The pros and cons of following lawyers to new firms

The pros and cons of following lawyers to new firms

The pandemic has shifted the relationship between law firms and their clients. As shown in a recent ½Û×ÓÊÓƵ report, the lockdowns and the broad switch to remote working removed the veneer of law firms and put the focus solely on the work of lawyers. Andrew Cooke, General Counsel at and contributor to the ½Û×ÓÊÓƵ report, Rise of the legal consultants, neatly sums up the change: ‘During lockdown you had the lawyer on the screen all the time, so all of the theatre of the big law firm gets stripped away.’

The lawyer, not the firm, has become the most attractive component to clients. One interesting result of that change is that in-house legal teams are now more likely to follow departing lawyers to new firms. That raises some interesting questions. What are the benefits of following lawyers? Are there any risks? What do General Counsel need to consider before following departing lawyers? In this article, we aim to answer the above questions by discussing the pros and cons of following lawyers to new firms. 

 

The pros of following lawyers

Trusted relationships

James Harper, Senior General Counsel at ½Û×ÓÊÓƵ, makes the following compelling argument: ‘You can find good lawyers at rubbish firms and you can find rubbish lawyers at good firms, there is no correlation between the quality of advice you get and the size or turnover of a firm.’

Harper has highlighted perhaps the greatest benefit for in-house teams that follow lawyers. It is the lawyer, not the firm, that provides solutions and produces result. If you have found a , who has performed to a high standard, following the lawyer may be the better choice, as remaining at the firm may well lead to another lawyer that does not meet that standard.

Continuity is also important. You may find that sticking with the firm, rather than the lawyer, leads to delays in legal solutions, as the new assigned lawyer gets up to speed with the ongoing situation. The simple act of transferring the task to someone new can prove disruptive and time-consuming. 

Better services

One often overlooked benefit of following a lawyer is the advantages of the new firm. Consider, for example, that lawyers often leave firms for a reason. They may feel that they do not receive adequate support at their previous firm, or perhaps the tech is stifling, or maybe they are simply spending too much time on admin and not enough time with you, the client. More likely it is a matter of finding a better work-life balance – the core reason lawyers depart firms, according to the Bellwether Report 2022.

The new firm may have streamlined processes, automated admin, more back-office support, less bureaucracy, all of which will improve the lawyer’s work. The firm may offer a better work-life balance, which will result in a happier and more productive lawyer. In short, the switch to the new firm means you will get the same lawyer in an environment more conducive to effective legal work. 

 

The cons of following lawyers

Increased cost

In the ½Û×ÓÊÓƵ report, Andrew Cooke explains: ‘If [a lawyer] moves from a small firm or a firm we like working with to a big US firm and all of a sudden their rates triple then we’re not going to continue to use them, but if they went off to work under a platform model, then yes we would go with them.’

Cooke’s statement confirms the value of the pre-existing relationship, but it also highlights that increased charges are a barrier to following. Many lawyers will leave for bigger firms, firms that provide greater compensation, which may result in increased charges.

It’s important to mention that the opposite could also occur. Some General Counsel find that following a lawyer saves them money. That may be the case with lawyers departing for platform law firms, as charges are often offered on a fixed-fee basis with incentives given to lawyers finding effective client solutions. 

Worse services

A benefit mentioned above is better services. The change in services also poses a risk. The new firm may use tech that is slow, outdated, and complex. The new firm may provide less back-office support, demand more time on admin, possess bottlenecking issues through hierarchical structures, and so on.

Following the lawyer means that your business will have the same lawyer, but that lawyer may be unable to provide the same quality service, as issues at the firm prevent effective work. That is a particular issue in the short-term, as lawyers settle into the new firm. Even firms with modern and effective services may cause issues to lawyers, as the lawyer struggles with new tech, new structures, and so on. 

Ethical considerations

A lawyer’s departure from a firm can raise ethical, legal, and personal issues. The best-case scenario would result in the departing lawyer and the firm engaging in productive discussions designed to protect their clients’ interests. But that is not always the case.

Following lawyers can create problems, particularly if the lawyer has engaged in commercial discussions with the client while still employed by the previous firm. The lawyer is obliged to tell clients about their departure, but they should not actively entice the client to follow through any form of misrepresentation, deceit, or through purposefully misleading claims. 

The ethical considerations can prove risky to in-house legal teams and other clients. If lawyers do not depart with professionalism, following all the appropriate legal and ethical standards, you can risk becoming embroiled in needless legal complexities that could be avoided by sticking with the original firm. 

Read our free report to learn more: An in-house lawyer's guide to outsourcing legal work


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About the author:
Sarah leads marketing for the In-House and Academic legal communities. She is passionate about customer-centric marketing and delivering data-based insights to help clients get the best use out of ½Û×ÓÊÓƵ solutions and products, and ensure they succeed in their roles.

Prior to her role at ½Û×ÓÊÓƵ, Sarah specialised in delivering large B2B marketing programmes across a number of industries, including Financial Services, Technology and Manufacturing.