Welcome to Inside Track. I'm Law.com in-house reporter Stephanie Forshee.

It's been a busy week for corporate legal departments (and by extension, the reporters who cover them). There were major new in-house hires at Uber and Starbucks.We took a look into what a GC should do if his or her CEO suddenly departs. And we published a deep dive into what happens when cases turn into matters of in-house counsel vs. outside counsel.

Let's jump right in.

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What's Happening –

KEEP CALM AND LAWYER ON. My colleague Caroline Spiezio wrote an interesting story this week that explored what a GC should do if the CEO suddenly departs.This can happen for a number of reasons, of course, but let's face it, as the #metoo momentum continues in full swing, no executive departure seems totally outside the realm of possibility.

So what should a GC do if put in this situation?

One approach is “to stay calm and work with the board and the rest of the executive team to understand the process they're going through,” Ken Avery, a partner at Deloitte Financial Advisory Services, told Caroline.

Another pro tip came straight from former Spectra7 Microsystems GC Cynthia Colewho stepped in as co-chief executive at the company after her boss died. She had to shift from a lawyer's mindset to a CEO's, but at the end of the day, her most helpful advice is: “Be bold and don't be afraid to step in where you see the gap. Don't be afraid to make decisions, and to lead.”

GOING ROGUE. This past week, Corporate Counsel published a story from Scott Graham about a former GC whose ex-employer accused him of “going rogue” and stealing trade secrets.

As Scott explained, “Blink Health Ltd. sued Hippo Technologies LLC in New York federal court on Wednesday, calling Hippo 'a rogue and fraudulent enterprise that is trying to cheat its way into the market by outright thievery.'”

I asked Boris Zelkind, partner at Knobbe Martens, what companies can do to protect their precious trade secrets.

The first thing a company needs to do is conduct an internal audit to identify its confidential and trade secret information. “This audit needs to touch all of the company's departments because trade secrets are not limited to formulas and technical information,” Zelkind said.

Another effective strategy, according to Zelkind, is to create contracts with employees and educate workers. A company can require an employee to sign an agreement requiring the worker to return company information upon termination. And it can't hurt to hold periodic training sessions to remind employees of their trade secret protection duties, Zelkind said.

Then, of course, there are a number of technological measures. Zelkind said companies should consider issuing approved mobile devices, implementing monitoring software and restricting data access based on electronic permissions to certain employees “on a need to know basis.”

BIG BROUHAHA. In Corporate Counsel's March cover story, we featured cases of lawyers suing their lawyers. It's a very rare move, according to most people who spoke to me for the piece. But some companies, including CashCall, APR Energy and ALPS South, resorted to litigation last year— accusing their outside lawyers of malpractice.

As legal consultant Jason Winmill of Argopoint told me, “It's like going nuclear.” He isn't wrong.

Here's some advice I gathered from my sources about what companies should consider before pressing the launch button.

▶ Make sure it's something you really want to do, because you will lose those relationships with firms. There's also the possibility that some of your other firms will find it off-putting.

▶ If you think your existing caseload is expensive, try suing another lawyer. Their professional reputation is on the line so the expenses add up quickly. And it can be tricky to prove malpractice.

▶ And lastly, don't forget that everything about you and the company will come out in the discovery process. After CashCall sued its firm Katten Muchin and one of its attorneys for allegedly giving poor business advice, Katten didn't pull any punches against CashCall's general counsel Daniel Baren. They definitely went nuclear.

Question of the week –

Do you have a pressing question you'd like answered? If so, send it my way.

This week's question: How long should a GC stay at the same company in today's market?

Many professionals view the role of general counsel/chief legal officer as the top legal spot in the in-house world. It is a “goal achieved”—through years of hard work and career navigation.

And it's a legal position unique to any other … and is viewed as such by employers. So the market “rules” for GCs can be different compared to lawyers possessing other titles.

This includes judgments and consequences related to tenure in a role or an organization. When it comes to these issues, a GC with short stints at one or multiple employers will be subject to the same scrutiny as other in house lawyers in the market.

Raising questions on the departure circumstances and potentially calling into question the quality of the candidacy. However, GCs receive far greater latitude than those of lower rank for a long tenure. Why? Because employers view the GC as a top company executive with no higher legal position to reach. They also see it as a role that entails a flow of evolving responsibilities and challenges. So the position won't become stagnant, experience won't get stale, skills will continue grow, contribution will be high…and the GC will remain challenged. In most instances this is true, which is why GC mobility in today's market is quite low. So staying in the role for 10 … even 15 years won't raise many, if any eyebrows.

With the longevity consequences minimized, the “right length of time” to stay in the GC role at a company takes on a different analysis. Shifting the weight from market driven factors … to personal factors driven by the GCs own career desires. So what are the personal factors that help GCs determine the right time to move on? Below are the most common:

▶ Desire to move to a bigger public company with higher revenue.

