In-house Teams Lead Litigation, Challenging Law Firms' Roles
Corporate legal departments are bringing more litigation work in-house, reducing law firms' lead role.
Why it matters: This shift challenges traditional law firm business models and client relationships, forcing firms to adapt litigation strategies and engagement approaches.
- 66% of legal departments increased in-house work in 2023, up from 59% the prior year.
- Sun Life's 40-member in-house team manages over half of Canadian litigation cases.
- Aviva's internal litigation team handles 30% of its cases, growing to 90 lawyers and staff.
- Nearly 45% of CLOs plan to raise outside counsel spend by 2025 due to complex litigation.
Corporate legal departments are increasingly taking charge of litigation, diminishing law firms' traditional lead role. A 2023 survey by the Association of Corporate Counsel and Everlaw found that 66% of legal departments are bringing more work in-house to control costs, up from 59% in 2022 (Legal Dive).
Major corporations illustrate this trend. Sun Life Financial's in-house litigation team, comprising 40 lawyers, paralegals, and assistants, manages more than half of its Canadian litigation cases. As Vice President & Associate General Counsel Sandra Perri notes, “There is no greater expert in the business of the company than the in-house team” (Canadian Lawyer Magazine).
Similarly, Aviva Canada's internal litigation team, Aviva Trial Lawyers, has expanded from 80 to 90 staff in two years and handled approximately 30% of the company's litigation as of 2019. Lianne Furlong, Aviva's Chief Litigation Counsel, emphasizes cost-effectiveness and results parity with external counsel (Canadian Lawyer Magazine).
Telus maintains a nine-member in-house litigation team tackling diverse matters including e-discovery and employment litigation. Delbie Desharnais, Associate General Counsel, observes the importance of closely managing litigation with internal knowledge of company culture and priorities (Canadian Lawyer Magazine).
Despite these expansions, complexity drives outside counsel use. Nearly 45% of Chief Legal Officers intend to increase outside counsel spending by 2025 to address more complex litigation and investigations (Legal Dive).
BMO Financial Group blends these approaches through its litigation practice management group, comprising litigators from global offices, illustrating integrated legal strategies (Canadian Lawyer Magazine).
This evolution calls on law firms to rethink client engagement and litigation management, moving beyond traditional models to partnership approaches aligned with corporate legal departments’ expertise and cost controls.
By the numbers:
- 66% — legal departments bringing more work in-house in 2023 (up from 59% in 2022)
- 45% — Chief Legal Officers planning increased outside counsel spend by 2025
- 40 — lawyers and staff in Sun Life Financial’s in-house litigation team
Yes, but: While in-house litigation is growing, complex cases still require outside counsel, sustaining law firms’ relevance.
What's next: Firms are expected to develop more integrated, cost-effective litigation models to align with in-house teams.