Budget Management in Global Mass Tort Litigation Beverly

“Budget Management in Global Mass Tort Litigation” Beverly G. Baughman Assistant General Counsel Pfizer Inc June 7, 2007

The 5 Step Budgeting Process: Step 1: Set the Budget Step 2: Track Fees and Expenses Step 3: Analyze Data Step 4: Respond to Challenges Step 5: Results: Predictability and Savings 7

Setting the Budget: A 3 -Step Process Assumptions What work needs to be done? Resources Who will do the work? Cost How much will it cost to pay for resources? 8

Tracking Litigation Fees and Expenses What to Track: • Projected Costs • Actual Costs • Both Outside Counsel and Vendors Methods: • Electronic Systems • Inquiries to Counsel • Monthly monitoring is key 9

Mass Tort: Litigation Tracking Tool 10

Mass Tort Budgeting: Analyze Data • Identify variances • Identify reasons of variances • Collaboration between OC, house counsel and Legal Finance 11

Respond to Challenges • Readjust Priorities/Strategy • Readjust Timing of Work • Readjust Workload • Improved Management/Coordination • Renegotiate Fee Arrangements • Seek Alternative Counsel/Vendors 12

Budgeting Results • Predictability • Year end budget goals and/or savings • Early identification of problems (no surprises) 13

Results (cont’d) Requires in-house and outside counsel commitment to: • Adequate staffing / resources devoted to budget • Budget tracking and analysis • Monthly monitoring regime 14

The End