For in-house counsel at global companies, developing solid relationships with outside lawyers in foreign jurisdictions is a critical and often challenging facet of the job that requires networking savvy, cultural sensitivity and first-rate communication skills.

Legal department leaders say they typically rely on recommendations from colleagues or turn to law firms that are already on their radars when they're on the hunt for foreign outside counsel. But it's also wise to leave the office and look beyond the known quantities.

Mike Henning, assistant GC at United Airlines.

Mike Henning, a Houston-based assistant general counsel of United Airlines, recently attended a symposium for the International Air Transport Association in Rome, where he met with lawyers from all over the world who work with the airline industry.

“That is an excellent way to meet in-person with people who practice in different jurisdictions,” Henning said of attending trade conferences.

“In my opinion, networking is the key. One can never do too much networking,” said Francisco Hernandez, vice president and global general counsel of Mexichem, one of Latin America's largest chemical and petrochemical companies.

Be both proactive and strategic when connecting with foreign lawyers, Hernandez added. Rather than trying to build relationships with outside counsel in every country, he said it's better to be “able to predict trends and risks that will help map out those key jurisdictions you need to tackle first.”  

Difficulties in Different Jurisdictions

Some of those key jurisdictions might have rampant corruption or a weak rule of law, which amplifies the need for legal departments to thoroughly vet the firms and outside lawyers they hire.  

Francisco Hernandez-Castillo, corporate VP and GC at Mexichem

“Not only do you need to find the right expertise, but you also need to make sure you have the right partner in terms of compliance and ethics,” Hernandez said. “The last thing you need when dealing with a difficult situation in a difficult jurisdiction is to end up involved in a major compliance violation because you relied on the wrong local counsel.”

The key to finding the right partner is “having firsthand knowledge and impressions by your team on local counsel,” Hernandez added. “Trust your judgment.”

In other countries, lawyers demanding astronomical rates present a different set of challenges to in-house counsel. Kim Brown, global chief legal officer for Sedgwick Claims Management Services Ltd. in Memphis and SuperConference speaker, said she's been grappling with sticker shock in Singapore, a market that Sedgwick has targeted for long-term growth.

“I cannot seem to get around a high bill in Singapore,” she said. “Everybody else I can usually get down to a flat fee, but I can't get off the very high hourly rates there.”

Having feet on the ground in a certain locale can sometimes help a company negotiate lower rates, according to Henning: “The fees in Asia are somewhat high and higher than what we in the U.S. typically pay for counsel fees. But it's important to get out there and meet in person with counsel.”

Christoph Feddersen, vice president and general counsel of Cedar Rapids, Iowa-based Collins Aerospace, which has a five-lawyer legal department in Singapore, also suggested that having a presence provides leverage during fee negotiations.

“We know how to talk to law firms and make sure that they charge us reasonable rates,” he said.

A Little TLC Goes a Long Way

After finding and hiring outside counsel, communication is essential to building trust and maintaining a successful relationship—that's especially true when the in-house team and outside law firm are in different countries.

“What legal departments sometimes don't understand is that you need to make sure that you give extra attention” to foreign outside counsel, Feddersen said. “You need to make sure those firms get exactly the TLC that it takes to really be an effective lawyer on your side.”