Simple efficiency creates better results
The panel began the discussion by highlighting the importance of converting complicated ‘legal language’ into accessible ‘consumer language’. It’s crucial that claimants understand as much as possible about the process, what is happening and don’t feel excluded by the use of unnecessarily formal language that can act as a barrier.
Data is another key challenge at the heart of damage distribution and case management. It can be extremely complicated to collate and use and the use of a sophisticated provider is important in order to overcome the potential issues that can arise.
When speaking specifically about payment distribution, Claire highlighted three key areas: Yield, Accuracy & Planning (P-A-Y spelt backwards). Technology can provide highly efficient tools but to reap all of the benefits it has to be used and planned for correctly. In terms of yield, we should be aim for a 100% reach as a standard, including reaching absent class members.
Payments solutions shouldn’t be an afterthought
The panel agreed that the payment solution also needs to be assigned at the budget building stage to avoid a last minute scramble to find a solution or service when the claim is settled. By agreeing the payment solution up front it also helps prevent unnecessary delays for claimants which seems entirely logical and fair.
There are of course many factors that need to be considered to ensure efficient case management including tranches, the nature of claimants, location, individuals or businesses and the value of the claims.
Collaboration is an absolute necessity. Claimants need a clear roadmap of who their legal teams and supporting expert providers are. If everyone can work together efficiently then delays and issues are much more likely to be avoided.
Another benefit of collaboration is that if all of the key players are involved from the beginning then more trust and awareness is created. The point was raised about legitimacy and how once a request for details has been made, claimants may scrutinise whether it is from a legitimate source. It’s therefore important to include everyone relevant at the outset to build profile and trust along the client’s journey.
Information hunting and gathering
It can be a challenge to track down the key information needed for claimants. Every year 37% of people change their numbers, 35% change their emails, 7.5% move homes and in addition there are 2.5m deaths. It’s not surprising therefore that identifying and communicating with people can be harder than expected.
On the plus side digital payments mean that there is now a clear record of whether the claimant has received their funds - which wouldn’t have always been the case in the past. Digital payments should continue to evolve and improve in the current market.
In class actions, it is assumed that there will always be a long tail of payment distributions. This long tail can be the most painful part of the case when you are trying to be in a position where you can deliver value quickly.
Great expectations
It was agreed by the panel that we should have an expectation in this industry for the highest possible payout rate for clients. In order to achieve this, we need to educate the industry on collaboration and early engagement.
A US judge from the audience asked what ‘distribution being at the forefront’ actually means and Claire described this as being involved from the outset – expanding the blueprint from settlement to distribution. Too many firms at the moment are looking at distribution too late when there’s no budget left to effectively do what you wanted to do: pay the claimants their damages.
