Productivity is key to improving legal
relationships
Given the geographical and jurisdictional challenges
facing ship owners in the Americas and the frequency of high value P&I
claims, Thomas Miller (Americas) Inc is keen to improve standards and increase
the productivity of United States attorneys engaged to handle UK P&I Club
members' claims.
Accordingly, the Club's Managers have intensified
their Value for Money initiative which focusses on improvements in managing
expenditure on legal fees, particularly for high value bodily injury claims.
Attorneys' fees are the Club's second largest expense
in the US after the payment of claims. Consequently, 'Value for Money' pays
close attention to relationships with suppliers of legal services worldwide,
particularly in the US and London.
Progress has been reported in the UK Club's newly
published Bodily Injury News, sent to members and associates.
In 2002 , Thomas Miller (Americas) set up a network
of "preferred attorneys" around the United States and Canada to provide legal
services to Club members. These attorneys handle claims exclusively, except in
rare instances where a member has a strong preference for an attorney outside
the network.
Preferred attorneys are reviewed frequently by TMA
claims executives to ensure that only those best qualified through skill and
experience are included in the network. This encompasses expertise in
navigational, bodily injury, contractual, charter party and equipment failure
claims. Preferred attorneys must demonstrate comprehensive knowledge of the law
and legal customs in the jurisdictions in which they practice.
In October, Thomas Miller (Americas) presented a
Value for Money seminar to over 60 East Coast, West Coast and Canadian maritime
attorneys to emphasise principles and best practice regarding early case
assessment, strategic budgeting, invoicing guidelines and communications with
Club and Members. Feedback from these attorneys has been overwhelmingly
positive.
Mike Jarrett, President & Chief Executive Officer
of Thomas Miller (Americas), explained: "Our program focuses on early
cost-effective settlements where appropriate and, ultimately, a reduction in
fees as the process becomes more efficient.
"To improve performance across all suppliers, the
Club and TMA will be using technology to reduce the administrative costs of the
legal purchase process and to help Managers evaluate and compare attorneys'
productivity and performance. OASIS, the claims file system used by UK Club
claims executives, helps monitor and control the process more effectively."
Looking ahead, Mr. Jarrett said Thomas Miller
(Americas) would be looking at fee structures with preferred law firms that
align their interests with those of the UK Club and its Members. "Whilst the
hourly rate is likely to remain the main basis for charging it is not ideal and
by definition can reward inefficiency.
"Recent commercial and financial pressures on ship
owners have further reinforced their demand for improved productivity from the
service providers involved in the UK Club's claims handling."
Note to editors: Bodily Injury News,
published by the UK P&I Club for its members, lawyers and other
professional service providers, contains a range of articles on legal issues
arising from personnel and personal injury claims. Subjects include repeated
loss of earnings claims arising from 'serial' plaintiffs; providing depositions
for US courts; punitive damages for wilful failure to pay maintenance and cure;
new reporting requirements for personal injury payments to Medicare-eligible
claimants; responsible third parties under Texas law; and arbitration of a
foreign seaman's wage claim. Contributors include TMA's Bodily Injury Team and
outside specialists. Journalists wishing to receive a pdf of Bodily Injury
News or a hard copy should contact Nick Whitear or Martin Rowland (details
below).
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