Rob Thomas, Vice President, Strategic Development, Serengeti Law

Significant press attention has been devoted to a recent investigation into legal spending at a large federally subsidized transportation system’s law department. The Inspector General’s auditor concluded: “In-house counsel was co-opted [by outside counsel]. They’re in bed with them, they’re not managing them.” (“Audit Report”) The Wall Street Journal quoted a law department consultant who was not surprised: “There’s often very little oversight of law firms’ bills. It’s a dirty little secret.” The successful management of the relationship with outside counsel often involves a delicate balance between cooperation and oversight. Outside counsel generally offer special expertise, an independent perspective, and sheer numbers to address challenging problems. In-house counsel contribute team coordination, experience, and a thorough understanding of the needs of the corporate client. How can in-house counsel ensure that they are effectively managing outside counsel? The following recommended policies (which address criticisms raised in the Audit Report) are a good start.

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