Joe Glynias of Husch Blackwell, left, and Verona Dorch of Peabody Energy, right. Courtesy photos.

Peabody Energy Corp. and Husch Blackwell have been working together for well over a decade. But that didn't mean the firm was a shoo-in when Peabody's legal chief issued a request for proposals last year as part of the process of building a new panel of outside firms.

Peabody's chief legal officer Verona Dorch, who leads a department of 35 legal and government affairs professionals, had a certain set of criteria in mind when the St. Louis-based company examined various law firms throughout the country—and she expected every firm to take those expectations seriously.

After a process that spanned several months over the course of 2017, Peabody ultimately chose 13 firms, including Husch, to work as strategic partners. Not every firm that previously counted Peabody as a client was asked to continue their relationship.

“We had to have some very tough conversations with longtime firms,” Dorch said. “It was uncomfortable, but we gave them feedback on what we were looking for, in case they want to re-enter the process next time.”

Among the “lucky 13” firms, as Dorch jokingly described the group, was a mix of both new firms and those that have served as outside counsel for some time.

Peabody's legal department turned to AdvanceLaw, a legal management consultancy, for help throughout the process. “We only go through this process every two to three years, so it's nice to have a partner that has the knowledge,” Dorch said. “Plus, it was able to free up our lawyers so they could work on other things.”

Dorch said during the RFP she was looking for firms that “really listened” to the company and paid attention to its needs. If a firm has the right practice area specialty for Peabody, she noted, that's helpful—but it's certainly not everything.

Her advice for firms participating in an RFP process: “Really read those RFPs and follow through. … Don't assume, 'Oh, diversity. That's not a big deal. We can deliver on these other five areas.'”

Dorch explained that Peabody was interested in having firms on board that are flexible with fee arrangements. Though she believes there's still a place for hourly billing on some types of matters, she also favors making good use of AFAs.

With securities work, for instance, she likes flat fees. “For that, you know exactly what you're doing every year with Ks and Qs and proxies,” Dorch said.

For Husch, winning a spot on Peabody's panel has provided new opportunities, beyond more business for the firm. Joe Glynias, a Husch partner, said the experience has meant a chance for Peabody and Husch to build even more on their relationship and collaborate.

For instance, at the beginning of this year, one of Peabody's in-house lawyers left for another job. Since the legal department has been down by one lawyer in the past few months, Dorch called on a lawyer from Husch to come in on secondment, so the company could work with someone who already knew the business and hold off on recruiting someone new until after it got through the proxy season.

Glynias said that in working with any company, outside lawyers should know that client's business inside and out.

His advice for lawyers is to sit in on investor calls, set up Google alerts about the company and stay on top of news regarding the company's affairs, legal or not.

“If there's a catastrophe at a facility in New Hampshire, you need to know about it,” Glynias said. “It's not just about providing legal assistance on those everyday matters. You can become a trusted partner for the business.”