I can’t count the number of times I have answered the phone, only to listen to a distressed business owner or manager in the throes of dealing with a potential lawsuit. The dispute may be with an employee, another owner or investor, or a third-party business relationship. Differences in opinion may have flared into anger, insecurity, and resentment, clouding business judgement and too often leading to the need to hire trial counsel. Resulting legal fees and costs easily add up to the tens of thousands, amounting to a devastating event for the growing business. In many cases, the caller is further dismayed to discover that, even though the legal case may be strong, the business can’t afford to participate in the lawsuit.
Do you have the confidence and peace of mind that your management team is equipped to successfully manage conflict? If not, you might consider enhancing your team’s ability to prevent litigation by finding a general counsel before you are forced to find litigation counsel. A general counsel, whether a full time employee or an outside legal consultant, can be a specialist in litigation prevention who can educate, strategize, and prepare documents as part of an overall conflict management process. In those cases where lawsuits can’t be avoided, a general counsel with the appropriate skill set can be effective as settlement counsel, especially during the early stages of litigation when the time is ripe to “stop the bleeding.”
The “general” expertise of a general counsel is what sets this type of attorney apart from legal specialists. General legal counsel can have the combined skills of a transactional attorney, in order to structure, document and close deals, and a litigation manager who supervises trial attorneys, helps formulate litigation strategy, and negotiates settlement terms. Also, the general counsel’s mindset is different than many attorneys: She or he understands how to work with the management team, and therefore takes responsibility at all times for business needs such as the need to stay under budget. The long-term nature of the relationship gives management access to a responsive and timely resource without having to get acquainted with new attorneys for each project.
What type of attorney is most effective at preventing lawsuits? A general counsel’s background should include:
