Practical Law Archives - Thomson Reuters Institute https://blogs.thomsonreuters.com/en-us/topic/practical-law/ Thomson Reuters Institute is a blog from ¶¶ŇőłÉÄę, the intelligence, technology and human expertise you need to find trusted answers. Wed, 07 Jun 2023 17:35:11 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 Spring/Summer 2023 ESG Outlook: Disclosure & regulatory change top of minds for UK & EU lawyers /en-us/posts/esg/2023-esg-outlook-europe/ https://blogs.thomsonreuters.com/en-us/esg/2023-esg-outlook-europe/#respond Wed, 07 Jun 2023 17:27:14 +0000 https://blogs.thomsonreuters.com/en-us/?p=57506 The frequency and complexity of regulatory change remains a top priority now and into the future for in-house lawyers, according to the 2023 State of the Corporate Law Department report. Environmental, social & governance (ESG) remains one of the major areas of focus in the regulatory landscape across the globe, and the European Union and the United Kingdom continue to lead the world in disruptive change with ESG-related regulation.

¶¶ŇőłÉÄę Practical Law UK spoke with outside counsel to learn what is top of mind for their clients in the ESG space. Many outside counsel commented that the onslaught of changing ESG regulations is a “wave washing over all sectors” because there is clear consensus that no sector is being spared from the demands of ESG, with significant needs from clients for advice on both the risks and opportunities presented by ESG. In fact, the two most pressing challenges currently are the “dizzying pace” at which ESG regulation is developing and the fragmented nature of the requirements that companies need to navigate, especially because of divergence between key markets, notably the United States and other markets.

Even within Europe, companies are seeing divergence, with E.U. member states moving ahead with their own legislation as E.U.-wide rules are finalized, such as the German Supply Chain Due Diligence Act that came into force in January. And in the U.K., companies are coming to grips with the different approaches being adopted by Parliament and the local governments, such as the for drinks containers.

In this complex environment, outside counsel commented that horizon-scanning is a primary area of support requested by clients, with a focus on disclosure and due diligence requirements, litigation and regulatory enforcement, and climate-transition work and the carbon markets.

Disclosure & due diligence — The continually evolving ESG reporting and due diligence requirements faced by clients are a major focus for firms. Two important trends are: i) a growing convergence of ESG disclosure standards with the development of the European sustainability reporting standards alongside the global sustainability disclosure standards of the International Financial Reporting Standards (IFRS); and ii) a broadening scope of disclosure and due diligence beyond climate concerns to focus more strongly on areas such as human rights and biodiversity.

The IFRS sustainability disclosure standards expected at the end of the second quarter 2023 signal efforts to provide a degree of international standardization, with several jurisdictions — including the U.K. — looking at regulatory incorporation.

In addition, companies are preparing for enhanced sustainability and governance obligations, in particular under the and the proposal for a . Clients are also following anticipated reforms to the U.K. corporate governance framework, as well as the final Taskforce on Nature-related Financial Disclosures framework due to be published in the fall.

Litigation & regulatory enforcement — Several law firm lawyers shared that ESG litigation is evolving rapidly, characterized by novel claims — which, because of their novelty, can be difficult to strike out — and procedural innovation. They also observed that claimants are increasingly bringing derivative claims and using class action procedures in ESG litigation. Greenwashing was cited as a particular litigious hot spot, as well as a focus for regulatory enforcement.

Climate & energy transition — With the deadline for 2030 emissions targets fast approaching, climate and energy transition activities continue to be a major focus. Firms are advising on project financing, regulatory considerations, and M&A in relation to traditional transition technologies, such as renewable and nuclear; and developing areas, such as hydrogen, carbon capture, utilization and storage, and carbon removal.

Companies and their in-house lawyers were increasingly approaching law firms for support on acquisitions of carbon credits, investments in carbon projects, carbon exchanges, and carbon auctions, as well as litigation related to carbon markets.

In addition, companies are also preparing for developments in transition plan reporting, with the U.K. Transition Plan Taskforce expected to publish its final gold standard disclosure framework for climate transition reporting later this year. However, the increased onus on forward-looking disclosures, as opposed to historical, audited information, may expose companies to greater risk of liability from those disclosures.

