LEGAL BILLING AND CASE MANAGEMENT REQUIREMENTS

LEGAL BILLING AND CASE MANAGEMENT REQUIREMENTS
FOR
ABAG PLAN CORPORATION
EXECUTIVE SUMMARY
ABAG PLAN (the Pooled Liability Assurance Network) Corporation was started in the mid 1980's to insure municipalities within the Association of Bay Area Governments, ("ABAG"). ABAG PLAN now has over $46 million in total assets and maintains a 90% actuarial confidence level.
In early 1996, ABAG PLAN started looking more closely at its outside legal fees and at its relationships with outside counsel. While finding that its outside legal bills were generally reasonable, ABAG PLAN also found that there were some areas where greater cost efficiencies could be achieved, along with more uniformity in the information contained in legal bills received from outside legal counsel. These Legal Billing and Case Management Requirements are designed to better define ABAG PLAN's expectations and requirements of its outside counsel so as to achieve those cost efficiencies and a reasonable degree of uniformity in legal billings.
These Legal Billing and Case Management Requirements are intended to memorialize ABAG PLAN's legal billing and case management philosophies and to specifically define its expectations of outside legal counsel. Among other things, these requirements describe the roles that are to be played both by outside counsel and ABAG PLAN's claims staff, reporting requirements and activities needing the prior approval of ABAG PLAN, what activities are considered to be legal work and what activities are considered to be within the law firm's overhead.
ABAG PLAN OBJECTIVES
The Association of Bay Area Governments ("ABAG") is a Joint Exercise of Powers entity organized under California Government Code Section 6500 e se Q. It administers the ABAG Pooled Liability Assurance Network ("ABAG PLAN"), a self-funded municipal liability and risk management pool, on behalf of the municipalities that are members of ABAG PLAN (the "Members").
ABAG PLAN's goal is to ensure that all legal services its Members receive are of the highest quality, and are delivered in an efficient, timely and cost effective manner. That is why we selected you. ABAG PLAN expects you to notify us whenever it appears that the cost of legal services may be disproportionate to the size or the importance of the legal engagement or that the total fees are likely to exceed ABAG PLAN's or its Members' reasonable expectations.
The requirements contained in these Legal Billing and Case Management Requirements are a critical element of outside counsel's relationship with ABAG PLAN and its Members. These requirements are the conditions of engagement between your firm and ABAG PLAN. They should be read and agreed to by an appropriate partner. The policies and procedures in this manual, which govern the relationship, are not negotiable. If a law firm cannot agree to our policies and procedures, the engagement with ABAG PLAN should be terminated.
ROLE OF ABAG PLAN AND OUTSIDE COUNSEL
ABAG PLAN will designate an internal representative responsible for each project (the "ABAG PLAN Representative"). The ABAG PLAN Representative will control the matter and should be advised of all significant developments and consulted regarding all important decisions concerning the representation.
The ABAG PLAN Representative will define ABAG PLAN's and its Members' legal objectives, monitor progress of legal matters, keep you informed of important developments, and act as a liaison between your firm and ABAG PLAN or Member personnel. We encourage you to ask about ABAG PLAN's responsibilities, organization and standards to help your firm understand our operations and objectives.
We will advise you in advance of your role in a matter. We expect you to keep legal fees, disbursements and expenses at the minimum level consistent with high-quality representation. Please be sure that you understand the role we have asked you to fill and the scope of your responsibility before beginning work.
CONFIDENTIALITY
During the representation, your firm may deal with confidential ABAG PLAN or Member information. This information may relate to a specific Member of ABAG PLAN, ABAG PLAN in general. or ABAG PLAN's or a Member's internal strategy on important legal and business issues. This information is very sensitive, and must be held confidential and privileged even after the firm ceases to represent ABAG PLAN or its Member(s).
Any ABAG PLAN or Member documents or other materials entrusted to outside counsel must be maintained in confidence by outside counsel, and returned to ABAG PLAN or the Member at the conclusion of the matter. ABAG PLAN or Member documents may be destroyed by outside counsel only with advance written authorization from the ABAG PLAN Representative.
