By Shira Tennbaume and Avital Friedman
The Robus Foreign Law Firms in Israel Forum was a successful event that brought together legal professionals to discuss the dynamic interplay between in-house and external counsel, with notable insights from our speakers: Yael Baratz from Pearl Cohen, Zohar Fisher from Robus , Tammy Hebrony from ZIM, Edva Liveanu-Justo from HP Inc., Sharon Berlin from Oracle, Gideon Rosenberg from NVIDIA, and Noa Rosenberg-Segalovitz from Lightricks.
Balancing Specializations and Relationships
Yael Baratz from Pearl Cohen highlighted the importance of recognizing the diverse specializations within legal counsel. External counsel must navigate a fine line, ensuring they complement rather than overshadow in-house teams. “It’s impossible for one person to master everything, but letting people stay in their lanes is important,” Yael remarked. This underscores the necessity for in-house counsel to cultivate strong relationships with external firms, fostering collaboration and teamwork rather than competition.
The discussion also touched upon the complexities of Value Added Tax (VAT) in Israel, especially concerning overseas billing. This adds a layer of complication to international legal transactions, necessitating meticulous management to avoid unnecessary costs and compliance issues.
The Globalization of Legal Services
Zohar Fisher from Robus provided a broader perspective on the globalization of legal services, noting an influx of international law and accounting firms into Israel. This trend is driven by the country’s vibrant startup ecosystem. “No one can stop the startup nation,” Zohar quoted, capturing the determined spirit of innovation that attracts global interest.
ZIM’s Approach to Legal Counsel
Tammy Hebrony from ZIM Shipping detailed their approach to leveraging both in-house and external counsel. Established in 1945, ZIM is a major player in the container shipping industry, with global operations and a listing on the NYSE. Due to their extensive global reach, ZIM heavily relies on external counsel for specialized legal matters.
Hebrony emphasized the importance of building strong relationships both within the company as well as with external partners. “You have to be collaborating and building relationships to be successful,” she advised. This involves selecting partners based on criteria such as reputation, expertise, office size, fee flexibility, and global reach. Personal relationships and the behavior of the law firm are critical in this selection process.
Given the regulatory complexities and jurisdictional issues in the shipping industry, ZIM’s legal team must manage a range of challenges from environmental regulations to geopolitical conflicts, such as their current issues with the Houthis. The current question in hand is the management of ships and deliveries while serving and considering their shareholders, customers, vendors, and employees in their decisions. When working in a large corporation such as ZIM, unexpected issues and events are bound to happen, which is why larger corporations need more external legal help.
Decision-Making and Expertise
The forum also explored decision-making processes for referring cases to outside counsel. Gideon Rosenberg from NVIDIA shared his experience working in the field, highlighting that despite having the capacity to hire in-house, some matters like litigation and intellectual property are better handled externally. Noa Rosenberg-Segalovitz from Lightricks, who oversees heavily regulated areas such as labor laws and data protection, echoed this sentiment. She emphasized the need for expertise and the impracticality of managing everything in-house.
The panelists agreed on the importance of selecting the right fit for external counsel, prioritizing expertise, absence of conflicts of interest, and compatibility with the company’s culture. Fee structures are also a significant consideration, with businesses seeking efficiency and clarity in billing. Businesses expect external firms to be a partner who delivers a short description, clear recommendations outlining the risks, and a solution in a streamlined fashion.
AI and Technological Integration
The integration of AI and machine learning technologies in legal practices was a hot topic. While AI tools such as ChatGPT are being used to streamline research and administrative tasks, there are strict guidelines to maintain confidentiality and accuracy. Edva Liveanu-Justo from HP Inc. shared how HP uses AI for internal research and IP regulation, enhancing efficiency without compromising on security. HP also implemented Microsoft Copilot across all legal departments, and have been encouraged to use it as it has a high-level of confidentiality and protection. Edva no longer needs to delve into the HP archives, now she asks the Copilot to locate documents and files for her. This brilliant experience enhances the day-to-day life of many legal professionals in Israel and around the world.
The Essence of Partnership
Ultimately, the forum discussed the essence of partnership between in-house and external counsel. Longstanding relationships built on trust and mutual understanding and respect are invaluable. The panel speakers highlighted the importance of non-condescending support and open communication as key aspects of successful leadership and partnership. Trust must be reciprocal, with both sides working together seamlessly to deliver excellent work.
In conclusion, the Robus Foreign Law Firms in Israel Forum provided a comprehensive overview of the complexities and nuances in the relationship between in-house and external counsel and highlighted the values and morals required to maintain this relationship. From the importance of specialization and collaboration to the impact of globalization and technology, the forum offered valuable insights for legal professionals navigating this dynamic landscape.
We would like to thank Pearl Cohen for hosting this session of the Foreign Law Firms Forum.
If you are a foreign law firm and would like to join our forum, please contact us at office@robus.co.il
