I. PREFACE
A. Philosophy
The Firm is expected to work with the Liberty Mutual Group (hereinafter “LMG”) and the insured/customer to achieve the best result for the insured/customer in a timely, efficient, and cost-conscious manner consistent with the clients’ interests and the Firm’s ethical obligations, and to resist non-meritorious, suspicious or frivolous claims. Nothing contained herein is intended to nor shall restrict defense counsel’s independent exercise of professional judgment in rendering legal services for the insured/customer.
B. Conflicts
1. Initial Conflicts Check: As part of the Firm’s ethical obligations, the Firm must, upon notification by LIU to the Firm of a defense assignment, immediately conduct a thorough conflicts check, including, without limitation, LMG and its affiliates and subsidiaries. The Firm must confirm in writing to the LIU case handler, preferably within twenty-four (24) but by no later than three (3) business days after receipt of the assignment, that the Firm has completed its conflicts check, there is no conflict or appearance of a conflict, and the Firm is able to handle all aspects of the defense on behalf of the insured/customer.
If, as a result of the conflicts check, there is a conflict or an appearance of a conflict, the Firm shall either: a. Seek a full and informed waiver of the conflict, in writing, from all interested parties and as required by the rules of professional conduct; or b. Decline the defense assignment in writing to the LIU case handler and the insured/customer, returning to LIU and the insured/customer any documentation or materials provided to it and maintaining as confidential and privileged any information provided to it by LIU and the insured/customer.
2. Conflicts which arise during the representation: Defense counsel has a continuing obligation to ensure that there exist no conflicts relative to its ongoing representation of the insured/customer (e.g., when parties are added in ongoing litigation). If, at any point in time during its representation, a conflict or the appearance of a conflict arises, the Firm shall immediately notify the LIU case handler and insured/customer in writing so that they, with the Firm, have an opportunity to address and resolve the issue.
II. GENERAL CASE DEVELOPMENT
An effective and strategically sound legal defense is the responsibility of defense counsel in direct consultation with the LIU case handler and should be developed in a timely manner.
A. The goal is to timely identify those claims for which there is liability, and to discuss settlement opportunities early. The activities necessary to defend a given claim and bring it to appropriate resolution should be addressed early and the steps necessary to achieve that resolution should be jointly agreed upon between LIU and defense counsel. To that end, budgets addressing case activity may be required pursuant to case handling and reporting protocols and/or in conjunction with discussions with the LIU case handler responsible for the case.
B. The use of alternative dispute resolution is encouraged to facilitate early resolution of claims where LIU and defense counsel agree such should be settled.
C. If defense counsel is requested to be involved in settlement negotiations, settlement authority must be obtained from LIU and requests for authority should be made timely.
III. STAFFING PHILOSOPHY
The Firm will designate one attorney to have primary responsibility for each case on which its services are requested. Initial time taken for internal file assignment to staff is considered a non-compensable administrative task. The case should be staffed effectively and economically.
To achieve the best efficiency and value, the role and responsibilities of the staff members should be clearly defined and appropriate to each individual’s qualifications, level of experience, and billing rate. Lead defense counsel should delegate work to subordinates wherever possible to achieve efficiency and cost-effectiveness without compromising quality.
Duplication of effort within the firm should be avoided, especially when files are re- assigned within the firm. All administrative related activities are not to be billed, regardless of the staff member performing the activity. High volume, repetitive or routine tasks, requiring legal expertise which clerical support staff does not possess should be assigned to a paralegal whenever appropriate. LIU does not expect to be billed for work performed by firm employees other than attorneys, paralegals and law clerks unless approved in advance by LIU. LIU will only pay the appropriate rate level for the worked performed, regardless of the person’s title actually performing the work.
