I had only been a lawyer for a few months when I had my first shareholders dispute to deal with.
My boss told me to take the position with opposing counsel that his client’s resignation from “all positions with the corporation” included his resignation as a minority shareholder. I told him that his argument was ridiculous. One cannot resign as a shareholder.
Legal clients tend not to know the law, so they cannot judge their lawyer on how well they know their stuff. Instead, they judge them on things that they do understand. Chief among those will be how they communicate.
In the picture that accompanies this post you will see a rather nice-looking boat which is named “On Business.”
You may be familiar with the expression, “Culture Eats Strategy for Breakfast,” a quote from Peter Drucker. As the title of this post implies, I not only agree with that sentiment, but I believe that it is drastically understated.
In some law firms there is the ‘Go Big or Go Home’ faction (and by “Home” I mean to a firm where lawyers work reasonable hours and people care about each other and their physical and mental health).
For this faction, it is all about improving earnings and damn the lifestyle.
There is often another faction comprised of lawyers who want to make a decent living but who also want to have a happy life. In a firm where the ‘Go Big or Go Home” group are calling the shots, nobody cares what these lifestyle losers think, so I am also going to ignore them in this post.
When I started practicing law, I joined a firm which had one exceptionally large client and very many small clients.
The large client needed help with interesting transactions, sophisticated corporate reorganizations, financings with lots of zeros, and creative corporate structures. Large files with large billings.
The smaller clients brought simpler work such as incorporations, small business purchases, and simple shareholders agreements. Small files with small billings.
Those of us who hang out with lawyers know that there may be some wine involved, but more often, there will just be whining.
Lawyers complain about many and varied things, such as how hard they work, the stress, their demanding clients, their Associates, and their Partners. The list of gripes goes on and on. In my retirement, I have learned to tune most of them out. However, recently a rising crescendo of complaints from young lawyers about the scarcity of good mentoring has risen above the usual cacophony of complaints and careened into my consciousness.
Let’s cut to the chase: Law firms compensate lawyers for two things: (i) fees billed for their own work; and (ii) fees billed for work that they introduce to the firm which is done by someone else. (In theory there are some other things that matter also, but in practice you cannot get rich by doing any of them.)
I have written about the Golden Rule before, but it is so crucial to the functioning of our legal system that it is worth looking at again.
“You look like you don’t have a clue what you are doing,” said absolutely nobody the first time that they met their Dentist. Or their Surgeon. Or their Accountant.
A man murders his father and his mother and is prosecuted for both crimes. He is hauled up in front of the judge and pleads guilty. When it comes to sentencing, he begs for mercy because he is an orphan. That is the classic explanation of what constitutes chutzpah.
If you are looking for other examples of chutzpah, you may be able to find them in the legal profession.