Establishing a Partnership with Your Outside Law Firms- Do You Really Want Your Employer to Hear You Say That?

Recently, members of ACC and Fred Krebs attended the 15th Annual Marketing Partner Forum held by Hildebrandt. I have actually had some contact with that organization having published two articles in their journal, Strategies. These are the folks whose job it is to get you to spend your client’s money on their clients. The articles I wrote for them suggested ways that they might actually provide you with meaningful data so you could make informed choices based on factors that I believe that your clients expected, or at should be expecting—establishing a partnership with the service provider was not one of them.

The article “Memo to Law Firms: Make It A True Partnership”, ACC Docket (April 2008) has questionable validity in the relationship between inside and outside counsel. In future blogs I will examine a number of parameters around this issue which has dominated much of ACC activities since it’s founding—in fact was a large if not pivotal contributor to its founding.

Consider the following: Your Company is in the process of constructing a number of pivotal new manufacturing facilities. The CEO determines that the new facilities are so critical to the company’s success that someone must be hired on staff to oversee the construction. Two candidates immerge as potential choices, both are competent, admirable people and will fit into the corporate culture, but each brings a clear difference in their skills and management technique The first has direct experience in the construction process having had to make real decisions concerning the scheduling of subcontractors and insuring the quality of materials. He proposes to the CEO that he will manage the project by maintaining direct and comprehensive oversight of the contractors, exercising his independent judgment over each critical element of the construction and cost and he expects that the CEO will hold him solely and directly accountable for the success or failure of the projects.

The second candidate does not have the either practical experience or background in construction, but has a degree in business management from a prestigious business school and “construction management experience”. The candidate explains that the management technique he will use will result from his development of a partnership with the contractors, open channels of communication and formal budgeting.
When the CEO questions this candidate concerning how he views his position of accountability in this relationship he answers….

The role between inside and outside counsel has a long and tortured history. In future blogs I will review historical publications (which I have been using to develop an objective model to evaluate in-house counsel’s effectiveness in controlling legal expenses) and my numerous participations in forums sponsored by ACC and other organizations, to explore the complex agendas in the relationship between inside and outside counsel.

-Larry Salibra

Thinking Out Loud

In this first blog, I should introduce myself. I joined ACCA when it was a desk, a phone and Nancy Nord (the first executive director). She called me to tell me that the phone had now been installed, and Bob Banks had told her once it was working to call me and “start doing stuff.”

I have had an unusual career up to my retirement a couple of years ago, since I not only did all the things in-house counsel typically do; I also had a remarkably robust litigation career having tried jury cases across the country, argued before many appellate tribunals, including the United States Supreme Court, and well as a number of international tribunals. A number of my cases had garnered substantial media attention. Alcan’s challenge to the use of Worldwide Combined Apportionment had international attention. PIRG v MEI was used by a number of groups to impugn Sam Alito’s environmental credentials to be a Justice of the Supreme. Those who want to learn a little more see: “If you want things done right… Alcan Senior Counsel Keeps Litigation In House,” Inside Litigation , February 1999 , Vol. 13, no 2, pp 9-11 or “He’ll litigate you to death ”, National Law Journal, Monday , October 22, 2001

Over my career I developed a number of opinions and perspectives about the profession, and no doubt that is why Fred Krebs asked me to undertake the task of blogging. He will tell you to take what I have to say with a “grain of salt” and he is correct. What is important is that you think about what I have to say. What I hope to do is share with you what ACCA (Sorry, I am not against internationalizing the organization, in fact, I just has my Italian citizenship recognized; I just find ACC does not sound right), did for me. When we started on our efforts of advocacy on behalf of in-house counsel and in some cases on behalf of the profession generally, it forced me to step back and think about what I did everyday. This resulted in my beginning to challenge things that appeared to be unequivocally true by many.

In our profession things become accepted and fashionable. I am convinced that lawyers treat as fact anything that has been repeated three times. That is how it became fashionable to claim that alternative dispute resolution lowered legal costs, or that the Civil Justice Reform Act was going to solve all major litigation management issues or that value billing (I am not sure that really means) was going to solve the problem of escalating legal fees.

I have as you will come to realize a different take on a lot of these issues. I don’t think outside legal expenses are out of control if one wants to buy just cost effective legal services. The problem is that many in-house counsels are buying something else. The present legal system in the United States is in state of substantial disarray, insensitive to its primary role of serving the public, in many respects unaccountable, and far too controlled by special interests, the judiciary being one of them.

Our profession has a serious detrimental effect on its members; practitioners are ill-equipped by out-dated legal educational system unable to effectively train lawyers capable of efficiently delivering meaningful services to client and has compensated by substituting form for substance.

I will be addressing many of these views in the forthcoming posts—the first will be this notion of partnering with outside firms—is it real.

-Larry Salibra

The New Era of Blogging

ACC is excited to bring two new bloggers into the mix. Stay tuned for their thoughts and opinions about all things in-house.

ACC Board Chairman, Richard T. White, on Bloomberg

Tune in to at your desk or a nearby television to watch ACC Chair Richard T. White live on Bloomberg TV. White will be on Bloomberg’s In Focus television program this Thursday, August 2, at 1:30 PM to discuss legal issues that effect in-house counsel.

In Focus is Bloomberg’s business program that provides viewers with exclusive interviews and in-depth coverage of the top stories of the day. The show also provides viewers with inside tips on the market, arts and sports.

Launch the Bloomberg Video Player to hear Richard White.

Bonuses paid out for good verdicts?

Law.com is reporting how some big firms are looking to alternative fees deals to retain the business of their corporate clients. Read Zusha Elinson's article Are Big Firms Warming Up to Alternative Fee Deals?

