For years, legal departments have sought innovative ways to control the cost of litigation. The strategies run the gamut from using technology to automate processes, to bringing more work in-house, to negotiating fee reductions with preferred providers. But despite these efforts, companies continue to spend more than ever defending lawsuits. Data from a July 2013 study conducted by Michigan-based consulting firm Alix Partners shows that most companies are still struggling to control litigation spending.
In Alix Partners’ survey of general counsel at U.S. companies with annual revenues of $250 million or more, 51 percent of companies reported an increase in spending on litigation in the past year. More than one-third of legal executives say their companies have been involved in more commercial disputes than in years past, and 10 percent reported involvement in bet-the-company litigation in the past year.
Alternative Fee Structures