Law Times

PAGE 12 FOCUS January 12, 2009 • Law Times anadian insurance law- yers interested in best practices — not to men- tion hobnobbing with influential industry types — might do well to keep an eye on the Council on Council on Litigation Management welcomed by insurers C BY JULIUS MELNITZER For Law Times Litigation Management. Not quite two years old, the New York-based organization is well described by its name. Its mission, simply put on its web site, is to further the practice of litigation management. One way of doing this, the organization's mission statement notes, is to "identify, train, and certify attor- neys and law firms." Still, lawyers are not the driv- ing force behind the council. "The insurers welcomed the CLM as filling the void created by the lack of a collective rep- resentation for litigation claims managers," says John Kelly, a GILBERTSON DAVIS EMERSON LLP BARRISTERS AND SOLICITORS practice restricted to CIVIL LITIGATION, INSURANCE LAW Angela Emerson John L. Davis John L. Davis Professional Corporation R. Lee Akazaki Jody W. Iczkovitz Jonathan J. Weisman Counsel: James E. Adamson 20 Queen Street West, Suite 2020 Toronto, Ontario M5H 3R3 Tel: (416) 979-2020 Fax: (416) 979-1285 email: office@gilbertsondavis.com "…it is required reading for anyone who drafts, litigates or thinks about contracts or about the essential and elusive concept of good faith." Mr. Justice Edward Belobaba ~ Superior Court of Justice (Ontario) from the Foreword Examining the existence, scope and application of the duty of good faith in insurance contracts Good Faith in Canadian Insurance Law will help give practitioners and insurance professionals the information they need when dealing with bad faith claims in insurance law. This book covers issues such as: whether there is an implied obligation of good faith in contract the issues raised by such an obligation • • • • • the application of the obligation of good faith to insurance in Canada a critical analysis and summary of existing law detailed suggested approaches to bad faith claims An important resource for anyone doing insurance-related work Practitioners will gain a solid understanding of the principles of the implied obligation of good faith and get practical guidance on handling their case based on existing case law and analysis. Insurance industry professionals and in-house counsel will get a better sense of their obligations and more clarity on the limits of their obligations. Counsel will benefit by understanding how to avoid and respond to bad faith claims and manage litigation more effectively. Good Faith in Canadian Insurance Law connects case law legislation, and commentary with respect to bad faith claims. Order your copy today! Looseleaf & binder • $98 • Releases invoiced separately (1-2/yr) P/C 0176030000 • ISBN 978-0-88804-465-5 For a 30-day, no-risk evaluation call: 1 800 263 2037 or 1 800 263 3269 www.canadalawbook.ca Canada Law Book is A Division of The Cartwright Group Ltd. • Prices subject to change without notice, and to applicable taxes. www.lawtimesnews.com WINSOR_Good Faith in Insurance Law (LT 1-3x4).indd 1 1/7/09 10:27:31 AM LT0112 Toronto law professor and con- sultant who is the CLM's inter- national co-chair for Canada. "Defence lawyers have their or- ganizations, so do the insurers and the claims handlers, but be- fore the CLM there was nothing for litigation claims managers." The organization is open to any individual who participates in litigation and the management thereof. Risk managers, adjust- ers, general counsel, claims and litigation managers, and service providers may become "Fel- lows" of the council at no cost. While they must make no time commitments, only Fellows can nominate preferred attorneys and law firms for membership in the council. On nomination by a Fellow, a defence attorney may select an individual or firm membership. Each nominated attorney must pay dues and attend at least one annual council conference every three years. "There's been a fair amount of enthusiasm from U.S. firms, primarily because it's something the insurers really want to do," Kelly says. The council began as a forum for ethical billing practices, but eventually decided to expand its mandate to cope with the full range of litigation management issues. At its 2008 annual con- ference, it took on the develop- ment of a comprehensive body of litigation management guidelines for insurers as a major initiative. "The Defence Research In- stitute in the U.S. has devel- oped case handling guidelines, but they are very short and very general," Kelly says. "We intend to come up with a much more comprehensive model." As well, the CLM recognizes kind of pressure that's being exerted on U.S. firms," Kelly says. But that's bound to happen in the near future. "Within the next 24 months, five or six major insurers will have installed e-billing systems in Canada based on code sets rather than hourly rates," Kelly says. "What that means is that Cana- dian firms will have to get with the program and become much more integrated with their cli- ents. That should certainly help make the CLM interesting to them." There's little doubt that the CLM has a good chance of becom- ing an influential force in the insur- ance claims business. Already, its advisory boards boast high-rank- ing risk management representa- tives from companies like Costco, Fireman's Fund, Liberty Mutual, MetLife, Sony, The Hartford, and Zurich North America. Otherwise, the council has entered into formal strategic af- filiations with the National Retail and Restaurant Defense Associa- tion, the Association of Litigation Support Professionals, and the CEU Institute, a national con- tinuing education provider. Jim Greenlee, U.S. Attor- ney for the Northern District of Mississippi, will be the keynote speaker at the organization's 2009 annual conference, to be held in Phoenix, Ariz., in March. Greenlee's office secured the in- dictment of high-profile plain- tiffs' lawyer Richard "Dickie" Scruggs for attempting to bribe a judge in connection with a dis- pute over legal fees related to Hur- ricane Katrina litigation. Scruggs, who built his reputation in the tobacco litigation, pleaded guilty and was sentenced to five years' imprisonment. Carole Gates, the Montreal-based International Air Transport Association's direc- tor of risk management and in- surance, is a member of CLM's advisory board. "Being associated with the council is a way to stay educated on what we should be doing rath- LT Being associated with the council is a way to stay educated on what we should be doing rather than taking things for granted the way they are. the need for an education program. "Despite the rapid growth of sophisticated billing systems, and the drive to data management and litigation intelligence, there wasn't a body or organization that was responding to management needs at that level," Kelly says. While Canadian insurers can belong to the CLM, Canadian subsidiaries have so far been rep- resented by their parents. "And Canadian law firms haven't bought in yet as a group because they haven't felt the same

• Cover
• M&As Alive
• Union Fines
• Focus On Insurance Law