Corporate Funding of Employee Legal Fees: Special Considerations
When companies come under investigation, employees who were involved or otherwise knowledgeable of the conduct at issue often need to have their own counsel.
April 19, 2022 at 10:47 AM
5 minute read
When companies come under investigation, employees who were involved or otherwise knowledgeable of the conduct at issue often need to have their own counsel. This is because the interests of a company and the personal interests of an employee are not always aligned, particularly during a criminal investigation in which an employee's liberty is at stake. In these situations, it is commonplace for a company to pay for the employee's attorney, either out of legal obligation or personal loyalty. There are many advantages to this arrangement from the company's perspective, not the least of which is the possibility for the company's and employee's attorneys to share information under a joint defense agreement when appropriate.
Despite this widespread practice, a company paying for separate counsel for one of its employees is inherently unnatural. Corporate counsel paying for outside counsel's services are used to being in charge of the objectives of the representation and the tactics designed to achieve them, and the attorneys they hire are conditioned to comply. Loyalty to the company's interests are paramount. This is the natural order of things when the company is the client.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLegal Departments Dinged for Acquiescing to Rate Hikes That 'Defy Gravity'
4 minute readBest Practices for Adopting and Adapting to AI: Mitigating Risk in Light of Increasing Regulatory and Shareholder Scrutiny
7 minute readThree Reasons CLOs Are Critical to the Successful Adoption of Generative AI
Election Outcome Could Spur Policy U-Turns Across Employment Landscape
6 minute readLaw Firms Mentioned
Trending Stories
- 1Treasury GC Returns to Davis Polk to Co-Chair White-Collar Defense and Investigations Practice
- 2Decision of the Day: JFK to Paris Stowaway's Bail Revocation Explained
- 3Doug Emhoff, Husband of Former VP Harris, Lands at Willkie
- 4LexisNexis Announces Public Availability of Personalized AI Assistant Protégé
- 5Some Thoughts on What It Takes to Connect With Millennial Jurors
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250