The review examines pending matters, threatened claims, historical claim patterns, insurance coverage and limits, reserves, and any regulatory or governmental proceedings. It produces an exposure estimate informing price and indemnity.
Privilege considerations affect what can be shared.
Alternative Names:
Litigation Review|Pending Litigation Diligence
Why it Matters?
Common interest arrangements are what permit meaningful review of privileged litigation assessments before closing, since a target sharing counsel's evaluation without one risks waiver against the very plaintiffs it is defending. Structuring the disclosure carefully matters more than the volume reviewed. Historical claim frequency also predicts future exposure better than the pending docket, particularly for operating businesses with recurring claim types.
Frequently Confused with
Related terms
Frequently asked questions
How is privilege protected during review?
What predicts future exposure best?