CONFLICTS OF INTEREST
After outside counsel accepts an ABAG PLAN legal matter, the ABAG PLAN Representative must be notified promptly in `writing of any conflicts of interest that might arise in connection with outside counsel's current or proposed representation of other parties in other matters. Administrative time spent searching and communicating conflicts will not be paid by ABAG PLAN.
Under no circumstances shall an attorney or law firm that accepts an ABAG PLAN legal matter represent a plaintiff in a lawsuit against an ABAG PLAN Member. This preclusion does not include instances where the attorney or law firm must file a cross-complaint against an ABAG PLAN Member, but is intended to apply to the institution of suits against an ABAG PLAN Member on behalf of a plaintiff. Any outside attorney or law firm that does not immediately withdraw from a representation that violates this policy is subject to removal from its representation of an ABAG PLAN Member. Once an attorney or law firm is removed from a matter as counsel for an ABAG PLAN Member, that attorney or firm will not be reinstated as counsel for that ABAG PLAN Member or for any other ABAG PLAN Member.
MEDIA RELATIONS
Outside counsel must not comment, on or off the record, with respect to any matter in which it represents ABAG PLAN or a Member, unless that comment has been approved in advance by ABAG PLAN or the Member. All contacts with the media regarding an ABAG PLAN Member or legal matter must be approved in advance by ABAG PLAN or the Member.
COMMUNICATION WITH ABAG PLAN
The ABAG PLAN Representative assigned to this case is your contact for all purposes. On behalf of ABAG PLAN and the represented Member, the ABAG PLAN Representative will have primary responsibility for analysis, planning, budgeting and overall management of the case. All your communications with ABAG PLAN or the represented Member should be through the ABAG PLAN Representative, who in turn will facilitate access to A13AG PLAN's and/or the Members officials, business managers, employees, or executives and to ABAG PLAN or Member records, as appropriate.
After a matter is completed, we may ask your opinion about how any aspect of the matter should have been handled differently and what could have been done to reduce costs, improve our strategy, and enhance our chances of a successful outcome. We encourage you to suggest ways in which ABAG PLAN or its Members could have helped to lower costs or achieve a better result.
BUDGETS
Outside counsel must provide ABAG PLAN with a written budget setting forth the scope of work for every legal project, as well as the estimated fees and disbursements. This budget shall be a part of the Legal Project Management Plan to be submitted within 45 days of your retention for any ABAG PLAN matter.
The budget should explain all of the assumptions on which it is based and specify the following: (i) a detailed description of each separate task, such as motions, pleadings, depositions, reports. etc.; (ii) the name and billing rate for each lawyer and legal assistant to be involved; (iii) the amount of time each task is expected to take; and (iv) the budgeted charges for each task, broken down by month.
The budget is to be updated every six months, without exception. You should notify us promptly in the event unanticipated issues cause the estimated legal fees or disbursements to vary significantly from those projected in the current budget.
Budgeting should be based upon prior experience with similar cases, particularly cases your firm has handled on behalf of ABAG PLAN. Knowledge of the practices and expertise of the opponent's counsel should also be a consideration.
LEGAL MANAGEMENT PROJECT
For any matter, outside counsel, in consultation with the ABAG PLAN Representative. must prepare a Legal Project Management Plan for the matter within 45 days of retention. as the initial report to ABAG PLAN. The Plan should include a written statement regarding: (1) the scope of the work: (2) the strategy to be pursued; (3) the staffing required; (4) estimated legal fees and significant expenditures, as outlined in the Budget section of these requirements; (5) the estimated settlement value; and (6) the advisability of alternative dispute resolution. If it appears that a case will go to trial. a separate estimate of trial costs should be prepared no later than the close of discovery (usually thirty days before trial). Any significant changes to the Plan must be approved by the ABAG PLAN Representative prior to implementation of such changes. The Plan, including the budget, must be updated every six months.
Aggressive motion practice may be necessary or desirable, but it is costly. Motions are discouraged unless there is legal merit to the Member's position, and an important tactical advantage to be gained. Motions should only be pursued when a stipulated or negotiated resolution of the issue cannot be achieved.
