand balance them with the interests of the insurer

Front 2

Excess verdict

Back 2

A jury award that exceeds an insured's limit of insurance

Front 3

Excess exposure

Back 3

The possibility that a jury award might exceed the insured's limit of liability, exposingthe insured's personalassets

Front 4

Pleading

Back 4

A formal writtenstatement of the facts and claims of each party to a lawsuit

Front 5

Discovery

Back 5

A pretrial exchange of all relevantinformation between the plaintiff and defendant

Front 6

Summons

Back 6

A document that directs a sheriff or another court-designated officer to notify the defendant named inthe lawsuit that a lawsuit has beenstarted and that the defendant has a specifiedamount of time to answer the complaint.

Front 7

Complaint

Back 7

The allegations made by a plaintiff in a lawsuit

Front 8

Answer

Back 8

A document filed in court by a defendant responding to a plaintiff's complaint and explaining why theplaintiff should not win the case

Front 9

Counterclaim

Back 9

A complaint brought by the defendantagainst the plaintiff

Front 10

Deposition

Back 10

A pretrial discovery tool involvingoral examination of a witness to produce a written verbatimrecord

Front 11

Interrogatories

Back 11

Specific written questions or requests raisedby one party to a lawsuit that the opposingparty must answerin writingspan

Front 12

Discovery abuse

Back 12

Occurs when an attorney attempts to bury the defendantin broad discovery requeststhat ask for every documentin the possession or knowledge of the defendant. If the defendant fails toproduce every item, a "discovery fraud" issue becomes the center of the plaintiff 's presentation to the jury

Front 13

Motion

Back 13

A formal request for the court to take a particular action

Front 14

Subpoena

Back 14

A legal order to a witness to appear at a certainplace and time to testify or to producedocuments

Front 15

Requests for admissions

Back 15

These reducethe scope of a disputeby establishing an agreed-on set of facts

Front 16

Directed verdicts

Back 16

This verdict ends atrial before deliberations begin. The attorneyfor the defendant moves to dismissthe case becausethe plaintiff failed to provide enough evidence to support the allegations in the lawsuit.

Front 17

Judgment Notwithstanding the Verdict (JudgmentN.O.V.)

Back 17

Occurs when an attorney moves for the judge to rule in favor of one party even though the verdict favoredthe other party. This motion is granted only if the weight of the evidencewas clearly in favor of the losing party. This could occur if the jury sympathizes with a plaintiff,despite the facts

Front 18

Appeal

Back 18

A request to a higher court for a review of a case

Front 19

Litigation management

Back 19

An ongoing process intendedto control legal expenses while main­taining high-quality legal services

Front 20

Performance metrics

Back 20

Measurable performance criteria used to track performance from one period to the next

Front 21

Litigation guidelines

Back 21

Guidelines to develop clear, up-front understandings between the insurer and legal counsel about the insurer's expectations of counsel, including its positionon the necessity and benefits of services per­ formed. Theseguidelines control litigation costs by restricting defense counsel's actions performed without permission

Front 22

Case budget

Back 22

Developed by theclaim representative with defense counseland includes a discoveryplan, a pretrial motion plan, anda trial plan. It can be adjusted as warranted as the case proceeds

Front 23

Third-party auditors

Back 23

Entrepreneurs, often former claim representatives or practicing law­yers, who claim the abilityto accurately analyzelawyers' bills and help insurers reduce the excessin them

Front 24

Attorney-client privilege

Back 24

The work and communications between a client and an attorney that are not discoverable by the opposing party in an action. This is based on the rationalethat clients should be able to trust and confide inlegal counsel to obtain the bestpossible defense

Front 25

Hourly billing

Back 25

A fee arrangement in which defense lawyers charge theclient by the hour for servicesprovided

Front 26

Yearly retainerarrangement

Back 26

When the defenselawyer or law firm agrees to handle every case (within certain guidelines) for the insurer in return for a fixed lump­ sum payment. The fee is renegotiated at the end of each year-

Front 27

Flat fee

Back 27

A fee arrangement in which the attorney agrees to handle the case from start to finish for a specifiedamount

Front 28

Modified flat fee arrangement

Back 28

A flat fee chargedfor a defined segment of the case.This generally includes the common,basic legal work to be completed. An hourly rate is charged for additional work such as trialpreparation and trial activity

Front 29

Capped fee arrangement

Back 29

Arrangement in which the insurer agrees to pay an hourly rate for the work performed on the case, but a maximum amount limits the total cost for the case

Front 30

Blended hourly rates

Back 30

Represent billingthat is charged on an hourlybasis, but at a fixed hourly rate, whether a seniorpartner in the firmor the newest associ­ate

Front 31

Defense contingency fees (outcome-modified billing)

Back 31

A payment arrangement that gives law firms an opportunity to share the rewards of controlling costs and insurerloss payouts. If the defense lawyer succeedsin keeping awardsas low or lower than agreed on in advance, the lawyeris rewarded the higher fee.

Front 32

Volume discount

Back 32

When a defense lawyer chargesa lower hourlyrate in considerationfor a large volume of work. Complex work might warrant a higher rate than routine work