You’re a lawyer with Roundup cases, and settlement is approaching. Are you aware that you have the ability to select a co-administrator for certain specific administrative functions at the time of settlement? You may have never really thought about it, but every law firm need not automatically use the global administrator that is appointed through the Master Settlement Agreement (MSA). These behemoth companies tend to come with excessive costs for their services, a lack of transparency, and little personalization when it comes to client needs. Partnering with a company that doesn’t knock it out of the park with customer service will ultimately reflect on your firm.
Instead of tolerating a global administrator, many savvy mass tort attorneys are choosing to hire a boutique firm as co-administrator to perform the most important functions of settlement administration. By doing so, these attorneys are putting their clients first while making the settlement process easier for their firm.
The process by which a specialized co-administrator comes into play is simple. Once a mass tort is settled, an MSA outlines a global administrator, typically a large national firm. This appointment implies that the global administrator will take care of multiple functions, including but not limited to: revenue generation on the deposit, lien resolution, data intake and management, records retrieval, claims processing, client disbursements, fee and expense disbursements, and accounting. While all of these functions are critical, some specifically demand specialists to guarantee proper performance. Law firms have the ability to appoint a specialist company to co-administer the vital parts of this complicated process, one of the most important being growing the qualified settlement fund deposit without any principal risk.
When it comes to qualified settlement fund (QSF) administration, there are varying levels of complexity among each task. For example, data intake and management represents a primarily administrative function that can be handled by a paralegal or administrator. QSF distribution and funds management requires a dedicated team of financial experts to professionally and efficiently handle payments. The function that requires the most sophistication is that of revenue generation on the QSF deposit. A specialized team at a boutique firm with experience and knowledge in this arena will be able to properly manage investments and growth in order to benefit attorneys and their clients. The ability to produce gains without posing any principal risk results in an interest surplus, some of which can be allocated to clients. Without a specialized co-administrator properly cultivating profits by way of investment, an opportunity to benefit clients, attorneys, and the industry overall is missed. Partnering with a co-administrator centered around revenue generation, like the team at Milestone, is paramount. Think of it this way: you are unlikely to ask your paralegal to be your financial advisor, so why place the responsibility to generate profits in the hands of an amateur administrator?
In addition to generating interest profits, Milestone also specializes in attorney fee deferrals, which many mass tort attorneys take advantage of post-settlement. Fees may remain in the QSF while attorneys can take the time to plan for their future and make wise long-term wealth management decisions. With expertise in profit growth, our firm can provide the same type of revenue generation on your attorney fees by establishing a customized portfolio plan through our innovative feeMaster program.
At Milestone, our experienced professionals can serve as a sophisticated co-administrator for any mass tort settlement you may be approaching. Instead of settling for an impersonal global administrator, consider taking control over the settlement process by engaging with experts who can handle the most important facets of QSF management. The end results will greatly benefit your clients and demonstrate the proficiency of your firm.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).