Advance approval from the ABAG PLAN Representative is required before undertaking any of the following:
1.				Preparing dispositive pre-trial motions;
2.				Preparing counter or cross-actions against existing or new parties;
3.				Preparing discovery motions;
4.				Undertaking any major research project;
5.				Retaining expert witnesses;
6.				Preparing for trail;
7.				Preparing post-trial motions;
8.				Taking an appeal; and
9.				Removing an action to federal court or preparing a motion for change of venue.
In all matters, both the ABAG PLAN Representative and outside counsel will use a "cost-benefit" analysis to determine the Member's interests. The analysis will weigh the anticipated benefits of a particular course of action against the estimated costs, discounted by the probability that the benefits will actually be achieved.
The ABAG PLAN Representative must be notified immediately of any adverse decision or judgment. The law firm must ensure that the Member's right to appeal is protected pending the decision. In the event an appeal is taken, the firm must plan the appeal strategy with and present the relevant issues to the ABAG PLAN Representative.
DISCOVERY
Discovery practice should be cost-effective. Prior to initiating any discovery on behalf of a Member, please discuss with us the scope of such discovery, the information and the benefit to be obtained, and the estimated cost.
Deposition transcripts should not be digested without prior approval from the ABAG PLAN Representative. Only one attorney may attend depositions absent prior approval from the ABAG PLAN Representative.
Discovery requests requiring a response by a Member should be promptly forwarded to the ABAG PLAN Member, with a brief outline of recommended responses and objections. Outside counsel should discuss with the ABAG PLAN Member to what extent the assistance of a Member representative is required to prepare responses.
We are sensitive to unnecessary discovery costs. Whenever appropriate, you should handle such tasks as document production, arranging for depositions, and handling discovery disputes informally. Routine interrogatories, requests for admissions, and requests for production of documents should be handled at the associate level. Discovery motions should be filed as a last resort.
LEGAL RESEARCH
We have retained your firm because of your expertise. Therefore, we do not expect to pad- for basic legal research to educate your lawyers. Research projects estimated to cost more than $1000 must be approved in advance by the ABAG PLAN Representative. Technical opinion letters should be avoided unless specifically requested. Legal research should be performed by capable associates.
When legal research is completed, we should receive a copy of the results of that research, regardless of whether it is reduced to a formalized memorandum of law. Do not spend time perfecting research product to comply with this requirement
We do not pay legal fees for research on such fundamental matters as local rules of practice or basic issues of law.
If ABAG PLAN possesses legal research in an area of law, and the results of such research would be useful in handling the matter for which you have been retained, we will so advise you. You should discuss any substantial legal research projects with us before commencing the work.
NEGOTIATION AND SETTLEMENT
ABAG PLAN and its Members seek to settle disputes at the earliest possible time. The use of mediation, arbitration and alternative dispute resolution techniques are encouraged to avoid unnecessary time and expense. However, no settlement discussions are to occur without ABAG PLAN's express prior approval.
Many cases either settle or are dismissed through motion practice. ABAG PLAN encourages outside counsel to work toward cost-effective, early settlement. You should follow these procedures:
1.				In the initial status report, identify and evaluate the possibilities for settlement;
2.				Consult with the ABAG PLAN Representative before settlement discussions and/or settlement conferences;
3.				Advise the ABAG PLAN Representative promptly of the results of settlement conferences and/or discussions ;
4.				When recommending settlement, provide a settlement memorandum, including a brief narrative of the facts, the nature of the claim, the relief requested, a statement of outstanding issues, an evaluation of the probable outcome, the fees and costs to date, and anticipated additional fees and costs, absent settlement.
STAFFING
ABAG PLAN generally retains a specific attorney within a firm, rather than the law firm itself, to perform legal services on a given matter. The retained attorney should handle all major aspects of the matter. Other law firm personnel may be utilized to perform legal work, so long as the retained attorney maintains responsibility for the matters and no duplication of effort results.
Generally, outside counsel is selected because a specific attorney possesses the expertise to accomplish a particular task. While such specific attorney may decide what resources his firm will assign to a legal matter, that attorney must be responsible for the matter to its completion. Such attorney may not assign or delegate this responsibility without the prior approval of the ABAG PLAN Representative. All other law firm personnel must have prior approval to work on ABAG PLAN's Members' legal matters.
