Canadian Lawyer InHouse

Feb/Mar 2008

Legal news and trends for Canadian in-house counsel and c-suite executives

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FEATURE says having a plan of action is similar to taking out an insurance policy on your house — you hope you never have to use it but you're glad you've got it if the unthinkable happens. If you don't have a plan currently in place, you'd best get on it, he says. "Any company that starts the process of determining how to do a recall once a defect has been found is starting far too late. This type of planning is the kind of risk-management function in-house counsel can provide," he says. The creation of that plan can't be done in isolation, he cau- tions. Instead, in-house counsel should act as the quarterback in co-ordinating managers from different areas of the company to determine who will do what and when, should a safety-related defect be found with its products in the marketplace. Once a defect comes to light, the plan needs to spring into ac- tion with the immediate mobilization of resources. One of the key tasks for in-house counsel during this crucial period, Plisz- ka says, is ensuring the corporate communications department is developing the appropriate message. He says they should also work with its spokespeople to disseminate the message to the media and public. At the same time, people in operations will be trying to de- termine the defect and what corrective steps need to be taken, including informing consumers and regulators, he says. Presented by Upcoming Conferences CORPORATE COUNSEL February 25 – 26, 2008 | Toronto ELECTRONIC HEALTH AND MEDICAL RECORDS March 12 – 13, 2008 | Calgary PRIVATE EQUITY March 26 – 27, 2008 | Montréal INTERNET LAW March 27 – 28, 2008 | Toronto ENROLL TODAY! 1 888 777-1707 | www.insightinfo.com Insight_IH-1_Feb_08.indd 1 RISK MANAGEMENT IN THE WORKPLACE March 31 – April 1, 2008 | Ottawa E-CLINICAL TRIALS March 31 – April 1, 2008 | Montréal MAJOR BUSINESS AGREEMENTS March 31 – April 1, 2008 | Halifax INSOLVABILITÉ April 7 – 8, 2008 | Montréal CANADIAN MINING TAXATION April 18 -19, 2008 | Vancouver Media Partner "For all that to happen in a coordinated way requires the at- tention of an in-house counsel in conjunction with the senior management of the company," Pliszka says. Bob Kaufman, senior communications manager for Dell, credits the computer giant's in-house legal team for implement- ing the plan that steered its successful battery recall. "Dell is a very process-driven company. We were able to put in place a variety of different processes where we could identify customers whose batteries might be affected," he says. Its external communications included the creation of several recall-specific web pages and the opening of a toll-free phone line. "Safety was our primary reason for doing the recall. We had to make sure the customers who had affected batteries knew the proper steps they had to take so they could be out of danger and how to return the battery to us and have another one shipped to them," he says. "The legal team was very much front and centre in helping us carry that part of the program out." Kaufman says Dell's in-house lawyers ensured suppliers were contacted to recover the defective batteries and replace them. They also helped determine the root of the problem so the cost of the recall could be shared with Sony and other partners. C ANADIAN Lawyer INHOUSE FEBRU AR Y 2008 9 1/3/08 12:47:47 PM

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