Managing your lawyer

Nation's Business, April, 1989 by Erwin G. Krasnow, Robin S. Conrad

Managing Your Lawyer

Most business people treat their lawyers differently from other vendors of services and ignore the traditional managerial techniques of supervision, goal setting, budgeting, and other controls. They often do not know who will do the legal work, how much it will cost, or when it will be finished.

This confusion exists partly because of lawyers' priestly mystique and professional mumbo jumbo, and partly because many business people simply do not know how best to use and control lawyers.

In today's business environment, it has become essential for business people to ensure that they are obtaining high-quality legal service at the lowest possible cost.

You will not receive cost-effective service by taking the approach of "let me know when it's over" or even "keep me informed." You have to be involved at all stages--arranging the initial fee, planning and budgeting, and monitoring your lawyer's activities.

Remember that you are the boss. You make the final decisions. Your lawyer is not a guru but a resource available to you in your efforts to compete and prosper in the business world.

The first critical step toward receiving high-quality, cost-efficient legal service is determining when you need a lawyer and then finding the right one. The next step is agreement on the fee arrangements best for you. Here is advice to guide you through those steps.

Selecting The Right Lawyer

Start early. All too often, lawyers are called in after the damage has been done--when a company is on the verge of being sued or of compromising valuable legal rights. True, 11th-hour attention from a good lawyer can limit the damage, but it will be too late to keep legal costs low. The most cost-effective service your lawyer can give you is preventive or anticipatory legal advice by identifying potential problems and suggesting corrective measures to avert unnecessary legal disputes. Don't wait for the first hint of a legal problem. Consult a lawyer in your planning stages.

Determine your needs. Are you starting a business, planning a joint venture, renewing a franchise, or suing a competitor? Do you want to trademark a logo or obtain a patent? In each instance, you will want a specialist. Determne the scope of the services you need, what size law firm is appropriate, and whether you should retain more than one firm.

You may need, for example, a lawyer familiar with federal agencies for some matters and a local lawyer for others. Look for an expert in the particular branc of the law affecting your company. Lawyers who are unfamiliar or only marginally familiar with certain areas of the law may not handle them as satisfactorily as specialists. Remember, a nonspecialist probably will take longer and cost more.

Search systematically. Be as thorough as you would be if you were searching for a sales manager or a corporate vice president. Begin by getting recommendations from business associates who have received satisfactory legal service on problems similar to yours. Shop around. Interview the top candidates. Question them closely about the services they provide, their fees, and their results. Check references and credentials; the most comprehensive publication for this purpose is the Martindale-Hubbell Law Directory, available in most libraries. Be wary of lawyers' advertisements. They tell you nothing about the quality of the individual's work or the reputation of the firm. Most law firms will give you resumes or brochures describing their practices and listing representative clients and areas of specialization. If such materials are not available, ask for the names of representative clients you might contact.

Hire a lawyer, not a firm. A sole practitioner or a small-firm lawyer might have a small caseload and be able to give you extra attention as well as more attractive fees. Larger firms may be less personal, but they have extensive resources that offer one-stop shopping and the ability to act on short notice. Your company's success on a legal matter depends, however, on the individual lawyers handling it. Select your lawyer first, and then look at the law firm and its resources.

Ask candidates the right questions. Prepare questions designed to reveal each candidate's qualifications for dealing with your particular situation. (See the box on Page 72 for suggestions on specific questions.) As a general rule, avoid lawyers who want to charge for the initial interview.

Look for the right chemistry. Credentials are important, and competence is essential, but don't minimize your visceral reaction to the lawyer you are interviewing. The right chemistry can often make the difference between satisfaction and disappointment. During the interview, pay attention to the lawyer's "desk-side manner." Is it it abrasive, unctuous, or just right? Is the lawyer a good listener, confident, and eager to work with me? Would there be open communication? Don't trust a lawyer who does not talk candidly and openly. You should also avoid a lawyer who seems too busy to put the needed time and effort into your case, has had disciplinary problems with the local bar association, guarantees the outcome of your case, is vague about fees, tries to impress you with legal jargon, refuses to provide references, or talks too openly about the confidential business of other clients.