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HomeMy WebLinkAboutAddendum - 2AMENDMENT NO. 2 TO CAG-24-089 THIS AMENDMENT, dated for reference purposes only as October 28, 2025, is by and between the City of Renton (the “City”), a Washington municipal corporation, and Patterson Buchanan Fobes Leitch, Inc., P.S. (“Consultant”), a Professional Service Corporation. The City and the Consultant are referred to collectively in this Amendment as the “Parties.” Once fully executed by the Parties, this Amendment is effective as of the last date signed by both parties. Whereas, the City engaged the services of the Consultant under Agreement CAG-24-089, dated April 3, 2024, to provide necessary services for the legal defense of the City of Renton and its employees against the claims made in the court case Hartman v. City of Renton et. al (referred to herein as the “Agreement”); and Whereas, the Parties amended the Agreement to extend the time for performance and increase the contract amount in Amendment No. 1 to CAG-24-089 on October 31, 2024, and Whereas, the Parties wish to amend the Agreement to further extend the time for performance to March 1, 2027, and to further increase the contract amount from $179,000 to $278,000 to account for the extension of the trial date; and Whereas,the Parties agree to incorporate the City’s insurance requirements into the agreement; NOW THEREFORE, It is mutually agreed upon that CAG-24-089 is amended as follows: 1.Time of Performance:Section 3, Time of Performance, is amended to extend the time necessary to perform the Work to the trial date of March 1, 2027. All Work shall be performed by no later than September 30, 2027. 2. Compensation: Section 4, Compensation, is amended so that the maximum amount of compensation payable to Consultant is increasedby $99,000from $179,000 to $278,000, plus any applicable state and local sales taxes. The additional compensation shall be paid based upon Work actually performed according to the rate(s) or amounts specified in Exhibit A of the Agreement. 3.A new Section, Section 20, is hereby added to the Agreement, as follows: 20. Guidelines for Legal Representation:The Work performed pursuant to this Agreement is governed by the Guidelines For Legal Representation, which is attached CAG-24-089, Adden #2-25 PAGE 2 OF 2 hereto as Exhibit B, and is incorporated herein by this reference. Consultant hereby agrees that, as a condition of receiving Compensation for its Work pursuant to this Agreement, Consultant shall adhere to, and perform all Work consistent with, the requirements contained within Exhibit B. Consultant’s failure to perform in accordance herewith shall be considered a material breach of this Agreement. 4.All terms of the Agreement not explicitly modified herein shall remain in full force and effect and such terms shall apply to Work performed according to this Amendment as if fully set forth herein. IN WITNESS WHEREOF, the Parties have voluntarily entered into this Amendment as of the date last signed by the Parties below. CITY OF RENTON By:_____________________________ CONSULTANT By:____________________________ Armondo Pavone Mayor Duncan Fobes Principal _____________________________ Date _____________________________ Date Approved as to Legal Form By: __________________________ Alex Tuttle Senior Assistant City Attorney Contract Template Updated 06/17/2021 OOTCA contract no. 2991 Byyyyyyyyyyyyyy:::_:_:_:_:_::_:_:_:_:________________________________________________________________________________________________________________________________________________________________________________________________________ Duncan Fobes 10/29/2510/30/2025 Approved by Alex Tuttle via email 10/28/2025 Attest:________________________ Jason Seth, City Clerk v202206281 GUIDELINES FOR LEGAL REPRESENTATION ([KLELW% v202206282 INDEX Guidelines for Legal Representation 3 Litigation Handling 5 Billing Guidelines and Format Requirements 11 Expense Guidelines 14 Exhibit A – Litigation Report 16 Exhibit B – Budget 23 v202206283 GUIDELINES FOR LEGAL REPRESENTATION INTRODUCTION Your firm (hereinafter “you”) has been selected to represent Safety National Casualty Corporation, one or more of its insureds, and/or the third party administrator handling claims for a particular insured (hereinafter collectively or individually referred to as “we” or “us”) with respect to a claim or claims. It is our primary goal to protect our insureds’ interests, and as our defense counsel, you will play a valuable and critical role in allowing us to achieve that goal. As a condition of representing us, we request full compliance with certain standards and expectations. Our Guidelines are designed to promote cost-effective use of legal services in a way that will not interfere with your professional discretion and responsibilities to us or our insureds. Your compliance with our Guidelines will help promote these standards and assist us in providing better handling of claims made against us. These Guidelines set forth our expectations for handling, development and defense of claims assigned to your firm. We recognize that you will, from time to time, need to exercise independent judgment and that you must act in accordance with your legal and ethical obligations when defending us. Although these Guidelines provide a recommended approach for the development and defense of claims assigned to you for handling, we recognize that you may determine that certain activities contrary to these Guidelines should be performed in order to provide