Chief legal officer | Grupo Patio
Diego Yávar
Chief legal officer | Grupo Patio
Team size: Three
A brief guide from an in-house lawyer: Key takeaways for law firm lawyers when advising clients
Important points for law firm lawyers to consider when advising companies and/or their in-house legal teams, based on my experience in transitioning from law firm lawyer to legal director of Grupo Patio. I worked for many years in prestigious law firms advising international and local clients on all aspects of commercial and real estate transactions. However, because of my transition from law firm lawyer to legal director, I became fully integrated into the business for the first time. I have therefore been able to experience first-hand what legal advice companies really find useful, which can be summarised in three key points.
Understand the business. Most transactions present numerous legal risks. However, to review legal documents effectively and efficiently, at the lowest possible cost, it is important to properly understand the business and what truly matters to the client. Clients expect you to resolve issues that present significant legal risks to their business and which, if they materialise, would be financially, legally, or reputationally detrimental. Anything beyond that scope is neither useful, nor effective, nor economical.
The possible solutions that a lawyer presents when advising clients must always be economically viable. Lawyers can run the risk of being overly academic, pointing out all the risks without considering their gravity or providing viable solutions to mitigate them. Always remember that clients are seeking solutions and an excellent lawyer can go beyond legal advice by providing clients with commercial ideas and suggestions based on their own experience.
Close personal connection and open communication. Although this may seem subjective, establishing a close personal relationship with your client is essential. When complex transactions are involved and the pressure is high, it is important that the client feels comfortable with the process and that their lawyer has everything under control. To this end, it is important that you and your client maintain an open line of communication, that they feel comfortable with you and that they have confidence in your ability to get the job done.
It is important to pay attention to the fact that sometimes a deal may not seem very glamorous, and lawyers may be inclined to delegate these matters to juniors in the team. This can lead to disappointment and frustration, as your client may expect the matter to be dealt with at the highest level. It is important to know the client and their expectations, communicate effectively and manage relationships.
Overbilling. There is nothing a client hates more than being overcharged. There are three critical points to remember when preparing invoices. First, clients do not want to be charged for the training of junior lawyers or for basic legal research. This is not to say that junior associates should not be involved in transactions, but billing should be carefully reviewed so that clients are not burdened with the cost of training. Second, pay special attention to reviewing the billables of your large, long-term clients. These clients tend not to review invoices on a line-by-line basis, but if they are unhappy with an invoice this could create distrust in the relationship. Finally, clients appreciate receiving well-presented, concise, and accurate invoices, as this saves the clients time in reviewing their invoices and builds confidence that the invoices are fair and accurate.