Companies look for new ways to control litigation costs

Despite recent efforts, companies continue to spend more than ever defending lawsuits

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

Adele Nicholas

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