A paradox: add lawyers in-house and yet increase external legal fees

According to Iain Larkin, group general counsel at DaimlerChrysler UK, in LegalWeek, Sept. 21, 2006 at 18, “Statistics prove that, contrary to popular belief, external legal costs increase rather than decrease with the introduction of a legal department.” I can well believe that, because some clients don’t even know what they don’t know about legal problems. Having unopened eyes and no one to call, clients just blunder on.

Bring in a lawyer, and people start meeting that lawyer and becoming more aware of legal issues. And, if the lawyer is at all savvy, the lawyer will spot some issues, a few of which will need outside expertise. Hence, add an inside lawyer and watch external costs rise.

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