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How the county saved a pile of cash by hiring its own lawyers

Not only did it pay less in legal fees, it also wasted less time
20161020 business

Sometimes you’ve got to spend money to save money.

That’s what Simcoe County found out as it conducted the first-year review of its new legal services department.

In April 2016, the county brought in long-time municipal lawyer Marshall Green, a partner in a Barrie firm that provided counsel on growth and development issues, land acquisitions and representation at Ontario Municipal Board hearings. It also hired Zarah Walpole, who had worked for the City of Barrie, as its legal services director,

“The decision to bring legal services in-house has been a success in a number of ways,” said Walpole, who highlighted cost savings.

She noted that had the county had to hire externally, the cost would have been over $800,000.

By contrast, the cost to operate the legal services department, which also includes a senior law clerk, was $536,000 in its first year, she said.

The bulk of the casework related to litigation.

Based on a rate of $350 per hour for a senior lawyer, contract work would have totaled $306,000 and real estate searches, acquisitions, mortgages and title matters would have totaled $166,325.

In the year ending March 31, the county’s new staffers gave 23 opinions, represented the county on 23 OMB motions and hearings and four settlements. There was another legal matter. The litigation matters would have cost $338,100 in external consulting fees, she explained.

But saving money wasn’t the only benefit, Walpole said in her report. She said using staff experts saved time.

“In-house legal counsel has been able to respond more quickly and efficiently to legal  issues as they arise. For example, when the county was made aware that an OMB hearing dealing with an aggregate application in Dufferin County, in which a proposed settlement would designate a haul route through Simcoe County, Legal Services quickly mobilized to bring a motion at the settlement hearing, which granted the county party status and allowed the county to argue against the proposal.”

She added the legal staff have also helped other county staff deal with issues ranging from tree preservation to do-not-resuscitate orders to Ontario Works casework.

Being quick to respond also enables the county lawyers to stop contentious issues from escalating, she added.

She noted the department is also working with senior staff to help them understand the legal framework on an array of day-to-day matters, knowledge that will work its way to on-the-ground staff.

“The Legal Services Department has also been able to pass on cost savings to members of the public. Legal fees, as set out in the Fees By-law are set on a cost recovery basis. This keeps costs significantly lower for developers and residents, when compared to the cost of external legal counsel,” she added.