Lawyers use shotgun provisions in shareholders agreements way more than they should. Good lawyers recognize when the shotgun is not favourable to their clients.
Shotgun provisions in shareholders agreements work on the cake theory.
Canadian Business Lawyers: You may be negligent if you don’t know that:
Beginner lawyers need to understand Partner Talk (“PT”), which is the language that law firm partners use.
Here to help the newbies are some translations from Partner Talk to Plain English (“PE”):
Many of us think that the legal profession is broken, because too many lawyers are stressed out and miserable. Law firms are throwing money at the problem. Apparently unsuccessfully. A few brave souls are attempting to start solo practices or small firms which operate on different, and more humane and sustainable principles. But apart from that, the profession seems to be lurching along as it always has and continuing to chew up, and sometimes spit out, those lawyers who are determined to have a life outside of practicing law.
Many years ago I hired a young lawyer who was not really named Tom. Tom had a few years of experience at one of the large Toronto law firms. This was back in the days when I actually believed the hype that the lawyers in Big Law were smarter than the rest of us, and I was excited to bring this new talent onboard to our mid-sized suburban firm.
My father used to tell a story about when he was a young man with a young family. Unlike many people of his age at that time, he had an automobile since his job was travelling the countryside selling stuff. One day he was pulled over for speeding. He tried to talk himself out of a ticket which he could not afford, explaining that he struggled to support his wife and children on his pitifully small salary, the amount of which he disclosed to the officer. The wise old cop let him off the hook but took the opportunity to teach him a lesson. The police officer said: “Always remember who you are speaking to. I earn less than you do.”
I never met a lawyer who loved to docket their time, but I have met a number of lawyers (myself included) who were very good at it. I met many, many more lawyers who were not so good at it.
Maybe someday we will be completely rid of the billable hour, but even if that comes to pass, it will still be important for lawyers to be able to analyze how they are spending their time, if only to understand how to set fixed fees.
So, there we are. We all hate docketing. We all need to be good at it. Here it is. Fully explained. In small words. At last.
When I was just a wee lad, my father instilled in me the need to be perfect. If I scored 98% on an exam, his only comment was “What happened to the other two marks?”
In law firms, most lawyers typically get paid for two things: (1) billings; and (2) bringing in clients. Of course, there are a few lawyers here and there who get paid just for being brilliant, but then again, too few to mention.
Today I want to focus on lawyers who get paid for bringing in clients. Time and again during my tenure in law firm management, I saw lawyers who were billing and earning a lot of money, but who did not have a sophisticated understanding of the financial implications of their relationships with their clients. Usually this came up when they were thinking about leaving one firm and joining another firm. They would tell the new firm how much they were billing and give their best guess as to how many of their clients would follow them. More often than not their best guess was wrong, and not by a little bit, but by a whole lot. Rarely was the mistake that more clients than expected followed them to their new home.
Every corporate lawyer knows that a great corporate clerk is essential to running their practice. However, in order to work most efficiently with their law clerks, corporate lawyers need to be able to communicate with them effectively. Here are some translations from Lawyer Talk (LT), which is the language that lawyers use to speak to their law clerks, to Plain English (PE):