We encourage the use of associates and legal assistants if their use is cost-effective. The use of associates and legal assistants, rather than partners, should reduce total bills, not increase them. In general, associates should not perform legal assistant tasks, such as deposition summaries and routine document reviews. In addition, if a task can be performed more efficiently by a more experienced attorney, the matter should be staffed accordingly. Each law firm professional assigned to a matter should make a clear contribution to the efficient handling of the legal matter.
The time of secretaries, clerks and messengers (e.g., photocopying, filing, delivering materials to the court or opposing counsel, scheduling depositions and hearings, arranging for deposition reporters) is not to be billed by firm personnel. Summer associates should not be used on our matters.
We will pay for only one attorney or legal assistant to perform a task. If an extreme or unusual situation arises that justifies the use of multiple personnel in performing a task, we will pay for the additional charges only if they have been approved in advance by the ABAG PLAN Representative. We will not pay to train junior personnel or for their supervision. Creating work assignments and supervising staff are law firm overhead.
Infrequent internal conferences may be necessary. If billed, we generally will pay for the most senior attorney's time only. Exceptions to this rule exist when major events occur in a matter or when each participant to an internal conference has knowledge and experience within a unique specialty. If a significant percentage of legal fees are attributable to internal conferences, we reserve the right to refuse to pay for the charges.
FEES
Lead outside counsel should provide the ABAG PLAN Representative with a schedule of billing rates for partners, associates, and legal assistants applicable to the intended representation. At least 60 days written notice must be given of any proposed changes in billing rates, and approval must be obtained prior to the implementation of such changes. ABAG PLAN will consider alternative billing methods and encourages outside counsel to propose them if appropriate. ABAG PLAN will work to ensure that alternative billing arrangements are fair to ABAG PLAN, its Members, and outside counsel.
Only services requiring specialized legal knowledge will be paid. Matters that are capable of being handled by a secretary, clerk or courier should not be billed.
Hourly rates include all overhead and internal charges, such as administration, secretarial work. word processing, computer time, accounting, use of law firm facilities, overtime or weekend building utilities, file set-up, closing and storage, staff training, librarian time, and clerical time. Accordingly, ABAG PLAN will not pay for these items in addition to the professionals' hourly rates.
ALTERNATIVE FEE ARRANGEMENTS
For certain matters, alternative billing methods may be appropriate as an alternative to the traditional hourly-billing method. We expect outside counsel to consider, in appropriate cases, the following arrangements:
1.				Fixed fees for certain matters or tasks;
2.				Fixed fees plus a contingent premium;
3.				Reduced hourly rates plus a contingent premium;
4.				Diferent billing approaches for different stages;
5.				Blended hourly rates;
6.				Volume discounts; or
7.				Percentage based fees.
An alternative fee arrangement must be the subject of a separate engagement letter and must be signed and approved by ABAG PLAN.
GENERAL BILLING AND PAYMENT MATTERS
ABAG PLAN reserves the right to decline to pay any bill received more than 30 days after the end of the ninety day period in which the work billed was performed. If ABAG PLAN inadvertently pays a bill that does not comply with this policy, it retains the right to reimbursement for such payment.
We will track actual billings against your budget. You are expected to justify budget overruns. You should request approval for budget overruns from the ABAG PLAN Representative before the legal services are performed or the expenses are incurred. Overruns incurred without prior approval will not be paid.
ABAG PLAN will make every effort to process properly submitted statements for payment. However, our ability to pay is conditioned on your adherence to these guidelines. If ABAG PLAN is charged for items that are non-billable under these guidelines, such as clerical work, overhead costs, or excessive expenses, ABAG PLAN may decline to pay those charges. If so, those charges will be deducted from your statement prior to payment, and will not be paid. If your statements include charges that inadequately detail the work done or expenses incurred, payment for those charges will be suspended until each charge is correctly re-billed on a separate invoice. Any suspended charges that are not properly re-billed will be deducted from your billings after 90 days from the original date they were invoiced, and will not be paid.
