In an insolvency situation, a company and its legal department will have to structure an affirmative recovery program. After that comes building a framework to identify claims they’ll pursue. In this process, understanding potential claims and being aware that an affirmative recovery program is underway are both critical. That’s why keeping everyone in the loop is essential.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
In an insolvency situation, a company and its legal department will have to structure an affirmative recovery program. After that comes building a framework to identify claims they’ll pursue. In this process, understanding potential claims and being aware that an affirmative recovery program is underway are both critical. That’s why keeping everyone in the loop is essential.
Therium Capital explains that how effective an affirmative recovery program is will depend largely on how well the company understands available claims. In-house legal teams can be instrumental in bringing in new claims proactively.
Potential recoveries can arise from a variety of opportunities including insurance claims, IP usage, and commercial contracts. It’s vital that business units and legal teams all understand which claims are worth pursuing. Ultimately though, general counsel will make the final determinations.
Any employee can serve as the eyes and ears of the legal department if they’re properly trained and motivated to do so. Relationship building, education, corporate culture, and employee incentive programs can all play a part in a successful affirmative recovery program.
