THE DIFFERENCE BETWEEN CORPORATE COUNSEL AND LAW FIRMS

In regards to utilizing an LPO Provider, there is a significant difference between Corporate Legal Departments and Law Firms: The Law Firm has an additional layer of third party
responsibilities that it owes its client; responsibilities that Corporate Counsel does not bear.


THE CORPORATE COUNSEL APPROACH
When Corporate Counsel engages the services of an LPO Provider, the two organizations will put one direct Legal Outsourcing Agreement in place that should incorporate
standard terms addressing:
• security
• confidentiality
• quality
• audit / inspection rights
• response times
• conflicts
• regulatory / privilege issue
• IP
• payments
• termination assistance
While most Corporate Law Departments have some experience in managing outside counsel, managing an LPO Provider presents its own set of considerations. For
example, since the work performed by an LPO Provider is typically more rudimentary than work performed by outside counsel, there is the possibility that the LPO Provider
will be managed by a less senior associate.


LAW FIRM APPROACH
When engaging an LPO Provider, a Law Firm also puts an LPO Agreement in
place similar to that used by Corporate Counsel, being sure to include
provisions protecting their client’s interests in regards to data security,
confidentiality, confidentiality, audit/inspection rights, and termination
assistance.
Then, in addition to the standard LPO Agreement, a Law Firm should also
create an Engagement Letter for the client whose case the LPO Provider’s
work will support.
The Engagement Letter is meant to fully inform the client in regards to:
• compliance with disclosures/fee arrangement required by the ethics rules
• clarifying the Law Firm’s responsibility for the actions of the LPO Provider in
terms of :
– security
– quality
– response times
– fees