BILL FORMAT
Bills should be submitted every ninety days, unless other arrangements have been approved. Distinct matters should be invoiced separately. Each bill should include the following information:
1.				The matter name or description;
2.				The matter number assigned by ABAG PLAN, if any;
3.				The date of each service performed and a full description of services rendered. A full description should include the activity performed, the names of the individuals involved, and the subject or purpose of the charges. For example, bills should reference the purpose of the conferences and the names of participants, the subject matter and recipient of all correspondence prepared or reviewed by the firm, the titles of documents, proceedings and motions, and the specific issues involved in any legal research billed;
4.				The name of each partner, associate and legal assistant performing each service and the number of hours worked on each task, billed in. 10 hour increments (tasks charged as "block" or multiple item entries are not acceptable);
5.				The hourly rate for each person and the resulting total charge for each service;
6.				Total fees for all professional services rendered during the billing period;
7.				An itemized list of all disbursements (including the per page charge for photocopies and faxes). Receipts may be requested from time to time;
8.				Adjustments for fees and disbursements for discounted nonrecoverable matters, capped fees or similarly negotiated reductions;
9.				The combined total for professional services and disbursements for the month or other approved billing period;
10.				The law firm's employer identification number or applicable identification number for the attorneys performing the services; and
11.				Statement Enclosed" on the envelope.
12.				An indication of whether the invoice is interim or final.
Examples of appropriate billing formats are set forth on the Attachment hereto.
Billings for contract attorneys, where use thereof has been approved by the ABAG PLAN Representative, should be paid by the law firm, and billed to ABAG PLAN as a law firm disbursement.
Each billing statement should be reviewed personally by the responsible firm lawyer to ensure that all time charged reasonably reflects the value of the work performed in respect to the matter, and that all recorded costs and disbursements were reasonably and necessarily incurred in connection with such matter.
BILLABLE TIME
Every bill from outside counsel is an assertion by the firm and billing partner that the legal services and disbursements reflected on the bill are both reasonable and necessary for the matter involved.
In reviewing bills to be sent to ABAG PLAN, the billing partner should focus particularly on the time devoted to such items as internal conferences, legal research on basic or general legal principles. training and supervision of inexperienced attorneys and legal assistants, drafting standard form documents, and duplicative attendance at meetings, depositions and hearings. Appropriate billing judgment should be exercised to avoid such charges.
We expect that associates will handle associate-level work, legal assistants will handle legal assistant-level work, and secretaries will perform secretarial work. In this regard, the billing partner should consider the appropriate ratio of partner hours to associate and legal assistant hours for various tasks.
Unless other arrangements have been made with ABAG PLAN, your firm is expected to bill ABAG PLAN for its actual time spent on Member matters, billed in increments of .10 hours. ABAG PLAN will not pay minimum or standard charges for tasks without a specific prior agreement allowing such charges.
ABAG PLAN should not be charged for your firm's administrative matters, including time spent preparing bills to ABAG PLAN. Time spent at meals or social activities should only be charged to the extent substantive work was performed.
We do not pay for more than one attorney to attend a hearing, deposition or trial, conduct a field investigation or interview, or otherwise handle casework requiring an appearance. If you believe a situation requires more than one person, the approval of the ABAG PLAN Representative must be obtained in advance.
Out-of-town time, including travel time that is not spent on substantive legal work, is not billable. We will accept reasonable charges for "lost opportunity" time, not to exceed four (4) hours per travel day, unless more travel time is approved in advance by ABAG PLAN. Additionally, when substantive work can be performed, the four (4) hour maximum will be reduced by the hours of substantive work performed (e.g., two hours of actual work plus four hours of travel will result in a charge of no more than four hours).
Time associated with the reassignment of Members' work from one lawyer to another in your firm is not billable to ABAG PLAN, unless such transfer is requested or approved by the ABAG PLAN Representative. A transfer solely for the administrative convenience of your firm or a firm lawyer should not result in any additional charges to ABAG PLAN. You must obtain approval for any significant transfer from the ABAG PLAN Representative.
ABAG PLAN should not be charged for work done to maintain outside counsels general professional competence, such as lawyer training time, time spent in legal education seminars. or reading advance sheets or periodicals.
