Georgia Pacific (GP) may be best known for producing paper products but it is the paper that is saves that is perhaps most notable. GP is one of the growing numbers of companies that have looked to control their legal spending through the adoption and use of alternative dispute resolution – avoiding litigation in most matters. GP claims to have saved millions of dollars over the years by being more active on the front end of litigation. Recently in Business Week’s Viewpoint column, Sullivan & Cromwell partner, Frank Aquila, revisits this approach highlighting the use of early case assessment in GP’s legal matter management practices.
A crucial element to GP’s strategy has been the deployment of an early case assessment (ECA) program. Utilizing their ECA protocol, GP has been able to gain a more thorough insight into the matter and at a much quicker pace. The more information they have, the better off they are in assessing the potential risk of any legal matter. Once the facts and relevant information are collected, the strategy can be set to steer a matter to settlement or to alternative dispute resolution. Mr. Aquila is right to point out the benefits of a proper ECA plan. However, ECA is not just for matters that have already arisen and been filed. Rather a powerful use of ECA is for preventing a potential matter from every becoming an actual case in the first place.
By instituting an appropriate ECA strategy that is a combination of both best practices as well as technology – early case assessment can shift to early matter management (EMM). Take the case of an internal investigation of a potential sexual harassment suit. Utilizing technology, both internal and external internet sources can been searched and scoured for relevant information. In one case, both internal email as well as postings on major social media hubs proved that a relationship was indeed mutual and thus the matter was properly disposed of without any formal filing. This is the power of ECA (aka EMM). By moving further up the chain of events that lead to litigation, a company is better able to scope and define its risk, and also determine the strength or weakness of any potential claim. In doing so, the company can then position itself and its strategy accordingly, resulting in saved money and time.
GP is a strong example of how to win in the legal budget control battle but there is even more room to expand this approach. As Mr. Aquila noted, “[a]s businesses look to reduce their costs, clearly this is an area worth exploring.” It takes the proper approach using both technology and best practices to deploy such a scheme but the ROI for bringing these practices in-house can often be achieved after just one legal case, according to Gartner’s 2009 MarketScope report. Beyond the ROI cost savings is perhaps lies greatest cost savings of identifying and reducing risk in the first instance – avoiding litigation altogether. | 
