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Program C: Contract Litigation

Program Authorization: R.S. 39:1527-1544

PROGRAM DESCRIPTION

The mission of the Contract Litigation Program is the fund for payment of contracts issued for the professional legal defense of claims made against the state, including attorneys, expert witness, etc.

The goal of the Contract Litigation Program is to sufficiently fund payment of contractual liabilities for costs associated with defense of claims against the state.

Contract Litigation provides funding for payment of contractual liabilities for costs associated with defense of claims against the state. The Litigation Division of the Department of Justice handles approximately 90% of all Office of Risk Management Claims. Cases are assigned to contract attorneys due to need for specialized expertise, geographical location of claim or caseload of Litigation/Department of Justice attorneys.

OBJECTIVES AND PERFORMANCE INDICATORS

1. In FY 1998-99, the Contract Litigation Program will provide funding for payment of contractual liabilities for costs associated with defense of claims against the state.

1 These data were provided by the Division of risk Litigation (DRL) in the Department of Justice. The DRL has an objective of handling 90% of all new Office of Risk Management (ORM) claims.

2 Because the DRL appoints attorneys, with ORM's concurrence, the ORM has only minimal control over the number of cases handled by the DRL versus the number the DRL assigns to contract attorneys.

3 In its calculation of the number of cases assigned to contract attorneys, the ORM includes any cases that had been assigned previously to DRL attorneys but were reassigned at a later point to a contract attorney. For this reason, a calculation of the percentages of new cases assigned to DRL or contract attorneys based on ORM figures will not match calculations based on DRL figures.

4 These data were provided by the Division of Risk Litigation (DRL) of the Department of Justice. As the DRL meets its objective of handling 90% of new tort litigation cases, the overall percentage of cases handled by the DRL should rise and the overall percentage of cases assigned to contract attorneys should fall.

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

The Contract Litigation program is funded with Fees and Self-generated Revenues. Fees and Self-generated Revenues are derived from premiums billed for insurance provided by this Office and from interest earnings from the self-insurance fund. State and quasi-state entities obtain insurance through the Office of Risk Management.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$10,000,000

0

 

ACT 1430 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$0

$10,000,000

0

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

$10,000,000

0

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

$0

0

 

DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 100.0% of the existing operating budget. It represents 100.0% of the total request ($10,000,000) for this program.

PROFESSIONAL SERVICES

This program does not have funding for Professional Services Fiscal Year 1998-1999.

OTHER CHARGES

$10,000,000

 

Legal Services - Fees for attorneys as appointed by the Division of Risk Litigation, Department of Justice with concurrence by the Office of Risk Management for defense costs relating to tort actions against the state

 

 

 

 

$10,000,000

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for the Fiscal Year 1998-1999.


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