While it may be necessary for firm lawyers to consult with each other within your firm. intra-office conferences and consultations should be minimized. ABAG PLAN will only pay only for the time of the senior biller in such conferences, with two exceptions: (I) when each biller is participating in the conference because of his or her unique expertise in a particular field of law; or (2) when a major event has occurred in the matter that must be analyzed by more than one attorney. Administrative and supervisory conferences are not to be charged to ABAG PLAN.
In conducting legal research for Member matters, the law firm is expected to utilize all appropriate sources reasonably available, including previously prepared briefs and memoranda. While value-added premiums will not be paid, ABAG PLAN will pay for actual time spent in updating and tailoring such previously prepared briefs and memoranda to address Member matters.
EXPENSES GENERALLY
We will pay actual out-of-pocket expenses incurred by the firm on our Members' behalf. We will not pay any charges that represent the internal costs or overhead of the firm. For example. we will not pay the following:
1.				Secretarial, clerical or word processing charges;
2.				Staff overtime charges;
3.				Internal messenger or courier services, except where necessary and less costly than outside services;
4.				Photocopy charges in excess of $.15 per page;
5.				Accounting or bookkeeping charges;
6.				Fixed costs of computerized research (e.g., Lexis);
7.				Publications;
8.				Continuing legal education;
9.				Office supplies;
10.				Administrative fees or percentages
11.				Local telephone charges;
12.				Ordinary postage; and
13.				Attempted telephone calls or voicemail messages.
The law firm should be prepared to support the actual cost of any disbursement billed to ABAG PLAN.
Payment for outside vendor or professional services should be coordinated with the ABAG PLAN Representative when the cost exceeds $100. In some instances, we will ask that billings be submitted for direct payment by ABAG PLAN. The format for third party billings must conform to these guidelines. You are responsible for seeing that vendors you retain comply with our billing format and guidelines.
Payments to court reporters, expert witnesses, outside contractors and others must identify the vendor's name.
If legal research applies to matters that your firm is handling for other clients, you should bill only the appropriate proportionate share of the time and expense to ABAG PLAN. Further, you should bill only the actual costs incurred for computerized legal research or other research services as billed by the database company.
Do not include mark-ups on internal or outside expenses. We pay only the actual cost of such expenses as long distance telephone, facsimile, courier services, express mail, postage, and on-line database charges.
SPECIFIC EXPENSE ITEMS
A. PHOTOCOPYING/DUPLICATING
ABAG PLAN will reimburse you for necessary in-house photocopying at $.15 per page. Any unusual photocopying requirements, including copying by outside services, must be approved in advance. ABAG PLAN or its Members may be able to contract for the copying at a reduced cost.
B. FAX
ABAG PLAN expects to pay for telephone line charges incurred by outside counsel to send facsimiles to ABAG PLAN. However, ABAG PLAN will not pay charges for receipt by outside counsel of facsimiles sent by ABAG PLAN, or for other overhead expenses of the firm, such as machine maintenance, paper or operator costs. These costs are considered to be normal overhead.
C. MILEAGE
ABAG PLAN authorizes mileage reimbursed at the IRS approved per mile rate (now $.31) for the use of personal automobiles for Member business. In addition, all expenditures incurred for parking and tolls will be fully reimbursed when an attorney uses his or her own automobile on Member business. Fines for moving and parking violations will not be reimbursed by ABAG PLAN.
D. DELIVERY/COURIER
Standard mail services should be used whenever possible. The preparation of written correspondence and documents should be completed in time to avoid unnecessary use of express mail and delivery services at extra cost. Charges for certified, registered, insured, other special handling or express mail should be billed at the actual cost incurred. Regular first class postage charges are considered to be part of your firm's overhead and should not be billed.
Only actual mileage for in-house couriers may be billed at the IRS approved rate with no additional surcharge. Actual charges for outside services may be billed.
E. STAFF OVERTIME MEALS AND TRANSPORTATION
Although it may be necessary for your staff to work overtime on a Member's project. ABAG PLAN has no control over your workload or work assignment priorities. Therefore, we consider meals provided to overtime staff, as well as transportation to or from your offices, to be firm overhead. We will not pay for staff overtime meals or transportation.
