New York recently adopted an in-house counsel license rule that allows in-house lawyers admitted in most other states to become admitted to practice in New York on a limited basis. The rule took effect April 20, and requires individuals currently serving as in-house counsel in New York who are not admitted otherwise to the New York bar to register for the limited license within 90 days of the rule’s adoption – i.e. on or before July 19. Individuals who either transition from a business role to a legal role at a New York company, or come to New York to become employed as in-house counsel, must register for the limited license within 30 days of transitioning to an in-house counsel role or becoming employed as in-house counsel. The failure of in-house counsel working in New York and admitted elsewhere to register in a timely manner for this limited license shall be deemed professional misconduct and could make it more difficult to do so later and potentially expose such counsel to disciplinary action.
A lawyer granted a limited license under this rule is only permitted to act as counsel for the company. The license does not permit the lawyer to act as counsel for anyone else or to appear in court proceedings. Any correspondence indicating the lawyer’s admission must contain a designation making clear that the admission is limited.
Registration under the rule is simple and required. An in-house attorney seeking permission to practice pursuant to this rule must register with the applicable department of the Appellate Division of the New York State Supreme Court by providing: (1) a certificate of good standing from each jurisdiction in which he/she is licensed to practice law, (2) a letter from each such jurisdiction’s grievance committee certifying whether charges have been filed against him/her and describing the substance of and disposition on any such charges, (3) an affidavit from the applicant certifying that he/she will perform legal services only as provided under the rule and agrees to be bound by the disciplinary authority of New York, and (4) an affidavit or affirmation from his/her employer attesting to his/her employment.
The New York rule is modeled on similar rules adopted in other states, and contains a reciprocity requirement. Attorneys applying for registration under the rule must be admitted in at least one other jurisdiction that would similarly permit an attorney admitted to practice in New York to register as in-house counsel. The reciprocity feature of the rule should not impede the extension of a limited license to most in-house counsel seeking to take advantage of the rule because the vast majority of states – 45 out of 50, including New York – have already adopted similar in-house counsel registration provisions. Only those in-house counsel who are licensed solely in Hawaii, Mississippi, Montana, Texas or West Virginia will be unable to take advantage of the new rule.
Click here for a copy of the new rule.