Your Law Firm Needs Outside General Counsel

Everyone knows the old truth: ‘one who represent themself has a fool for client.’

For some reason, lawyers that would never draft their own will, do their own house closing or represent themselves at a criminal arraignment have no issue representing their law firm in the same instances.

That needs to change.

Even firms that have an in-house General Counsel can benefit from an outside GC. Those firms that do not have a dedicated GC position need an outside General Counsel and in many ways the outside role offers better protection and objectivity than the in-house counterpart.

The traditional law firm General Counsel role evolved from the corporate world’s analog. With origins as informal and ad hoc lawyers handling issues as they arose or often the ‘ethics guy,’ large firms soon realized the need for more formal, established positions. Since the 1990s, the “lawyers’ lawyer” or “GC” position has started to develop at most large law firms in the US and abroad.

While the role varies with each firm, it generally combines elements of risk management and legal ethics with other more administrative jobs at the firm: HR, compliance, insurance, fees/billing, etc. The GC is also primarily tasked with representing the firm in Court and handling any claims against the firm.

Unlike large firms, small and mid-sized firms generally pile the GC duties on to the managing partner’s desk without much consideration of the pros/cons.

Since the General Counsel role is by its nature ambiguous and customized for each firm the only real common denominator is that the role is distinct from firm management (whether that is a managing partner, the group of law firm owners or some hybrid structure).

In many large firms, the role has become a full-time position and the GC (and even the GC’s team of Assistant General Counsels) no longer works directly on client matters. However, the majority of firms that have a General Counsel still expect the lawyer to work on client matters and bill.

Most firms that have a GC role select a home-grown partner and, as is typical of firm leadership positions, it is usually an attorney with a large book of business, not necessarily a lawyer with any relevant experience.

Outside General Counsel is truly your law firm’s lawyer. They provide objectivity and expertise that is rarely found within your firm’s ranks. More than that, outside GC’s see how their other firm-clients operate and bring diverse perspectives to the problem-solving needed.

Most importantly, outside General Counsel brings complete attorney-client privilege and allows your firm to position itself for the best defense against any claims or ethical challenges. The in-house role, especially if the partner remains a billing attorney, can open the door to discovery of the firm’s internal communications and response.

No matter the size of your firm, consider an outside General Counsel to protect your practice!