the most effective defense of a particular claim. In the event that a deviation from these Guidelines is necessary to further the defense of a claim, we expect that you will contact us before any such deviation to seek our counsel and prior approval. CONFIDENTIALITY Matters referred to you for handling must remain confidential. As a condition of the retention of your law firm, you must consult with us and obtain prior written approval to identify us as your client or former client to third parties. This precludes mention of us and any claim-related matters in seminars, speeches, or discussions with third parties absent our express written consent. Any documents or other materials entrusted to your firm must be maintained in confidentiality. Our documents may be destroyed by your firm only with advance written authorization from us. Please be advised you are strictly prohibited from revealing privileged or confidential information in the language of any billing entry. To do so violates billing guidelines and could result in your removal from the case assigned to you. The nature of our business may provide your staff with access to non-public information. Your firm should be keenly alert for circumstances under which they acquire this type of sensitive information. In light of legal requirements, your firm must have in place and enforce procedures to assure the protection of confidential information and must consult with the Safety National Casualty Corporation Legal Department before disseminating any potentially sensitive information acquired from us. CONFLICT OF INTEREST We expect you and your attorneys to maintain the highest standards of professional responsibility. You must check thoroughly and immediately for any potential or actual conflict of interest that would arise out of your representation of us. Potential conflicts must be communicated to us as soon as they become apparent. Should a conflict arise, an express written waiver must be obtained from us before you may represent us. Waivers of conflicts of interest shall be made solely at our discretion. Any such waiver may require you to agree not to represent a party to the waived conflict in any later proceeding involving us. Any given waiver will be limited in scope and shall only be considered valid if provided in writing by us. v202206284 SECURITY You should expect to receive documents and information pertaining to internal policies, procedures, strategies and positions of Safety National Casualty Corporation and other information of a proprietary and confidential nature. You may also be provided with records or information pertaining to our customers, insureds or vendors. We require you to maintain the confidentiality of such information both during and after the course of your engagement. In particular, you must limit disclosure and access to proprietary and confidential information to those attorneys and staff who need to have such access to provide the services for which the information has been provided. You may not allow any third party access to our data without our prior knowledge and approval. You must follow all statutory and regulatory provisions related to privacy, confidentiality and nondisclosure of customer records, our proprietary information, and other privileged or confidential information, including, without limitation, information or data protection laws and regulations. As a condition of representing us, you agree that you are fully compliant with these laws and regulations. We reserve the right to review, test, and audit your information and data protection plans and procedures. You must timely correct any element of the information and data protection plan or procedures that we determine, in our sole and absolute discretion, could be expected to pose a threat to the protection of our confidential information. INSURANCE You will maintain reasonable and industry standard levels of errors and omissions insurance applicable to the services you provide us. TERMINATION We or you may terminate the working relationship at any time, for any reason. If you choose to terminate the working relationship, such termination shall only be valid if it is provided by written notice. Safety National Casualty Corporation shall have no such obligation to provide notice of termination in writing. If the relationship is terminated before an open matter is concluded, you must take reasonable steps to protect our interest in the matter. Upon our request, you will provide us all files pertaining to your representation of us, including any documents or other property that we provided to you and copies of any legal or factual research generated during the course of the relationship or provide a certificate of destruction. v202206285 LITIGATION HANDLING OPENING THE FILE You must promptly file an Entry of Appearance and any other needed documents with the court. We will forward an acknowledgement letter to the insured with a copy to you, identifying the claim number. At the beginning of any representation, your firm should provide us with a schedule of bi lling rates for partners, associates, and legal assistants applicable to the intended representation. A. DEVELOPMENT GUIDELINES 1. INSURED COMMUNICATION - You shall contact the insured within twenty-four (24) hours of the assignment of any claim to your firm. You are expected and encouraged to continue to have contact with the insured throughout the life of any claim unless otherwise directed by us. 2. REPORT GUIDELINES - Reports should be sent via secured