What is Outside General Counsel?
Learn how outside legal counsel can help you navigate complex legal challenges and achieve your business goals. 5 min read updated on September 21, 2024
Key Takeaways
Outside General Counsel (OGC) provides businesses with the strategic benefits of an in-house legal department without the overhead costs of full-time in-house legal staff.
OGC allows firms to scale legal services to meet current needs as required.
OGC provides an external, impartial view of how companies make decisions, which is particularly important in complex legal issues.
When selecting an OGC, evaluate the candidate’s experience, communication abilities, availability, cost-effectiveness, geographic location, and whether their personality and working style fit your company’s culture.
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Legal challenges can appear anytime, and cash flow is an obstacle to hiring full-time in-house legal counsel for many companies. This is where an outside general counsel (OGC) comes in.
An OGC is a legal professional or team of professionals who advises on a contract or retainer basis rather than as a company's full-time employees.
Outside general counsel can offer a full suite of services, including reviewing agreements, managing employment issues, ensuring compliance with intellectual property regulations, and litigation management.
This article covers the main advantages of outside general counsel (OGC), explains its core functions, and provides tips on how to find the right OGC for your business.
Key Benefits of Partnering with Outside General Counsel
Businesses can hire an outside general counsel to enjoy the strategic benefits of a high-level, in-house legal department while avoiding the costs and challenges of maintaining a full-time legal department.
Here are some of the main reasons you should consider hiring an OGC.
Avoid the Overhead Costs of In-House Legal Teams
A primary advantage of working with outside general counsel is cost savings.
Bringing on a full-time, in-house attorney is expensive – not only in salary or wages but also in benefits and office resources.
An OGC lets you pay for only what you use, whether a one-time project or ongoing legal support. Moreover, the pay-as-you-go aspect benefits companies with variable legal needs.
For example, if a company expands its operations, it can take advantage of additional legal support. Then, when the operation stabilizes, it can downsize the services.
Flexibility and Scalability
Another significant benefit of working with an OGC is that it allows you to scale a legal service up or down as needed.
This is helpful when you want your legal counsel to be there for you when you need them — but you don’t want to make long-term financial commitments to a lawyer or a law firm.
Depending on your situation, the OGC can scale up or down as needed. OGCs supply convenient legal help on an on-demand basis – you use them when you need them, not because you’re tied into a long-term contract.
This significantly benefits businesses by allowing them to access legal services while controlling costs.
Expertise and Breadth of Knowledge
A business isn’t limited to the knowledge of just one person because an outside general counsel is often part of a larger legal network.
This gives the business access to a wide range of legal specialists, including:
Labor issues
Your business can harness this knowledge to help resolve unique legal issues that in-house counsel may be unable to address.
Working with an OGC allows you to focus on what you do best – running your business – while benefiting from the attorney’s unique expertise.
Third-Party Viewpoint
Another advantage is the opportunity to hear the outside perspective of a general counsel not part of your team.
A neutral, third-party perspective is valuable because it helps you make business decisions objectively.
This is especially true when dealing with a dispute or other complex legal matter.
Top Responsibilities of Outside General Counsel
An OGC will provide a variety of legal services for your business.
Whether you need compliance, contract negotiations, or litigation assistance, an OGC protects your business.
Let’s look at what some of an outside general counsel’s primary duties for your business include.
Legal Compliance and Risk Management
An OGC helps your business comply with state, federal, and local laws and regulations.
Additionally, an OGC evaluates your business’s legal risk and identifies potential problems before they escalate. This may help your business limit its potential liability.
Contract Review and Preparation
Many businesses run on contracts; an OGC will review, prepare, and negotiate contracts. Their oversight ensures your business is protected and the contract terms meet your needs.
Employment Law Guidance
Labor laws are complex. Regulations differ from location to location and industry to industry, and legislation changes frequently.
An OGC assists with hiring practices, employee relations, and workplace policies, ensuring compliance with labor laws and reducing the chance of employee disputes.
Intellectual Property Protection
Intellectual property protection is key to businesses. An OGC ensures your patents, trademarks, copyrights, and trade secrets are legally protected, securing your company’s assets.
Real Estate Transactions
If you are about to lease, buy, or sell a home, an OGC offers legal advice to ensure the legal side of your transaction is covered.
Litigation Management
In the event of a dispute, the OGC either represents your business in court or coordinates with litigation specialists to manage the litigation process.
How to Choose the Right Outside General Counsel
Here are some key considerations when choosing an outside general counsel for your business.
Assess Experience and Expertise
Look for an OGC with industry experience who has successfully handled similar legal challenges. This way, you know they are qualified to handle the unique challenges faced by your particular business.
Evaluate Communication Skills
You want your OGC to be able to explain complex legal terms your staff can easily understand. This will often determine how well you and the business understand the legal implications of proposed actions and decisions.
Consider Availability and Commitment
You want a readily accessible OGC ready to handle your continuing legal needs. Are they equipped to prioritize your business and prepared to respond to urgent questions or problems?
Assess Cost-Effectiveness
The pricing of the OGC services should be reasonable for your business budget. Check whether the budget suits your financial plans and compare this to the cost of in-house legal counsel.
Geographic Location
Some legal services can be handled remotely. However, having an OGC in your state who knows the local laws and regulations is helpful if your business operates in a specific geographic area.
Check Compatibility
Is the OGC’s approach in alignment with your company’s culture and values? This will facilitate a smoother working relationship.
Conclusion: Final Thoughts on the Power of Outside General Counsel
External general counsel allows businesses to leverage high-quality legal talent flexibly and cost-effectively.
Whether your company is small or growing, an OGC helps you address legal challenges, manage risk, and comply with requirements without the high cost of maintaining a dedicated legal department.
The implications of getting the right OGC for your business are significant: you ensure you can pursue your objectives without unnecessary restrictions, helping you build your business over the long term with peace of mind.
Post a job on UpCounsel today to find a top outside general counsel lawyer in your state.
FAQs: Outside General Counsel
What is an Outside Counsel Guideline?
An outside counsel guideline is a document that outlines expectations and procedures for external counsel. Also known as legal billing guidelines, this specifies the parameters of their role, the billing process, and the standards for their work.
Why Do Companies Hire Outside Counsel?
They hire outside counsel to benefit from the outside counsel’s expertise in a particular area of the law without bearing the cost and commitment of salaried in-house legal employees.
They often hire an OGC for more flexible and unbiased legal advice, especially if they feel their business has intermittent legal issues.
What is the No-Contact Rule for General Counsel?
The no-contact rule prevents general counsel from communicating with a represented person without the other lawyer's consent. This prevents conflict and helps ensure the professionalism of the legal relationship.
