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Trust more critical than ever for litigators and law departments
As businesses emerge from the pandemic, it is imperative that litigation practices and in-house teams not only reflect on weaknesses that emerged during COVID-19 but also communicate effectively with each other.
Jerome Doraisamy
In April 2020, McCabe Curwood principal Chiara Rawlins (pictured) spoke on The Corporate Counsel show about how best in-house teams and litigation practices can meaningfully collaborate, and how the former must be “agile and available” for the latter.
“Trust comes from good work product and strong cost communication. The financial pressures of COVID-19 has, no doubt, caused an increased scrutiny on costs and cost transparency (such as disclosures) of litigation practices,” she said.
“This has translated into an opportunity for litigation practices to improve their cost transparency or risk clients going elsewhere and to a firm that can offer greater certainty and predictability around legal costs.”
Rising cost pressures, Ms Rawlins continued, mean that there is an increased reliance on the expertise and resource capacity of in-house teams.
“This is particularly the case for legal matters that would ordinarily be referred to external legal advisors. We are seeing in-house teams be more ‘hands on’, and more creative and strategically minded, when dealing with crisis matters,” she submitted.
Part of such trust must include substantive communication, Ms Rawlins continued.
“With increased scrutiny over companies’ legal spend, lawyers must be upfront and transparent in relation to costs and effectively convey the value of their work,” she noted.
“In a competitive market where clients are spoilt for choice, adaptability and the ability to customise your services to the specific needs of each client will also be critical in building strong relationships between lawyers and their clients. This is coupled with an increasing amount of value placed by clients on accessibility to their advisers.”
Communication must be “swift and clear”, Ms Rawlins advised, so as to minimise the risk of litigation proceedings in a post-pandemic world.
“Litigation is a beast that can swing around very quickly and unpredictably. It is therefore essential that litigation practices are well equipped by in-house legal teams, with not only the facts and circumstances concerning the relevant issue, but also with an intimate understanding of the business including the broader business goals and internal reporting lines,” she detailed.
“A strengthened understanding of the organisation will mean that litigation practices can consider relevant issues in the broader context of the organisation’s commercial needs. It also means that litigation practices can operate more efficiently to cut through the material, quickly obtain instructions, and efficiently advise.”
Since there is likely to see an uptick in litigation in the post-pandemic world, Ms Rawlins advised, it would be “prudent for in-house legal teams to get on the front foot” by way of auditing aspects of their organisation that present a legal risk.
“This will also assist in-house teams to expand their legal expertise, and if an issue does arise, they can provide a greater valued contribution to litigation practices when looking to safeguard the organisation against legal proceedings,” she said.
Looking ahead, Ms Rawlins said that now is the time for law departments to “pause and reflect” on any soft spots and weaknesses that may have been revealed during the age of coronavirus – and that these must be communicated.
“[Doing so] presents a real opportunity for firms to work with their clients to undertake practice and policy audits and assist with re-building their clients’ companies in a way that minimises their risk of litigation,” she surmised.
“We have also seen a surge in innovation during the pandemic as businesses strive to differentiate themselves from other firms. This push for innovation has been at the forefront of our minds at McCabe Curwood, and [it has] driven us to capitalise on opportunities to digitise a number of our offerings in ways we may not have otherwise considered. This drive to innovate and digitally transform service offerings also presents exciting and unique opportunities to improve clients’ experience.”
Ms Rawlins herself has a key role to play in such action moving forward, she added.
“Those in leadership positions play a significant role in shaping the group’s culture and mindset. It is about leading from the top and by example,” she said.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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