Involve Lawyers Early
As part of a three-part series, Stephen Hibbert shares his first best practice tip to lawyers on how to effectively resolve disputes.
Currently, we are in the phase of delivering USD65 billion order of metro, light and long distance rail systems in Qatar. Our contract packaging is such that we interface with nine major contractors – eight civils and 1 systems. As you read this, we have 21 tunnel boring machines drilling under Doha. If all goes according to plan, you will be able to buy a ticket and travel on the metro in 2019. Against this background, with the metro and Lusail LRT all now under contract, we are managing the delivery phase. Part of the process involves issue or dispute management.
After 30 years in private practice, it is very interesting to sit on the client side and watch both contractors and their attorneys present claims and disputes. What I would like to focus on is the particular role that attorneys play in the process, both on major projects like ours and more generally in commerce; in the context of major project claims or significant commercial disputes.
My first proposition for effective dispute resolution is: get a good, senior attorney involved early. Sensible, pragmatic legal advice, on both sides, serves everyone well. There is no commercial or government organisation that likes having disputes. Yes, they are inevitable. However, it is not inevitable that their resolution has to be protracted and expensive, generally with a disappointing outcome.
I have come across many examples of lawyers who are not willing to work towards a settlement at an early stage. I mean no professional criticism, and I do believe that all attorneys are blessed with a small portion of ‘resolver ’in them – it is the getting it to work that is often difficult.
I am reminded of the story of the alumni of a Harvard legal class, who met every year after graduation. Most of them had gone on to some form of success and generally arrived at the coastal venue for the meeting looking dapper and in exotic cars.
One fellow arrived year after year in a decrepit car, wearing well-used jeans. Apparently, he had returned to his small country town and was the only lawyer in the village. His circumstances were commented upon each year – noble and altruistic principles, but the pay was lousy.
In the sixth year, he arrived at the retreat in a very flashy German sports car, and looking every bit of success like the others. He was asked by his peers,
“So you left that little town and set up where?”
“No,” he said, “still there.”
“Well how do you explain the car and the new look?”
“Another lawyer came to town!”
I talk to our contractors every day. They value the advice of their lawyers. But they commonly keep them away from claims meetings as they feel that will send the wrong message. What do you think that message might be?
May I encourage you to be the attorney that your client wants to take to claims meetings because you will send the right message: each party knows its rights – but we as lawyers are here to see if we can resolve this dispute and maintain important commercial relationships – what can we do to help?
Text by:
Stephen Hibbert, head of legal services and general counsel of The Qatar Railways Company
