Why You Should Separate Your QSF and Lien Resolution Administrators

Civil justice is only as impactful as its players. That not only goes for trial lawyers, but also legal service providers, like us, whose work supports theirs.

Milestone’s trademark is finding ways to strengthen civil justice through innovation. As a trusted partner of law firms nationwide, we see it as our duty to identify areas where we can lead. The resulting solutions have created deep, intrinsic, and significant value for trial lawyers and their firms. For example, in response to the predatory practices in the litigation finance space, we developed an ethical, nonprofit solution that lifts vulnerable plaintiffs up when they need help most. When we recognized the inherent value of the qualified settlement fund, we conceptualized the firmwide QSF for trial lawyers.

As we have continued to work with more firms on QSFs, we have identified the lien resolution process as an area that needs improvement. Lien resolution is a pain point for many trial lawyers. It is necessary for large dockets to resolve, but currently it lacks high-end customer service. As QSFs became more widely adopted, large lien resolution companies became “one-stop shops” to also include QSF administration. At first glance, it sounds like a great way to streamline two parts of settlement. However, consolidating these two important jobs removes the necessary checks and balances at settlement. And without much competition in the space, there’s no emphasis on client service within these large companies.

For these reasons, lien resolution and QSF administration need to be distinct and separate engagements.

There’s an inherent conflict of interest when one administrator resolves the lien docket while managing and distributing settlement funds. Every administrator has a financial interest in how long it takes to distribute funds – the longer the process takes, the more money the administrator makes. When commingled with the lien process, this sets up a financial incentive for an administrator to spend more time investigating and resolving liens. But no other party wants to drag out the end of a lawsuit. By separating the fund administrator from the lien resolution administrator, law firms eliminate this conflict of interest.

Regarding client service to the law firms, when a lawsuit is wrapping up, who really cares whether vendors are providing great customer service? Aren’t firms just trying to get through settlement efficiently and in a timely fashion?

Here’s why it matters. Read more