In-house legal facing major change?

Last week, the European court re-affirmed its position limiting the client-attorney privilege accorded to the advice provided by in-house lawyers to the business. This view is in direct contrast to the position in the United States.

In-house law groups are already typically smaller and less involved in day-to-day business operations than their US counter-parts. But will this decision lead to cut backs in existing staff? On the surface, it certainly appears to be good news for the external law firm, including perhaps the providers of legal process outsourcing.  It might also mean a transition of some legal work to lower paid contracts and commercial staff.