Settlements and judgments as a percentage of outside counsel spending

As part of a recent project, three law departments stated the amounts they had paid in settlements during the previous three years. Taking their 2004 revenue as revenue for 2003 and 2002 (which is approximately on the mark), the three paid .08%, .09% and .12% of that three-year revenue in settlements.

Stated differently, for every dollar they paid outside counsel in 2004, they paid about two dollars in settlements during 2002-2004. That means in a given year, for every dollar paid law firms, these departments paid plaintiffs about 75 cents.