email whenever possible. a. Initial Report – Within thirty (30) days after the assignment of any claim to your firm, you shall provide us with an initial report. Your initial report must contain your analysis of the legal issues, any necessary investigation to be completed, expectations as to discovery and depositions (if any) and likelihood of settlement or litigation by completing all applicable fields in the Litigation Report, attached to these Guidelines as Exhibit A. b. Status Update Reports – Status updates must be sent to us at least as often as every one- hundred and twenty (120) days following your initial report or sooner if material developments occur in the matter. Status updates should contain a brief description of any relevant claim developments in Exhibit A, Litigation Report, efforts made as to investigation and/or defense (including settlement discussions) of any claim, and any other pertinent information that may have developed with respect to the assigned claim. c. Mediation, Arbitration and Pre-Trial Reports – Ninety (90) days prior to mediation, arbitration or pre-trial motions, you will provide an updated Litigation Report that conforms to the format of Exhibit A, attached to these Guidelines. 3. BUDGET - Within thirty (30) days after the assignment, and as part of your initial report, you must provide us with a completed copy of your budget for representation in this matter that conforms to the format of Exhibit B, attached to these Guidelines. Any changes to the budget should be immediately communicated to us by submitting an updated budget that conforms to the format of Exhibit B. B. MANAGEMENT GUIDELINES 1. MULTIPLE ATTORNEYS/ FILE TRANSFERS- Only one senior attorney/partner, one junior attorney/associate, and one paralegal may be assigned to any claim referred to your firm for handling. Intra-office conferences between attorneys are non-billable events. Should a need for the reassignment of any claim arise, any such reassignment must be communicated to us and shall be subject to our approval. 2. FORM LETTERS - We will only pay for time spent modifying form letters. Administration of forms should be done by employees with lowest billable rate. No billings should be made for “transmittal letters” which only identify docs forwarded with the letter. 3. OPENING FEE - The opening of a file is a non-billable event. v202206286 ANSWERS, MOTIONS, OBJECTIONS A. DEVELOPMENT GUIDELINES 1. PRELIMINARY FILINGS- Attorney should seek an informal resolution with opposing counsel prior to filing documents associated with motions for an extension of time, preliminary objections or any other non-substantive procedural motion as required at the outset of the litigation. 2. ANSWERS – Whenever possible and practical, and subject to time limitations for the filing of an Answer to any Complaint filed in connection with a claim, you should provide us with an opportunity to review any proposed Answer prior to filing. 3. BRIEFED MOTIONS- Motions that require research and/or briefing must be authorized in advance by Claim Representative. The maximum amount of time that may be billed for research with respect to the filing and/or briefing of any motion shall be three (3) hours or as otherwise pre- approved by us in writing. Subject to time limitations, but whenever possible and practical, motions should be submitted to the Claim Representative for review prior to filing. 4. COMMUNICATION AND AUTHORIZATION- We must be consulted and must give prior approval to the hiring of experts, entering into settlement negotiations, setting up depositions bey ond the parties or experts to the lawsuit, and before filing cross-claims or counter-claims. You are expected to forward to us all substantive documents, including the Complaint, Answer, briefed motions, research results, expert reports, demand letters, insured factual summaries, deposition summaries, dismissal/settlement documents and all correspondence addressing liability or defensibility of the case. DISCOVERY/INVESTIGATION A. DEVELOPMENT GUIDELINES 1. DISCOVERY REQUESTS - The use of standard form Interrogatories and Requests for Production are encouraged. We will only pay billable time spent modifying standard forms. 2. DISCOVERY RESPONSES -You will provide us with a brief summary of relevant interrogatory responses, including responses that may impact liability and/or damages. Unless otherwise requested by us, there is no need to provide a filed copy of any party’s answered discovery responses. B.MANAGEMENT GUIDELINES 1. LEGAL RESEARCH- You are expected to have significant expertise in the law that may impact the insured’s defense when the claim in assigned. We understand that some research may be necessary to further the defense of a claim assigned to you for handling. As such, we will permit research of up to three (3) hours without prior approval. Research in excess of three (3) hours must be approved by us. Research conducted on our cases is valuable to both of us. Therefore, we may ask you to provide us, in hard copy and/or on computer disk, with all legal research, final memoranda and briefs analyzing legal issues raised in any matter. We do not require a polishing of the work product solely for our review. 2. COMPUTERIZED RESEARCH- We will only pay for time spent doing research and not for computerized research expenses (i.e. Westlaw). v202206287 DEPOSITIONS/ EXPERTS A. DEPOSITIONS 1. Deposition summaries should be prepared at the completion of each deposition. Summaries should include impressions of the witness, liability and damage testimony, and an analysis as to the impact of the testimony on the case. Unless requested by us, you should not forward to us copies of any deposition transcripts. 