By Mark S. Britton
Special to the Legal Technology Blog
Our Avvocating columns explore the intersection of business and law, typically within the lawyer’s own practice, but what about the intersection of the lawyer’s practice and his or her client’s business? Many lawyers will respond that they are "lawyers" and, as such, they don’t get involved with or try to understand their clients’ "businesses." I mean, if they loved business they would have become a businessperson, not a lawyer -- right?
Well, sort of, but mostly wrong. I have had many lawyers remind me that they are not businesspeople over the years, and I am always perplexed considering that most areas of the law impact business and commerce in some way. Corporate lawyers probably have the greatest impact; but divorce lawyers, estate planning lawyers, criminal lawyers, etc., are all constantly confronted with decisions that significantly impact their clients’ businesses.
One of my first learning experiences in this regard was in my earliest days at Preston Gates & Ellis (now K&L Gates). I found myself in a corporate partner’s office, Bob Jaffe, noticing on his desk the latest edition of a newspaper for the waste management industry. After exchanging the obligatory jokes, Bob told me that he represented a large waste management firm, Rabanco (now part of Allied Waste). Bob said, "You know why I read this? Because my clients expect me to know their industry. And even though I never thought I would be getting Waste Management Weekly [or whatever it was called], I read it religiously. It helps me help them." That conversation instilled in me a client-service value that I never forgot.
Once in-house, I came to appreciate that value even more. As general counsel of Expedia, I admired those lawyers who understood even the most basic levers of the Internet and travel businesses. General counsel are constantly trying to balance legal and business interests and, anytime outside counsel could help me in that balancing act by offering legal advice informed by the ramifications on our business, it was an invaluable thing.
Many lawyers will say that they have too many clients to understand all of their respective businesses. That is a load for the aforementioned waste management newsletter -- especially now that the Internet is at every diligent lawyer’s fingertips. Simply putting together industry-focused Google alerts will get you half-way there. If you then read a few industry blogs and sign up for an analyst newsletter, you are likely in good shape. Think of researching your client’s business as a retention-marketing expense.
A more legitimate excuse is that the lawyer has a high-volume practice that doesn’t lead to long-term client relationships. This makes some sense. In the higher-volume practices (e.g., DUI, personal injury, etc.), knowing your client’s business will not be as valuable. Still, it is important to ask in every case whether your client’s business interests are relevant. If they are, you need to understand how the case can impact those interests. For example, could pleading guilty to a traffic ticket or DUI cause extraordinary damage to a client because of their business? Does your plaintiff really want to take a position that could be used against them in their own business?
In the end, this all comes back to practice investment. If you have a valuable client, you need to repeatedly invest in her, him or it. The greater lifetime value of that client, the more investment is warranted. Could you continue to just be a “lawyer” and avoid all of this time-consuming "business" stuff? Maybe -- but why open the door for a competitor who is more interested in your client than you are? Hired guns come and go. Invested, business-sensitive counselors are worth their weight in gold.
Mark Britton is the founder and CEO of Avvo. He is a 17-year lawyer with deep experience in the legal and e-commerce industries. Mark is the former general counsel of Expedia.com and has worked as an attorney in large, medium and small law firms. In 2007, Mark was named one of Seattle’s "Top 25 Innovators" by Seattle Business Magazine. He is also a frequent commentator on financial, legal and other business issues, regularly appearing on programs such as ABC’s "Good Morning America," Fox Business’ "America’s Nightly Scoreboard," CNN "Money" and Dow Jones "MarketWatch."