With the current and proposed framework of ESG regulation across the E.U. and U.K., in-house counsel will continue to lean on their outside law firms to ensure companies are prepared to meet the potential and existing deadlines. This continues to be an opportunity for law firms to demonstrate their value as the need for horizon-scanning is likely to continue for the foreseeable future.


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General Counsel Q&A with Lisa Ann Cooney of Day & Zimmermann /en-us/posts/legal/gc-qa-plj-cooney-day-zimmermann/ https://blogs.thomsonreuters.com/en-us/legal/gc-qa-plj-cooney-day-zimmermann/#respond Tue, 08 Feb 2022 15:19:49 +0000 https://blogs.thomsonreuters.com/en-us/?p=49834 PLJ: What are the top goals or areas of focus for the law department?

Cooney: Day & Zimmermann’s business operations require it to on-board and off-board tens of thousands of employees and consultants each year in high-threat, blue collar, white collar, and safety-sensitive environments. Our attorneys must intimately understand these environments, be embedded in business operations, and partner with business leaders to identify, mitigate, and resolve legal risks quickly.

PLJ: How has the COVID-19 crisis impacted the way the law department operates?

Cooney: We experienced a significant increase in workload due to the COVID-19 pandemic. We provided nuanced advice on legislation and its impact on the company, particularly related to Section 3610 of the CARES Act, which allows federal agencies to reimburse contractors for paid leave for employees who were unable to access worksites and unable to telework during the COVID-19 pandemic.


Read in the Winter 2022 issue of Practical Law The Journal: Transactions & Business.


We also continue to manage vaccine and mask compliance through the constantly changing laws, regulations, and guidance that impact our sites across the country. Most of the law department has been remote since March 2020, so we make sure to stay in constant contact with business leaders to let them know we are here to support them.

PLJ: How does the law department avoid being perceived as the “office of no” while still ensuring it helps the client avoid liability?

Cooney: When I first joined Day & Zimmermann as a Division General Counsel, I inherited a team which was perceived as the office of no. I worked very hard to change that perception by mentoring my team to become constructive partners to the business, rather than an impediment.

As General Counsel, my team constantly hears me say that our business leaders are our clients and should be treated just like any law firm would treat a client. A law firm would never tersely tell a client “no, you can’t do that,” and nor should we. Instead, we collaborate with our colleagues to better understand their goals, while discussing the risks and sometimes proposing alternative courses of action, with the goal of reaching the best solution possible.

general counsel
Lisa Ann Cooney of Day & Zimmermann

We also distinguish between real and probable legal risk, as compared to academic risk (the kind that you write about on a law school exam). Approaching situations in this way not only assists our clients in avoiding liability, but also encourages them to come back to us.

PLJ: What is the best career advice you have ever received?

Cooney: Advocate for yourself.

PLJ: What advice would you give to a prospective General Counsel?

Cooney: You do not have to be a subject matter expert in all areas of law to be a General Counsel. You just have to be a good leader.


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General Counsel Q&A with Farah Shah of Valiant Integrated Services /en-us/posts/legal/gc-qa-plj-shah-valiant/ https://blogs.thomsonreuters.com/en-us/legal/gc-qa-plj-shah-valiant/#respond Wed, 02 Feb 2022 19:01:37 +0000 https://blogs.thomsonreuters.com/en-us/?p=49796 PLJ: How typical or unique is the scope of responsibilities for the company’s litigation attorneys?

Shah: Our scope of responsibilities is considered typical for in-house attorneys. We serve as the bridge between business stakeholders and external counsel to determine the appropriate litigation strategy that will produce the best results for Valiant.

PLJ: How has the COVID-19 pandemic impacted the way your department operates, and do you think any of the changes will continue to be employed beyond the pandemic?

Shah: The pandemic challenged our team to remain connected in a remote working environment. Before COVID-19, most team members were in the office every day, which facilitated organic collaboration and discussion about issues we were resolving. Now, in today’s hybrid workforce, we must be more intentional to stay connected and maintain strong synergy.


You can read in the Winter 2022 issue of Practical Law The Journal: Litigation (PLJ) here.


PLJ: What types of issues will cause you to turn to outside counsel?

Shah: Since Valiant operates globally and in a highly regulated industry, we typically turn to outside counsel for international disputes, mergers & acquisitions and other commercial matters, litigation in the U.S. and abroad, and other disputes.

