6.1 Budget Package
When you begin work on a legal matter, you must prepare a plan (the
“Case Plan”) explaining how you anticipate accomplishing the work
for which you have been retained, along with a case/matter budget
(the “Budget”) showing the anticipated cost of legal representation.
The Case Plan and Budget constitute the “Budget Package” and must be
submitted together. The Case Plan summarizes the strategy for
achieving satisfactory resolution of a matter, while the information
provided in the Budget controls costs and the payment of invoices.
Except in a case of extreme urgency, the FDIC must approve the
Budget before you begin working on the legal matter.
The Budget must be approved by the FDIC before you can be paid for a legal matter.
The FDIC uses on an on-going basis the cost estimates and
other information provided in your Budget to assess
cost-effectiveness and measure progress. The Legal Division
recognizes that estimates may be affected by changed
circumstances; but, because the estimates are used in making
business decisions, they must be as accurate as possible.
If you need to later amend your approved Budget, you must submit an
Amended Budget Package (see Section 6.6).
Refer to the relevant Budget forms.
6.2 Case Plan
Upon commencement of a legal matter, you should discuss the matter
with your Oversight Attorney. Then prepare a Case Plan that sets
forth the major steps you will take to accomplish asset recovery, or
successful defense or prosecution of a case. For litigation matters,
the Case Plan outlines the anticipated course of action based on the
assumption that the case will go to trial. It also proposes a plan
for settlement, unless settlement is clearly inappropriate.
If you are handling a number of cases that are routine and involve
similar issues or approaches, you may develop and submit a
standardized Case Plan applicable for all such cases. When
appropriate, note factors that differ between cases in the Case
Plan. The decision to submit a standardized Case Plan will be made
in conjunction with your Oversight Attorney.
The Budget translates the Case Plan into financial expectations. The
- Conform to the Case Plan; and
- Estimate the total cost of fees and expenses.
There are two types of Budget forms, each corresponding to a
specific legal matter type, as follows:
Make sure the Budget conforms to the Case Plan for the legal matter.
Completing the Budget Form
Following are the instructions for completing a Budget form.
Select the Budget form appropriate for your legal matter.
Fill out all requested information on the Budget form.
In particular, indicate in the appropriate box whether you are
billing at an hourly rate, fixed fee, or contingent fee.
4. Refer to the following table to determine information required
for the type of billing you entered.
Complete the budget sections in which legal fees and expenses are
the fixed fee as a total without further itemization.
the estimated completion date and allowable related expenses
If appropriate, calculate the total estimated number of hours for
all service providers.
Sign and date the Budget.
6.4 Budget Package Submission
Once you have completed the Budget Package, you must submit it to
the FDIC for approval. The following steps outline the submission
and approval process.
1. Submit the Budget Package as instructed in your referral letter.
This package consists of the Case Plan and Budget form.
2. Your Oversight Attorney reviews the Budget Package. If it is
satisfactory, your Oversight Attorney will recommend approval by the
appropriate FDIC delegated authority.
3. The Legal Division will notify you when the Budget Package is
6.5 Amended Budget Package
the approved Budget is not sufficient to complete a case or matter,
you must submit an amended Budget Package. You should do this as
soon as you anticipate that the approved Budget is not likely to be
sufficient. Do not wait until after you have exceeded the approved
Written approval from the Legal Division is required for any
increase in the approved Budget. Make sure the amendment has been
approved before you exceed the Budget. The Legal Division allows
exceptions to this policy only when extraordinary circumstances
Failure to obtain written FDIC approval for an Amended
Budget will be deemed a serious breach of your duty to the
FDIC and may result in non-payment or disallowance of fees or
expenses exceeding authorized amounts. You must report to your
Oversight Attorney immediately any anticipated Budget changes.
An Amended Budget Package contains:
If the Amended Budget exceeds $100,000, make sure that you
are in compliance with the Byrd Amendment.
If the previous Budget exceeded $100,000, it is not necessary
to submit another Byrd Amendment Certification.
Completing the Amended Budget Package
Following are the instructions for completing an amended Budget Package.
1. Prepare a separate narrative explaining the reasons for the
2. If necessary, prepare an amended Case Plan that provides detail
commensurate with the significance of the legal matter. For
Litigation and PLS matters the amended Case Plan should summarize
revised strategy and project the schedule for preparing and trying
the case, including all expected litigation events.
3. Select the Amended Budget form appropriate to your legal matter.
4. Fill out all requested information on the Amended Budget form, in a
manner similar to the original Budget form.
5. Mark the appropriate box if you have submitted a previous amended
6. Use the most recent approved figures in the column for “Current
7. Sign and date the Amended Budget.
6.6 Amended Budget Package Submission
Once you have completed the Amended Budget Package, you must submit
it to the FDIC for approval. The following steps outline the
submission and approval process.
1. Submit the Amended Budget Package in the same manner as your
original Budget Package, as instructed in your referral letter. This
package consists of the amended Case Plan and Amended Budget Form.
Also include the
Byrd Amendment Certification - PDF or
Disclosure form - PDF if fees and expenses now exceed $100,000.
2. Your Oversight Attorney reviews the Amended Budget Package. If it is
satisfactory your Oversight Attorney will recommend approval by the
appropriate FDIC delegated authority.
3. The Legal Division will notify you when the Amended Budget Package