Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.
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60 LEXPERT MAGAZINE | MARCH/APRIL 2018 in-house counsel. Burgoyne says that another important contributing factor in a company's move to in-house legal capacity may be a rising regulatory burden. In Establishing the In- House Legal Department: A Guide for an Organization's First General Counsel, the Association of Corporate Counsel (ACC) cites a growing plethora of financial, secu- rities and environmental regulations and more stringent corporate governance re- quirements, from 2000 onward, as reasons for bringing legal talent inside. e ACC also notes that a need for more pro- active legal advice may be a key driver. While an outside law firm is oen retained on fairly narrow parameters, an in-house lawyer is better posi- tioned to provide proac- tive advice on looming issues before they get hot. Sidhu says there's no doubt rising legal cost was a motive in the cre- ation of her position, but there were other consid- erations. "All the legal, regulatory and com- pliance work was sent to outside counsel, which was obviously getting too expensive. It was also very reactive — lawyers were only called to put out fires. e company started doing more M&A deals and the business model is so unique that it was get- ting harder for our executives to explain to outside counsel each time. As I emerged into the role, things became more proactive and the need for in-house counsel grew." To be or not to be Having decided to hire its first in-house lawyer, a company must set about finding the perfect — or near perfect — lawyer for the position. And, of course, candidates will have their own reasons for wanting the job. Vesely simply says she felt her ca- reer path needed to include an inside busi- ness perspective. Soccio points out that working as an as- sociate for Big Law is largely technical and transactional. "GC work is about building continuing relationships, and there are a lot of soer skills that you need. Working within a business, a group of people in a teamwork situation, is something I thrive on and enjoy," he says. As a counterpoint, Burr says he returned to Blake, Cassels & Graydon LLP from the venture capital company where he was in- house because, "I prefer working in a firm environment, with a variety of clients and a variety of problems. Working in-house, you get to know your company intimately, and get to understand the kinds of problems and needs the organization has, but I found that it became too routine. At Blakes, when I wake up in the morning, I never know for sure how my day is going to go." Burgoyne and Burr argue for recruiting an experienced associate from a major law firm over hiring a fresh-faced graduate out of law school. What the company gains in reduced salary cost and being able to mould a rookie lawyer to the corporate culture is more than amply offset by the law grad's inexperience. While Big Law backs its newbies with all the resources of the firm, a rookie in-house lawyer has no such safety net. And, while many companies like to hire malleable youngsters for nearly all po- sitions, a broader perspective and a certain stiff-necked independence are arguably good qualities in a trusted legal advisor. Sidhu concedes that a solo in-house lawyer straight out of law school may have to scramble at first, but she says there are ways to make up for the lack of a Big Law security blanket. "A legal network is impor- tant," she says. "I never knew anyone when I started this role, but it just happened. I started going to a lot of [Canadian Corpo- rate Counsel Association] events and just started introducing myself. … I made it a point to join panels. e problem for solo in-house counsel is, we don't have a team of five or 10 lawyers to bounce ideas off of, so it's important to keep a good rapport with outside counsel." She adds that building a bank of favours is helpful and nominating other lawyers for awards is a good place to start. "And if you read a good article, send a quick note to the writer." It all helps the solo in-house counsel to build a network he or she can rely on for legal expertise and moral support. Burgoyne says many companies look to recruit their first internal lawyer from the in-house legal department of another com- pany, in part because these people may have acquired a more entrepreneurial, business- focused outlook than an associate from a big law firm. A related issue is that lawyers from large firms may be accustomed to a large support system, while at a company "they're on their own for the first time in their careers." Other companies may prefer to hire an associate from their outside counsel. "More [associates at big firms] go in-house than become partners," Burgoyne observes. He says it's an established trend, which is driven by law firms tightening up on part- nerships and by an increasing numbers of | IN-HOUSE ADVISOR: SOLO IN-HOUSE COUNSEL | TERRENCE BURGOYNE OSLER, HOSKIN & HARCOURT LLP I've sometimes recommended that clients hire an in-house lawyer. … Where there's no inside legal capacity, small contracts may never get legal oversight and it could be the company has run into a problem.