F. TRAVEL
Air travel should be coach class, and, if possible, by discounted fares. Actual charges incurred for meals will be reimbursed when you are representing Members on out-of-town travel. Other meal expenses will not be paid.
Non reimbursable expenses include charges for unused guaranteed hotel reservations, hotel movies, airline headsets, recreation and health club facilities, personal trip insurance, and other personal expenditures.
When traveling on business for Members as well as other clients, travel expenses must be apportioned among all clients based on time billed to each client.
All travel expenses require an itemized accounting submitted with your bill. This accounting must include detailed information about car rental, hotel, air and train fare, and travel meals, regardless of amount.
G. CLIENT DEVELOPMENT
ABAG PLAN will not reimburse personal entertainment expenses, such as the cost of tickets for movies, theaters, sporting events, and related transportation expenses.
H. EXPERTS
To retain third parties on behalf of Members, such as expert witnesses or local counsel, you must obtain approval in advance from the ABAG PLAN Representative.
Additional counsel may not be retained on Members' behalf without prior approval from the ABAG PLAN Representative.
AUDITING
ABAG PLAN has the right to audit all bills, using either ABAG PLAN in-house auditors or the services of an independent auditor. ABAG PLAN expressly reserves the right to challenge any bill submitted by outside counsel, whether or not ABAG PLAN has paid such bill in part or in full. Payment for an\ bill shall never constitute a waiver on the part of ABAG PLAN or its Members of its right to challenge such bill, whether prior to or subsequent to the performance of an audit.
Outside counsel will maintain all necessary bills, pre-bills, receipts and records and will make them available to ABAG PLAN for this purpose. Outside counsel shall also maintain its entire working file for each ABAG PLAN matter for at least three years after closing the file, which file shall include all pleadings, discovery, correspondence, attorney notes and memoranda, legal research. motions and memoranda. ABAG PLAN will give outside counsel advance notice of any such audit.
ATTACHMENT

The following suggestions are intended to assist you in providing us with the billing information necessary to facilitate informed legal management decisions and to process your bills quickly. Complete Task Descriptions
To permit meaningful review of your invoices, we ask that you provide a full description of each service rendered. A full description should include the activity performed (e.g., "prepare correspondence"). the name(s) of any individuals involved (e.g., "to D. Smith") and the subject or purpose of the charges (e.g... "regarding proposed interrogatory responses"). For example:
8/2/95	CDM	Draft letter to D. Smith re proposed interrogatory responses	0.4	$40.00
This task description contains an activity (draft letter), the name of the recipient (D. Smith), and the subject of the letter (proposed interrogatory responses.) All task descriptions should contain at least this amount of information.
8/2/95	CDM	Letter to D. Smith	0.4	$40.00
8/2/95	CDM	Prepare letter re proposed interrogatory responses	0.4	$40.00
The above two entries contain insufficient information. The first entry does not identify the subject or purpose of the letter and does not describe what action was taken by the biller. For example, did the biller draft, review or revise the letter? The second entry does not identify the recipient of the letter, and is therefore incomplete.
Itemized Billing
In order for us to effectively evaluate the cost of each legal service billed, your invoice should include a separate time unit for each task performed, instead of submitting block billed invoices. "Block" or multiple item billing is the billing of two or more tasks under one time entry. Block billings do not indicate the time devoted to each task performed.
For example:
8/3/95	DWR	Travel to courthouse in Buffalo for trial	3.0	$300.00
8/3/95	DWR	Attend trial	5.5	$550.00
The above two entries are examples of itemized task entries. A time charge is shown for each task. travel and attendance at trial.
8/3/95	DWR	Travel to and attend trial in Buffalo	8.5	$850.00
The above entry is an example of the combination of two tasks in one time entry. This entry, does not enable the person reviewing the bill to determine how much time was spent at trial and how much time was billed for travel.
Item Expenses
Disbursement charges should be fully described, including the quantity and cost per unit where appropriate. For example:
8/11/95		Mileage to Buffalo -300
miles @ $.31 per mile		$93.00

8/30/95		Photocopies- 250
copies @ $.15 per page		$37.50