Complex Claim Unit (CCU) fka SCM (Environmental Claims) - Attorney Guidelines

Counsel is responsible for the development of an effective and strategically sound legal defense.

Initial Communication and Budget:  Within fourteen (14) days of being retained, counsel should communicate with The Hartford’s representative regarding the facts in the underlying matter available at that time as well as any apparent legal issues, damages and potential settlement options.  Within fourteen (14) days of being retained, counsel shall also provide a specific disposition-focused action plan along with a budget for the same.
Litigation Plan and Developments: Counsel should periodically communicate, at least every sixty (60) days, with The Hartford’s representative as to the status of the pending matter. Counsel may utilize the status report template,  >>>CLICK HERE>>> Case Status Report - ENV, for the purpose of these reports.  As soon as practicable, counsel should identify and communicate to the insurer and the insured the key factual and legal issues needing resolution, the key depositions, discovery, experts, motions needed to further resolution as well as the most opportune times for a settlement favorable to the insured.  If settlement authority is requested, counsel shall set forth the basis for the suggested settlement value and for the allocation to the insured as compared to other parties.
Motions and Legal Research: Counsel should consult with the insurer before undertaking a legal research project, especially those requiring over two hours of research. Counsel should also consult with The Hartford’s representative prior to filing any motions.
Immediately Reportable Events: Counsel should immediately report any proposed or scheduled dates for settlement discussions, mediation, arbitration or trial, any hearing results, motions or appeals, any scheduling orders, amendments to pleadings, changes in venue or judge, discovery “surprises” and “hot” documents.
Mediation and Pre-Trial Reports:  A written report will be due from counsel to The Hartford’s representative no later than sixty (60) days prior to any scheduled mediation and/or trial date.  Counsel should utilize the mediation and pre-trial report templates,  >>>CLICK HERE>>> Mediation/Pre-Trial Report ENV, for the purpose of these reports.  The report should provide an opinion as to a reasonable settlement value range for the insured based upon the potential liability of the insured and all other relevant factors.  The report should provide an assessment of liability of the insured, the basis for the amount allocated to the insured as opposed to other parties, any affirmative defenses, the potential for a jury verdict and values and a budget estimate for costs and expenses for trial. 
Documentation: The preferred method of transmittal is via email. Briefs filed in connection with substantive motions (dismissals, summary judgment and motions in limine), expert reports, pre-trial orders, trial memoranda (with exhibits, jury charges, etc.) and all papers filed in connection with an appeal should be proactively provided to the insurer. When defense counsel is filing any such papers, The Hartford would appreciate receiving them in advance of filing allowing sufficient time for meaningful review and participation. A summary of deposition testimony and other discovery may be preferred as compared to a copy of the entire transcript, interrogatories and requests for production.
Consent to Settlement: Generally, the insurer’s consent is required for settlement in construction-related matters and in matters involving water intrusion. The insurer’s consent may also be required in environmental matters. We would appreciate receiving advance notice of any settlement proposal.

Generally, Hartford encourages the early retention of experts and encourages their retention prior to any settlement negotiations. Prior approval from The Hartford for the hiring of experts or consultants shall be sought in all matters. Any expert and/or consultant hired must meet the minimum qualifications in the industry.

Rates, qualifications and scope of work should be discussed in advance with The Hartford’s representative in all matters.  Hartford will only pay for costs which are reasonable and necessary for the defense of the insured.  Factored into whether costs are reasonable and necessary are rates for similar work in the jurisdiction where the matter is pending.  Also, it is expected that experts and consultants provide in advance a preliminary budget, including proposed fees and expenses. The Hartford will only pay for past work performed, as opposed to proposed future work, and such work must be adequately documented.  Adequate documentation shall detail the amount of time performed on each task, in tenths of an hour, and shall have an adequate description of each task.  Any fees and costs will be reviewed and paid as per the Billing Guidelines governing counsel.  For example, in determining what items are payable in terms of travel and what receipts are necessary, the Billing Guidelines for attorneys should be followed.  If prior approval is obtained, reasonable markups or surcharges may be payable, so long as such markups or surcharges are not related to the hiring of a subsidiary or affiliated company of the vendor or expert.  The Hartford will not pay for markups or surcharges added by a subcontractor and will not pay for overhead charges of any kind. 

Invoices should be submitted quarterly, or at the discretion of the insurer, monthly.  Hartford reserves the right to reject invoices which are more than six months older than the time incurred.