| Recently, I saw an article in a legal publication in | | | | understanding about what the fees will be, there |
| which an in-house lawyer was quoted as saying | | | | will rarely be a fee dispute. |
| that she had to reduce costs from outside | | | | 3. If a client has a fee issue, the client should bring |
| counsel, because otherwise it would come out of | | | | it up immediately. Perhaps there is a simple and |
| her bonus. Although I am sure that this lawyer is | | | | reasonable answer for the bill. In other instances, |
| dealing with pressures, cost control and otherwise, | | | | an adjustment may be appropriate. However, just |
| that I can only imagine, what struck me was the | | | | letting a fee issue simmer unresolved is no good |
| implication of a somewhat adversarial relationship | | | | for anyone: It undermines the client's trust in the |
| between the client and outside counsel. | | | | lawyer, probably results in unnecessary personal |
| After many years in this profession, and despite | | | | stress on the part of the client or in-house |
| the current economic conditions, I hope it has not | | | | lawyer, and cannot lead to resolution. |
| come to that. It seems to me that the focus | | | | 4. Lawyers do not always need to be on the |
| should be on providing needed legal services as | | | | clock. Of course, I do not bill clients for sending |
| efficiently as possible to the client, whether those | | | | them business articles. I look for opportunities to |
| services are provided by in-house or outside | | | | take clients to lunch, which provides an |
| counsel. That result is best achieved when there is | | | | opportunity for them to discuss their legal issues |
| a strong relationship of trust and understanding | | | | or whatever is on their mind off the clock. I often |
| between the lawyer and the client. Although the | | | | offer to provide educational presentations on |
| lawyer must earn that trust, it is also true that | | | | relevant legal topics to clients at no cost. If I am |
| this type of relationship can only happen when the | | | | attending an even that may be of interest, I try |
| client lets the lawyer become part of the team. | | | | to make sure that clients are invited. Further, I |
| In a team based relationship, the lawyer gets to | | | | almost always write a cover letter (no charge) |
| know about the client's business in detail, the | | | | that accompanies a statement for services |
| client's approach to legal issues, and the client's | | | | rendered. If there has been any significant activity |
| approach to business issues. As a result, the client | | | | during the month, I usually try to include a brief |
| receives added value without paying more. The | | | | status report in the letter reminding them about |
| client does not have to waste time telling me | | | | what was accomplished in the prior month. I use |
| about their business or their overall goals, because | | | | the word "reminding" purposefully; hopefully, the |
| I already know. | | | | client is well-informed before the bill arrives. |
| There are other ways that an intimate knowledge | | | | 5. Lawyers need to say thank you to their clients |
| of a client's business adds value. For instance, I | | | | for their business and for their trust and |
| and many other business lawyers read the | | | | confidence. Similarly, although I never think it |
| business press voraciously almost every day. If I | | | | should be expected, it sure does feel good when |
| see an article that I believe will be of value to a | | | | you have worked hard to achieve a good result, |
| client, I forward it on. Although I try to do this for | | | | and the client says thank you for a job well done. |
| every client, it is certainly much easier to be | | | | 6. If lawyers are invited to become part of the |
| attuned to articles of potential interest when you | | | | team, they need to join the team. Lawyers |
| thoroughly understand the client's business. | | | | should look for opportunities to provide added |
| The least satisfying relationships are, as I have | | | | value, such as through articles, and, when |
| written before, where a client treats the lawyer | | | | applicable, through notifying the client of potential |
| somewhat akin to a fire axe in a glass case: | | | | beneficial opportunities or business relationships. |
| Break glass and use only in the event of an | | | | 7. Lawyers need to stay involved in their clients' |
| emergency. I guess some clients think they are | | | | work. One of the great frustrations that I hear in |
| saving money this way. In reality, in the vast | | | | the legal press is that in-house counsel hate |
| majority of instances, the fire probably could have | | | | meeting with a "relationship" partner about a new |
| been avoided if the client had called counsel earlier. | | | | matter, and then getting shuffled off to someone |
| Damage control is rarely very satisfying for | | | | they have never met, often a young associate. |
| anyone. | | | | This is probably the root cause of the rebellion at |
| Other variations of the "fire axe" approach include | | | | some corporate clients who refuse to pay for |
| not telling the lawyer all of the facts, or providing | | | | first year associate time. It does not have to be |
| the relevant documents a drip at a time. Or calling | | | | that way. There are firms that eschew a |
| with a "quick question" without giving the entire | | | | leverage model and where the senior lawyers do |
| context. Even when one makes every effort to | | | | most of the work, or at least stay involved. This |
| get the client to avoid these approaches, it is still | | | | approach brings experience and judgment to the |
| sometimes difficult to convince people to do what | | | | relationship and also helps to assure that client |
| is good for them. | | | | expectations are met. One of the things that |
| Clients probably follow the fire axe and related | | | | attracted me to my current firm is that it follows |
| approaches because they think it will save money. | | | | this approach. |
| However, it is doubtful these approaches result in | | | | 8. If a client is on a tight budget, involve the |
| any real cost savings (much less optimal provision | | | | lawyer directly in the discussion. Although we |
| of legal services). It certainly makes it difficult for | | | | always try to work efficiently, there still may be |
| the lawyer to add any value beyond the narrow | | | | opportunities to do the work more efficiently. |
| issue when used in such a piecemeal fashion. In | | | | There may be work that can be identified as |
| fact, it is more difficult even to address the | | | | "optional." There may be work that the client may |
| narrow issue when one does not understand the | | | | decide not to do, even though, optimally, it would |
| big picture. | | | | be done. One caveat to the last point: If the client |
| Of course, relationships of trust and understanding | | | | decides not to do certain work, the client sure |
| do not happen over night. However, there are | | | | should not blame the lawyer if it later turns out |
| some things that both lawyers and clients can do | | | | that it should have been done, and should also not |
| to move the process along. | | | | object to an email from the lawyer confirming the |
| 1. Lawyers need to communicate with their clients. | | | | decision not to do the work. |
| I still hear about instances when lawyers do not | | | | I do not have all of the answers. I know that |
| return client calls or answer emails. Frankly, it is | | | | hard economic times have strained corporate legal |
| difficult to believe that this can happen in this day | | | | budgets for businesses of all sizes. But I cannot |
| and age, but, apparently, some lawyers still do | | | | believe that, in either the long run or the short |
| this. | | | | run, a confrontational approach between clients |
| 2. Fee issues should be discussed up front and | | | | and their counsel or between in-house counsel and |
| from the outset. If there is a reasonable mutual | | | | outside counsel will help anyone. |
