(Author) Founder & Principal

Any suggestions on how to cut down on outside counsel spend? In-house lawyers are handling litigation. What do you keep in-house vs farm out to outside counsel? I’m looking for areas where we can handle more work ourselves rather than calling up a law firm partner for money.

General Counsel Responses:

• The key here is to really limit what outside counsel does and doesn’t do. I’m very much concerned with that and I demand updates very frequently on any case I send to outside counsel. For example, in an area where we don’t have expertise, they always ask me if x deposition to attend is necessary, etc. I hate, hate micromanaging, but you kind of have to do it when outside counsel is necessary. Obviously, this depends on the matter, but I get weekly reports on what they’re doing and how much it costs. Also, given the issue, I make sure the main partners delegate to competent junior partners and associates. In fact, I prefer dealing with associates as they are very eager and cost less. When I was in BigLaw, a lot of General Counsels would call me directly when I was younger. Maybe that’s where I got it from. Additional note: The dollar amount for a litigation budget is immaterial. What is the case about? How complex is it? A contract dispute is one thing, a complicated bankruptcy law matter, for example, is different.

Counsel Responses:

• My company doesn't have any active litigation right now but we engage outside counsel for complicated employment and privacy matters. Being very precise with the description of work, and setting clear expectations for the final product really helps us. And please make sure you are not paying your outside counsels for "educating" themselves. (Details about my company: It’s a small-ish private company (600 employees in 3 countries) and we are in the life science/pharmaceutical industry.

In-house? Be a part of the conversation on Fishbowl (anonymous).