Page 58 - CCCA61_2013

CCCA_V7No1_InsideEdge-FIN_CCCA_V6No2_InsideEdge.qxd 2/12/13 6:01 PM Page 58 Inside Edge Reflections on a changing world Nothing is like it used to be, especially in-house. By Brian Armstrong n the summer of 2000, after almost 25 performed the role of trusted adviser; intensive work to outside counsel. Iyears in private practice, I accepted an today when the CEO looks for high- The changing role of general counsel invitation to become the first chief legal level, strategic legal / business advice, and the reassessment of the service deliv- officer of Bruce Power LP, Canada’s first most often he or she looks inward rather ery model for corporate legal services are and only private-sector nuclear generat- than outward. leading to a fundamental change in the ing company. During the last 12 years, Furthermore, over the past decade or nature of the relationship between in- events such as 9/11,the collapse of Enron, more,there has been an accelerating trend house counsel and their external legal and the “great recession” have produced toward the “in-sourcing” of legal work service providers. In the past, a company major changes in the environment in and in the growth of in-house law depart- might have gone outside for most, if not which all businesses, and in particular ments. This trend has been driven by a all of its legal work; now, more often than those of us in the energy sector, operate. number of factors, not the least of which not, it only goes outside if there is a par- Closer to home, the restructuring of was the recession that hit in 2008. The ticular, often highly specialized need. British Energy in 2002 and the sale of its economic downturn that followed sub- Increasingly, external legal resources are interest in Bruce Power to Cameco, stantially increased the financial pressure viewed as essentially undifferentiated,fun- TransCanada and OMERS; the gible resources: you buy what you of the Ontario electricity market;“ The most significant change on the best terms, at the best August 2003 blackout affecting need from whoever can supply it, all of the north-eastern U.S. and that I have observed over the past price, as and when required. And Canada; the ongoing “evolution” the incident at Fukishima Japan; decade has been the assumption by this has been coupled with a growing interest in the negotia- the General Counsel of the role of and latterly the completion of tion of new and different arrange- one of Canada’s largest infrastruc- primary “strategic legal / business ments for the purchasing of such ture projects — the refurbish- adviser” to the company. services — arrangements which ment and restart of Units 1 and 2 on all business organizations leading to a” often challenge the traditional at Bruce A — each presented business model on which most major challenges both for our business and law firms have operated for many years. for the Bruce Power legal team. critical examination of the cost of all busi- It has been a fascinating time to have Interesting times, indeed. ness services in an effort to find more been in-house. I’m going to miss it. The environment in which all busi- cost-effective ways to deliver services. nesses, including our own, operate has When the cost of purchasing legal serv- Brian Armstrong Q.C. ICD.D was changed enormously in the period since I ices externally was subjected to this kind of Executive Vice-President and Chief Legal joined Bruce Power.At the same time,the careful scrutiny,the business case for having Officer of Bruce Power. He retired from this role of general counsel and the in-house work performed by in-house counsel was position on Dec. 31, 2012 legal function has also changed and often found to be overwhelming. evolved. The most significant change that Increasingly, law departments have [Correction] I have observed over the past decade has moved in the direction of “in-sourcing” Leslie O’Donoghue is EVP Corporate been the assumption by the general coun- the strategic, high value-added work of Development & Strategy and Chief Risk sel of the role of primary “strategic legal / the business while continuing to out- Officer at Agrium Inc. in Calgary.An incorrect business adviser” to the company. source only routine, low value-added, title appeared on page 54 of the Winter issue. PAUL EEKHOFF In the past, the senior external counsel highly specialized or highly resource- CCCA magazine regrets the error. 58 CCCA Canadian Corporate Counsel Association SPRING 2013