2. You may send only one attorney to any deposition scheduled in connection with any claim, unless attendance by an additional attorney or additional attorneys is pre-approved by us. 3. Expenses associated with depositions requiring travel of more than fifty (50) miles must always be pre-approved by us. B. EXPERTS 1. No experts may be hired without our prior approval. An hourly rate and total estimate of fees must be provided prior to retention of the expert along with a copy of the expert’s curriculum vitae. END OF DISCOVERY ANALYSIS A. An analysis of all materials and information obtained through Discovery must be submitted to us at the conclusion of the Discovery period. Your analysis must include: 1. A review of the strengths and weaknesses of our case; 2. Your estimate of the likely jury verdict amount range; 3. An estimate of the probability of a defense verdict in favor of the insured, expressed in a percentage or percentage range; and 4. Your recommendation as to whether the case is one for trial or settlement (including settlement which may be achieved through mediation or any other appropriate alternative dispute resolution format). MOTIONS/ THIRD PARTY CLAIMS A. DEVELOPMENT GUIDELINES 1. MOTION ALTERNATIVES - Whenever possible, we prefer that you work informally with other counsel to obtain information and pleadings, as opposed to spending time in discovery disputes requiring motions and hearings. 2. BRIEFED MOTIONS- Motions for Summary Judgment, Motions to Dismiss and any/all other dispositive motions requiring a brief should not be prepared without our prior approval. 3. ASSERTING CLAIMS- Counter-claims, cross-claims, or other third party claims shall not be made without our prior approval. 4. TRIAL MOTIONS - You must discuss with us the filing of any trial preparation motions before pursuing Motions in Limine and/or other trial preparation motions. v202206288 5. MOTION COPIES- Copies of any motion requiring a Brief must be provided to us electronically. B. MANAGEMENT GUIDELINES 1. MULTIPLE REVISIONS- While it is expected that some briefs and motions will need to be revised, stylistic revisions due to the “education process” of an attorney or paralegal are considered by us to be non-billable. MISCELLANEOUS DISCOVERY A. DEVELOPMENT GUIDELINES 1. AUTHORIZATION REQUIRED- Following the use of standard Interrogatories and Request for Production, the following additional means of discovery should be used only after discussion with and with prior approval from us: a. Independent Medical Examinations; b. Request for admissions; c. Exhumation/ autopsy; d. Private investigations or surveillance; and/or e. Meetings with prior treating doctors or non-treating doctors. SETTLEMENT A. DEVELOPMENT GUIDELINES 1. EARLY EVALUATION- We always seek to resolve litigation matters expeditiously and economically. Early analysis should identify cases which should be settled. Upon receipt of the assignment, your firm will be expected to work with us and establish a litigation/settlement strategy. As the case proceeds, this strategy should be re-evaluated with an eye towards settlement, if appropriate. 2. OFFERS AND DEMANDS - No settlement offers may be made without authority from us. We must be kept informed of all demands and offers made in the case. You must advise us in the event we extend authority to you for settlement and an offer for settlement is either delayed or only partially made. 3. CONSENT- You have no authority to enter into negotiations for settlement. You must have b een given express authority by us prior to beginning settlement negotiations on any claim assigned to you. Additionally, we will advise you in the event the authority of the insured is needed in order to engage in settlement negotiations. 4. SETTLEMENT DEVICES- You must have our express authorization to use Joint Tortfeasor Releases, Structured Settlements or other devices to complete settlement. You must advise us of the law concerning joint and several liability, indemnity by co-defendants, requirements of trial appearance if the co-defendants do not settle and the possibility of bad faith in the way settlement is approached (especially as to co-defendants) to the extent such advice would not compromise your duty to the insured. The potential for continued cost or liability, if any, after any settlement must be fully disclosed. v202206289 5. PAYMENT-Payment of settlement proceeds is typically done thirty (30) days after settlement, or as otherwise required by the law of the relevant jurisdiction. You should discuss the timing of payout with us prior to extending any settlement offer. The terms and relevant information (i.e. payee information) must be communicated to us as soon as possible following the acceptance of any settlement offer. 6. RELEASE-It is expected that any settlement reached with respect to any claim assigned to you for handling will be permanent. To that end, you must discuss with us whether or not non-paying insureds should be named on any Release obtained in connection with the settlement of any claim. Copies of all settlement agreements and court closing documents must be sent to us with a separate copy sent to any other named insured that is a party to said agreements. C. MANAGEMENT GUIDELINES 1. ALTERNATIVE DISPUTE RESOLUTION (ADR)- When appropriate, and when authorized by us, you are encouraged to utilize alternative dispute resolution to bring about an expeditious conclusion to any claim assigned to you for handling. TRIAL A. DEVELOPMENT GUIDELINES 1. PRE-TRIAL REPORT- A Pre-Trial Report is required no later than ninety (90) days prior to trial. This should supplement the last status report with any new developments and analysis. 