‘ External counsel must manage expectations – quoting € 15,000 to € 20,000 , then billing for € 30,000 is unreasonable ’
Client View
‘ External counsel must manage expectations – quoting € 15,000 to € 20,000 , then billing for € 30,000 is unreasonable ’
A law firm ’ s market reputation , as well as its track record and ‘ exisiting connections ’ are key considerations when Colgate-Palmolive Company chooses external advisers , says Iván A . Sandoval
There are many elements to consider when assessing the performance of external counsel , and while the delivery of results is one benchmark , it is not the only consideration , says Iván A . Sandoval , vice-president and chief of legal affairs of the Latin American division at Colgate-Palmolive Company . “ In our profession , it ’ s not always fair to judge people according to their results ,” he explains . “ You can have the very best representation and still lose a case due to external factors such as a lack of sufficient evidence , or simply not being right .” According to Sandoval , setting and managing expectations is key , not just with regard to outcomes , but also timing . “ It can be very frustrating to hear that we will see results in , say , March and come September nothing ’ s happened .” Cost is also a primary consideration , and knowing what to expect is essential , says Sandoval . “ When we ask for a quote , we expect it to be as specific as possible – it ’ s not reasonable to be given an initial estimate of fifteen or twenty thousand dollars and then face a bill in excess of thirty thousand .”
According to Sandoval , budgetary restrictions mean Colgate-Palmolive has to very carefully consider which projects it will outsource , and when it will outsource them . “ The first step for us is to conduct an assessment of what projects need to be completed , and whether we have the financial resources to outsource them ,” he says . “ Sometimes we decide to postpone a certain matter , or to handle it internally – the budget available for legal work has been reduced compared to last year .” Colgate-Palmolive has a substantial team of in-house lawyers which includes commercial and experts , and so the company tries to handle as many matters as possible internally . “ It makes sense to get the most out of our internal resources and , in principle , we try to outsource as little as possible ,” says Sandoval . However , some matters are delegated to external counsel , such as intellectual property portfolio management , which Sandoval says is highly specialised . “ The registration and maintenance of trademarks and patents involves complex administrative procedures which are very specialised and time-consuming ,” he explains . “ We find it more efficient to outsource the whole process to external IP experts .” Litigation is another area in which Colgate-Palmolive uses external counsel due to the time and resources required . “ Although we handle administrative proceedings in-house , when it comes to court cases it is not efficient for our inhouse lawyers to spend time representing the company in court ,” Sandoval says . M & A is another area which requires external advisers , often in combination with the company ’ s own in-house counsel . “ For M & A we tend to seek external counsel which will complement our own team , and assist with the large volume of work required ,” Sandoval adds .
Reputation is key As well as considering costs , timing and the management of expectations , Colgate-Palmolive ’ s choice of law firm is also influenced by their reputation and experience in particular markets . “ The reputation of the firm in the market in question is a key consideration for us , as is its track record and existing connections ,” says Sandoval . He adds that the company ’ s preferred law firms are Baker McKenzie for Chile and Argentinarelated matters , and Creel , García-Cuéllar , Aiza y Enríquez in Mexico . The company also works with TMI Abogados for IP matters in Mexico . For Colgate-Palmolive Company , legislative uncertainty across several key jurisdictions will pose a challenge in the coming months . “ Across Latin America , it ’ s becoming harder to predict legislative changes and the impact they will have ,” Sandoval says . “ For example , the Argentinian government has embarked on a series of reforms and Brazil is in the process of configuring its next government .”
The impact of these reforms and how to respond to them is a concern , as the company has a very extensive infrastructure network including manufacturing facilities that are not easy to relocate . However , while some companies take a proactive approach to their relations with government entities , others are more passive . Yet Sandoval does not believe that either of these approaches is necessarily more successful . He adds : “ I don ’ t think one ’ s better than the other , just different .”
Iván A . Sandoval
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You can have the very best representation and still lose a case due to external factors such as a lack of sufficient evidence , or simply not being right .
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Iván A . Sandoval is vice-president and chief of legal affairs of the Latin American division at Colgate-Palmolive Company
20 • THE LATIN AMERICAN LAWYER • September 2018 www . iberianlawyer . com / latin-america