Getting a leg-up in legal

leg-up-in-legal

Across the world’s business markets, the legal profession is stuffed to the brim with the cream of corporate minds, the elite of the elites. But, in India, that wasn’t always the case.

Despite being the first chosen career of icons like Mahatma Gandhi and Jawaharlal Nehru, by the latter years of the twentieth century, the legal profession in India had suffered something of a fall from grace.

‘The joke always used to be that you would only become a lawyer if you were the son of a politician, a gangster, or somebody who couldn’t get in anywhere else,’ recalls Navneet Hrishikesan, director of legal services for service provider, Asia Pacific and Japan, at Cisco.

‘Growing up in the late 70s, 80s or 90s, there was a general feeling in India that the quality of legal education was not very good and that people attracted to the law were not of the calibre that you would like.’

That all began to change with the creation of prestigious National Law Schools, providing a five-year legal degree for those who pass a challenging entrance examination, usually the Common Law Admission Test (CLAT).

‘Over time, the law got a reputation for excellence, it became known to be something people would aspire to,’ says Hrishikesan. ‘For people like us, who joined in the early days, it was a bit of a shock to find people actually knew why we were doing law, as opposed to laughing at you.’

Some leading schools have instituted fee waivers and scholarships for IDIA scholars.

The National Law Schools of India University Act 1986, under which the first National Law School – the National Law School of India University (NLSIU) in Bangalore – was founded, stated that among the school’s objects was ‘to make law and legal processes efficient instruments of social development’.

‘The idea was that you would have people trained in the law who would actually go out and then change the country and help people with problems, with justice, human rights and fight for the downtrodden and the sick. Our illustrious director at law school, the late Dr Madhava Menon, called it “social engineering”,’ explains Hrishikesan.

But as the Indian economy opened up in the late 1990s and early 2000s, the wealth of opportunities in the commercial arena began to tempt graduates, who found themselves suddenly in demand. And so the legal profession in India returned to the ranks of the elite.

Beyond the barriers

Social stratification in India is famously such that it is often said that India lives in several centuries at the same time – and the barriers to a legal career for less privileged hopefuls are many.

A legal education of 201,000 rupees a year (for general undergraduate students at NLSIU Bangalore during 2018-2019, for example) is prohibitively high for the average household income of less than 160,000 rupees (figure reported by Centre for Recording Indian Economy in 2015). It is perhaps no surprise that a 2014 survey of first year students at five of the top law schools conducted by Increasing Diversity by Increasing Access (IDIA) found that over 50% came from families earning an average annual income of a million rupees.

But the obstacles stray beyond the financial into the cultural, and even the linguistic, for less privileged aspiring lawyers. Despite not being the majority language in India – which teems with Hindi, Bengali, Marathi, Telugu, Tamil, Gujarati, Urdu and many more tongues – the importance of English for white-collar jobs means that large numbers of students are excluded from law school due to being educated in their vernacular.

An IDIA survey found that only five students from the top five law schools studied in vernacular medium schools, and that more than 70% came from families where both parents spoke fluent English.

Inspiring… and being inspired

Navneet Hrishikesan, Director of Legal Services, Asia Pacific and Japan, Cisco

‘The way we got involved was to engage with IDIA in their sensitisation part of the programme, the first step, where IDIA volunteers talk to different schools and try to convince high school students they should consider the law as a career. We go with the IDIA volunteers, talk to them and maybe add a bit of glamour – they tell them, “That guy works for this company,” and that sort of thing helps. We can talk about career choices and what you can do.

We have taken paid interns from IDIA to give them a chance to see what an in-house job is like, see what the environment is, help them along with their careers, talk to them about it. I would love it if, at some stage, we were able to find the funds to help them to do an international internship in our offices in Singapore or Sydney, for example.

A couple of years ago we ran a session for both the scholars and the IDIA volunteers. We talked about what it is like to work in-house and what it is like to be a lawyer, because oftentimes between studying the law and working there is really nothing in common. You often have to learn everything again from scratch. Simple things: how do you write a résumé? As a profession, we don’t do much training people up on how to be successful in the real world. We are talking about concepts, but we are not really teaching them the practical stuff.

I personally believe that people who are working in large companies or working in-house are privileged. It’s important for you to try and give back as well to the community you are in, and Cisco really supports that. It gives everybody a certain number of days every year to give back – you don’t have to use your vacation time.

And I take a lot of pleasure out of the young kids. They tend to be very smart, they are focused and energised, and it’s great to see. It’s enjoyable to work with young people who are hungry. When you deal with them, you realise their world view is so different, you’ve so much more to learn – and it’s inspiring.’

‘Those who speak better English find it easier to get into these colleges and also stay in them. They are educated well in English, so they find it very easy to express themselves,’ says Aditi Kamath, executive vice president at IDIA.

And, with the concentration of National Law Schools in cities, children in the myriad of small towns and villages across the country are further faced with transport and accommodation costs, even to access coaching and training for the entrance exam – prerequisites for the rigours of CLAT.

The reality for sizeable sections of the population, not to mention those with disabilities, is that a legal career is not on the radar of students who otherwise have the ability and drive to succeed in one – if only they had the chance.

Planting seeds

IDIA is one organisation which hopes to change all that. Founded in 2010 by legal academic Dr Shamnad Basheer, IDIA works to increase diversity in the Indian legal profession and empower underprivileged communities by creating lawyers from within their ranks.

‘[Basheer] was teaching at one of the national law universities and he realised there was not enough diversity in these schools. He knew of many students who came from towns and villages who wanted to study law but they had no access to a quality legal education. This is when he decided to do something about it,’ explains Kamath.

Comprised of chapters in 21 states, each with 20 to 30 student volunteers from the existing (more typical) law school population and led by a student team leader, IDIA conducts ‘sensitisation’ sessions with high school students, identifying and encouraging those with the potential to get into law school. It then trains them to pass the entrance exam over a period of one or two years and supports successful applicants throughout the process of training to be a lawyer.

‘In India, especially in small towns and villages, people don’t really know what a lawyer is able to do in the real world – the only representation is the lawyers they see on the television and in film. So when we conduct sensitisations for these communities, we make sure we tell them the various things you can do as a lawyer, which is not just argue in a court of law – you can join the public services, you can do policy work, you can have your own NGO and help people in your community. These marginalised groups that our scholars come from have faced a lot of injustice in their lives, so these are things that really push them to be able to say that: “I want to study law to be able to help my community to do better”,’ says Kamath.

The legal community also provides support to IDIA scholars in the form of mentorship and internships.

‘What we look for more than anything is a passion to do better in your life. The fire in your belly. You can be taught things, but the passion and the drive cannot be taught – that has to come from within.’

After passing an aptitude test based on academic grades and a personal interview, as well as a means test, 50 or so students are enrolled in coaching centres to prepare for the law school entrance tests. IDIA fills out their forms and arranges for the coaching to take place for free, while current student volunteers tutor them in areas like logical reasoning and current affairs. Those needing to travel are given accommodation and expenses for transport, food and lodging. Currently IDIA has 35 trainees getting ready to sit this year’s exam.

The money tree

For those who pass the entrance exam and receive a law school place – like the 64 students currently receiving IDIA sponsorship – IDIA also funds their education. It’s a huge financial undertaking, and the organisation often struggles to find donors. Some leading schools have instituted fee waivers and scholarships for IDIA scholars, and others are in negotiations. Where schemes are not in place, IDIA taps into the legal fraternity in India.

‘At the end of the entrance exam, we know which ones made it through. Once that list is out, we make up their profiles, and we circulate them to our donor group. Usually a lawyer picks one of the scholars and says, “I commit to sponsor this scholar for the next five years of law school.” We have scholars who are being sponsored by a particular law firm or sometimes a corporate group – Citibank sponsors five scholars,’ explains Kamath.

She adds: ‘We still have a few scholars without committed donors though, and we often struggle to match donors with scholars. Donors are also more willing to contribute towards scholars, but not towards organisational expenses like paying salaries, organising events, publicity and outreach, etc.’

‘Every year, we file a biannual progress report to each of our donors, saying, “This is how your scholar is doing right now, these are the grades, these are the internships they were picked up on, these are the seminars they have attended.” At the end of the year, we tell them that “Yes, the scholar was accepted on to the next year and this is how much we need to pay this year.” We write to donors and we attach the entire projected expenses for the scholar for that academic year and they send in the funds.

Holistic support

The legal community also provides practical support to IDIA scholars in the form of mentorship and internships. Mentors are assigned according to the individual needs of scholars, and relationships often continue past law school.

Cisco is one such company that offers backing in this way, assisting with sensitisation sessions, occasional mentorship, and regular internships – although Hrishikesan would personally like to do more.

Fuelling the fire

Yamuna Menon, fifth-year law student, NLSIU Bangalore
‘I saw an article on IDIA in a local newspaper one day, while I was preparing for the law entrance exam, and it had details of Shamnad Basheer at the end of it. I sent him an email telling him that I was interested to do law, but there were some financial concerns. I got a reply in one or two hours, and he put me in touch with the Kerala chapter of IDIA. It was like a mentorship system, in addition to another coaching centre that I was part of.

Being an IDIA scholar, I am getting a fully-funded scholarship from the university. At law school, I had to take internship decisions and make academic choices and, in this, IDIA has provided both academic and professional guidance through mentors. It’s not just financial support, it’s emotional and professional. It’s a total bundle of a person being there for you, always, who you can talk to whenever there is something that you need support for.

When certain career decisions had to be made, IDIA found out my interests and put me in touch with a wide network of people who could guide me. This included a partner in a law firm here and others working in London, at international law firms like Allen & Overy, Herbert Smith Freehills and Linklaters.

I have been part of Moot Court competitions in London and Singapore, and these require a lot of sponsorship and financial support – I am glad there were people who were supportive enough to make that exposure happen for me. All these experiences give you a global mindset and mould you as a team player.

I believe that one has to aim higher and put in the hard work and the dedication, and IDIA in my life has been this fuel that kept me on track. I am really interested to gain international exposure, which will refine my perspectives and analytical abilities. For my LLM, I’m truly hoping that I will be able to find sponsorship and scholarships – so let’s see how things pan out. I’m hoping for the best!’

‘Actually, that’s one of my grouses with the Indian legal education system. In Australia, for example, we have interns with us for up to a year, and the same in Spain. Here in India, course restrictions mean that we are not able to keep them for more than two months or three months at a time, which I think is unfortunate, because to change the legal profession and to change the way we teach our lawyers, I think more practical aspects are what’s required, not more theories from books,’ he says.

‘Particularly in an in-house environment because, unlike a law firm, our deals and our engagements tend to go on for a while, so to be able to actually gain value from it you need to be involved in it for a while. I’m a little frustrated by the fact that the educators in India are not willing to consider different models for their law schools.’

A new world

But IDIA and its professional stakeholders also recognise that there is something even more involved in developing lawyers from underprivileged backgrounds. Although extraordinarily gifted, these students are crossing not simply an academic bar, or even a linguistic one – they are entering into a whole new world.