2. LITIGATION DATES - We must be informed of trial and pre-trial conference dates as soon as they are known. The likelihood of actual trial on that date must be discussed. 3. TRIAL ATTENDANCE - We will pay for only one attorney to attend the trial. The atten dance at trial of a second-chair or junior attorney must be pre-approved by us or any such attendance w ill be considered non-billable service. You must maintain communication with us on a daily basis during trial. B. MANAGEMENT GUIDELINES 1. TRIAL PREPARATION-We expect to be provided with a letter or an outline detailing proposed trial preparation before any such activities are undertaken. Deposition digests, trial not ebooks, and videotape depositions of our witnesses should be deferred until the file has been declared as one targeted for trial. Trial preparation activities must be individually described and set forth on the fee and expense billing statement. The vague description of “trial prep” is not acceptable. 2. TRIAL COSTS- We must be consulted before incurring certain costs, such as trial exhibits, transcripts, and meals and lodging for anyone other than the attorney trying the case. Billing for any approved expenses should be provided as part of your firm’s monthly billing. POST-TRIAL A. DEVELOPMENT GUIDELINES 1. COMMUNICATION- You must inform us upon the receipt of a trial verdict. You should be r eady to discuss the potential for interest and attorney fees, or any other chance for exposure above the verdict. Your communication should provide us with information regarding any opportunity for appeal, reversible error and the chance for success of post-trial motions, along with the timeline for filing objections, motions and appeal. The attorney must also disclose whether an Appeal v2022062810 Bond or other device is necessary in order to appeal. Based upon that information, and your recommendation, we will work with you to make a determination as to how best to proceed. 2. PROSECUTION OF AN APPEAL- In the event we authorize you to appeal any verdict or award in connection with a claim assigned to you for handling, it is expected that you will provide us with a calendar of deadlines for the filing of any relevant briefs and/or motions in connection with that appeal. Additionally, all appellate briefs should be provided to us for review prior to the f iling of the same. 3. BILLING OF TIME ASSOCIATED WITH AN APPEAL-Only the assigned attorney may b ill time associated with research, composition and filing of any appeal. We will not pay for reviews of an appeal by other attorneys in your firm or unreasonable billings associated with revision of any appellate filing. v2022062811 BILLING GUIDELINES AND FORMAT REQUIREMENTS STAFFING Work should be performed in a cost effective manner consistent with quality representation. Tasks should be completed by lawyers or legal assistants with lower hourly rates and subject matter expertise appropriate for the task. For some tasks, it may be more economical to use an experienced lawyer who can dispose of an issue more readily than a less experienced lawyer. We trust your firm will make appropriate staffing decisions with respect to claims assigned to you for handling. In general, associates should not perform legal assistant tasks. Tasks capable of being handled by secretaries, case clerks and messengers (photocopying, filing, delivering materials to the court or opposing counsel, scheduling depositions and hearings, arranging for deposition reporters, interacting with vendors, etc) are not to be billed by firm partners, associates, and/or paralegals. The use of paralegals should be considered when it promotes the efficient and cost effective handling of a given case. However, paralegals should not be used for simply administrative or clerical matters that could be performed in a more cost efficient manner by other legal office personnel. Absent prior consultation with us, we do not pay for more than one attorney to attend a hearing, deposition or trial, conduct a field investigation or interview, or otherwise perform casework requiring an appearance. If you, as the lead attorney, believe a situation requires the services of another attorney/paralegal, etc., you must receive our prior approval. Additionally, if more than one attorney is working on a project in connection with a claim (i.e. the preparation of an appeal or motion), only one attorney may bill for that service. We will not pay for billings from multiple attorneys providing the same or similar services in connection with any claim assigned to your firm for handling. We will consider your firm’s administrative matters non-billable. The term ‘administrative matter’ shall also include, but not be limited to time spent preparing billing statements, calendaring case-specific events, and/or transmitting documents to us, the court and other parties to a particular case. IDENTIFICATION A. All fee and expense bills should prominently display the following: 1. Case caption (Named Insured & Claimant); 2. Claim Number; 3. Completed W9 for the “payee”; and 4. Name and address of the “payee”. The Tax ID number as provided to us must match that of the payee. (Example: If