Trailblazing Together: How Outside Counsel Can Drive Success for In-House Teams*
Legal departments rely on outside counsel for expertise, guidance, and representation. The effectiveness of this relationship can significantly impact legal outcomes and business objectives. This paper examines the key factors that contribute to a successful collaboration between in-house counsel and outside counsel, with a focus on selection, industry expertise, performance evaluation, partnership development, and communication.
I. Locating and Selecting Outside Counsel
The process of selecting outside counsel involves multiple considerations beyond legal expertise. In-house counsel typically identifies new firms through referrals, prior experience, or professional networks. Some organizations utilize a formal Request for Proposal (RFP) process to evaluate potential firms based on their expertise, experience, and cost structure.
Insurance carriers may also play a role in approving outside counsel, particularly when cases involve coverage under company policies. In these cases, in-house counsel must align their selection process with the insurer’s requirements while ensuring that the chosen firm can effectively address the legal challenges at hand.
II. The Importance of Industry Expertise
Legal issues do not occur in a vacuum. Each case is shaped by the specific industry in which it arises, and outside counsel must demonstrate a deep understanding of the business environment, regulatory landscape, and industry-specific risks. This expertise allows them to craft arguments and defenses that align with broader business strategies.
A well-rounded legal strategy must also consider the various areas of law that intersect in a given case. For example, a dispute may involve elements of contract law, employment law, regulatory compliance, and corporate governance. Outside counsel must navigate these complexities while also anticipating the broader impact of the case on the company’s operations, reputation, and regulatory standing.
III. Evaluation of Performance
Successful legal representation extends beyond case outcomes. In-house counsel assesses outside counsel based on multiple criteria, including the quality of their work product, adherence to deadlines, cost-effectiveness, and overall responsiveness.
Value-driven representation is critical. Outside counsel must provide not only legal analysis but also practical, business-oriented solutions. Firms that deliver proactive insights, anticipate legal risks, and adapt strategies based on client feedback strengthen their relationships with in-house teams. Moreover, clear and well-structured work products that require minimal revisions enhance efficiency and build trust between legal teams.
IV. Becoming a True Partner
Outside counsel that operate as true partners to in-house teams invest time in understanding their client’s industry, corporate culture, and strategic priorities. This involves more than legal expertise—it requires a commitment to ongoing education about the client’s business operations, key stakeholders, and evolving legal needs.
Building a collaborative relationship means going beyond transactional interactions. Outside counsel should actively seek opportunities to add value, such as by offering training sessions, sharing industry insights, and providing strategic guidance beyond the immediate legal matter at hand. Ensuring that all members of the firm’s client team remain informed and aligned with the client’s expectations fosters continuity and strengthens the relationship over time.
V. Effective Communication
Communication is the foundation of a successful outside counsel-in-house counsel relationship. In-house teams often prefer overcommunication rather than a lack of updates. Regular check-ins, clear and concise status reports, and proactive outreach help maintain transparency and prevent surprises.
Developing trust requires consistent, open dialogue. Outside counsel should be forthcoming about challenges, risks, and potential changes in case strategy. Keeping all key players informed, including executives, business teams, and insurance carriers when applicable, ensures that the legal strategy remains aligned with business objectives.
Conclusion
The relationship between in-house counsel and outside counsel is most effective when it is built on mutual understanding, strategic alignment, and strong communication. By carefully selecting firms with the right expertise, evaluating performance beyond case outcomes, fostering true partnerships, and maintaining clear communication, in-house legal teams can maximize the value they receive from outside counsel. These collaborative efforts not only improve legal outcomes but also contribute to broader business success.
*This article is adapted from panel presentation at the Southeastern Women Litigators Seminar on March 21, 2025 moderated by Kendra Stark, Gordon Rees (NC), and panel members Whitfield Caughman, VP-General Counsel, Paradies Lagardère (GA); Katherine Tebrock, Vice President, Associate General Counsel Regulatory Compliance, Wellpath (TN); LaKeshia Banks, Assistant General Counsel, Duke Univ. (NC)
