What’s the difference between a lawyer and a doctor?
Lawyers often do not need second opinions.
Let me explain: Many corporate transactions (or decisions) require advice from an outside adviser — an investment bank; an accountant; a lawyer; whoever. (Back when I was an outside lawyer, I used to think that lawyers were special. Now, you all look alike to me.) In many of those situations, the corporation needs one, strong outside opinion. If someone offers (or requests) a second opinion, then you should think hard. In a few situations, you might want a second opinion. But, frequently, obtaining a second opinion may do more harm than good.
I wrote last week about how an in-house lawyer overwhelmed by volume should stop worrying and learn to love the ignorance. Talking about ignorance plays to my strength, so I’m choosing here to expand the discussion.
When you’re at a law firm, it’s likely that you sell in part substantive expertise. You’ve assembled a “deal list” to prove that you know more about technology licensing than any other person on earth, or your “case list” shows that you’re better able to handle 10b-5 class actions than all those other pretenders. You may be selling certain things beyond substantive expertise — experience, relationships, presence — but substantive knowledge is part of the package.
When you move in-house, you’re no longer selling anything, because your poor corporate client is doomed to work with you, no matter what your state of ignorance. You’ll no longer polish your deal or case lists, because no one cares anymore.
But it’s worse than that: You won’t simply stop polishing your deal and case lists. You’re actually likely to lose some chunk of your substantive expertise….
One lawyer offers to represent you for $1000 an hour. Another lawyer offers to represent you for $400 an hour. Who’s more expensive?
The correct answer is: You don’t know.
You don’t know for three reasons. First, some $1000-an-hour guys are remarkably specialized.
The efficiencies triggered by specialization are obvious: If I need a lawyer to call the local real estate office and cause my form to be moved from the bottom of the pile to the top, there may be only one person in town who can make that call. He charges $1000 an hour; I buy a half hour of his time; I get off cheap. The $400-an-hour guy can assign a troop of $150-an-hour associates to research local real estate procedures until the cows come home, but that firm is not going to be cheap.
Specialization can yield efficiencies for other reasons, too. If I have a question about a particularly obscure subsection of some obscure law, there may be two ways to get an answer: (1) Call the $1000-an-hour lawyer whose entire practice is devoted to subsection VI(B)(2)(a)(iii) of the Obscurity Code, and have him respond in two hours with an answer, or (2) Have the $400-an-hour lawyer try to figure out the answer from scratch. Who do you suppose is cheaper?
But specialization is the easy case. $1000-an-hour guys can be inexpensive for other reasons, too….
When you work as a litigator at a law firm, you know your cases. You know who said what to whom when. You know the recipients and dates of the critical emails. You know the precise terms of the contracts. You know what the opposing expert said at his deposition and how you’re going to attack him at trial.
In short, you know stuff.
When you move in-house — or, at a minimum, to certain in-house positions — those days may vanish. You may never know — really know — anything again.
The little cases may become barely a rumor: The employee was entitled to five weeks severance; he hired a lawyer and filed a lawsuit; we want authority to settle for ten weeks severance. You may kick the tires on the case for a few minutes, but that’s it. If you crave to know who said what to whom when, then you’re in the wrong job.
I feel a bit irresponsible having written those words, because they imply — indeed, they say — that folks in positions such as mine are doing their jobs without full knowledge. To many lawyers, that’s the ultimate sin. Yet in-house lawyers consistently say that a big piece of the transition from a firm to a corporation is learning to make decisions and take actions based on incomplete facts. (One of my colleagues recently said that he suffers from “in-house ADD.”)
I recently heard a horror story from an in-house lawyer at another corporation. This may not sound like a horror story to someone who works at a law firm, but if you reflect for a minute, you’ll see the birds gathering on the monkey bars in the background.
Three people — one from finance; one from a business unit; and our hero, the lawyer — were speaking on a panel to a couple hundred people in a business unit. The business-unit panelist said something outrageous and brazenly illegal to the assembled group. Assume it was something like, “As you know, we simply ignore that law,” or, “It’s easier to raise prices if we just conspire with the competition.” You get my drift.
Our hero, the lawyer, involuntarily gasped into his (or her) microphone, “My God, Smith, you can’t say that! How many times do I have to tell you?”
Smith looked over, thought for a minute, and said to the assembled crowd: “That’s just Legal.”
When does permissible “flattery” become impermissible “lies”?
I’ll use three real-life hypos — situations that I’ve lived — to explore the question.
