Who wants unreasonable clients? Client relationships and litigation departments in law firms
Even when we’re the best of listeners, things can sometimes not go quite as planned. So, what’s the true role of dispute resolution? Here is Guillermo Bayas from AGM Abogados in Spain.
Who wants unreasonable clients? Client relationships and litigation departments in law firms
Even when we’re the best of listeners, things can sometimes not go quite as planned. So, what’s the true role of dispute resolution? Here is Guillermo Bayas from AGM Abogados in Spain.
Client relationships in law firms vary significantly depending on the department we are talking about. And for dispute resolution, there are important differences that need taking into account when devising a marketing plan or dealing with clients.
Regarding marketing plans, the main difference concerns client generation. Companies and individuals do not normally have recurring work for litigation departments: they do not often find themselves before the courts, neither as plaintiffs nor as defendants. And rightly so, as nobody wants to be sued or having to sue other people to get what they are entitled.
Therefore, it is not easy to approach clients offering litigation services, as prospective clients do not normally have such need when we get to meet them. If they are in dispute with another company or individual, it is most probable they are already receiving the advice of a lawyer.
This is very different for other departments in law firms. Companies need to file their taxes on a regular basis - in Spain at least once every three months - and therefore need tax advisors throughout the year. Equally, they have to file their annual accounts or adapt their bylaws – and hence need to consult corporate lawyers. And they also need advice on labour laws every time they hire or dismiss a new worker.
What can dispute resolution departments do about this? Let me offer two strategies. In the first place, we need to think about client generation, not with a short-term mindset, but in the long run.
If we are devising a marketing plan that includes visits to prospective clients and we want to set KPIs for such plans, like getting work from such prospective clients, such goals have to be set for a long term. For example, getting work within the next year, not within the next trimester.
In the second place, we need to look for the companies and individuals that, due to their kind of business, often find themselves in litigation proceedings. These make good clients as, for them, litigation is somehow part of their activity and, once a law firm has won their trust, they are very likely to hire them for a big chunk of their litigation work.
Let me put you an example: one of the main clients of our dispute resolution department at AGM Abogados is a beer producer and distributor.
This company sells its product to, literally, hundreds of bars and restaurants throughout Spain. Because this kind of businesses tends to be less formal than other businesses, a significant number of such bars and restaurants do not pay and our client needs to sue them - and often their directors (if they have personally guaranteed payment under the contract) to claim the monies owed and the penalties set in the contract of supply.
“A reasonable client will understand you are giving them the best advice and respect you for being firm and not being swept up by their enthusiasm. An unreasonable client might walk away and look for a litigator that confirms they wrong expectations but, then, who wants to have unreasonable clients?”
“A reasonable client will understand you are giving them the best advice and respect you for being firm and not being swept up by their enthusiasm. An unreasonable client might walk away and look for a litigator that confirms they wrong expectations but, then, who wants to have unreasonable clients?”
This type of proceedings are easy to handle, as the claims are very similar and, therefore, using Richard Susskind’s words, this work can be commoditized: it can be offered at very competitive prices without affecting the quality of the work.
I mentioned at the outset that, for dispute resolution departments, also dealing with clients varies from other areas. This is because the result of our work depends on external factors that we cannot control, mainly the existing law and the decision of a third party, be it a judge or an arbitrator.
Indeed, a litigator might do an outstanding job and still lose a case, because the law did not favor its client’s interests or even because the judge took an odd decision that may even be against the current law.
Compare this with other areas in law firms. A tax lawyer drafting your personal income tax declaration or an M&A lawyer that negotiates a deal deliver a finished work and, provided they know the law that applies to their areas and do not make any mistake, their client will be satisfied, because they get what they have paid for.
What advice can be offered to litigators in this regard? As strange as it might sound, my advice is very simple: be very honest with your client.
Clients that face a litigation – be it as plaintiffs or defendants - often just want to hear that they are going to win and ask their lawyers for assurance in this regard. In such situation, it’s easy to be swept up by our client’s expectations and confirm their, more often than not, too optimistic forecast (“of course, this case is won”, “do not worry, the plaintiff has nothing to do, his claim is ridiculous”).
Do not fall in this beginner’s trap and, like I said before, think about your long-term strategy with your prospective client because, if such predictions are later not confirmed and your client loses the case, they will also lose any faith they had in you or, even worse, they will think that you lied to them in order to be hired. Eventually, your client will walk away, and this might damage your reputation too.
Therefore, if a prospective client asks the big question (“So, are we going to win?”), be very earnest in your prediction, even if they are convinced of their chances of success.
A reasonable client will understand you are giving them the best advice and respect you for being firm and not being swept up by their enthusiasm. An unreasonable client might walk away and look for a litigator that confirms they wrong expectations but, then, who wants to have unreasonable clients?