Can You Trust Your Law Firm? When executives seek legal guidance, trusting the advice from a law firm is paramount. Since most executives aren’t trained in law, they rely on their legal team to clarify legal risks and maintain compliance. Importantly, hiring a law firm should come with clear, written expectations: that the firm’s primary responsibility is to keep the company legally protected, not to find loopholes.
Why a Law Firm Should Clarify Legal Vulnerabilities
Understanding the legal risks of any business decision is essential. A dependable law firm should provide written assessments of each legal judgment, detailing potential vulnerabilities. Even if lawyers advise not documenting such risks, having these assessments on record protects the company, showing that leadership carefully considered the legal implications of their actions.
Getting a second opinion on high-stakes issues can add an extra layer of protection. A well-rounded firm won’t hesitate to provide a comprehensive analysis, enabling executives to assess worst-case scenarios and make informed choices.
The Role of Law Firms in Detecting Potential Illegalities
A CEO should have full visibility of any illegal activity potentially impacting the company. A responsible firm will quickly notify executives of suspicious actions, whether from inside the corporation or outside. Furthermore, boards should consider establishing a legal committee of independent directors to receive such reports, either from the law firm or directly from management, ensuring transparency and prompt action.
Finding the Right Balance with Your Law Firm’s Advice
Aggressive legal strategies may seem appealing but can lead to risky territory. Legal advice should identify boundaries, as noted by Supreme Court Justice Louis Brandeis, who advised that good lawyers guide clients to safe paths, not right on the edge of legality. A responsible law firm will offer clear, jargon-free explanations and suggest safe, compliant courses of action.
If legal advice seems overly complex or full of technicalities, it may be time to rethink the approach or seek another opinion. Your firm should simplify legal concepts so that even a jury of ordinary citizens could understand them.
What If Your Law Firm Oversteps the Boundaries?
Executives must be prepared to act if they believe their law firm has provided poor guidance. Firing the firm and, if necessary, pursuing malpractice claims may be warranted. Historical cases, like the savings and loan crisis of the 1980s, demonstrate that recovering losses due to malpractice can be crucial. By maintaining records of all legal advice and communication, executives can safeguard their interests, ensuring accountability.
The Importance of Accountability with Your Law Firm
Companies may hesitate to pursue legal action against their law firm due to fears of blame-shifting. However, by demanding written documentation, keeping records, and requesting timely legal assessments, executives create a paper trail that ensures accountability. Proactively documenting legal advice enables companies to uphold their interests and minimize risks, ensuring that the firm prioritizes compliance and clear counsel.
Trusting your firm is about transparency, accountability, and clear communication. By setting expectations and staying informed, executives can ensure that their legal team remains a steadfast ally in navigating complex legal landscapes. If you need legal services in Turkey, you can contact us. If you come to Turkey, we would be happy to see you in our office for a cup of coffee!