PLJ: What three things does a law firm need to do to impress you?

Shah: A firm should:

      • be responsive;
      • demonstrate experience for the specific issues we bring to them; and
      • acknowledge the time and budget pressures that in-house counsel must balance when engaging external counsel.
general counsel
Farah Shah, GC for Valiant Integrated Services

PLJ: What best practices do you utilize when conducting internal investigations?Shah: My team focuses on maintaining confidence in the investigation process by:

      • following up with reporters early and often;
      • maintaining a consistent procedure; and
      • completing our fact-finding as fast as practicable to reach a prompt resolution.

Where appropriate, we also use the results of investigations to develop lessons learned, trainings, and communications to our employees to increase awareness.

PLJ: As law departments’ responsibilities evolve, what skills or competencies should in-house counsel develop to support the company’s legal and operational needs?

Shah: Emotional intelligence and clear communication are the most important skills that in-house attorneys should develop to expand their sphere of influence, both internally and externally. To further support emerging departmental or organizational needs, I also recommend that in-house counsel develop a working knowledge of:

      • finance and accounting principles;
      • business development processes;
      • operational priorities; and
      • industry trends.

PLJ: What advice would you give to prospective in-house litigation counsel?

Shah: Take every opportunity to learn about the business — how the products work, what services the company provides, and how the company measures success. The more you understand about how the company operates, the more effective you will be in the role.


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General Counsel Q&A with Arnold Pinkston of Edwards Lifesciences Corporation /en-us/posts/legal/general-counsel-qa-plj-pinkston-edwards-lifesciences/ https://blogs.thomsonreuters.com/en-us/legal/general-counsel-qa-plj-pinkston-edwards-lifesciences/#respond Tue, 14 Dec 2021 19:42:51 +0000 https://blogs.thomsonreuters.com/en-us/?p=49192 PLJ: How is the legal function structured at Edwards Lifesciences?

Pinkston: To handle the broad legal challenges and needs of a global health care company, the law department is organized in a matrix. Each of our attorneys has a functional home (such as patent, regulatory, human resources, and commercial), and each is a member of several legal teams we have formed to support our various business units and functions.

Our non-attorney professionals, including a senior manager of legal operations, are critical to our team. We also supplement our internal team with skilled external attorneys and service providers. All of our professionals are trained to recognize and respond to the legal issues most relevant to Edwards.

PLJ: What are the top goals or areas of focus for the law department?

Pinkston: At Edwards, our purpose is to provide innovative solutions for patients fighting cardiovascular disease. That purpose is articulated in detail in our strategy and in the tools we use to execute that strategy. In a recent survey of our global team, 90% of Edwards’ employees said they think about patients as they make decisions in their daily work. We know that if we can save and improve patients’ lives, Edwards and all of its stakeholders, including our communities, employees, and shareholders, can thrive.


Read in the December 2021/January 2022 issue of Practical Law The Journal: Transactions & Business.


As a member of the executive leadership team, I serve on Edwards’ governing body, which is responsible for building our corporate strategy in alignment with our corporate purpose. Each year, we are charged with ensuring this strategy is enforced, implemented, and modified, as needed, so we can continue to provide long-term value and deliver on our mission of providing innovative solutions to our patients.

As General Counsel, I focus on making sure that my law department teammates are closely aligned with Edwards’ strategy and that they have everything they need to succeed. While all departments at Edwards are integral to executing this strategy, the law department is uniquely tasked with supporting our mission through an expert understanding of the laws and regulations that guide our industry.

PLJ
Arnold Pinkston of Edwards Lifesciences

Our law department addresses a very diverse set of legal challenges, with many of our valuable contributions relating to health care regulation and compliance, intellectual property, and corporate governance.

PLJ: How does the law department avoid being perceived as the “office of no” while still ensuring it helps Edwards avoid liability?

Pinkston: Fortunately, Edwards’ business leaders and legal team are closely aligned. We are all committed to serving patients and doing so in compliance with applicable laws, as well as Edwards’ ethical requirements. Moreover, because our attorneys are steeped in the businesses they serve, our legal and business teams are better able to collaborate and find innovative solutions to best serve our strategy and purpose.

PLJ: If not an attorney, what would you wish to be?

