Practical Solutions: Part 3

I understand why clients might be impressed when they read an attorney’s biography and see all of the large deals they’ve closed or the large companies they have represented (I was a partner at two national law firms and I certainly emphasized these things in my own firm biographies). After all, if they represented these types of clients or worked on nine-figure financings or they are a partner at a large law firm, they must be smart and capable, correct? I have worked with lawyers from all kinds of backgrounds and with a variety of accolades, and I learned a few important lessons along the way that I would like to share with you…

Lesson #3:  Great Bios Do Not Ensure Great Relationships.  

The more important indicator of an attorney’s true skills comes from how they navigate situations where their client doesn’t have most of the leverage and they have to figure out how to still get a good deal for the client. My approach has always been to build that positive relationship with the other side from the outset and use it to at least get that attorney to listen to my arguments. I don’t always get what I want but I know my client’s needs will at least be considered. Occasionally I will come across that stubborn attorney unwilling to deviate from the form or that young associate that simply doesn’t have the experience to deal with a sophisticated negotiation (in which case the broker becomes a critical advocate for getting our important business points over the finish line, as discussed in my last article), but more often than not I’m negotiating with experienced counsel that, like me, just wants to put a fair deal together. Without that rapport between counsel, my great arguments fall on deaf ears. Sure the contract may eventually get signed but it’s the client that suffers because the legal fees were much higher than they needed to be and the client didn’t get the best deal they could have obtained under the circumstances.

If your attorney is constantly battling the other side and taking multiple weeks to negotiate a set of documents, you may not have the right attorney even if they may be the smartest person in the room. You may be in a superior bargaining position and you may end up with a favorable agreement after a long and contentious (read expensive) legal negotiation, but the loss of time and money will often far outweigh the short term benefit.

I’ve found that getting deals done is mostly about using common sense, creativity and people management skills and much less about actual lawyering skill. Finding that critical path toward a successful closing is the ultimate goal but that path is not always well marked.

Stay tuned for Part 4 of this “Practical Solutions” series, Why Are My Legal Fees So High?