▶ Desire to move from a private company to a public company.

▶ Desire to move from a public company to a promising start-up company.

▶ Desire to manage a larger legal department.

▶ Desire to change industries.

▶ Desire to join a company whose executives value the legal function more than their current employer.

▶ Desire to report to a CEO.

▶ Desire to join a company that is more successful.

▶ Desire to join a company that is more ethical.

▶ Desire to flee a toxic culture.

▶ Desire to make more money.

▶ No longer a desire to be a GC.

▶ Desire to relocate.

▶ Desire to retire.

In today's legal market, GCs are not a highly mobile constituency. So their tenure in organizations tends to be much longer than other in house lawyers. But given the nature of the position and its perception among employers, GCs are less saddled with the negative assumptions that can accompany many years of service. Consequently, they are less beholden to market perception and are freer to determine the right length of time to stay … or leave.

— Julie Brush, founder/author of The Lawyer Whisperer and co-founder of Solutus Legal Search.

Social Lawyers –

For better or worse, Facebook's Deputy GC Paul Grewal has been the in-house lawyer publicly addressing the social network's data scandal. Facebook itself has been notably silent, but here's what Grewal had to say on Twitter this week about the Cambridge Analytica debacle.

Grewal added: “Kogan gained access from users who gave their consent. No systems were infiltrated and no passwords or sensitive pieces of information were stolen or hacked.”

My colleague Ross Todd can fill you in on the rest here.

Don't miss –

Tuesday, April 3. Global Leaders in Law will hold a roundtable in Tel Aviv titled “What Makes a Great Leader.” It will also hold a session on “Changing Corporate Counsel” in Shanghai on Wednesday, April 11. GLL is an invitation-only membership group, offering GCs a global platform for in-person collaboration to exchange ideas, receive advice and guidance from peers. For more information, contact Meena Heath at [email protected].

Thursday, April 19. Corporate Counsel Forum Middle East is back. This year the Ritz-Carlton, Dubai will host a full day of peer to peer networking, discussions and interactive workshops on topics like competition law, leadership, cybersecurity, AI and fintech.

Sunday-Tuesday, April 29-May 1. The In-House Counsel World Summit in Toronto is themed: Beyond Borders: Business and Law in the Global Village. The Canadian Corporate Counsel Association's national conference is meant to embody the present and future of in-house counsel — both in Canada and abroad.

Thursday, June 14. The American Lawyer and LegalWeek will present the Transatlantic General Counsel Summit 2018 in London. The summit provides a platform for some of the most elite general counsel in the U.K., Europe and U.S. to identify and determine the meaningful difference the legal function can make when contributing to a company's strategy.

Quote of the Week “As a young female lawyer, a lot of assumptions were made about me, including that I was the court reporter or secretary, and many male attorneys would call me things like 'little lady.' I had two options: I could hang on to it or just let it go and realize that there is not much I can do other than work harder and smarter.”

Cynthia Gibson, executive vice president and chief legal and business affairs officer at Scripps Network Interactive, speaking to The American Lawyer for a series about female lawyers during National Women's History Month

On the Move –

Right hand. This week, in-house people moves made a lot of waves. Just last night, Uber announced its new CLO Tony West had named his “trusted right-hand partner,” Tammy Albarran, a partner at Covington & Burling, as the company's deputy GC, replacing Angela Padilla. Albarran was a co-author, with Eric Holder, of the famous Holder Report, which gave recommendations to Uber on how to improve its troubled culture. In a message yesterday following the annoucement, Tony told me, “I have known Tammy for nearly 20 years, and I have always admired her intelligence, integrity and grit—all qualities that will make her an excellent co-author of Uber's second act.”

Pharma law. Pharma giant Merck has a new GC. The company announced yesterday that Jennifer Zachary will lead the legal department. She most recently served as a partner at Covington in the firm's food, drug and device practice group. Merck's current GC Michael Holston will be leaving for GE in April.

Another sound wave. Name-that-tune app Shazam lost its GC Antonious Porchafter he announced this week he was joining music and audio platform SoundCloudin New York as its top lawyer. “A new adventure,” he wrote to his LinkedIn followers. We'll stay tuned on who fills in for him at Shazam.

To government she goes. This past week, it was announced that California Governor Jerry Brown had made a few appointments. One of these was former ClearSlide GC Olga Mack, who will serve on the California Law Revision Commission. “I'm very honored to be invited to serve,” she told me, “especially by the governor who explicitly prioritized appointments of women and diversity.” Here's her full interview with my colleague Caroline about the new gig.

Venti legal. There's a new top lawyer at Starbucks. Rachel Gonzalez, who most recently served as chief administrative officer for Sabre Corp., is stepping into the role left vacant last summer by Lucy Lee Helm who transitioned into the role of chief partner officer.