Pinkston: I would be a good golfer and a great chef, if you permit me to imagine that I have talent in these areas.

PLJ: What is the best career advice you have ever received?

Pinkston: Do not take on a job or task for which you are not qualified to succeed. Continue to learn new skills and practice the skills you have, with an eye focused on contributing value.

PLJ: What advice would you give to a prospective general counsel?

Pinkston: Know your company’s strategy. To succeed, you must contribute to it. To be fulfilled, you must believe in it.


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In-House Counsel Q&A with Erin Ziaja of NFP Corp. /en-us/posts/legal/in-house-qa-plj-ziaja-nfp/ https://blogs.thomsonreuters.com/en-us/legal/in-house-qa-plj-ziaja-nfp/#respond Fri, 03 Dec 2021 14:42:48 +0000 https://blogs.thomsonreuters.com/en-us/?p=49122 PLJ: What is keeping your company’s litigation attorneys the busiest at the moment?

Erin Ziaja: Since the courts resumed regular operations in 2021, there has been a great amount of case management activity on existing matters that had largely been on hold.

Additionally, despite technology assistance for functions such as implementing legal holds and invoice processing, the administrative tasks associated with managing litigation are incredibly time-consuming.

PLJ: How has the COVID-19 pandemic impacted the way your department operates?

Erin Ziaja: As a global company, NFP’s legal department was used to providing remote assistance. Now, it just happens to be from our kitchen tables. We formalized weekly team meetings to check in on each other and our work progress. Connecting, even if only through Zoom, provided insight into each other’s personal lives, such as by allowing people to meet each other’s kids and pets, and made for a more cohesive team. Seeing the success of working from home, NFP will continue utilizing a hybrid work model.


Read in the December 2021/January 2022 issue of Practical Law The Journal: Litigation (PLJ)


PLJ: What types of issues will cause you to turn to outside counsel?

Erin Ziaja: Increasingly, we utilize regional counsel to proactively assess the impact that state law changes may have on the organization. Additionally, we are mindful of the implications for attorney-client privilege in highly sensitive matters and will engage outside counsel to oversee the investigatory process.

PLJ: What three things does a law firm need to do to impress you?

Erin Ziaja: A law firm should:

  • Quickly establish subject matter expertise and a well-articulated litigation strategy.
  • Use NFP’s time and money wisely.
  • Staff our cases with a diverse team of smart attorneys.

PLJ: What is the best career advice you ever received?

Erin Ziaja: Take your job seriously, but do not take yourself too seriously. In litigation, clients are often stressed, angry, or worried. Your job is to get them through that tough time to the best possible outcome. If you can do that with humor and humility, you will have better interactions and quicker resolutions.

in-house
Erin Ziaja

PLJ: What is one mistake you made early on in your legal career and what did you learn from it?

Erin Ziaja: I never networked. I thought it was enough to keep my head down and produce good work, but that is not the case. You must put yourself out there. That was hard for an introvert like me until I realized I had been conflating networking with going to large, formal networking events. Now, I focus on small group activities I enjoy, like lunch with colleagues and volunteering. I have even networked over goat yoga.

PLJ: What advice would you give to prospective in-house litigation counsel?

Erin Ziaja: Know that as in-house counsel, you will acquire new skills in areas such as finance or business management, but your litigation skills will deteriorate. It is unlikely that there will be any more adrenaline-pumping moments, like running into court for a temporary restraining order, or war stories about how you got the admission on cross-examination. For most of us who transition to in-house, that chapter is closed, which can be hard for a litigator to accept.


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General Counsel Q&A with Elizabeth Matthews of TotalEnergies (US) /en-us/posts/legal/plj-gc-qa-matthews-totalenergies-us/ https://blogs.thomsonreuters.com/en-us/legal/plj-gc-qa-matthews-totalenergies-us/#respond Fri, 22 Oct 2021 16:41:54 +0000 https://blogs.thomsonreuters.com/en-us/?p=48573 ¶¶ŇőłÉÄę’ Practical Law The Journal: Transactions & Business (PLJ) recently spoke to Elizabeth Matthews, Deputy Managing Director, Executive Vice President, and General Counsel of TotalEnergies (US), about becoming a true partner to the company and how the law department transitioned during the COVID-19 pandemic.