Yamuna Menon is in her fifth year at NLSIU Bangalore. Academically, she is currently Rank-1 in her batch and was recently selected by the Ministry of Youth Affairs and Sports in India to represent the nation abroad in a youth delegation. But, despite an English-medium education, as an IDIA scholar from a small town in Kerala, fitting in was a process of cultural adjustment.

‘I cannot deny that in the first few months here I actually questioned the decision I made. It was difficult to adapt to this place initially because there were people with a different cultural makeup; their inclinations and interests were different from mine. I was unable to understand things which were happening, like the context, or being part of normal conversations with people for that matter – just like being in a friend circle. They might have a joke and I might not get it,’ she explains.

‘I can never forget my roots and where I come from and what values I hold. But at the same time, I had to make some changes to myself for the professional environment that I am getting into, and I think that’s part of the process. So right now I’m really enjoying it, but adaptation has to take place and, in that journey, I have made some really good friends for the rest of my life.’

‘Mental health is also a part of concern for us, because they are coming to a big city and a big college, where students are well-informed about the world,’ adds Kamath. ‘At that formative age, where you are can be quite intimidating for the scholars sometimes. Some of our scholars do feel a little insecure and get a little bogged down, so we offer help in that scenario also – find them an accredited counsellor and we make sure they feel better.’

IDIA describes its core aim as the creation of ‘community leaders and leading lawyers’.

Hrishikesan, a classmate of IDIA’s founder Basheer, recalls that the movement could always be characterised as personal.

‘We had a classmate who was very smart and intelligent, but he came from a very humble background and struggled in law school as a result, because ultimately what happens is that the rest are a bunch of these westernised, well-to-do kids who have very little in common with you. It’s difficult enough being a teenager in a new place. On top of it, you are almost forsaken, nobody is really socialising with you, you probably struggle with English a bit, the quality of education is probably high compared to where you have come from and what you have been used to, you don’t read English books at home, and basically you struggle to fit in,’ he explains.

‘I think Basheer took a lot of that to heart, because he looked at it and said, “Ok, it’s not just about helping somebody to get into law school, it’s also about helping them through that process – how do you make sure that people don’t feel left out while they are in college?”’

The future

So, has IDIA set out to create a regiment of socially conscious lawyers, armed to tackle the injustices of society? Not exactly, although it describes its core aim as the creation of ‘community leaders and leading lawyers’. Many current and former students speak of a desire to use their skills to help their communities.

‘There are IDIA scholars who, while they are in law school, have taken on local mafia-type organisations and fought for the rights for villagers around,’ says Hrishikesan.

‘But I think it’s very much left to you, personally speaking, what you would like to do. And I think that’s the right approach. I don’t think there’s an expectation that you have to say no to the commercial sector.’

And the opportunities for graduates are certainly there. Menon harbours ambitions to complete an LLM abroad, perhaps Oxford, Cambridge or Yale.

‘I have had exposure to both [law firm and other organisation] areas. Definitely an aspect of giving back to society and making a difference is something that I can’t do away with but, at the same time, commercial law gives you a lot of opportunities in diverse areas, and I enjoy the same. I believe that there is no need to cut off commercial law from public policy, so I’m trying to balance it out.’

IDIA is up-front about its end-game, which is to ultimately render itself unnecessary – not only through the empowerment of underprivileged communities, but by also creating the circumstances whereby the more typical, privileged students are better equipped to carry the torch themselves.

‘Our idea is to become obsolete after ensuring that law schools – and national law schools particularly – become more diverse, and more people from marginalised and underprivileged communities get up and see that they have this opportunity open for them and that they can do a lot for their own community. We would love it if there was no reason for us to exist!’ says Kamath.

‘We want to produce better lawyers who have more empathy towards other groups, who know that not everyone comes from a privileged background and that people need help sometimes. It is very important to put them in a diverse environment so they can interact with these scholars from other, marginalised groups and find out how, as lawyers, you can work to create a better situation for everyone.’

(If you wish to support IDIA in any manner, write in to [email protected] to know more)

Firm Focus: Vashi and Vashi

vashi-vashi

GC: What differentiates Vashi and Vashi from its competitors?

Vivek Vashi (VV): Since we opened in 2017, Vashi and Vashi has expanded to now have two offices in Mumbai, with a total strength of 21 lawyers. The firm is well positioned to handle various complex and high-stakes disputes across India, focusing on quality-driven dispute resolution.

The firm also encourages advocacy. Subject to client preference, the firm’s lawyers are encouraged to argue before courts, tribunals and regulators. Moreover, the firm provides its associates with state-of-the-art infrastructure and resources, which further encourages and facilitates them to service clients with accurate and prompt guidance.

GC: Which practice areas do you see growing over the next 12 months? What is driving these changes?

VV: The firm works on a broad gamut of domestic and international matters, with our primary focus being commercial dispute resolution. Recently, the firm has capitalised on the evolving areas of domestic arbitration and insolvency, where we are focused on streamlining dispute resolution to provide litigants with speedy and effective recourses to justice. Recent amendments to the Arbitration and Conciliation Act, 1996 have brought about a significant increase in the speedy disposal of arbitration proceedings with the introduction of a capped time period for completion of proceedings. This has further resulted in an increase in litigants opting for alternative dispute resolution process as opposed to litigating in court. Similarly, in the most recent amendment to the Insolvency and Bankruptcy Code, 2016, homebuyers have been included in the class of financial creditors which has provided them with a level playing field as against larger developers / builders in a plethora of cases involving delayed construction projects in India. As a result, in the last year alone, our firm has handled substantial matters before the National Company Law Tribunal and Appellate Tribunal.

GC: How is technology changing the way that you interact with your clients and the services you can provide them?

VV: Technology has made lawyers easily accessible to clients in need of urgent and speedy advice. This has made dispute resolution less time consuming and more cost effective for clients. At the same time, evolving technology has largely benefitted the legal profession with myriad sources of news and online databases at their fingertips. This enables lawyers to provide more comprehensive and well-informed strategies and advice to clients. Access to such information through growing technology has also encouraged the legal fraternity to stay abreast of current affairs, growing industries and evolving laws and practices across jurisdictions. Technology has also introduced a competitive element to the profession, ensuring clients receive the highest quality of services at all times from their counsel.

GC: What is the main change you’ve made in the firm that will benefit clients?

VV: The clients’ interests have always been a foremost priority of the firm. As a result, the firm’s practice is not limited merely to dispute resolution; an integral part of the practice is preventative advice which helps clients preserve value. A number of potentially high-value disputes, mainly in relation to in-bound investments, are resolved by early identification and resolution of issues.

The team is also encouraged to work out of their comfort zones in a way that their exposure is not restricted to any one niche practice area, but extends largely to all-round client servicing of their matters and requirements. This not only introduces a higher degree of responsibility in the associates, but also improves their growth, matter management, rapport with clients and, resultantly, secures client confidence in, and loyalty to the firm.

GC: Can you provide a practical example of how you have helped a client add value to their business?

VV: In dispute resolution, as a practice, we provide a cost-effective analysis of most matters to our clients before advising them to pursue litigation as a remedy. This is mainly because the Indian judiciary is overburdened with a considerable backlog of pending matters, and speedy justice is still a pipedream. In many cases, clients are advised and have benefitted from strategic out-of-court resolution of the dispute in its nascent stages, rather than having to incur huge expenses in prolonged and avoidable litigation. Additionally, the firm discourages clients from engaging in a multiplicity of proceedings and / or exhausting resources in pursuing futile litigations merely as a pressure tactic; rather, they are encouraged to consider the merits of their case and have an informed and strategic resolution approach.

Further, it is often the case that larger, financially able litigants solicit advice from multiple law firms on varying aspects of their disputes, resulting in piecemeal strategy with no logical goal in mind. The firm therefore encourages clients to share a holistic view of their matters, so as to enable providing them with comprehensive and strategic advice while keeping their interests in mind and financial resources in check.

Based on such experience, a client has recently engaged the firm to act as its’ legal department, owing to promptitude of turnarounds and quality of work product and advice.

GC: Are clients looking for stability and strategic direction from their law firms, as opposed to purely legal counsel?

VV: It goes without saying that clients require stability and strategic direction from their legal teams; however, clients also need versatility. Using the illustration of the firm, clients do not look to us only to represent and advise them in dispute resolution but also to assist them in related matters. The firm is their first point of call.

All is fair in love and law

love-and-law

India is a predominantly conservative society, with courtship customs that have been passed down for generations. However, times are changing: a combination of improved smartphone technology (and accessibility), affordable internet services and a growing middle class has prompted a cultural shift.

Over the last six years, the Indian matchmaking scene has undergone a complete makeover. Apps such as Tinder, OkCupid, Aisle, TrulyMadly and Woo – to name but a few – are transforming the way a whole generation of Indians are finding love. Although the uptake of this new technology has been slow in rural regions, dating apps in urban cities continue to grow at staggering rates.

As the industry thrives, it falls to the business people and in-house counsel to discover ways to overcome legal obstacles surrounding privacy, marketing and IP, in an effort to strike a balance and find success during a period of cultural change – while operating in an environment still very much reflective of traditional customs.

What’s love got to do with it?

India at its heart remains a country steeped in tradition – notably so, considering the melting pot of cultures and customs present. The practice of arranged marriages dates back centuries, but remains a conventional way to find a partner. But in 2014, almost all at once, mobile dating apps from international and domestic companies flooded the Indian matchmaking market.

‘Over the course of 12 months, we had Tinder, TrulyMadly, Woo and Aisle, amongst others, all come up and showcase what they have,’ says Able Joseph, founder and CEO of membership-based dating app Aisle.

Aisle is just one of a number of Indian-owned-and-operated dating apps vying for market share in an increasingly crowded mobile dating space. Its strict prescreening process underpins a curated community that brings together users of similar interests. Other homegrown apps include TrulyMadly, which matches up locals on the basis of interests and preferences, and Woo, an app that focuses on finding matches for well-educated professionals.

‘There was a sense that times were changing and there was a new need that people were having that nobody was really addressing. That is probably what led to a lot of the applications being launched at the same time,’ says Joseph.

He believes this was the beginning of a cultural shift and, since launching Aisle six years ago, he has seen India become wealthier, better educated and more accepting of western customs:

‘I think a lot has changed in India. When we launched, India was still a super-conservative society and, ever since, we have seen signs of incremental change: a small wave of feminism, the #MeToo movement and Section 377 [of the Indian penal code, which criminalised homosexual acts as “unnatural”] being abolished. There’s no doubt that, slowly, India is liberalising itself. All of these directions that we are moving in, in particular the pace of change, I don’t think that sort of speed is seen in other parts of the world.’

Mumbai local Chinmayi Shinde represents a new generation of educated, career-driven women. Working in pharmaceuticals – specifically contraception – for the last four years, she says she has seen a rise in the number of people, particularly women, using dating apps in major hubs like Mumbai, Delhi, Bangalore and Kolkata.

‘Educated and professional women are more inclined to use such apps, since they are looking for people from a similar background and are open to meeting new people,’ says Shinde.

‘The Metro cities see higher penetration of these apps. Most women move to cities to pursue either education or career. More access to smartphones and cheap internet has helped a lot of people explore the world of internet and apps.’

Swiping right

Despite the fact that dating is still a relatively taboo subject, Indians are swiping right on Tinder more than any other dating service on the market. Heading up in-house legal operations is Jared Sine, chief legal officer and secretary of Tinder’s parent company, Match Group.

‘India for us is a huge opportunity; we see a generation of young members of Indian society who are really exploring who they are, how they date and how they find love,’ he explains.

‘There are some cultural challenges in India because of some of the cultural norms surrounding how relationships and marriages and all those things start – it’s a little bit different than some other areas in the world. So we had to really think about the best way to approach that. In terms of legal, our initial approach was to take the best practices and best standards that we have in other countries, then apply them to what we are doing in India.’

The legal framework governing mobile matchmaking apps in India is very much still evolving. Witnessing this cultural and legal change is veteran matchmaking service, BharatMatrimony. The company has been in the dating market for almost two decades and is the flagship brand of matrimony.com.

‘Matrimony.com is a pioneer in online matchmaking in India, having rolled out their services in 2000. Laws and policies have been dynamically changing ever since. Over the years, our team has built expertise in legal matters related to the matchmaking industry,’ says head of legal and regulatory practice at BharatMatrimony, Ravichandran Subramanian.

‘Dating is a fairly new concept in India, but our team is equipped to deal with any changes in this category.’

Starting as a computer-based service, the company has diversified operations to include a mobile dating app in order to remain competitive.

Laws of attraction

Despite a significant cultural shift surrounding dating ideals in India, local laws still reflect the nation’s conservative roots. A lack of specific regulations requires in-house lawyers to be more strategic when implementing internal polices.

‘There is certainly an element of trying to see where regulation is today and predicting where it’s going to go, then subsequently taking actions to push yourself there,’ explains Sine.

‘That’s a big part of the job of being a chief legal officer, being general counsel. If you’re only focused on today, you’re not looking far enough ahead.’

The legal framework governing mobile matchmaking apps in India is very much still evolving.

Joseph draws similarities with the advent of ride-sharing apps when explaining legal reform in the mobile matchmaking industry – something he sees as inevitable: ‘When Uber came to India, there were no laws that restricted it, because all our laws belong to the era where we were all travelling in bullock carts. So there needs to be reform, and it’s very slow, but it is definitely happening and is something we need to be conscious of as a business.’

Despite the current absence of a legal framework specifically regulating dating apps, certain general laws governing computers and the internet do apply. The Information Technology Act, for example, covers issues around wrongful disclosure and misuse of data, including data collected by mobile matchmaking services – data that could be seen as particularly sensitive in India.

The privacy debate

When Sine first joined Match Group in 2016, GDPR had just been adopted by the European Parliament and was still almost two years’ away from enforcement – with many companies yet to firm up their data privacy policies. Fast-forward to 2019 and privacy protection is a contentious issue dominating news headlines the world around. It is an issue that has also grabbed the attention of lawmakers in India.

‘We have always taken privacy seriously. These laws and regulations coming into effect make people think about things a little differently, and we said we should build a global privacy programme that needs to meet all of the applicable GDPR standards. So if you’re a user in the US, or if you’re a user in the EU, if you’re a user in India, if you’re a user in Japan, you have the same protections and the same rights, the same access to data, the same rights to have your data deleted as anyone in another country where the laws may be more restricted,’ outlines Sine.

‘Instead of taking a country-by-country approach, we took a global approach, and it has actually paid off. We’ve now got a programme across all of our companies and all of our brands that brings everybody to the same level.’

Joseph believes it is only a matter of time before dating app consumers begin to push for better privacy protections. On a local level, concerns around privacy are already beginning to develop among the middle and upper classes.

Marketing Tinder across television, radio and online platforms was key to the app’s success in India.

‘When you look at a normal consumer using mobile apps in India, be they Uber or food tech, their concern is not really privacy because they have to deal with their daily sort of things,’ he says.

‘But there is a certain community of affluent Indians who are aware of international laws and who are aware of the privacy issues, in particular with the things that can go wrong. For those people in particular, this is an issue that does matter.’

Marketing matchmaking

One of the major legal issues surrounding the growth of dating apps in India has been marketing. In-house lawyers often have to work closely with marketing managers to ensure campaigns meet strict legal guidelines – not uncommon by international standards, but with its own quirks when considering the culture and tradition apparent in India.

‘In a lot of countries, Tinder just grew virally. In India, there was some viral buzz, but not on the same level we saw in European countries or in the US,’ says Sine.

‘We built a local team there that really started focusing on creative marketing around how we message the story of Tinder. Legal plays a key role in marketing – we have to find a way to make sure our IP is protected and that our marketing messages are accurate.’

Marketing Tinder across television, radio and online platforms was key to the app’s success in India. From a legal perspective, advertising laws in India are not specifically problematic – particularly considering the number of jurisdictions in which Tinder is used. But there’s more to finding success than following the letter of the law, says Sine.

‘There wasn’t anything specific in Indian law that made it difficult or otherwise obstructed our ability to be able to market. There are some countries where if you are an online dating platform it is very difficult to market on television and, fortunately, India is not one of those countries,’ he says.

‘Oftentimes people use laws to try and apply cultural norms that maybe need to be changed. That forced us to think about how we were going to structure these campaigns: what channels are we going to be working with? Are they going to be influencers or are they going to be regular PR agencies? How are we going to contract those companies to make sure we are getting what we need and they’re getting what they need?’

To have and to hold

With the explosion of dating apps across India, protecting intellectual property has come to the forefront of concerns for in-house counsel. Dating service veteran BharatMatrimony has seen the focus shift within its legal team as a result of increased market competition.

‘Over the years, apart from regular legal functions, the legal team has evolved to focus on IP, since it throws up new challenges all the time,’ says Subramanian.

‘We fiercely protect our IP and quickly act upon any violation of our trademarks and copyrights. We have been very successful in doing that and have obtained favourable decisions in many cases at the courts. The low online entry costs, high legal expenses and difficulty in scanning and detecting violations in the vast online space often lead to big- and small-time competitors trying to misuse our trademarks and confuse users by diverting traffic that legitimately belongs to us. Our team works with other teams internally to detect violations and pursue them legally.’

Global conglomerate Match Group has also implemented IP protection practices across its entire business.

‘We deal with the lawsuits, we file for tax purposes, we protect our IP – like the one we filed against Bumble, to ones where we are not the asserting party. Some people look at us because we are a big company, we have deep pockets,’ says Sine.

‘[In India] there were the typical legal hurdles you had to get over, making sure our IP is protected and that we have those elements taken care of and our messages are consistent with the legal requirements on truth and accuracy and all those things.’

As long as we both shall live

Moving forward, as the regulatory framework surrounding dating apps develops in India, privacy remains a forefront issue for legislators and regulators.

‘They want to make sure that people know where their data is being processed, they know what rights they have in relation to who is getting access to their data and ownership over that data,’ says Sine.

‘There are a whole host of new proposals that are being discussed at the legislative level in India that we need to be aware of as a business.’

In particular, there is a push from lawmakers for data collected in India to remain in India. At present, there are no regulations in India that state where and how data can be collected, stored or processed. But regulators in India are currently working towards drafting a comprehensive piece of legislation for data privacy, which could have a major impact for international apps such as Match Group’s Tinder, where all data is stored and processed in the US.

‘We’re aware that those kind of discussions are happening, but we will wait to see how the laws turn out. We are engaged, we are having conversations through our trade associations to make sure our perspective is shared, as well as other perspectives of some of the platforms that are out there,’ says Sine.

‘Our approach is to partner with regulators to try and find common ground in order to help expand not only our footprint as a business, but also the ability for people to have more choice.’

It seems that traditional approaches to dating in India are being superceded by that empowerment of individual choice. As technology continues to improve, mobile matchmaking services will continue to thrive – but how regulators and lawmakers balance a bright future with societal norms will be a delicate decision.

Introduction: Alex Speirs

Our latest collaboration with Clifford Chance, Their Voices: Insights from Today’s Rising Lawyers, chronicles the journeys and stories of a selection of the next generation of lawyers, written and compiled by the team at GC magazine.

The collection of stories reveals that the stereotypical, well-trodden pathway to law is far from the sole entry point to the profession. In the past, anything but a complete commitment to the law – and nothing but the law – may have been considered a detriment, whereas now diversity of experience, both personal and professional, is characterizing the next generation of entrants. Those featured in the pages that follow embody this change, hailing from a range of backgrounds with law a second career for many – some in tangentially related industries, others hailing from a past which couldn’t be further from the law – but all bringing with them an insight as unique as it is valuable.

The interviews that underpin this publication also reveal a profession in the midst of change, as the realities of working at a law firm in the 21st century ring true for all the right reasons. The impact of technology is creating opportunities for new ways of working, increased flexibility and the chance to fundamentally reimagine how lawyers should – and do – operate. With this newest cohort of entrants hailing from a generation of digital natives, it shouldn’t come as a surprise that many of those featured are showing leadership and helping drive this change, but the willingness of senior partners and management to respond by empowering some of their newest members in such a positive fashion illustrates the changing dynamics apparent in a modern law firm.

Helping to facilitate that change at Clifford Chance, particularly for new entrants to the firm, has been Erin Zucker, the firm’s dedicated assignment manager, who has been instrumental in transforming the experience of first-year law clerks and associates. Instead of specializing at the commencement of their professional career or operating under the rigidity of the typical six-month rotation, most new entrants now enter a pool for a two-and-a-half-year period, during which time they are exposed to assignments across the firm’s transactional practices. That very exposure – to a broad selection of practices and practitioners – offers the opportunity to glean an insight into what their own future could hold, while developing well-rounded lawyers with a more holistic understanding of the profession.

When considered in the context of a world (and business environment) that is increasingly globalized, one with less defined boundaries and practice areas that no longer operate in silos, bringing together the aforementioned threads – diverse pathways, modern working practices and holistic approaches to training – no longer seems like nice-to-haves, but rather professional imperatives.

The stories that follow paint a picture of progression and much-needed modernization for the next generation of lawyers. And while change can be a scary word, based on my interactions with those who generously gave their time as part of this undertaking, I can confidently say that if this is what the future leaders of the legal profession look like, we’re in good hands.

Alex Speirs, Editor-in-Chief, GC magazine

Foreword: Erin Zucker

Lawyers choose a legal career for many different reasons. Some have it in their DNA and come from a family of attorneys. For others, the idea may arise during high school or college, or maybe after spending some time in another kind of job or doing community service. When the idea strikes, some are not certain and need time to explore; others are driven straight to law school. But they all have one thing in common: something sparked their interest.

My job is to help empower our lawyers. They arrive here on their first day having already navigated their way through law school, the recruitment process and a summer program. It’s an impressive beginning, and I find great joy in doing my part to help them shape the future of their careers – digging into the work and finding the right space to practice in.

Since the firm decided in 2015 to embrace a pool concept for our first years in the transactional practice, I have been tasked with implementing that process. Shortly thereafter, I began coordinating staffing within the litigation practice in collaboration with our partners and counsel. This approach offers significant benefits. For one, it keeps everyone consistently busy and allows lawyers to immerse themselves in a variety of work, where and when our clients need it. It also provides exposure to our international network of offices in a very fluid way – that’s a great fit with our culture as a global firm.

A big part of my job is getting to know people: what kind of work interests them, their professional styles and goals – their voices. What I’ve learned is that this generation of junior lawyers is shifting the prevailing wisdom about success in the law.

I’m also here to encourage people to step outside their comfort zone by exposing them to different types of work. I know that I am having a positive impact on someone’s career when they say, “I’m so glad I tried something new.”

What you will read in these pages is just a sampling of the stories that our junior lawyers could tell. From my perspective, the takeaway is this: whether they practice law for their entire careers or move on to something completely unexpected, they are on a path to forging their own success in an evolving field. That’s why their perspective is so valuable. n

Erin Zucker, Americas regional professional development manager, Clifford Chance

A level playing field: How the Transactional Pool works

Upon joining Clifford Chance, most first-year law clerks and associates enter the pool for a two-and-a-half-year period, during which time they are given exposure to assignments across the firm’s transactional practices. The enhanced system preserves the best aspects of prior approaches – exposure to many different kinds of work and to partners and associates practicing in different areas – without the rigidity of six-month rotations. Ms Zucker’s role as a dedicated assignment manager was integral to the firm’s objectives in designing the pool system.

Afterword: Evan Cohen

Photo credit: Thomas Donley, New York

Our first collaboration with our friends at GC magazine and The Legal 500 – Advice To My Younger Self – profiled 20 highly regarded women lawyers who shared tips for success with those about to begin their own journeys. What’s exciting about Their Voices is that it flips that narrative. This time, it’s our rising lawyers helping legal industry veterans – partners, general counsel, law school professors and others – gain new insights in a world that increasingly requires fresh perspectives.

In conceptualizing this project, we started with the premise that today’s lawyers are incredibly agile – not only in their ability to work effectively from almost anywhere, but also in their openness to new ways of thinking and problem solving. From the time they were old enough to lift a mobile phone, they’ve been tied together by technology and global networks, which makes tuning out and turning off increasingly difficult. And yet, most of them manage to achieve an enviable level of balance in their lives.

Perhaps the reason this new generation of lawyers is so adept at navigating change is that rapid transformation is all they’ve ever known. Those of us further along in our careers have had to dispatch some long-held beliefs and modify our approaches to embrace a new normal. It’s not always a comfortable proposition, but we are finding our way – sometimes with help from the very people we lead.

“Today’s lawyers are incredibly agile – not only in their ability to work effectively from almost anywhere, but also in their openness to new ways of thinking.”

It’s hard to believe that 2019 marks the beginning of my fourth decade as a lawyer and my twentieth year as a partner at Clifford Chance. I’ve seen a lot and learned a lot, including the importance of eschewing labels. Each generation receives its own moniker – Baby Boomer, Gen X and the like. But if this book tells us anything, it’s that lawyers of every generation have many more traits in common than differences that separate them.

I couldn’t be prouder to call the lawyers in this book my colleagues. They are bright, motivated, hard-working, client-focused and civic-minded – just like the generations that preceded them. Best of all for me as a managing partner, they are part of a much larger group of associates who have their own equally impressive stories to tell.

The profiles in Their Voices: Insights from Today’s Rising Lawyers inspire me to remain flexible and welcome what’s next. I hope this book helps you to do the same.

Evan Cohen, Americas regional managing partner, Clifford Chance

Corporations with benefits

corporation-with-benefits

‘There is no reason why good cannot
triumph as often as evil. The triumph of
anything is a matter of organisation’

– Kurt Vonnegut, The Sirens of Titan

When looking for good in the world, corporate governance law is perhaps not the most obvious place to train your eye. However, there is a sizeable band of corporations – thousands, in fact – who have opted to start just there, using corporate governance as a springboard to the greater good.

Shareholder primacy, often cast as the villain in corporate scandals or blinkered business decisions, operates on the theory that the job of directors and management is to maximise return to the investor. In turn, corporate law is traditionally viewed as a contract between corporations and investors that the company will, in the balance of law, deliver the highest return.

‘But that’s really an assumption and not a fact of life,’ says Rick Alexander, corporate governance expert and former corporate attorney in the US corporate mecca, Delaware.

A benefit corporation is a corporate entity which includes certain positive impact requirements among its legally defined goals, allowing corporates to reject shareholder primacy in favour of a governance model that permits balancing the interests of other stakeholders – like workers, customers and communities. Maryland became the first state to specifically legislate for these kinds of corporations in 2010, and 30 others have since followed suit.

In the early 2010s, Alexander had been practising transactional law for 25 years and was responsible for maintaining Delaware’s corporate statute when he was approached by B Lab, a non-profit that operates a certification scheme for companies based on environmental and social responsibility.

‘They wanted us to adopt a benefit corporation statute in Delaware. And to be honest, we thought it was kind of cute, but not really serious. I was the chair of the council that worked on those issues and so our first reaction was pretty negative,’ he recalls.

‘But they pushed pretty hard and I ended up taking it on as a project to look more seriously at what they were talking about. As I looked into it, I became persuaded that traditional corporate law actually had a lot of assumptions built in that weren’t necessarily supported by any rational economic theory.’

Alexander’s change of heart and subsequent work was instrumental in Delaware’s introduction of public benefit corporation law in 2013. He even left the practice of law to become B Lab’s head of legal policy, promoting the concept of benefit corporations around the world.

Nowadays, B Lab and benefit corporations are still linked – in order to retain B Corp status (B Lab’s certification), companies must have a corporate structure that rejects shareholder primacy which, in the US, will often mean incorporating as a public benefit corporation. You don’t need to be a B Corp to be a public benefit corporation, although the two frequently go hand in hand – and are often confused.

Keeping your commitments

Among the roster of companies opting to incorporate as public benefit corporations, there are some big names. Global creative crowdfunding platform Kickstarter is one.

‘For Kickstarter, this was always the founders’ ethos,’ explains general counsel Christopher Mitchell. ‘They were not about, “Hey, let’s make our money on an IPO or sale of the company.” I like the fact that we are a very socially and politically active organisation. I think that goes hand in hand with being a public benefit corporation – being very aware of what is going on in the world, how it affects our community, how it affects your business and then what are the appropriate steps to dialogue about that and to get involved.’

When the legislation came along, the company felt that it was the perfect vehicle to crystallise Kickstarter’s commitments. Public benefit corporations must lock in a stated public benefit (or benefits) in their charter.

‘We are a for-profit entity, we operate like any normal business. However, it’s like having a double bottom line. What are you focused on, what does good look like, what does success look like, what are you working towards? As you’re making decisions as an organisation, what behaviour do you take, what actions do you take, what areas do you support? If you think about a lot of other organisations, their main focus is making money. Well, what if it wasn’t just that?’ says Mitchell.

Public benefit corporations must lock in a stated public benefit (or benefits) in their charter.

‘What about if you said, “Well these other two or three things are important to us, and this is how we measure success”. Commitment to the environment and bringing creative projects to life are all part of that mandate. I think a lot of non-public benefit corporation organisations aspire to those things, but a lot of times those other goals become secondary to profit maximisation.’

Interestingly, Kickstarter’s shareholders unanimously backed the conversion to become a public benefit corporation. It could be that some investors believe they are looking at a generational shift of corporate values, and the public benefit corporation sits at a unique nexus.

‘It’s a paradox, but it can actually generate more value for your investors – your corporate structure communicates that you are a responsible partner and not bound by law to take advantage of every situation. I think right now we’re at a stage where individual companies are looking at adopting a benefit corporation structure as a competitive advantage, especially among the millennial workforce, or even the generation coming up behind the millennials, who are extremely interested in that sort of concept,’ says Alexander.

If public benefit corporations are aiming to inject virtue into corporate life, could this also trickle down into a better life for their in-house attorneys? Mitchell thinks so.

The North Star

‘I love it because it gives me another reference point. As counsel, you’re considering the law and the objectives of the business and you’re trying to organise those, but when you have these very clear stated commitments and rules, it just provides another reference point to help with the decision-making process. It prevents singular deviation on a project where someone might say, “Hey that’s fine but for this one we’ll just try this.” No, these are commitments, they’re set in stone,’ he explains.

‘It’s absolutely fantastic to have this North Star and this very clear statement driving alignment internally. It’s not just you’re the GC and you’re an outlier. You can point to the charter and say: “This is what we committed to be.”’

‘When it comes to a situation like dealing with a supplier who may not be performing but if we were to walk away, hundreds of their employees would lose their jobs, we look much further than the financial impact of the decision and often make what might seem like an unorthodox choice because it could cost us more in the end,’ adds Hilary Dessouky, general counsel of outdoor apparel company Patagonia, which incorporated as a benefit corporation in California in 2012.

‘At Patagonia, people and planet come first and that is a great foundation for decision making. It adds complexity because there are so many different factors to consider and that can be hard at the beginning. But it’s like a muscle that you have to exercise, and when you see the results, you want to keep working on it.’

Building muscle

For Laureate Education, becoming a public benefit corporation took a little heavy lifting for the incumbent GC’s predecessor. In 2015, the for-profit network of higher education institutions changed domicile from Maryland to take advantage of the shiny new Delaware law. Maryland had its own similar statute, but as the PBC structure had gained traction, model legislation was developed to address thorny issues of fiduciary duty and shareholder liability, and Delaware followed this trend – which appealed to Laureate when it decided to reincorporate.

‘I think any time you’re thinking about making a change in your legal status, the general counsel is critical. The GC has got to understand what’s required and has to be the one to take a hard look at the organisation and ask “Is it really in our best interests to do this, can we really be a public benefit corporation, what is that going to mean for us?” There are going to be legal requirements, the board of directors is going to have to understand what this means, they’re going to have to feel comfortable with it, they’re going to have to vote for it,’ says Victoria Silbey, CLO of Laureate since 2017.

The first public benefit corporation in California

Hilary Dessouky, general counsel of Patagonia, explains what being a benefit corporation means for the outdoor apparel company.

‘We have a 40-year-long history of environmental conservation and activism and, from 1991, the company’s mission statement was: build the best products, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crisis. We recently simplified our mission statement to reflect the urgency of the crisis we’re facing, to just: we’re in business to save our home planet.

Our values are so deeply ingrained in everything we do, for us the risk would be not being a public benefit corporation.

We have gotten very specific in our articles of incorporation about what we’ll do to create public benefit and have listed six areas of focus. One of them is that we give away 1% of sales to environmental non-profits, and we’ve given away more than $100 million since we started the programme. We also just committed to give away $10 million from the 2017 irresponsible corporate tax cuts.

We work really closely with the groups that we support through campaigns, advocacy and activism, and that also culminated in working with our grantees and the Native American community to help establish the Bears Ears National Monument. On December 4, 2017, President Trump issued an executive order purporting to reduce the monument by 85% and Grand Staircase-Escalante National Monument by more than half. Our benefit corporation structure provides a requirement for us to take certain actions and so, in response, Patagonia, along with a coalition of grassroots groups, filed a lawsuit in the DC District Court challenging the President’s action based on the premise that The Antiquities Act of 1906 grants the President the authority to create national monuments but not to reduce or rescind them. As a benefit corporation, we’re doing everything we can to help combat climate change and we have an obligation to our employees, to our community and to the environment to actually take that action.’

The general counsel also has a vital role to play in drafting the public benefit purpose that the company is nailing to its mast.

‘It needs to be both specific enough to really talk about what you do but broad enough to last for a long time, as a company may change emphasis and strategy. You have to think about it as almost a legal contract, so it’s critical that the GC is part of the decision-making process around that purpose,’ she says.

The Laureate team eventually settled on ‘To produce a positive effect for society and for persons by offering diverse educational programmes, both on premises or campuses located in the communities we serve online’.

‘If we are acquiring or divesting a college or university somewhere on the globe, part of the questions that we ask ourselves is whether this will be good for students. Can we offer students more – better access, better educational opportunities, better outcomes, better ability to get jobs, to get salaries that can support them, for example. We are constantly evaluating those outcomes, doing studies to see how our graduates fare. We’d probably do that anyway, but being a PBC gives us the context in which to put these questions and to make these decisions,’ explains Silbey.

Investor reception

But is it really possible to balance profitability with a commitment to the greater public good?

CircleUp, a company that helps consumer product start-ups to raise equity, thinks so.

It applied machine-learning software to scoring like-for-like strength, reach, growth and intensity of consumer brands in June 2018, finding that 93% of B Corps (distinct from public benefit corporations, but connected by sustainable ethos) scored above the average. The software also reported a 49% growth in sales, three times more than the category cohort.

But not all attempts to marry a sustainability stamp and profitability have escaped a bruising, particularly in the public realm. After the board ousted the CEO of e-commerce platform Etsy in 2017 amid swirling reports of overspending and falling share price, the vocal champion of stakeholder culture and then B Corp released the following statement from its newly installed CEO, Josh Silverman:

‘Since 2012, Etsy has relied on third-party certification, known as B Corp, as one of the ways we demonstrate our public commitment to running a sustainable, socially responsible business. We are proud of our B Corp certification, and of our track record of improving our B Corp score after each impact assessment.

‘One of the requirements of B Corp certification for corporations incorporated in Delaware is that a company must change its corporate structure from a C Corporation to a benefit corporation. As we have said publicly over the past year, Etsy will not seek conversion to a benefit corporation by the December 2017 deadline because converting is a complicated, and untested process for existing public companies.’

Etsy declined to be interviewed for this piece, but B Corp’s Rick Alexander is reluctant to concede that its specific situation has any reflection on the reception of the PBC status among investors.

‘Part of our certification is that at the end of a grace period, if they wanted to keep the certification, they would have had to become a benefit corporation and that would have meant getting a two-thirds vote from their shareholders. At that time they were kind of in a struggle with their shareholders, they had some not-good performance, there were hedge funds in the stock and eventually there was a whole turnover of management. That was not a company that had a problem with being a PBC, it was a company that wasn’t in a position to get a two-thirds vote on anything, let alone PBC status,’ he explains.

‘Booming corporate profits and rising worker productivity have not led to rising wages.’

Certainly the experience of Laureate Education, the first company already with public benefit corporation status to make an IPO, has been relatively smooth – though Silbey admits there was a little trepidation beforehand.

‘One of the concerns we had was that public markets would not be receptive – it was kind of unchartered territory. I don’t think that that’s turned out to be the case – I don’t think we have investors who aren’t investing or shareholders who aren’t shareholders because we are a PBC. But we really didn’t know at the time,’ she says.

‘We definitely had to explain it. It’s not that common in general and nobody was public beforehand, so when we filed our IPO doc and our 10-Ks since, we had to very carefully explain what it means and why it ties into our overall mission. We needed to be very clear and anticipate the questions that we might have: Does that mean that there’s not going to be good shareholder return, does that mean that you’ll put everybody else ahead of shareholders? We needed to think through what those questions might be and then to address them both in our written documentation and in other conversations with investors.’

Because public benefit corporations are obligated to make decisions that honour a specified social or environmental purpose, they can be held to account for not doing so. The Delaware statute has therefore built in protection for companies so that such lawsuits can only be brought by shareholders owning more than 2% of the company, and that no monetary damages can be obtained, only assurances that the company will improve.

‘For the most part what the statute does is eliminate risk. It makes it easier to operate in a way that’s socially and environmentally conscious, so we reduce the risk that anyone would ever sue you for that,’ says Alexander.

Adds Silbey: ‘If you are carefully considering the decisions you’re making in both the long term and short term, I think that the risk is manageable. We have thought about it and when we do governance training for our senior leaders and for our board members this is an area that we cover – and we get some thoughtful discussion about it.’

A moment of reflection

Having public benefit corporation status has reporting requirements, of course, although at once every two years in Delaware, these are not too onerous.

‘On one hand this is a statement to the public but also for ourselves, it’s a moment of reflection. How well did we actually do? It’s an important piece of feedback,’ says Mitchell.

Like Kickstarter, Laureate is also a B Corp, and B Lab’s granular auditing process provides a similar opportunity for introspection.

‘For the B Corp status, we were concerned that it might be too hard. To get audited on things like environmental footprint and supply chain issues was very new for us and we didn’t really know how we were going to do. We’re not making sneakers, so we’re not checking our supply chain more regularly,’ explains Silbey.

‘So this was a brand new horizon for us, but it’s been great, actually. Because it goes all the way down to a campus level review, we get really good insight into our institutions and how things are going and it helps us then make decisions when we engage vendors – it gives a framework to think about choices we’re making throughout our network of institutions.’

The reality is that a public benefit corporation status is unlikely to appeal to a company that has not placed an environmentally or socially conscious agenda at the heart of its offering, like Kickstarter, Laureate and Patagonia have. The jury is out, however, on how an ethical agenda might be protected in the event of a takeover, especially in the case of rolling back commitments – however legally.

‘In a hostile takeover there’s a limited amount that can actually be done, and I haven’t really thought through should we have a poison pill specifically related to PBC status,’ says Silbey.

‘But certainly with respect to a non-hostile transaction, our directors would try to weigh the different questions that we have as a PBC about commitment to students and communities and outcomes, so we would balance all of that with other fiduciary duties and shareholder considerations.’

A sustainable future

Public benefit corporation status is, fundamentally, optional. But what if it wasn’t?

Senator Elizabeth Warren, Democrat and 2020 Presidential hopeful, last year announced the Accountable Capitalism Act, which strikes at the same target as the public benefit corporation: shareholder primacy.

‘In the early 1980s, America’s biggest companies dedicated less than half of their profits to shareholders and reinvested the rest in the company. But over the last decade, big American companies have dedicated 93% of earnings to shareholders – redirecting trillions of dollars that could have gone to workers or long-term investments. The result is that booming corporate profits and rising worker productivity have not led to rising wages.’

A key plank of the Act calls for corporations with more than $1bn in annual revenue to obtain a federal charter as a ‘United States corporation’, obliging directors to consider the interests of all corporate stakeholders.

‘This approach is derived from the thriving benefit corporation model that 33 states and the District of Columbia have adopted and that companies like Patagonia, Danone North America, and Kickstarter have embraced with strong results’, stated Warren.

The road to legislation, like government, is a long one, and much is in the balance with this Bill. But, if a corporate governance trend is turning heads – and public opinion – there could be interesting times ahead for large companies.

All the more reason for the general counsel to ensure they are involved in any process of governance change or audit from an early stage – whether that’s becoming a public benefit corporation, B Corp, or a future permutation.

‘Sometimes at B Lab we’ll be dealing with a sustainability group in a company, and they’ll say “Let’s do all the other stuff and then we’ll do the legal” – because nobody wants to call the GC!’ says Alexander.

‘We encourage people to socialise the issue early and to make sure that there’s board-level discussions about certification and that the board understands the legal piece. The GC is going to be key in the boardroom’.

Time is the most valuable asset at your disporal. Use it wisely.

Over the past year, I have been drawn back to a poem that I first heard when I was very young, namely that of Leisure, by the Welsh poet W.H. Davies. A short piece, it ends with:

A poor life this if, full of care, We have no time to stand and stare.

Taking a step back from the frantic, full-on day-to-day demands of the legal industry is incredibly hard to do. But it can be the most rewarding, and fulfilling. Since I started to try and put this into practice, I have thought about the people I have met in the industry and tried to discover whether they have the same philosophy or if they are totally engrossed in the business of law. Some of the latter individuals are fascinating, passionately engaged in the subject, clearly dedicated to what they do. But I find the conversations often colder, and harder to maintain. They are not as interesting, simply because they often lack that fundamental skill – emotional intelligence.

Having empathy with your clients and your colleagues, trying to understand what makes them tick (and what doesn’t), has always been important, but it is too often forgotten. But it is what brings the best out of people, and is also one of the fundamental drivers of good leadership. The key to this is something that lawyers are, in my experience, often not so good at. As I say to my six-year-old constantly: you were born with two ears and one mouth for a reason – you need to listen twice as much as you speak.

This brings me back to my first point, taking time to ‘stand and stare’ and, in particular, understanding the value of sitting back and hearing someone else speak. I have tried to attend more conferences and events in the past 12 months, to try and soak up what is being said, and to exchange views with others in the industry. And before I get into this, I have seen a growing trend towards dismissing conferences, especially ones that are involved in tech and the dreaded i-word, as not ‘breaking out of the echo chamber’. There is some truth to this – it can be slightly deflating to turn up and hear the same legal luminaries preaching to the converted for the umpteenth time.

Trust is at the heart of all of our interactions in the legal industry, and trust is built on relationships.

But dig a little deeper and there is tremendous value to be gained from these events. And yes, I know it is hard to take time out from the constant workload, but the working life of GCs can be massively enhanced by stepping away from the office and engaging with the wider community. You have to make time, and sometimes you have to invest, but the benefits are there for all to take.

I was invited to Legalweek at the end of January in New York, which discussed the business of law, diversity and inclusion, information and data. My approach to the event was simple: I listened and I engaged. When I arrived at each session, I put down the phone, didn’t check my emails when the speakers and panel discussions were taking place, and wrote copious notes. But I also put my head up and looked around the room – who was in each session, did I know them, could I see what organisation they were from.

At the end of each session, I spoke to the panel speakers and to others in the audience. Some I knew very well, some I knew only slightly and some I had never met. As a result, I had conversations about subjects I would not normally have encountered, made new connections, and some of those conversations are now following up into potential collaborations.

In short, at a time when most of the legal industry is obsessed with the aforementioned tech and i-word, blockchain, machine learning and the like – I went back to basics. I went back to human. A word kept cropping up time and time again in the sessions: trust. Trust is at the heart of all of our interactions in the legal industry, and trust is built on relationships. And relationships, as everyone knows, have to be worked at or they die. So, you need to invest in those relationships to get the best out of them, and to keep them going, even if there is no immediate outcome or need.

But here’s the thing: out of all that investment in listening to the panellists, talking to the other delegates and speakers, and engaging with the content, I gained something else. I learned something. In fact, not just one thing, but an absolute stack of ideas – new ways of working and a host of practical ways to make changes. From the theoretical to the here and now, the conference gave me a new insight into a range of potential solutions in the industry. All of us are magpies, stealing the best ideas here and there to shape into our own way of working. By taking some time out of the office, these events can help shape your thinking.

The things that I would be thinking about as a GC from that event are:

  • How does ‘VUCA’ affect the efficiency of my team?
  • Can I use the techniques I heard about to reduce the legal cost of my M&A transaction to a tenth of the price?
  • How can understanding the ‘4Ps’ marketing concept change how I interact with outside counsel?
  • Why are ALSPs are no longer ‘A’?
  • How do I insist my outside counsel budgets my legal work appropriately and, subsequently, how to reward/penalise?
  • How does Prudential’s ‘Spotlight’ programme actively track diversity in its law firms?
  • How can I use origination credits to my advantage?
  • What communication skills are needed with the C-suite to ensure they see legal spend is optimised?
  • I have the data I need to improve my legal department – so how do I extract it for analysis?
  • I don’t want ‘more for less’, I want ‘better for less’. But how?

I can tell you, the answers (or at least the right questions to ask at the start) were all there. The downside is that not enough GCs are there to hear it. True, there are some bad events out there, but look around and you will find huge value in attending the right conferences/seminars/workshops. Many will probably say they can’t afford the time to do it – after all, ‘time is money’ according to Benjamin Franklin. But looking at the above questions, realistically, can you afford not to?

Online overreach

‘If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place,’ – Eric Schmidt, CEO, Alphabet Inc.

The issue of data privacy has been an increasingly prevalent one for corporates and, subsequently, their general counsel in recent years. When the European Union’s General Data Protection Regulation entered into force in 2016 ahead of its 2018 implementation, businesses the world around were put on notice: the rights of the individual with respect to personal data – its collection, storage and use – were now subject to stringent protections designed to safeguard the end user against corporate interests.

But while the boundaries between business prerogatives and the right to privacy have grown increasingly clear, how companies – particularly those working in tech – handle requests for data from the government and law enforcement remains opaque, particularly with new – or, legally speaking, untested technology.

‘Uncertainty with technology is a real problem for civil liberties, because oftentimes what you’ll see is law enforcement trying to engage in a novel kind of search – or novel kind of information request – that’s never been done before,’ explains Esha Bhandari, staff attorney with American Civil Liberties Union’s (ACLU) Speech, Privacy, and Technology Project.

‘The lack of precedent apparent can be used to their advantage – almost an ask first and then see whether or not a court, or the subject of the request, pushes back. That creates a problem when you have the government or law enforcement pushing to try out new types of technology or search requests. The ambiguity in the law is used to their advantage because that particular fact pattern hasn’t explicitly arisen before.’

In such cases, the prerogative for protection of users often falls on the company faced with the request. In the first instance, advising on a matter like this will typically fall on the shoulders of the general counsel, who will be tasked with balancing the rights of the individual with those of the public at large – represented by those tasked with governing the general populous – as well as that of the business itself.

But in a world in which data and the broad-based learnings that can be derived from it become progressively more sophisticated and prominent, determining what constitutes the public’s best interest – particularly in the face of a distinct lack of judicial guidance – has become nebulous at best. When that decision falls on corporate institutions instead of an independent judiciary, weighing the costs of doing the right thing against corporate imperatives like shareholder primacy becomes even more difficult.

‘The warrant was overbroad and turning over that information was a ridiculous request.’

This very issue came to the fore in the wake of the election of President Donald Trump, when law enforcement served subpoenas on a deluge of digital companies in an effort to obtain information which could lead to the identification and arrest of those involved with protesting and causing unrest in the run up to his inauguration.

‘It really harkens back to the question of, “Are we really living in a place where America’s own government is going to be spying on political dissidents?”,’ posits Stephanie Lacambra, criminal defence staff attorney at the Electronic Frontier Foundation (EFF).

‘It shouldn’t really come as a surprise given the practice of spying on dissidents goes back through many decades, from the civil rights movement to the Black Panthers. But what’s different now is that these requests are using technology to achieve their goals. In the information age, spying takes a different colour.’

DISRUPTJ20

In 2016, following the election of Donald Trump, a group called DisruptJ20 began posting online to organise protests to disrupt his 20 January inauguration the following year – relatively mundane stuff in the murky and anonymous online world. But when the US Department of Justice demanded access to all of the information held on the group by their webhost, DreamHost, it became a point of moral principle for the Los Angeles-based company and its general counsel, Chris Ghazarian.

‘Originally, we received a subpoena from the DOJ in January demanding information about the owner of the DisruptJ20 website. We reviewed the subpoena and everything seemed normal, so we produced the information,’ explains Ghazarian.

‘Fast-forward to July and this time we’ve been served with a search warrant, again, the target being DisruptJ20. The warrant we were served with wanted all of the information that we had about the website, not just subscriber information, email address or email content, they wanted our entire database of what we held on DisruptJ20.

‘That amount of information would be huge – we have our own logs that we keep internally for our systems, which include things like HTTP logs and the IP addresses of our visitors. Those IP addresses were the central issue of our case.’

While DreamHost regularly receives orders for information from law enforcement, the scope and depth of the request was unusual – prompting a deeper look from Ghazarian and his team.

‘The first thing we did when we received the warrant was to look over it with our compliance analyst, who told me about the scope. We went over it together and agreed that it was a very overbroad warrant, which was seeking a tonne of data,’ he says.

‘We reached out to the US attorneys that were working the case to have a conversation, because the warrant was overbroad and turning over that amount of information was a ridiculous request. We do this often when we take in court orders or government requests: we spend a lot of time on them and that usually involves reaching out to the appropriate agency or firm or whoever it is if we feel that it’s overly broad. But in this case, when we reached out, they were silent.’

What followed a week later was a motion to compel from the superior court in Washington DC, a common tactic used in discovery proceedings to force a non-complying party to turn over the requested information when they have either refused or the response received is deemed insufficient.

‘That didn’t sit well with us because, historically, we’ve been staunch supporters of privacy. We’ve always taken a strong stance against overly broad requests or similar issues when they arise with law enforcement,’ says Ghazarian.

‘We’ve maintained a strong relationship with all of our law enforcement agencies in the US. We’ve had agents back and forth all the time, we talk to them frequently. Never before had we had an issue like this, where we’re facing a motion to compel and the other side isn’t willing to play ball. So we took a step back, looked at the case up and down and realised we had something very interesting on our hands.’

OVERSIGHT OR OVERREACH?

With an unusual case afoot and significant privacy issues in play, DreamHost prepared to take the unusual strategy of starting a blog to alert the public just what was going on – a move Ghazarian says he was comfortable with after confirming that there was no gag order associated with the warrant.

‘What was particularly unique about this case was that we were dealing with so many people who had innocently visited the website and were going to have their information turned over to the government,’ Ghazarian explains.

‘The government claims that they don’t do anything with the information they don’t use – essentially that any information they didn’t need to look at would be deleted. But in reality, everything is digital, so you can never truly confirm whether something’s been deleted or not. You couldn’t do that with paper in the past, and in the digital age it’s so much harder. When you’re sending a file over the internet, there’s no way you can be absolutely sure that something hasn’t been copied or screenshotted. There’s no real audit trail.’

‘If we were to turn over this information, we would basically be handing over the browsing habits and identities of tens of thousands of people. We had 1.3 million IP addresses associated with DisruptJ20 over the course of the time span in the warrant. But the individual logs tell you a lot more than just that: the amount of time you spend reading each page, the photos you looked at or other links you clicked on originating from that page – everything is recorded. So you’re handing over an entire logbook to the government and that’s disturbing. Very disturbing.’

Of particular concern with the warrant was the content of the site and its underlying purpose – to organise peaceful political protest – which brought to the fore First and Fourth Amendment issues and concerns about whether the request was constitutional.

‘Freedom of speech and freedom of association were really implicated by the breadth of the request that was made,’ says Bhandari.

‘The warrant was specifically requesting information about people who had visited a website discussing organising a protest that was oppositional to the administration. What happens to our rights for freedom of expression, freedom of speech and freedom of association when all of our communications can potentially be seen, stored and analysed by the government? ’

‘Freedom of association was one of the issues we really honed in on and the fact that this can potentially be a very interesting issue if the government is taking action that can suppress that freedom,’ adds Ghazarian.

‘Freedom of association was one of the things we really honed in on.’

‘If you found out that your browsing habits are turned over to the government because you visited a political website, then the next time you want to read about politics or visit a political website, you’re probably going to think twice about whether or not you want to click on it – particularly if you know that there’s a blacklist of all of your information going straight to government from a webhost or ISP (internet service provider).’

DREAMHOST v DOJ

Because of the seriousness of the issues raised in the warrant, as well as DreamHost’s commitment to protecting the privacy of its users, the decision was made to challenge the order in court. Ghazarian retained a Washington DC-licensed external counsel and together, they began putting together DreamHost’s defence.

‘We filed our first argument late on a Friday night. I can remember working until after midnight, drafting the argument, books open all over my office, whiteboards littered with nodes and sites – it was a real throwback, like going back to law school,’ says Ghazarian.

‘Then, after the weekend, we posted our first blog post live on Monday. It was a very short blog which explained the request that we had received and what we were doing to fight against it. I went to bed that night and had no idea what was about to hit me on Tuesday morning.’

After the blog went live on Monday, the media went into overdrive – with Ghazarian tasked with fronting up and representing DreamHost – truly thrusting the issue and case into the public consciousness.

‘I’d never had anything like this happen during my career. I was in shock. I passed the bar in 2015, had barely been practising for two years and then suddenly I’m being asked to get ready to appear live on television to be interviewed by Anderson Cooper on CNN! Nothing can prepare you for that,’ says Ghazarian.

‘That was the day that everything really went public. It was crazy, but putting our case in the public eye – despite the pressure that came along with it all – the amount of support we received showed that we were doing the right thing. We had no intention of making this a front-page story, we just wanted to show what was happening behind the scenes and the type of things we do for every single one of our customers and ever subpoena or request that we receive.’

CALIFORNIA TAKES THE LEAD

California has been a leader, both in the US and globally, when it comes to enacting protections for digital consumers. The California Electronic Communications Privacy Act (CalECPA) invokes protections that require law enforcement to obtain a warrant in order to access a person’s private information – whether that be emails, text messages, location information or other personal data held digitally.

The upshot of this legislation was that law enforcement can no longer approach a company directly for data – it now has to be approved judicially. The Act makes specific reference to Fourth Amendment protections, while prescribing conditions for data access – including time, targets and type of information sought, as well as how data falling outside the scope of the warrant should be treated. In addition, the Act requires law enforcement agencies to notify the targets of the warrants that their data has been searched, as well as notifying the California Department of Justice about the search, which must be made public.

But while the CalECPA was hailed as a landmark development for data privacy and consumer protections when it was passed in 2015 – where, incidentally, it was co-sponsored by the Electronic Frontier Foundation (EFF) – Stephanie Lacambra, criminal defence staff attorney at EFF, says issues persist judicially.

‘In California, we’re fortunate enough to have a statewide law that requires specific articulation of particularity with regards to search warrants. But, even now, we’re fighting fights here in California, where it’s on the books, about exactly what is required for a warrant to meet the statutory requirements prescribed by the law,’ says Lacambra.

‘Still we’re seeing cases where the warrant doesn’t meet the requirements set out by statute that require suppression. We still have the courts saying that it’s at their discretion to decide whether suppression is appropriate and, as a result, we’re litigating a number of cases right now.’

One of the most prominent cases taken up by the EFF is against San Bernardino County Sheriff’s Department, which has refused to release the records as required by CalECPA. The case in question seeks to obtain the records to ascertain whether CalECPA is working effectively and law enforcement is complying.

‘At present, we’re trying to encourage the legislature at both the state and federal level to better articulate for the courts what the requirements ought to be, because there’s still a lot left at the discretion of the courts,’ says Lacambra.

‘In California, the courts can still find that a warrant doesn’t necessarily require everything set out in the Act, which then requires us to go and fight that in the appellate courts, to get the courts to tell law enforcement that there’s been a violation. The problem at the moment is that without further guidance, courts are still rubber stamping some very broad warrants.’

While Lacambra says that the California legislation has gone a long way to ‘try and rein in government overreach in this area’, more broadly she says that more has to be done to bring these issues to the fore and ensure that those involved become better informed.

‘In my view, it’s about educating the public, educating the judiciary, educating the practitioners that are litigating these issues, and educating the legislators to understand the technology and the issues that surround it,’ she says.

‘If they’re unfamiliar with the technology, how it works and just how invasive certain technologies like cell site simulators [the technology in question in the San Bernardino County Sheriff case] can be, they can’t appreciate the full implications of what’s being authorised.’

To this end, the EFF, a non-profit, offers their services – both to counsel and the judiciary alike – in order to help both make informed decisions about how data, technology and the law intersect, as well as to protect the rights of the individual in the digital space.

Explains Lacambra: ‘Our advice to GCs who find themselves in a similar situation to DreamHost, or for any situation where data and privacy is at stake, is to contact us early and often.’

The likes of the ACLU and EFF were quick to offer their support, with more than 100 organisations signing on to a joint public letter to then attorney general Jeff Sessions expressing concern over what they saw as an infringement on American values.

‘When we were involved in the case, we had a number of companies, senators and congressmen who were all lobbying for us directly to Jeff Sessions,’ says Ghazarian.

‘We also had a number of major tech companies publicly come out to back our decision to fight this order. We received a ridiculous amount of support, offers of donations, connections. I was getting calls left and right from so many people in politics and I’d hear the name and be like “Oh my god, I’ve heard this guy on the news so many times”, or you’d Google their names and find out a senator from some far-flung state would be offering their assistance.’

The outpouring of support and assistance, both publicly and behind closed doors, in addition to the wall-to-wall media coverage ignited significant public debate – mounting pressure on the DOJ to justify the legality of its actions specific to this case, as well as its overarching operating procedures. Facing a public relations nightmare and the prospect of a very public, potentially uphill battle in the courts, the DOJ retreated.

‘Two days before the hearing, there was breaking news on TV that the DOJ had pulled back their request for the information from DreamHost in terms of the IP addresses, and reissued their warrant with different language,’ says Ghazarian.

‘That was literally the biggest issue we were fighting for – the IP addresses. So now we’re in a position where the DOJ is publicly doubling back. They issued a public statement, with a corresponding filing, saying that they were never interested in finding out IP addresses or browsing habits of users and they would gladly not pursue those things.’

‘What was particularly interesting about that was that we had evidence on the record of us reaching out to them to explain the extent of their request, specifically the IP address issue – yet they claimed that they had no idea this information would be included. So, in our follow up filing, we pointed out that they knew this, included emails and other evidence to back that up. But the bottom line was, at this point, that was a huge win for us.’

IN YOUR DEFENCE

While pulling back the request for the IP addresses was indeed a significant win for DreamHost, at the time, they still remained involved in an active dispute with the DOJ over the remaining information requested in the warrant.

‘We filed a further response to the DOJ, alerting them to the fact that even though they had retracted the request for IP addresses, there were still a lot of other issues that needed to be talked about,’ says Ghazarian.

‘Our hearing was pushed back by two days at the request of the DOJ, so I flew out to Washington DC for our rescheduled hearing and our day in court. What first stood out – it was surreal really – was the sheer amount of press in attendance. Half of the room was dedicated just to the media and it was at capacity.’

Ruling on the case, Chief Judge Robert Morin of the Superior Court of Washington DC ruled that the DOJ’s request was a valid one and enforced its motion to compel – with some major changes and safeguards to limit the exposure of sensitive and private user information. Delivering his final order, Chief Judge Morin wrote:

‘Because of the potential breadth of the government’s review in this case, the warrant in its execution may implicate otherwise innocuous and constitutionally protected activity. As the court has previously stated, while the government has the right to execute its warrant, it does not have the right to rummage through the information contained on DreamHost’s website and discover the identity of, or access communications by, individuals not participating in alleged criminal activity, particularly those persons who were engaging in protected First Amendment activities. Accordingly, the court deems it appropriate to incorporate procedural safeguards to comply with First Amendment and Fourth Amendment considerations, and to prevent the government from obtaining any identifying information of innocent persons to the website DisruptJ20.’

‘We were fine with this result – to be fair, most reasonable people understand that we weren’t fighting this warrant in order to prohibit the government from obtaining information from DreamHost. At the end of the day, this was a government-issued warrant and they wanted information regarding the case pending against the protestors. We deal with hundreds of these a year, but there’s a proper way to go about these requests,’ Ghazarian explains.

‘Our issue was that the DOJ was casting an ultra-wide net, and would have obtained a tonne of data that violated internet users’ privacy.We knew at the end of the day we would have to turn over some information – we didn’t want to play hardball with that aspect. We just wanted to cut down the legal request to what we thought was reasonable – not overbroad or overreaching.’

What was interesting about the ruling though, something which surprised Ghazarian, was that the final order to turn over information and how that would be carried out was to be negotiated between DreamHost and the DOJ. Rather than having to hand over the information there and then, the negotiation process went on over the following three months, with DreamHost and the DOJ both submitting a proposed order, after which the judge made a final ruling.

‘When that ruling came in, it was one of the happiest days of my legal career. I remember sitting there, going through the order line by line. We had requested a number of protective measures because of the sensitivity of the information requested,’ says Ghazarian.

‘For most of our arguments and requests, the judge had agreed. Anything that was private information – names, addresses, phone numbers, emails – had to be redacted. So we handed over heavily redacted documents to the DOJ, who were then required to identify what information from that production they wanted to use, then identify the agents who were working on the case and with the information, then appeal to the court and justify to the judge why they needed any of the information they were requesting. Then finally, if they wanted any of the information to be unredacted, they needed to show probable cause for it.’

PROTECTING THE FUTURE

The publicity that surrounded the case brought attention to the issues inherent with the DreamHost case, and the underlying constitutional considerations will likely have the most lasting impact. While the courts’ decision to restrict the ability of both the government and law enforcement to access private user data goes some way in terms of establishing judicial guidance moving forward, whether that will stand up to further checks and tests on the power of law enforcement with respect to data remains to be seen.

‘When that ruling came in, it was one of the happiest days of my legal career.’

‘In terms of future precedent and impacting future issues that come up under these categories, our case helps set a great foundation,’ says Ghazarian.

‘In fact, shortly after our case, Facebook had their own issues with the DOJ over DisruptJ20 and they used some of our arguments that we filed in court in their own case.’

While the likes of major companies like Facebook or historically strong advocates for privacy rights like DreamHost have both the will and resources to contest orders that are seen to overreach, clearly that isn’t the case for all companies.

‘It’s certainly important for companies to take on some of these issues and offer to fight these requests, but it does take companies having the wherewithal to recognise requests that are problematic, then having the resources and will to be able to challenge it. This also means that smaller companies will often not have the ability to fight back. So we live in an asymmetrical world where we don’t quite know everything that the government is doing with regards to requests for data, because it’s guaranteed that there are a number of these requests that never see the light of day, because the company didn’t have the ability to fight back,’ explains Bhandari.

‘If DreamHost had not stood up for its users the way that it did, then this issue quite literally would have gone under the radar. All of this subscriber information would have been turned over to the government and the timeliness with which users would be notified would have been left to the discretion of the courts. Had the government asked for a gag order to prevent DreamHost from notifying users that their data had been compromised and provided to law enforcement, then there’s a good chance that the users would never have even found out.’

That raises the question of whether a legislative response is required to enshrine rights to digital privacy and protection. While California (see boxout) has taken steps to make the process of accessing data more transparent – in particular eliminating any discretion for companies dealing with requests from law enforcement and putting the onus in the hands of the judiciary; codifying requirements and tests to justify access; and spelling out clear requirements for notifying individuals when their data has been accessed – it remains the clear exception. Other states have moved to provide updated protections in their own jurisdictions, but in the absence of an update to federal legislation, which remains outdated and stagnant, the rights of the individual when it comes to their data will continue to fall to the conscience of corporates.

No more firsts

There can be few legal roles in the US of as much significance and substance as White House counsel. And when Beth Nolan jettisoned film school for law school, she had no idea that her eventual career, including serving as White House counsel for President Bill Clinton – the first female to ever take on that role – would be almost the stuff films are made of.

But the path to what could be termed the ultimate general counsel role was not an obvious progression for Nolan. Eschewing private practice thanks to an interest in public policy law, she found herself as a junior attorney with the US Department of Justice (DOJ), tasked with working on government ethics.

‘I was really disappointed when I was given that assignment if I’m honest,’ she recalls. ‘The Office of Legal Counsel is known for handling the weightiest questions of executive power and executive privilege and I felt like I was going to be advising whether somebody can accept the free gift of tickets to a tennis tournament.’

But Nolan’s initial reservations turned out to be unfounded, and her burgeoning passion for ethics would go on to shape the course of her career. After four years at the DOJ, Nolan began teaching at George Washington University, where she taught constitutional law, but wrote about government ethics and lawyering.

‘That’s the specialty that was eventually of interest to President Clinton in the White House when I first started as an associate. There were scores of constitutional scholars but there weren’t that many people who really knew government ethics, and so that changed the trajectory of my career and my life,’ she reflects.

APPLIED ETHICS

Of course, at the time, as a recently tenured associate professor at George Washington, Nolan still didn’t know that. After volunteering for the Clinton Presidential Transition team, she was offered a role running the government ethics programme at the White House.

‘My original four years in the Justice Department were during the Reagan administration. There had been eight years of President Reagan, followed by four years of President Bush. So there weren’t that many Democrats who had government experience in government ethics laws, particularly some of those that had come through from the Ethics in Government Act of 1978,’ explains Nolan.

‘I was somebody who was teaching it, writing about it and had prior government experience actually doing it. So I got called to the attention of the people in the White House, went to meet with them and was offered the job.’

Her burgeoning passion for ethics would go on to shape the course of her career.

Putting academia to the side, Nolan was given a leave of absence to return to government. And although she’d spent the past eight years focused on government ethics – the realities of her new position would set in almost immediately.

‘I think I had a misconception that I would still have time to think about theory. I had this image of myself as being tucked away in some basement of what’s now the Eisenhower Executive Office Building working in my office on difficult issues,’ she says.

‘Instead, it’s a rodeo ride. I remember having to slow down to take a breath. When I look back at it, I remember having to tell myself – as a friend advised me to – “Stop and take a picture in your mind.” I really tried to do that.’

Nolan spent two and a half years doing conflict of interest counselling and vetting non-judicial presidential nominees and appointments, before returning to teaching – anticipating spending the rest of her career in academia. But then the former ‘vetter’ found herself on the other side of the equation.

‘In the spring of 1996, I was asked if I wanted to return to the Justice Department as the nominee for assistant attorney general for the Office of Legal Counsel. Sometime in the start of President Clinton’s second term I was nominated, and I waited a year before I got a confirmation hearing,’ she explains.

‘I had my confirmation hearing, waited a year and still hadn’t had a vote on my confirmation hearing – it was caught up in politics. I of course respected the Senate and their prerogative, so I just waited and waited.’

But in another twist of fate, as one door closed, another door opened for Nolan. In the summer of 1999, she was invited to return to the White House, this time as White House counsel.

FOLLOWING MR SMITH

The White House counsel is the chief legal adviser to the president (in their official capacity) and the White House staff. A non-statutory position, unlike the statutory standing of the attorney general role, the White House counsel is there to advise as the President wishes, meaning that each Presidential incumbent can have a counsel who fulfils different roles, depending on their relationship.

‘But in a well functioning, modern White House, I’d say there are some things that you would expect the White House counsel to always do: to serve as a liaison to the Department of Justice; to coordinate legal issues with other departments and agencies in the executive branch; to help respond to congressional inquiries and investigations; and then to provide advice and counsel to help the White House staff stay fully within legal boundaries as they execute on their policy agenda,’ explains Nolan.

Like any general counsel role, this involves handling multiple constituencies – although, in this instance, those parties are Congress (both the House of Representatives and the Senate) and other executive agencies, all of which have interests that might be incompatible in any particular moment – in a mission-driven environment.

‘The mission of the White House may change a great deal depending on who the President is, but some of the mission has been pretty consistent over time too. Ultimately, it’s to do what is seen as being in the best interests of the American people or the nation.’

And of course, not many general counsel roles involve an interview with the President of the United States!

‘That moment does stick with me, particularly because the meeting was in the main floor of the State Rooms of the White House itself, not in the West Wing,’ Nolan recalls.

‘I think if people had seen me going through the halls of the West Wing to the Oval Office to meet with the President, there might have been speculation. So instead, it was in the White House itself – which is just majestic, and you have such a sense of history.’

That sense of history is significant, not just from the perspective of the long-standing history of the institution itself, but for those who came before Nolan and laid the foundations for her to be selected and assume the role of White House counsel.

‘I came in as a successor to Chuck Ruff, certainly not as his replacement, because no one could ever have replaced him. But I’d had the opportunity to work with him, as well as John Podesta, who was the chief of staff, and with Cheryl Mills and Bruce Lindsey, who were the deputy White House counsels. And, to be frank, if Cheryl Mills hadn’t already decided that she was going to leave government, she would have gotten the White House counsel position and I wouldn’t be talking to you about this at all,’ admits Nolan.

‘Funnily enough too, being nominated as the assistant attorney general for the Office of Legal Counsel and not receiving confirmation actually helped me significantly. Had I been confirmed, then it’s likely that this opportunity would never have arisen for me, but it also meant that, as a result of that process, I had already been thoroughly vetted.’

TAKING THE REINS

Despite coming in after the impeachment proceedings against President Clinton had concluded, Nolan entered into a highly charged political atmosphere, replete with investigations alongside the day-to-day role, itself stuffed with with plenty of variety to keep her busy.

‘I remember one day where there was an urgent national security matter that we had to attend to, followed by another urgent call about the implementation of the Easter Egg Roll! Sometimes it really was just like that,’ she says.

Of course, not many GC roles involve an interview with the President of the United States.

‘What I learned was that you have to really love and embrace every kind of real issue and question that arises during your role. I was very fortunate, as I had a really great staff of lawyers who did that – it wasn’t always just down to me or my personal obligation.’

The day-to-day workload also encompassed matters of executive privilege, questions about political activity, nominations and appointments, conflicts of interest, congressional investigations, independent counsel investigations, as well as the everyday business of running a government agency. But despite the absorbing nature of the role, Nolan retained a fangirl’s appreciation of government fostered by her days as a student – and teacher – of its apparatus.

‘I had the privilege of being there at the start of the administration and then at the very end – albeit in different roles. But the machinery of government transition never failed to awe me – that at 12 noon one person is President, and at 12:01 another one is, and almost the entire White House staff changes in that minute. To someone who loves and taught constitutional law and focused on government issues in my research, there was really no better opportunity to be a witness to the way our government works than those moments of transition,’ she says.

‘[At the end of an administration] you don’t leave things. It’s not like at the Justice Department, where one administration leaves and another comes in but there’s a vast group of civil servants who continue on – there, it’s only the top layer that changes and all the documents and records and files remain. In the White House, everything goes. It’s not tossed – it goes to the National Archives and then, in many cases, to the Presidential Libraries. But it’s not in the White House – you come into empty filing cabinets and computers that have nothing on them, and a staff who largely have no idea what they’re doing.’

That means that each new administration and its staff – and subsequently its counsel – have the opportunity to shape their own role and agenda, though, in large part, the role of the White House counsel in particular will, by its very nature, be one that is as reactionary as it is prescribed.

‘I think, in the 2000s, national security matters have played a much more prominent role. I certainly had to handle my share of national security matters, but that focus on terrorism in the 21st century, I think has certainly changed the White House counsel’s job,’ says Nolan.

‘During my time in the White House, we were dealing with multiple congressional investigations. This White House is just starting to face that now, whereas in the first two years they didn’t really have to deal with that at all. That’s going to shift the role for the current White House counsel. But, in large part, I think in any general counsel position there’s certain bread and butter things you have to do. Sometimes it’s going to be more bread and butter, other times it’s a lot more cake and jam!’

I BEG YOUR…

Another potentially significant aspect of the White House counsel role – albeit one that could potentially be handled differently by every White House – is the thorny issue (even to this day) of the presidential pardon. The US Constitution allows for the President to issue pardons, or official forgiveness, to felons convicted of a federal offence. President Clinton issued a large number of pardons on his last day in office, sparking controversy.

‘We certainly handled pardons at the end of the administration in a way that was different from the way they’d been handled before, because the President really wanted to be sure that he was able to exercise his pardon power, and the rate of pardon recommendations coming out of the Justice Department was very slow. Although we tried to get people alerted that we wanted a faster process early on, things just didn’t proceed that way. We ended up in the White House reviewing some pardon applications directly, still working as closely as we could with the Justice Department,’ Nolan explains.

‘We would review their recommendations, in some cases we disagreed with their recommendations, and we’d advise the President that in some cases we agreed. We’d give the President – and also the chief of staff was involved in some of these as well – our best advice about whether or not to grant a pardon. But ultimately, it’s the President’s power – I read my copy of the Constitution and I didn’t actually see the counsel to the President being given any authority in this.’

One pardon in particular that stoked the flames of controversy, causing a federal prosecutor to be appointed to investigate its legality, was Clinton’s pardon of Marc Rich. A financier and commodities trader indicted on charges of tax evasion and trading with Iran while the country was under embargo, Rich had fled the US.

‘I did testify about that after I left the White House – the President waived any privilege with respect to that pardon. I testified at the time that I did not recommend that you grant that pardon. I didn’t see anything improper about him granting the pardon, I just, as a matter of policy, didn’t think it was a good exercise of the authority. But, as I said, I had no doubt about the question of policy on who got to make that decision,’ says Nolan.

‘Congress and the US attorney all were interested enough to investigate the exercise of the pardon power – so it wasn’t treated as a hands-off issue completely. In fact, my very first day as counsel to the President, I was delivered a subpoena from Congress to testify about pardons that the President had granted before I even became counsel. So Congress has, in other times, not been shy about investigating or reviewing the exercise of the pardon power. I never felt tested as I didn’t see anything improper. I think that the President likely has the authority – Congress can complain about it – but it will be interesting to see if there are other limitations that get explored over time.’

WHITE HOUSE TO IN-HOUSE

After leaving the White House at the change of the administration, when President Clinton handed over the proverbial keys to President Bush, Nolan chose to tread a different path. Following a career spent working within the government apparatus, she pursued a brief tenure in private practice.

‘When I left the White House, I thought to myself that I really liked being a general counsel and knew that this type of role was a strong fit for me. But I also realised that while I’d had government jobs and academic jobs, I didn’t have any experience on the private side,’ says Nolan.

‘That’s why I chose to go into private practice, so I could get that exposure to a broad range of clients and legal issues, but perhaps most importantly, I needed to get some experience on the business side.’

‘The machinery of government transition never failed to awe me.’

Nolan would join Crowell & Moring as a partner, where she spent five years working in the firm’s white-collar and securities litigation practice – a period she credits with instilling the requisite broad-based knowledge to successfully assume a commercial in-house role.

‘Gaining that experience was really valuable for me, but I felt a strong desire to be a part of a team, not just an adviser to a team, but a member of the team with ownership of the matters on which I worked,’ she explains.

‘I also wanted a job where I felt aligned with the mission, so when the opportunity to return to George Washington University as general counsel arose, I knew it was one that resonated with me. I’d been a law professor there ten years earlier and it really hit the objectives that I was looking for. I think having served as a faculty member who had been through the tenure process only enhanced my ability and service as the general counsel.’

The opportunity to come back and serve as the chief legal adviser to the university that served as the springboard for her professional life ties the career of Nolan together with a bow that is almost too perfect – perhaps the final stop in a career which has truly come full circle.

A MOMENT OF REFLECTION

Looking back, Nolan exudes a sense of pride in being the first woman to serve as White House counsel, and in having played a role in felling a professional barrier for women. Since her appointment, two more women – Harriet Miers and Kathryn Ruemmier – have served.

‘But I think the feeling I had in the moment was mostly very personal. It was a mix of pride and excitement and sober awareness of the responsibility,’ she says.

‘And then I look forward, and what I look forward to is the day where there are no more firsts, and it’s not remarkable that a woman is appointed. I think we keep moving along that path. We’re not there yet, and I had that opportunity to be a first, but I’d love it if there were no more firsts.’

Now with the benefit of experience on her side, reflecting on a life in law which has spanned the pinnacles of government, academic, private practice and in-house functions, Nolan says that there’s no secret solution for success – but did offer some sage advice for the next generation:

‘I can only say what worked for me, and the important thing to consider is that what works for one person may not work for another. What worked for me is that I followed what interested me, I tried to know myself well enough to know exactly what that is,’ she says.

‘To add to that, I think one of the really important things is to figure out how you can be yourself at your job and, if that isn’t working, you have to focus on what needs to change. I’d say sometimes that’s the job, sometimes that’s you and sometimes that’s a combination. But use disappointment as a tool to learn and grow and, perhaps most importantly, don’t forget to enjoy the ride.’