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CCCA_V3No2_Orders-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 4/27/09 5:04 PM Page 21 5 only a national firm can supply.At other times, howev- 7 Don’t be shy about negotiating Cover Choose the right firm for the task … Sometimes you need top talent and the resources that Negotiating terms with outside counsel doesn’t need to feel like dickering over a used car, but nor should it er, you may be facing a glut of meat-and-potatoes legal work mean handing over a blank cheque.“You really have to see it like that any competent lawyer could handle, or perhaps you have a businessperson,” advises Le Cavalier.“You have to think ‘how an issue that a specialized firm is best suited to tackle. In the much money am I willing to invest?” Inside counsel hold some right circumstances, looking beyond Bay Street can save you key bargaining chips, she says. big bucks. Are you reducing the number of law firms you deal with?That “It does pay to shop around, including outside the major cen- lets you channel more work to the firm that agrees to cut its rates. tres,” says Sean Kennedy, senior regional counsel for Canada Post Perhaps you can offer to make a particular firm your preferred Corporation. He has started turning to boutique law firms to supplier for a certain period of time.Or,if your company is grow- handle most of his risk management, personal injury and proper- ing, let them know you’ll be able to increase the volume of work ty damage work. that you send them. At one boutique firm he uses, fees for the most senior partner are approximately half that of one of the most junior partners at a large law firm,thanks to lower overheads,yet “Carefully consider the expertise needed Kennedy receives better expertise and a so you’re not wasting time training some- higher level of service. one too junior for the job or, conversely, Now he’s planning to migrate more work to smaller firms.“I’m looking seriously right paying a 15-year lawyer what a 5-year now at some other law firms in Brampton, lawyer or even a student could handle.” in Whitby and even as far away as Hamilton to do work in Toronto,” he says. A promise to pay bills promptly — within 15 or 30 days, for 6 Whatever type of firm you pick, don’t sit back and let example — might also merit a discount, especially when tougher … and the right lawyers as well economic times are putting the squeeze on law firms’ cash flow. the managing partner choose how to staff your file once for the job or, conversely, paying a 15-year lawyer what a 5-year 8 Focus on the bottom line you’ve handed it over. Instead, carefully consider the expertise Throughout the negotiating process, don’t lose sight of needed so you’re not wasting time training someone too junior the value you’ll receive. Law firms have fixed overheads, lawyer or even a student could handle. so push too hard for discounts and you may end up with a “I think you have to drill down about who’s going to do each lawyer too junior to do justice to your file. task and how much experience that person is going to have and “It’s the same as in life,” says Kennedy.“It’s not how much you what the involvement of the lawyer in charge of the file is going pay, it’s what you get.” to be,” says Le Cavalier. Remember as well that it’s the total at the bottom of the If the 15-year lawyer you need is beyond your budget, consid- invoice that counts.That’s why, on occasion, Kennedy has been er a blended rate where he supervises someone more junior and willing to pay $1,000/hour for the opinion of a top competition their rates are averaged.You get the benefit of the older lawyer’s law expert. experience, but the legwork is being done for less. Effectively, “Because he knows everything, he’s not going to spend six blended rates ensure senior counsel delegate the more mundane hours on the problem,”he explains.That makes him a more cost- aspects of a file, rather than do all the work themselves. effective choice than a lawyer with half the hourly rate who Contract lawyers are another cost-effective option. Although spends three times as long for the same result. still a fairly rare breed in Canada, hired guns like Le Cavalier offer the advantages of rates less than half what outside counsel Give clear direction typically charge, plus the convenience of a lawyer who works 9 Are you looking for an exhaustive memo covering every right on the premises. conceivable legal angle or something more focussed on ÉTÉ 2009 CCCA Canadian Corporate Counsel Association 21