PLJ: How is the legal function structured?

Matthews: TotalEnergies’ businesses in the US are diverse, including exploration and production, renewable energy, refining and chemicals, gas and power, marketing and services, and trading and shipping, so the legal function is divided into groups of attorneys dedicated to each individual business. There are also groups of attorneys in legal specialty practice areas (such as intellectual property, litigation, compliance, and health, safety, and environment), which provide support across the various US businesses.

PLJ: What are the top goals or areas of focus for the law department?

Matthews: Our top goal is providing excellent, efficient, and cost-effective legal support to all of the company’s US businesses. We focus on being viewed as true partners who maintain a genuine interest and curiosity in the businesses that we support. We aim to understand how we can add value and help our clients realize their strategic objectives.


¸é±đ˛ą»ĺĚý in the October/November 2021 issue of Practical Law The Journal: Transactions & Business.


PLJ: How has the COVID-19 crisis impacted the way the law department operates?

Matthews: I have been impressed by how seamlessly the law department has transitioned to providing legal support remotely, often while balancing additional obligations at home, such as homeschooling kids while the schools were remote. Since many of our attorneys started their careers at law firms, remotely advising a client comes quite naturally to our team.

PLJ: How does the law department avoid being perceived as the “office of no” while still ensuring it helps the client avoid liability?

Elizabeth Matthews, GC of TotalEnergies (US)

Matthews: Our goal is to help the business achieve its goals without taking on excessive legal risk. Our attorneys pride themselves not only on understanding the law, but also on developing a deep understanding of our business goals and strategy. We engage with our business clients as early as possible, and help them analyze the legal risks associated with a given matter. We also propose less risky alternatives where practicable.

PLJ: What is the best career advice you have ever received?

Matthews: Be true to yourself, do not be afraid to take chances, and do not try to do everything perfectly. That last item is especially important when balancing being a General Counsel with being a mom to three kids.

PLJ: What advice would you give to a prospective General Counsel?

Matthews: Attorneys considering a General Counsel path should view their career as a marathon, not a sprint. Develop a breadth of legal experience, either within your current role or by changing roles over time. Do not be afraid to make one or more lateral moves to round out your experience, or to take on a new role that does not fit a clear career path. Say yes to new opportunities.


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In-House Counsel Q&A with Marc Shelley of Anheuser-Busch InBev /en-us/posts/legal/in-house-qa-plj-shelley-anheuser-busch-inbev/ https://blogs.thomsonreuters.com/en-us/legal/in-house-qa-plj-shelley-anheuser-busch-inbev/#respond Mon, 27 Sep 2021 18:04:46 +0000 https://blogs.thomsonreuters.com/en-us/?p=48197 PLJ: How typical or unique is the scope of responsibilities for the company’s litigation attorneys?

Shelley: Like other consumer product companies, we generally handle commercial and intellectual property disputes, as well as consumer and employment claims.

PLJ: What is keeping your company’s litigation attorneys the busiest at the moment?

Shelley: The COVID-19 pandemic has impacted all areas of our work this past year. We have had to partner closely with our teams managing contracts and to think through the implications of the public health requirements for employees and restrictions on our products. We also worked even more closely with our corporate affairs colleagues to handle various COVID-related matters, from getting hand sanitizers into more than 30 countries in a matter of weeks to supporting vaccine access in many of our markets.

PLJ: Do you think any of the operational changes brought about by the pandemic will continue to be employed in the future?

Shelley: An important lesson that came out of the pandemic concerned how we work across functions and zones. We have developed more communities of practice to solve key strategic issues. For example, in addition to litigation, I have responsibility for the company’s intellectual property matters and I am especially proud of our strong community of IP experts. This has allowed us to work in close partnership with the marketing and R&D teams to support the growth and innovation of both our global and local brands.


¸é±đ˛ą»ĺĚýin the October/November issue of Practical Law The Journal: Litigation


PLJ: What types of issues will cause you to turn to outside counsel?

Shelley: We turn to outside counsel for support when disputes escalate and to represent us in court. We will also seek out subject matter experts on emerging issues and trends, from environmental, social, and corporate governance matters to non-fungible tokens.

PLJ: What three things does a law firm need to do to impress you?

Shelley: A law firm should:

Provide clear, practical recommendations — Our former CEO, Carlos Brito, advised our legal team to “be lawyers with one hand,” meaning that lawyers should not use vague or equivocal language such as “on the one hand …, but on the other hand …” We have business partners who need to know what to do next. Firms that can convert legal expertise into practical advice are highly valued.

Own our problems — Our company has an ownership culture, and we expect the same from our external team members. This includes understanding that one of our biggest challenges can be controlling legal spend. There are many good firms that can win the case but doing so while taking ownership of the budget with us will get them hired again and again.

In-house
Marc Shelley, of Anheuser-Busch InBev

Get us the right help and seek a long-term partnership — I value lawyers who are always willing to let me bounce ideas or concerns off them without sending me a bill. I also appreciate when they refer me to another lawyer in their firm or even to another firm altogether if they know that will get me the best help.

PLJ: What is the best career advice you ever received?

Shelley: Our Chief Legal and Corporate Affairs Officer always reminds us that legal problems usually do not come with labels. To be a good lawyer and business partner, you need to think beyond your narrow area of the law and take a holistic view of your client’s needs.

PLJ: What advice would you give to prospective in-house litigation counsel?

Shelley: Know why you want to work in-house. The reason should not simply be to escape law firms, especially given that going in-house is not necessarily an easier path. If you are excited about the industry and want to get closer to the business realities of your client, then in-house is a great place to be.


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General Counsel Q&A: Katherine Knight, Mitsubishi Motors North America, Inc. /en-us/posts/legal/plj-gc-qa-mitsubishi-knight/ https://blogs.thomsonreuters.com/en-us/legal/plj-gc-qa-mitsubishi-knight/#respond Wed, 04 Aug 2021 18:40:17 +0000 https://blogs.thomsonreuters.com/en-us/?p=47025 ¶¶ŇőłÉÄę’ Practical Law The Journal: Transactions & Business (PLJ) recently spoke to Katherine Knight, Vice President, General Counsel and Secretary of Mitsubishi Motors North America, Inc., about the top goals for the legal department.

PLJ: How is the legal function structured?

Knight: Loosely. We are a small team handling an extremely broad range of matters, so we do not adhere to rigid hierarchies or siloed subject areas. Everyone has their jurisdictions, so to speak, but they overlap like a Venn diagram, and we all pitch in when and where needed.

PLJ: What are the top goals or areas of focus for the legal department?

Knight: As an entirely new legal department, we are seizing the opportunity to do things differently and constantly evaluating how we can improve as a team and company. We are also focusing on being extremely proactive by finding out what our individual clients really need, what the business really needs, and what value we can add in new and varied ways to help our clients realize their strategic objectives.

PLJ: How does the legal department avoid being perceived as the “office of no” while still ensuring it helps the client avoid liability?

Knight: Easy — we say yes! That’s a joke. In reality, we engage with our clients early and often to help them better analyze risks. We clearly understand our clients’ goals and work with them to achieve an alternative plan if the first one exceeded the legal risk tolerance. We guide our clients to decisions through an informed risk/reward analysis, and we do not substitute our business judgment for theirs.

GC
Katherine Knight of Mitsubishi Motors North America

PLJ: What three things does a law firm need to do to impress you?

Knight: 1) Take time to really understand who we are, including our non-legal business strategy, pain points, and general risk tolerance, and use that to tailor legal advice. I like to work with outside counsel who demonstrate that they care about our business holistically.

2) Work with the legal department as proactively as we work with our internal clients. Integrating into our team involves helping us to anticipate our clients’ needs and contributing to the legal department’s own objectives. This could include anything from sending me an interesting article to offering to assist with a project on a flat-fee basis.

3) Law firms do not impress me as much as people do. I enjoy talking (and laughing and commiserating) with real humans. Do I want to have a coffee or a beer with you? Then I am more likely to call you.

PLJ: If not an attorney, what would you wish to be?

Knight: If not an attorney, I would be a geologist or seismologist, with preference given to working in Yellowstone National Park. The geology of the Yellowstone area fascinates me.

PLJ: What is the best career advice you have ever received?

Knight: Very early in my in-house career someone I greatly admire told me, “Katherine, nobody loves the law more than you.” That was not entirely a compliment! The point was that while I may be deeply engaged in a subject, clients do not want to hear me wax poetic about it. They need quick, to-the-point guidance on how the law impacts them and what to do. They need advice and solutions. That conversation took place over a decade ago and it still drives my daily approach and interactions.

PLJ: What advice would you give to a prospective General Counsel?

Knight: I have had an interesting career in a short period of time, and I believe I owe much of that to refusing very few phone calls and burning even fewer bridges. My advice to someone seeking a General Counsel position would be to avoid being pigeonholed, take risks, and keep your eyes and ears open. Your next role may come from an unexpected place.


¸é±đ˛ą»ĺĚý in the August/September 2021 issue of Practical Law The Journal: Transactions & Business.

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What in-house counsel need to know about “reasonable” data security measures and strategies to support them /en-us/posts/investigation-fraud-and-risk/reasonable-data-security-measures/ https://blogs.thomsonreuters.com/en-us/investigation-fraud-and-risk/reasonable-data-security-measures/#respond Tue, 03 Aug 2021 18:02:42 +0000 https://blogs.thomsonreuters.com/en-us/?p=47022 Despite its increasingly common use, the standard of “reasonable” security measures leaves many businesses leaders and their legal counsel puzzled by its purpose and meaning. Policymakers generally use reasonableness as a way to balance their protective goals with everchanging technology and cyber threats by both establishing baseline risk-based program and safeguards requirements and setting expectations that organizations maintain appropriate diligence as the situation evolves.

Business-to-business relationships use a similar approach when setting contract terms across interconnected businesses and supply chains.

The current regulatory landscape

States continue to enact more privacy and data security laws, while Congress focuses elsewhere. These statutes’ objectives range from broadly protecting consumers’ personal information to focusing on higher-risk sectors and shielding well-meaning, diligent companies from certain data breach-related lawsuits.


To learn more on this topic, join us for our upcoming webinar, to hear what recently passed, how state laws differ, and how your business needs to comply.


In the midst of rising cyberattacks, however, demands for “reasonable” data security measures form one common thread across these new mandates and many current regimes. For example, like most sector-specific federal laws, the Federal Trade Commission’s longstanding data security standards under its authority to protect consumers from unfair or deceptive trade practices hinge on reasonableness. Also, the European Union’s General Data Protection Regulation (GDPR) and recent comprehensive data protection laws in US states, like the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020 (CCPA/CPRA), the Virginia Consumer Data Protection Act (VCDPA), and the Colorado Privacy Act (CPA) take similar views.

Indeed, some 20 states and the District of Columbia appeal to reasonableness in their existing generally applicable personal data security laws.

The White House weighs in

The recent series of ransomware attacks, especially those against critical infrastructure, drove the White House to recently issue a , urging them to act now to shore up cyber defenses by taking a series of steps, including:

        • holding leadership meetings to discuss ransomware threats and review business continuity plans;
        • adopting high-impact best practices from on Improving the Nation’s Cybersecurity, such as deploying multifactor authentication, endpoint detection and response, and encryption; and employing and empowering a skilled security team.
        • backing up data, system images, and configurations, storing backups offline, and regularly testing them;
        • deploying patches and updates in a timely and risk-based manner;
        • testing incident response plans (which, of course, implies creating and maintaining one);
        • engaging in independent cybersecurity assessments; and
        • segmenting networks, especially separating corporate business functions and production operations, with limited internet access to operational networks.

The White House recommendations highlight the kind of best practices that many experts consider crucial for any reasonable information security program. The regulatory landscape and cyber threat climate are continually shifting, however, so it’s vital that legal counsel keep up with changes and trends.

Understanding cyber vulnerabilities

To successfully manage cyber risks, it’s important for counsel to understand cyber vulnerabilities. Unlike threats, businesses can generally remediate or at least mitigate their cyber vulnerabilities, which typically include design, implementation, or other oversights that create defects in commercial IT products or internally developed software, often requiring a patch or other update to remediate; and poor setup, mismanagement, or other issues in the way a business installs and maintains its IT hardware and software components.

Other common vulnerabilities that companies must also tackle include:

        • gaps in the business processes;
        • administrative or organizational weaknesses, such as a lack of user training and awareness or failure to appropriately prioritize and fund security programs;
        • poorly designed access controls or other safeguards; and
        • physical and environmental issues.

Strategies to manage cyber-risks and support reasonableness

In-house counsel can help their businesses routinely manage cyber risks and avoid attacks, or at least minimize their impact, by developing and maintaining reasonable risk-based information security programs.

Some common strategies for accomplishing this task include:

        • performing regular and systematic formal risk assessments that help companies meet the reasonableness standard by identifying, prioritizing, and managing their foreseeable risks;
        • recognizing that information security is not a one-time IT project but requires ongoing risk management and attention from a company’s leaders and all workforce members;
        • building a sustainable comprehensive program that focuses on people, policies, processes, and tools, including vendor and supply chain risk management, instead of chasing after the latest hyped “solution”;
        • prioritizing activities and resources according to risks and benefits; for example, first addressing core measures like those the White House recently emphasized;
        • using widely accepted best practices such as those collected in the ; and
        • keeping up with evolving attack trends and known vulnerabilities through trusted sources and cybersecurity information sharing programs.

Despite the apparent increase in high-profile events, most cyberattacks are avoidable with a sound information security program. Well-informed counsel is uniquely positioned to help their business clients understand and manage cyber risks while meeting legal standards for reasonable practices.

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In-House Counsel Q&A with Timothea Letson of Compass, Inc. /en-us/posts/legal/in-house-qa-plj-letson-compass/ https://blogs.thomsonreuters.com/en-us/legal/in-house-qa-plj-letson-compass/#respond Wed, 28 Jul 2021 18:22:02 +0000 https://blogs.thomsonreuters.com/en-us/?p=46886 PLJ: How typical or unique is the scope of responsibilities for the company’s litigation attorneys?

Letson: As a real estate brokerage, there is always a docket of professional liability and errors and omissions cases, which can run the gamut from a rather mundane water damage issue to, what is still my favorite claim, a Maserati not fitting into its owner’s assigned parking spot. We also have a healthy docket of intellectual property, contract, employment, and other disputes as well.

PLJ: What is keeping your company’s litigation attorneys the busiest at the moment?

Letson: Having recently gone public, our competitors are keeping our litigators pretty engaged. The litigation team works closely with our M&A and Expansion and Adjacent Services teams to help navigate risk and drive business goals.

PLJ: How has the COVID-19 pandemic impacted the way your department operates, and what changes may continue to be employed beyond the pandemic?

Letson: The biggest change while we all worked remotely was the lack of impromptu requests for advice. Even as we now move into a hybrid work model, we are forced to accept that impromptu requests are not really scalable because the legal team and the company have grown so much during the last year. We have had to formalize a lot of check-ins and cross-functional meetings while working remotely, and this change is on some level here to stay.

In-House
Timothea Letson, Deputy General Counsel at Compass, Inc.

Now, the task is to make sure the team culture continues to thrive once we have some folks back in the office close to full-time and others working from home almost exclusively.

PLJ: What are some approaches that Compass has taken to prioritize diversity?

Letson: Compass has doubled down on its commitment to diversity by, for example, requiring all external advisors (including law firms) to ensure that Black professionals are part of the teams directly advising the company. This builds on a requirement in the Legal Department’s Outside Counsel Billing Guidelines that one-third of a law firm’s team be comprised of gender, racial, ethnic, or other minorities and that these team members serve in leadership roles commensurate with tenure.

Compass also participates in the Seizing Every Opportunity (SEO) career development program for underrepresented college students and welcomed our first class of SEO interns this summer.


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PLJ: What types of issues will cause you to turn to outside counsel?

Letson: While we are a nimble team, we are still building our expertise in antitrust, data privacy, and other regulatory matters. Additionally, the nuances of state-specific restrictive covenants and other employment questions often send us to outside counsel.

PLJ: What is the best career advice you ever received?

Letson: Keep your eye on the ball and have fun. It is not specifically career advice, but my dad would say this to me every morning as he dropped me off at school during tennis season and it comes back to me often.

PLJ: If not an attorney, what would you wish to be?

Letson: I am rediscovering my childhood dream to be a marine biologist.

PLJ: What advice would you give to prospective in-house litigation counsel?

Letson: Start trying your hand at giving business-minded advice and understanding how a particular strategy will impact your client’s business.


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