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SPECIAL REPORT CORPORATE COUNSEL SURVEY 40 www.canadianlawyermag.com "Litigation is not something I'm comfort- able with," says Nguyen. "In talking to fellow GCs, most of us come from a corporate, commercial or business background and we are not comfortable with litigation. If it's not a core business item; it's better served by external counsel." Demone agrees that it is more difficult to predict issues that may arise and staff appro- priately for them. "We don't have an in-house litigator, so when there is a lot of litigation, it goes exter- nally, and when there isn't, we save that cost," she says. External legal spend is on the rise, with 35.56 per cent of respondents saying it increased this year, compared to the prior year. In line with last year's survey, 24.09 per cent spent $101,000 to $500,000 on legal matters, but the number who spent between $1 million and $3 million has risen to 21.90 from 13.21 per cent in the past year. The fact that concern for costs was ranked as the most important thing that firms can do to improve relationships with legal depart- ments is no surprise. "Understanding the need for cost control is incredibly important. It's business survival," says O'Reilly, citing the example of the continuous downtown that Alberta has seen in the energy business, which has resulted in so many businesses being constrained by cost. For Demone, while being upfront with cost is important, the most significant thing that firms can do to improve relationships with her HOW MANY LAW FIRMS ARE YOU USING? 49.64% 30.66% 18.25% 1.46% 1 to 4 5 to 10 More than 10 0 WHAT ARE THE LEGAL AREAS YOU SEND TO OUTSIDE FIRMS THE MOST? Litigation 77.37% Employment/labour 62.77% Intellectual property 32.12% Securities/corporate finance 29.93% Tax 29.93% General corporate work (contracts, etc.) 28.47% Mergers & acquisitions 27.74% Regulatory matters 23.55% Real estate 23.36% Class action 16.06% Environmental 15.33% Privacy legislation and data protection 13.14% Information technology (contracts, licensing, etc.) 13.14% Immigration 11.68% U.S./cross-border 10.95% Other 10.22% Advertising/marketing 4.38% Risk mitigation 2.19% WHAT WAS THE EXTERNAL LEGAL SPEND FOR THE CANADIAN LEGAL DEPARTMENT IN YOUR LAST FISCAL YEAR? $101,000 to $500,000 24.09% $1.1 million to $3 million 21.90% Prefer not to answer/don't know 21.90% $501,000 to $1 million 11.68% $100,000 or less 10.95% $3.1 million to $5 million 4.38% More than $10 million 2.92% $5.1 million to $10 million 2.19% DOES THE GENERAL COUNSEL HAVE THE AUTONOMY TO SELECT FIRMS? Yes, the general counsel/ legal department makes the decision 62.04% It is a shared decision with executive management /board 28.47% No 5.84% Handled by procurement/ department process 3.65%