The shift in necessity

Check out Mike Dillon's blog entry regarding the role of in-house counsel and the future of big law firms. Instead of rushing off to the mega firm every time you encounter an issue you're not familiar with, try a different approach. His point: lean on fellow corporate counsel for advice and use the ACC resources readily available to you at ACC Online. These two simple solutions can save you time and money.

Billboard Draws Negative Attention

It's bad enough that the divorce rate in this country is over 50%, now we're joking about it? Check out this article which discusses the billboard that proclaimed, "Life's short. Get a Divorce," hung by a law firm in Chicago. The billboard drew many complaints and was ripped down. Stay tuned for the pending legal action against the city workers who did so.

Associate Salary Increases Still an Issue

I was glad to see this article on law.com today. The author, Zusha Elinson of The Recorder, mentions our very own Susan Hackett and her concerns about these salary increases and their lack of consideration for the corporate client.

The First Seminole GC

Great article by Sue Reisinger at law.com titled How the Seminoles' GC Helped Land $965 Million Hard Rock Deal.
Seminole GC, Jim Shore, was the first Seminole to ever graduate from law school. Take a minute to read a little about him and the great negotiating he did to win his tribe the Hard Rock corporation.

Fire a paintball gun, keep your job

Who knew that there's no public policy reason against rehiring a Garden State Parkway toll-taker who fired a paintball gun at a vehicle in a fit of road rage. Read the New Jersey Law Journal's article for all of the details on the NJ's Supreme Court's decision that was upheld by an appellate court. Personally, I feel we should all leave our paintball guns at home.

Hot Legal Blogs and the Like

Take a look at Kelly Talcott's article about the freshest legal news on the blogosphere. She pulls together some good places you need visit on the web to keep up with your legal news. Of course, we love Law.com for great legal updates and news as well.

New eDiscovery Software on the Block

Exterro has come to the table with it's flagship product Fusion, which combines BPM with collaboration capabilities and centralized management in an intergrated environment.

Read Law.com's piece Exterro Gets E-Discovery Down to Business

Update: GCs Operating Without Licenses

As promised, I tried to track down the "survey" mentioned by Corporate Counsel in their recent story about GCs operating in states where they are not licensed. The story said "...past surveys by ACC of its membership suggest that [the number of in-house counsel in this situation] could be in the hundreds or even thousands."

As it turns out, there is no such survey (ha!). In a conversation with the reporter an ACC staff member [identity protected] said that we have seen anecdotal evidence that at least some of our members are in this situation, and suggested that it could be "hundreds or thousands," but "we just don't know."

Certainly, it's more exciting the way Corporate Counsel wrote it, but is it accurate? I'll let you be the judge. Here's a link to the story again.

In the News: GCs Operating Without Licenses

According to Corporate Counsel magazine, they've found 8 GCs from Fortune 250 companies who are not licensed in the states in which they are practicing...and they name names. They also spoke to some of the folks on the list, including ArvinMeritor's Vernon Baker who said "you got me" (as a joke, apparently). The story also references an unnamed ACC survey that "suggests" that the number of unlicensed attorneys could be in the "hundreds or thousands." Read the full story here.

In the meantime, I'm going to try to track down the mystery survey.

New York Moves on MJP Rules

The New York State Bar Association House of Delegates proposed important amendments to the rules of professional conduct in New York, and specifically proposed a new Rule 5.5, which was formerly the state's Unauthorized Practice of Law rule, but would be amended to include new multijurisdictional practice (MJP) reforms. New York's proposed Rule 5.5 would permit a lawyer who is not admitted in New York the ability to provide legal services “on a temporary basis” if their services “arise out of or are reasonably related to the lawyer’s practice” in a lawyer’s home jurisdiction. See the full article on this development.

In completely unrelated, but welcome news to all you Zamboni drivers out there, a Superior Court judge has ruled that:

a) Zamboni machines are not motor vehicles
b) therefore, an inebriated Zamboni driver cannot be convicted of drunk driving

See the full story on (where else?!) law.com.

China International Economic and Trade Arbitration Commission comes to ACC

Today ACC hosted a meeting with the China International Economic and Trade Arbitration Commission .
The parties met to explore the formation of a beneficial relationship; extending CIETAC's valuable information and resources to ACC members. Check out CIETAC's Arbitration Rules.
Pace University also has a great database of arbitration proceedings by country.

Is technology fueling firms to move to a flat-rate fee?

David Ambrose, of Ambrose Law Group (Portland, OR), tells The National Law Journal that since his firm has switched from the billable hour to a flat-rate fee, they have seen a 90% increase in profits. 90%! Hard to believe? His theory behind the increase: "Technology is fueling the drive for flat fees . . . something that [used to] take two house, we can now do in 10 minutes."
Would your company benefit from working with a firm who charges a flat-rate?

Read the article

Coke Punks it's In-house Attorneys

Have you seen the ads? Coca-Cola has released several commercials where two actors, posing as Coke brand managers, inquire as to whether they can sue Coke Zero for 'taste infringement.' Check out this article with links to the commercials.

Who's Paying for Associate Pay Hikes?

Susan Hackett, ACC General Counsel, wonders why in-house aren't staging a revolt against associate pay hikes. "I've heard disgusted buzzing about this among corporate counsel at private luncheon meetings. But that's all. There's been no hint of the revolution that I was sure would erupt. In-house counsel of the world: What are you waiting for? Who's managing your company's legal spending: you, or the firms?"

See Susan's complete column on law.com. Let us know what you think.

ACC's 25th Year

2007 marks ACC's 25th Anniversary and we are looking forward to reminiscing about all of the great strides ACC has made through the years. From the growth of the membership (to over 20,000 members!) to the services we provide, ACC is proud to be The In-house Bar Association.

Check out what we're all about!