ALA Case Analysis and Interpretation 3 — Questions and Answers
Question 1: When analyzing a portfolio of matters for a corporate client, a legal administrator discovers that 15% of matters account for 80% of total fees. This pattern is best described as:
- An anomaly requiring immediate investigation
- A Pareto distribution typical in legal service portfolios (Correct answer)
- Evidence of billing fraud
- A sign of poor matter management
Correct answer: A Pareto distribution typical in legal service portfolios
The 80/20 Pareto principle commonly applies to legal portfolios, where a minority of complex matters drive the majority of revenue.
Question 2: A legal administrator is asked to evaluate whether a matter should be handled in-house or referred to outside counsel. Which factor is LEAST relevant to this analysis?
- The specialized expertise required for the matter
- The originating partner's preference for the referring firm (Correct answer)
- Internal capacity and current workload
- Cost comparison between internal and external handling
Correct answer: The originating partner's preference for the referring firm
Partner preference for a specific outside firm is a business relationship consideration, not an objective factor in the make-vs.-buy analysis.
Question 3: A statute of limitations is approaching on a matter that was placed on hold due to settlement negotiations. Which action should the legal administrator prioritize?
- Allow the limitations period to expire since negotiations are ongoing
- Alert the responsible attorney immediately and document the notification in writing (Correct answer)
- File a tolling agreement without attorney review
- Transfer the matter to the conflicts department
Correct answer: Alert the responsible attorney immediately and document the notification in writing
Immediate written notification to the responsible attorney protects the client and creates a documented record of the administrator's diligence.
Question 4: In interpreting a court order requiring document production within 30 days, the administrator must determine the deadline. The order is dated a Friday. When does the 30-day period begin?
- The Friday the order was signed
- The Monday following the Friday order date
- The day the order is served on the parties (Correct answer)
- 30 calendar days from the first Monday after the order
Correct answer: The day the order is served on the parties
Under most procedural rules, response deadlines run from the date of service, not the date the order was signed.
Question 5: A matter summary report shows a case has a 'high complexity' rating but only junior associates assigned. What risk does this present from a case analysis perspective?
- No risk, as junior associates are more cost-effective
- Potential quality and malpractice risk due to misalignment between matter complexity and staffing experience (Correct answer)
- Increased profitability due to lower billing rates
- Compliance with diversity staffing requirements
Correct answer: Potential quality and malpractice risk due to misalignment between matter complexity and staffing experience
Misaligned staffing—where complexity exceeds the experience level of assigned attorneys—creates quality and liability risk.
Question 6: When evaluating alternative fee arrangements (AFAs) for a client's recurring contract disputes, which analysis is most critical before agreeing to a fixed fee?
- The client's credit rating
- Historical matter data showing average hours, costs, and outcomes for similar disputes (Correct answer)
- The opposing counsel's billing rate
- The number of cases the client referred last year
Correct answer: Historical matter data showing average hours, costs, and outcomes for similar disputes
Historical matter data provides the empirical foundation needed to set a fixed fee that is both profitable for the firm and fair to the client.
Question 7: A legal administrator reviewing a class action matter notes that the named plaintiff settled individually without class certification. What is the most important case management consideration?
- Close the matter and archive all files immediately
- Assess whether the class claims survive and what obligations remain toward putative class members (Correct answer)
- Distribute settlement proceeds to all potential class members
- Immediately notify the opposing counsel of the settlement
Correct answer: Assess whether the class claims survive and what obligations remain toward putative class members
Individual settlement of a named plaintiff does not automatically extinguish class claims, requiring careful legal and administrative review.
ALA Case Analysis and Interpretation 3
When analyzing a portfolio of matters for a corporate client, a legal administrator discovers that 15% of matters account for 80% of total fees.
This pattern is best described as: