Above a certain size, as the number of business relations and employees is growing sooner or later companies might face legal disputes. On top of this, companies might find themselves in inconvenient situations in a wide variety of routine cases. Just thinking of the often altered legal circumstances for example.
There are two types of solutions, the reactive and the proactive approach.
The main feature of the reactive approach is to try to demise or at least reduce the arisen disadvantages immediately. In some cases – less or more – it is possible but sometimes it is absolutely not.
The main feature of the proactive solution is to try to prevent the potential problems. The attorney keeps constantly in touch with the management of the company and visits at the seat of the company if it is necessary and the management could discuss with the attorney before making any decisions. After a while the consultation is getting shorter and shorter because the business environment and other circumstances become familiar to the attorney. On empirical judgement we can say that it is a more cost-efficient solution. The same applies in medical therapy: it is better preventing the illness than treating it.
The proactive solution is the continual brief with an attorney. The expenses can be calculated in advance, and it is the attorney’s responsibility to protect the company’s decisions before legal forums if the decisions were made according to the advice given.
This is the area, the complex advocacy of the middle sized companies (about the end of the Hungarian top 500) where 80-90% of our law firm’s activities lie. According to the relating regulations we aren’t allowed to publish our references but we are allowed to disclose that our key account clientele compromises of vehicle parts manufacturers, food commodity manufacturer, agricultural plant grower companies (btw. American, German, Hungarian and Japanese owned). We are also the legal representatives of one of the world’s biggest poultry breeding company’s branch in Hungary. (The above references can be announced and verified in case of personal contact.)
We would also like to point out a matter which is widely ignored by attorneys – at least we were unable to find this topic on other law firms’ websites. We are talking about the responsibility of the attorney. The clients can find one more advantage of the continual brief in this field. If the decision of the company’s management eventuates in violation of the law or a contract the company feels the disadvantages. If the management’s wrong decision is based on the attorney’s malpractice, the attorney’s liability insurance covers the caused disadvantages. It is important to make sure if the attorney’s liability insurance acts upon the value of the company’s transactions because in Hungary the obligatory minimum amount of the insurance is only 11 million HUF which is low in comparison with international level.