Litigation Management

Litigation management is a core CLO function that distinguishes in-house practice from law firm practice. You are no longer the advocate — you are the strategic decision-maker who hires advocates, manages their work, controls costs, and makes settlement calls. The CLO determines litigation strategy, manages the company's litigation portfolio, and ensures that the board and audit committee are appropriately informed of material litigation risks (which trigger disclosure obligations).

Legal holds are your first and most critical obligation when litigation is reasonably anticipated. A defensible legal hold program requires: (1) a documented trigger analysis; (2) timely and comprehensive hold notices to custodians; (3) ongoing hold management (reminders, new custodians); and (4) hold release procedures. Spoliation sanctions can be devastating — and they make the underlying litigation dramatically harder.

Outside counsel management is both a cost and quality function. Large companies negotiate convergence programs with preferred firms, use AFAs (alternative fee arrangements), and require detailed staffing plans and budgets. A rigorous matter management system (e.g., eBillingHub, TyMetrix) is essential for tracking accruals and budget variance.

Government investigations (DOJ, SEC, FTC, state AGs) require immediate escalation to the board's audit committee, separate outside counsel from regular litigation counsel, and careful privilege management. Internal investigations prior to or during government inquiries are particularly privilege-sensitive.