beverly g. baughman assistant general counsel pfizer inc june 7, 2007 “budget management in global...
TRANSCRIPT
Beverly G. BaughmanAssistant General Counsel
Pfizer Inc
June 7, 2007
“Budget Management in Global Mass Tort Litigation”
The 5 Step Budgeting Process:
Step 1: Set the Budget
Step 2: Track Fees and Expenses
Step 3: Analyze Data
Step 4: Respond to Challenges
Step 5: Results: Predictability and Savings
7
Setting the Budget: A 3-Step Process
AssumptionsAssumptions ResourcesResources CostCost
What work needs to be done?
Who will do the work?
How much will it cost to pay for
resources?
8
Tracking Litigation Fees and Expenses
What to Track:
• Projected Costs
• Actual Costs
• Both Outside Counsel and Vendors
Methods:
• Electronic Systems
• Inquiries to Counsel
• Monthly monitoring is key
9
Type Total Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
Budget
National Counsel 797,000$ 9,400$ 9,400$ 76,800$ 76,800$ 59,300$ 59,300$ 159,300$ 159,300$ 9,400$ 84,300$ 84,300$
Local Counsel 193,750$ 1,500$ 1,500$ 36,750$ 36,750$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 36,750$
Law Firm Exps 79,260$ 872$ 872$ 9,084$ 9,084$ 4,864$ 4,864$ 12,864$ 12,864$ 872$ 6,864$ 9,684$
Document Produc -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Support Vendor 123,844$ 1,363$ 1,363$ 14,194$ 14,194$ 7,600$ 7,600$ 20,100$ 20,100$ 1,363$ 10,725$ 15,131$
Indemnity -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Budget 1,193,854$ 13,135$ 13,135$ 136,828$ 136,828$ 73,264$ 73,264$ 193,764$ 193,764$ 13,135$ 103,389$ 145,865$
Projected/Actual
National Counsel 218,725$ 9,325$ 9,400$ 95,000$ 105,000$ -$ -$ -$ -$ -$ -$ -$
Local Counsel 97,857$ 1,457$ 1,400$ 45,000$ 50,000$ -$ -$ -$ -$ -$ -$ -$
Law Firm Exps -$ 500$ 530$ 12,000$ 9,000$ -$ -$ -$ -$ -$ -$ -$
Document Produc -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Support Vendor 46,655$ 1,355$ 1,300$ 21,000$ 23,000$ -$ -$ -$ -$ -$ -$ -$
Indemnity -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Projected/Actual 363,237$ 12,637$ 12,630$ 173,000$ 187,000$ -$ -$ -$ -$ -$ -$ -$
Variance
National Counsel (46,325)$ 75$ -$ (18,200)$ (28,200)$ -$ -$ -$ -$ -$ -$ -$
Local Counsel (21,357)$ 43$ 100$ (8,250)$ (13,250)$ -$ -$ -$ -$ -$ -$ -$
Law Firm Exps (2,118)$ 372$ 342$ (2,916)$ 84$ -$ -$ -$ -$ -$ -$ -$
Document Produc -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Support Vendor (15,543)$ 8$ 63$ (6,806)$ (8,806)$ -$ -$ -$ -$ -$ -$ -$
Indemnity -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Variance (85,343)$ 498$ 505$ (36,172)$ (50,172)$ -$ -$ -$ -$ -$ -$ -$
Mass Tort: Litigation Tracking Tool
10
Mass Tort Budgeting: Analyze Data
• Identify variances
• Identify reasons of variances
• Collaboration between OC, house counsel and Legal Finance
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Respond to Challenges
• Readjust Priorities/Strategy
• Readjust Timing of Work
• Readjust Workload
• Improved Management/Coordination
• Renegotiate Fee Arrangements
• Seek Alternative Counsel/Vendors
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• Predictability
• Year end budget goals and/or savings
• Early identification of problems (no surprises)
Budgeting Results
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Requires in-house and outside counsel commitment to:
• Adequate staffing / resources devoted to budget
• Budget tracking and analysis
• Monthly monitoring regime
Results (cont’d)
14
The End