an expert witness requests the payment be made to himself as “payee”, the tax ID number must be his personal ID and not that of a university, etc.) B. All fees and expenses are considered on the basis of reasonableness and necessity relative to the scope of defense assigned to the law firm. The reasonableness, necessity and time charged for each task is assessed on the basis of the description provided by Counsel. TIME KEEPING A. The company requires that time be kept in 6 minute or “.1” intervals. v2022062812 B. We will not pay for ‘block’ or ‘task’ billing, such as ‘trial preparation’. Each task must be broken out and included in a separate billing entry, even if several tasks are associated with the provision of a single service (i.e. preparation of an appellate brief requiring legal research and revision). C. In order to understand what activities are being performed, the “what” and “why” of each activity must be explained on the bill. Vague descriptions such as “attention to file”, “trial preparation”, “review file”, or “memo to file” must be eliminated or amended so that the timeentry explains what activity was performed and why it was performed. Each entry should include the ABA Uniform Task-Based Management System Litigation Code Set. D. The following three-tier test should be used as a simple guide to judge the appropriateness of all billing entries: 1.Legal/Paralegal expertise and experience is required for the task; 2.The task is to be performed by the lowest billing personnel able to competently perform the task; 3.The task should “advance the ball” in the most efficient, productive way toward the most favorable resolution of the case, whether by settlement, trial or other dispositive means. MONTHLY BILLING REQUIRED A. Billings must be submitted to us and/or the Third Party Administrator on a monthly basis. We reserve the right to not pay bills received later than one hundred-twenty (120) days of the service provided. REQUIRED BILLING FORMAT A. In order to successfully understand the effectiveness of a law firm in developing our claim files, it is necessary to simplify the billing format in a way that time committed to each activity is fully explained and identified. The required billing format includes: 1. Date an activity is performed; 2. Function or activity performed; 3. Identity of the person performing the activity; 4. Time actually spent performing each activity (no grouping of more than one activity per time entry will be allowed); 5. Rate charged by the billing individual; and 6. Cost to perform that activity (rate x actual time spent). B. The billing format for expenses must provide a full explanation of the law firm’s practice concerning expense development. 1. Photocopies must be identified in regard to the subject matter copies, the number of copies and the per page cost. 2. Automobile travel expenses must be identified by mileage and reimbursement rate. C. Our ability to pay your statements is conditioned on your charges being properly billed in adherence with these guidelines. If we are billed for items we decline to pay under these guidelines, such as v2022062813 clerical work, overhead costs, or excessive expenses, these charges will be deducted by us from your statement prior to payment. v2022062814 EXPENSE GUIDELINES We anticipate some law firms will have to expand their bi lling policy to meet our requirements for better identification of the expense, and in some cases, a further breakdown concerning amount of activity and per- activity-cost. These Guidelines control the reporting requirements necessary to receive payment for ex penses billed. No bill will be processed by the Claim Representative if these requirements are not met. VENDOR BILLS Third party bills, including bills for services provided by experts, should be submitted to us through your monthly billing statements. However, in the event any service bill for any vendor requires pre-payment or payment of a fee in excess of $5,000.00, such requirement should be communicated to us and may be submitted to us for payment directly. OVERHEAD CHARGES A. We will not reimburse for overhead charges. The company considers overhead to include, but not be limited to: 1. Administrative overtime or temporary services; 2. Paralegal or accounting charges to calculate a fee bill; 3. Messenger services using law firm employees; 4. Any expenses of any kind associated with any electronic legal research resource (i.e. Westlaw); 5. Necessitating the expertise and experience of a paralegal, including but not limited to, scheduling/coordinating of file activities and/or travel arrangements; preparation/forwarding of transmittal letters; copying/duplication of documents; 6. Postage, in-house photo copies, scanning, data entry and storage. 7. Phone calls or any other phone service charges; 8. Surcharges/handling charges for administration of the expenses billed; 9. Office supplies used in developing or opening the file; 10. The mileage charges on any trip within 50 miles of the law firm office; and/or 11. Appearance fees or opening charges representing a fee above the actual time spent in opening our file. 12. File opening/closing activities, completion of conflict checks. 13. Storage and retrieval of files (on site/off site). 14. Billing activities. 15. File organization and maintenance. 