How You and Your Clients Can Cope With the COVID-19 Pandemic: Plan Now and Come out Stronger
Social distancing, self-isolation, self-quarantining are terms no one used or even knew a few months ago. Today, they are part of our everyday lives and the measures we take to protect our families, neighbors, friends, co-workers, and clients from the COVID-19 coronavirus.
Given Governor Whitmer’s shelter-in-place executive order and the Michigan Supreme Court’s administrative orders to restrict access to courts and placing dockets across the state on hold, the message is clear – take care, stay safe, stay home, and be smart. None of us want to take any steps that place others and ourselves at risk. But we can implement strategies to cope with the current crisis.
Reevaluate How Money Comes In and Goes Out
In a recent Law360 article by Peter Zeughauser, legal industry expert addressed how “COVID-19 is keeping many law firm leaders home all day and awake all night.” Along with concerns over their people and their families, he identified the anxiety they face about the financial impact, falling revenues, and a sudden recession, and the health and safety of their families, colleagues at their firms, clients, and friends have been their top priority.
We found Zeughauser’s proactive approach to weathering the coronavirus emergency not only useful but vital. And don’t let the title fool you – his guidance is as much for solo practitioners, small firms, and boutiques, as they are for BigLaw. Among his recommendations:
Consider discounted rates, flat-fee arrangements, flexible pricing structures, and invoicing policy changes to prevent leakage of client billings in an already depressed legal market
Consult with accountants and inside personnel to determine how to leverage all the options available to you in the $2 billion economic stimulus package, and the opportunities the Coronavirus Aid, Relief, and Economic Security (CARES) Act offers your organization, including emergency loans.
Maintain Relationships and Address Needs and Fears
With most of cloistered at home, we shouldn’t let the physical distance from clients become relationship distance. Our new mandate is to reach out by telephone, teleconferencing, and videoconferencing, instead of resorting only to email.
Clients are “turtling,” too, and we must address their needs, and not just legal concerns. In this environment, organizations have questions about taking care of employees, meeting payroll, and renegotiating leases. Some businesses will evaluate potential strategic divestitures, mergers, or asset sales, particularly entities that may be more open to such discussions than before due to the economic climate and forecasts.
But behind those questions are people who are scared – scared for their jobs, their co-workers and reports, their livelihoods, and yes, their lives and the lives of the ones they love. It is not, nor can it be, business as usual.
Your individual clients may need you for simple conversation and commiseration than counsel. They, too, are frightened, and now is your opportunity to be more than their attorney.
Zeughauser suggests conducting SWOT analyses (strengths, weaknesses, opportunities, and threats) for your organization and your clients. That’s fine but go beyond contacting clients to determine issues on which you can advise. Reach out to ask them how they’re doing and what they’re feeling – and then listen.
Consider “Remote” ADR
For all intents and purposes, Michigan’s courts are closed, and litigation has come to a virtual standstill. When motions, hearings, and trials will resume is uncertain. Even traditional in-person mediations and arbitrations – our stock in trade – are on hold.
But “remote” ADR where the neutral and participants use video conferencing offers a viable means to move matters forward.
Now is an opportune time to talk to clients about leveraging the current situation to resolve languishing legal disputes and take at least one concern off their shoulders. Consistent with Zeughauser’s suggestions about billing and rate structures, your clients may appreciate your advice for shortening the delays and unpredictability of pending lawsuits and claims. Focusing on clients’ need to maximize cash flow and minimizing risk in today’s difficult, unprecedented environment is part of your role as attorney and counselor.
ADRoit Dispute Resolution uses Zoom to conduct mediations and arbitrations that permit geographically-separated participants to attend wherever they may be sheltering, share documents, and engage in real-time and effective ADR proceedings. We are aware of concerns regarding Zoom’s security and have configured access to protect confidentiality and ensure privacy.
The consensus from our colleagues around the country is that cases are settling using this remote ADR. Although it may take some getting used to, and if participants forgive possible technical glitches, the process can be effective in moving files and resolving disputes.
If you have any questions about ADR or ideas for toughing out the coronavirus pandemic, please don’t hesitate to contact Dick Hurford or Paul Monicatti. We are always available to help and listen.