First: I was a partner at a law firm. The client had just hired a new, junior in-house lawyer to oversee (among other things) the set of cases we were defending. The client called an all-hands meeting. Four or five of us from the firm attended, as did the general counsel of the company, a couple of deputy general counsel, the global head of litigation, and the month-old, new in-house guy, who we didn’t yet know from Adam.
My senior partner spoke first: “Before we get started, I just want to say that [the new, junior in-house guy] is a great addition to your law department. It’s not often that you work with someone for just a few weeks and immediately know that you’ll be able to do better work, more efficiently, with the new person on board. But you did just that with this hire. Congratulations! What a great lawyer!”
The junior in-house guy was beaming ear-to-ear. Later, in private, your senior partner says to you: “That’s how you cement a client relationship.”
So, what do you say: Permissible (intelligent, praiseworthy) flattery? Or unethical lies?
How do you keep a client (or a boss) happy? Be “light.”
Everyone has worked with people who are heavy, and everyone has worked with people who are light. Light is better.
You ask a heavy to do a job, and he says that he will. But you’re not at all sure that the job will actually get done. You call two weeks later to ask for a status report, and you receive back an ambiguous response about what’s happening. As the deadline passes, you ask for the finished product. It finally arrives, a couple of days late.
That’s a heavy load for you, the supervisor, to bear. Multiply that by eight direct reports (in a corporate law department) or 20 associates (working under your supervision at a law firm), and the burden is unbearable. All that heaviness crushes you, and, next time around, you go in search of light people.
One of the memos is great; the other one is terrible. I know which is which. And, as I said, I haven’t yet read either one of them.
Isn’t trust terribly unfair?
Think about the many ways that establishing trust permeates a business relationship. Once the superior (whether that be partner, client, boss, or whomever) trusts the underling, the underling can do no wrong. And once the superior mistrusts the underling, the underling can do no right.
Which of the two unread memos in my inbox is great? The one from the guy I trust. All of his earlier memos have been great. They’re crisp, incisive, intelligent, and lucid; the one that I haven’t yet read is surely a thing of beauty, too. Which memo stinks? The one from the guy I don’t trust. All of his earlier memos have left me gripping my head in agony, trying to figure out what in God’s name this clown was trying to communicate and why anyone would think it was worth trying to communicate that drivel.
Trust permeates everything; it’s terribly unfair. Trust infuses more than just the memos I haven’t yet read. Trust permeates silence, too. How can trust permeate silence?
We currently have a number of active openings for associate roles at US and UK firms in HK / China, Singapore and two new in-house openings. As always, please feel free to reach out to us at email@example.com in order to get details of current openings in Asia, as well as to discuss the Asia markets in general and what we expect for openings later this year. Our Evan Jowers and Robert Kinney will be in Beijing the week of March 25 and Evan Jowers will be in Hong Kong the week of April 1, if you would like to meet them in person.
The US associate openings we have in law firms are in the usual areas of M&A, cap markets, FCPA / white collar litigation, finance, and project finance. The most urgent of our top tier (top 15 US or magic circle) law firm openings in Asia (among many other firm openings that we have in Asia) are as follows:
• 2nd to 5th year mandarin fluent M&A associates needed in Beijing and Hong Kong at several firms;
• Korean fluent 2nd to 4th year cap markets associate needed in Hong Kong;
• 2nd to 5th year Japanese fluent M&A associates needed in Tokyo;
• 4th to 6th year mandarin fluent cap markets associate needed in Hong Kong;
• 2nd to 4th year M&A / cap markets mix associate needed in Singapore.
In a land that is right here and in a time that is right now, a technology has arisen so powerful that it can replace basic human document review. Is it time to bow down before our new robot overlords?
First, here’s a little story about me: my life in the legal world began as a paralegal. My first case was a GIANT patent infringement case that was already six years old and had involved as many as five companies, multiple US courts, the ITC and an international standards committee. I knew nothing about any of this.
On my first day, my supervisor (a paralegal with at least eight other cases driving her crazy) sat me down in front of a Concordance database with a 100,000+ patents and patent file histories. “Code these,” she said. I learned that “coding”, for the purposes of this exercise, meant manually typing the inventor’s name, the title of the patent, the assignee, the file date, and other objective data for each document. I worked on that project – and only that project – for at least the first six months of my job. After a week or so, time began to blur.
What I know, in retrospect and with absolutely certainty, is that as time began to blur, so did my judgment. So did my attention to detail. If you could tell me that I did not make at least one mistake a day – one inconsistent spelling, one reversed day and month, one incorrectly spaced title – I frankly would need to see your evidence. I would not believe it. The human mind is trainable but it is not a machine.
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