16. Books, subscriptions, educational expenses. v2022062815 17. Docket systems (such as PACER), professional associations, bar dues. TRAVEL EXPENSES All travel must be pre-approved by us. All travel expenses must be completely documented as to the “what” and “why” of the expense. It is your duty to provide an itemized receipt (if possible) in support of the billing entry (not just the credit card receipt). We will only reimburse you for expense billings that, in our sole judgment, are reasonable and necessary in connection with approved travel. v2022062816 EXHIBIT A Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 1 of 6 v20020628 Litigation Report Initial reportto be completed byDefenseCounselno later than 30 daysfrom assignment of the matter. Additional updates to be provided: (a) at least every 120 days following your initial reportor sooner if material developments occur in the matter; (b) changes in jurisdiction, court or judge; (c) completion of responses to initial discovery requests; (d) following depositions; (e) changes in strategy or scope of work; (f) following any discovery ruling; (g) 90days before mediation;and (h) 90days before trial or arbitration. SN Claim Number: Case Name: Case Number: Trial Date: Venue: Submitted by (Defense Attorney Name, Phone Number & Email): Date of Report: Select One: ප Initial Report ප Status Update Report ප Mediation Report ප Pre-Trial/Arbitration Report Date(s) of Prior Report(s) Have the allegations changed or suit been amended since last report? Summarize additional information obtained since last report Has the discovery or litigation plan changed since last report? Has additional information changed the estimate of damages since the last report? Has additional information changed the estimated % of liability since the last report? Upcoming important dates What is the most likely point of resolution? Trial, settlement, dismissal? Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 2 of 6 v20020628 I. COUNSEL Identify law firm(s) and attorney(s) who will try the case. Please comment on their experience, trialsand abilities: A. Plaintiff Counsel B. Defense Counsel(including any co-counsel or local counsel) C. Co-Defendant(s) Counsel II. JUDICIARY AND JURISDICTION A. Court (State, Federal or other) B. Presiding judge/arbitrator/mediator (reputation, experience) C. Jurisdiction (bench/jury trial; jury pool/type of jury; liberal/conservative/ moderate; other) D. Pre-discovery pleadings such as motions to dismiss, change of venue, move to arbitration, consolidate cases, restraining orders, cross claims, potential class action or MDL. Describe any rulings and impact on the case. III. ALLEGATIONS/FACTS A. Allegations in Complaint/Petition; Alleged Theories of Liability; Amended Pleadings B. Named Parties and Their Relationship to the Suit/Insured a. CASE MANAGEMENT A. Current status of the case ප Initial Pleadings ප Pre-discovery Motions ප Discovery – Written ප Discovery – Fact Depositions ප Discovery –Expert Depositions ප Dispositive Motions ප Mediation ප Pre-trial ප Trial ප Post-trial B. Summary of Case Management Orders or Discovery Rulings Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 3 of 6 v20020628 C. Are there any significant costs associated with upcoming discovery or depositions? If so, explain. b. PLAINTIFF’S CASE A.Describe Plaintiff(s) (age, married, kids, job, status in community, etc.) B.Plaintiff’s fact witnesses(summary of anticipated/actual testimony, credibility, and how well they will compare to defense witnesses) C.Plaintiff’s expertwitnesses (summary of opinion/report, credibility, and how they will compare to defense experts) D.Identify each theory of liability against each defendant. E.Discuss key strengths and weaknesses as to EACH theory and as to EACH defendant. c. DEFENSE OF THE CASE A.Describe the defense theory of the case, including the key strengths and weaknesses for each theory of liability pled. Include discussion ofthe liability of co-defendants and any immunity defenses. B.Defendant’s fact witnesses(summary of anticipated/actual testimony, credibility, and how well they will compare to plaintiff’s witnesses; ) C.Uncooperative witnesses/witnesses unable to be located D.Any outside vendors, experts in data recovery, or contract attorneys to assist in discovery review or preparation? If so, to what extent and what fees will associated with their services? E.Defendant’s expert witnesses (summary of anticipated/actual testimony, credibility, how they will compare to plaintiff witnesses, and have you used them in other cases. (Please provide copies of CV and rate summaries.) d. OVERVIEW OF ALLEGED DAMAGES, PUNITIVE DAMAGES, AND PREJUDGEMENT INTEREST For each theory of liability brought, briefly identify: A. The damages pled B. Whether and to what extent punitive damages are sought and recoverable C. Whether and to what extent prejudgment interest is allowed by jurisdiction (% and amount) and if it sought and recoverable by Plaintiff(s). D. Whether and to what extent opposing parties’ fees are recoverable. If recoverable, what is the likely dollar amount recoverable? Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 4 of 6 v20020628 e. DAMAGES ITEMIZATION BODILY INJURY CLAIM A. Describe each Plaintiff’s allegedinjury Itemization of Damages Plaintiff’s value Defense value Past medical expenses Past loss of earnings Past pain & suffering Past loss of consortium Other (explain) Subtotal Past Damages Future medical expenses Future loss of earnings Future pain & suffering Future loss of consortium Other (explain) Life care plan Subtotal of Future Damages Wrongful death Liens Punitive damages exposure Prejudgment interest Other (explain) Total Damages OTHER THAN BODILY INJURY A. Describe each Plaintiff’s injury (other than bodily injury), if any B. What is the nature damages claimed? Provide a description of the property damage, loss, replacement costs, clean up expense, lost wages, reputational loss, or other damage alleged. (Itemize by type and amount.) Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 5 of 6 v20020628 f. CASE EVALUATION LIABILITY A. The % likelihood of a defense verdict as to insured on liability B. Negligence standard (comparative, contributory, etc.) C. Joint and Several Liability standard D. Liability assessment as to each claim and each party with supporting facts of the case and percentages. (Including any causation issues.) E. If additional investigation/discovery is needed for your evaluation of liability, describe same and anticipated completion date. DAMAGES A. Defense assessment of Damages (Including any risk transfer, indemnity, contribution, collateral source, or setoffs.) B. Damages cap, if applicable C. If punitive damages are alleged, the % likelihood and amount of punitive damages likely against insured D. Punitive damages cap, if applicable E. If additional investigation/discovery is needed for your evaluation of damages, describe same and anticipated completion date. TRIAL CONSIDERATIONS A. Pending rulingsor outstanding motions that should be considered B. Jury Verdict Research Date and Results C. Was a jury consultant or mock trial considered? If no, describe why not. If yes, note the results. D. Key evidentiary issues. Include % likelihood of success as to EACH issue E. All anticipated motions in limine by all parties. Include the likelihood of success as to EACH motion. F. All anticipated Jury Instructions. Include the % likelihood of success as to EACH issue. EXPOSURE EVALUATION Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 6 of 6 v20020628 A. Pure exposure value (Plaintiff wins on everything) B. Jury verdict range C. Settlement value range g. SETTLEMENT NEGOTIATIONS/RECOMMENDATIONS A. Any and all demands, offers, counteroffers, offers of judgment, including dates and amounts. B. Any previous mediations attempts, outcomes and/or barriers to settlement. C. Should we engage a Structure broker? Explain and discuss strategy for use in negotiations. D. Should we consider a High-Low agreement? Discuss and define how and when to be employed. If not, why not? E. Recommended next stepsfor resolution of the claim. h. TRIAL SCHEDULE EVENT DATE Pretrial Motions Pre-trial disclosures: (Witnesses, deposition designations, exhibits) Motions in Limine Joint Pre-trial Order (Contentions, Final Witnesses, Final Exhibits) Jury Instructions (Provide copy if prepared) Pre-trial Objections Pre-trial Conference Date Jury Selection Date Opening Statements Begin Plaintiff’s Case Starts and Ends Defense Case Starts and Ends Closing Arguments Charges to the Jury v20220628 EXHIBIT B Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 1 of 3 v20220628 BUDGET To be completed no later than 30 daysfrom assignment of the matter. Additional updates to be provided for pre-approval of additional expenses as necessary. SN Claim Number: Case Name: Case Number: Trial Date: Venue: Submitted by (Defense Attorney Name, Phone Number & Email): Date submitted: A. What are the current and future staffing levels for this case? Please provide names, titles, hourly rates and CVs. B. Do you have any contracts without side vendors or contract attorneys to assist in discovery or case presentation? If so, please provide applicable rates and fee structure. C. Please complete chart(s) below in USD to provide applicable estimates or cost of Attorneys’ feesand expenses (including tax, if applicable). ATTORNEYS’ FEES PHASE I – INITIAL HANDLING INCURRED ADDITIONAL ESTIMATE TOTAL COST Initial Responsive Pleadings Case Review/Recommendations Preliminary Research Other Case Assessment/Development Motion drafting and applicable research TOTAL PHASE I Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 2 of 3 v20220628 PHASE II – DISCOVERY INCURRED ADDITIONAL ESTIMATE TOTAL COST Document review Drafting and Reviewing Discovery Responses Obtain and Summarizing Medical Records Preparing for Depositions Traveling to Depositions Attending and Summarizing Depositions Discovery Motions and Hearings TOTAL PHASE II PHASE III – PRE -TRIAL INCURRED ADDITIONAL ESTIMATE TOTAL COST Case management and conference calls Pleadings/Filings/Brief Preparing for mediation Travel to mediation Attending and summarization of mediation Evidentiary depositions TOTAL PHASE III PHASE IV – TRIAL INCURRED ADDITIONAL ESTIMATE TOTAL COST Pre-Trial Motions Drafting and Research Attending Pre-Trial Hearing Witness Preparation Research for jury selection Trial preparation Attending Trial TOTAL PHASE IV TOTAL ATTORNEYS’ FEES Privileged Communication Confidential Attorney-Client Communication [Date of the Report]Page 3 of 3 v20220628 EXPERT COSTS INCURRED ADDITIONAL ESTIMATE TOTAL COST Review of Case/Documents Prepare Report Travel to attend deposition Time at deposition Travel to attend trial Time at Trial TOTAL EXPERT COST LITIGATION SUPPORT INCURRED ADDITIONAL ESTIMATE TOTAL COST Contract attorneys for document review Document storage fees Data processing fees Court Reporters/Transcripts Record production Deposition excerpts for trial Trial presentation preparation Assistance at the trial Court fees LITIGATION SUPPORT COSTS XPER TOTAL COST T COSTS COST SUMMARY INCURRED ADDITIONAL ESTIMATE TOTAL COST Attorney Fees Experts’fees Litigation support Other miscellaneous fees TOTAL COST OF DEFENSE