Hanify & King – atLaw Article – Serving Our Clients in Difficult Economic Times

atLaw

Serving Our Clients in Difficult Economic Times

James J. Marcellino

617 226-3413

Of Counsel

Areas of Concentration

Alternative Dispute Resolution; Business, Employment and Intellectual Property Litigation

Office

Boston

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In times of financial stress, our business clients are often presented with a Hobson’s choice—the stakes in business disputes are concomittantly higher when profit margins are lean, yet funds for litigation and dispute resolution are equally precious. One of the questions for lawyers, then, is how to most effectively aid clients in these tough times. Good lawyering, as always, requires gearing counseling toward maximizing efficiency and effectiveness and ensuring communication is clear and frequent, with heightened sensitivity to a client’s business status in this down economy. What follows is a short list of attitudes and actions to consider.

In the first place, mind-set counts. When business judgment dictates an aggressive pursuit of a would-be defendant, choosing the right lawyer is key. Many know Jim Collins, the author of Good to Great and other business strategy books. His most recent book, How the Mighty Fall, on the back cover, contains the following summary of his philosophy:

Whether you prevail or fail, endure or die, depends more on what you do to yourself than on what the world does to you.

Lawyers can, and should be toughminded and game for the fight, without crossing any ethical boundaries. In difficult economic times, we must find ways to fight on, which generally means we must carry the fight.

The words and attitude of Theodore Roosevelt in his “The Man in the Arena” speech are also worthy of note:

…who, at the best, knows in the end, the triumph of high achievement, and who, at worst, if he fails, at least fails while daringly greatly, so his place shall never be with those cold and timid souls who neither know victory nor defeat.

Let us dare greatly, but always with the desired business resolution in sight.

Use the resources at hand. Stonewall Jackson, at the First Battle of Bull Run in July 1861, when his colonel complained about the rain and the threat that the troops’ gun powder might not fire, responded “Then, Sir, we will give them the bayonet!” To survive, and thrive, businesses must adopt the Coast Guard’s motto, “semper paratus,” always prepared. And their lawyers play a vital role in making this happen through thoughtful interaction with clients as they think through economic and financial exposures and strategies that protect against revenue shortfalls. On the positive side, lawyers, working with their business clients, can think or re-think through market opportunities that are available or may become available in the short run, and any legal considerations attendant to newly conceived business strategies. Is this a good time to review growth opportunities? Might there by an enhanced market for the development of additional business in existing or new markets? Are there legal barriers to entering a market that should be explored to determine the right strategy?

While our list is short, the task of growth or indeed survival can be daunting—but is doable. Constructing the right team that understands the business’s playbook will add value and ensure success as this downturn inevitably reverses direction.

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