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April 11, 2011
STATE BAR PRAISES COURT OF APPEALS’ IN-HOUSE
COUNSEL RULE
Rule helps
facilitate business relocation in New York State
New York State Bar Association President Stephen P. Younger today
commended the Court of Appeals for adopting a rule that allows
out-of-state attorneys to serve as in-house counsel to corporations and
other entities located within New York State.
“The new rule will make it easier for
in-house attorneys and their employers to relocate to New
York, enhancing the state’s position
as the business and non-profit capital of the world. This is a
good measure for economic development in New York,” Younger said.
The State Bar had recommended that the Court adopt an in-house
counsel rule.
Chief Judge Jonathan Lippman said in a
statement, “The new registration rules give New York a
competitive edge in attracting corporations and other entities that in
the past may have been reticent to locate here because of concerns over
the unauthorized practice of law. Furthermore, the new rules will
aid New York-admitted lawyers seeking similar admission in other states
that require reciprocity.”
The newly created Part 522 of the Rules of the Court of Appeals
allows attorneys who are admitted to practice in other states to serve
as in-house counsel to businesses, not-for-profit organizations and
other entities in New York without needing to pass the New York bar exam
and without meeting practice requirements otherwise required for
admission.
Their legal practice would be limited to advising their employer on
business-related legal issues. They would be required to register
with the Appellate Division and would be subject to New York’s
professional conduct and disciplinary rules.
In November 2010, the House of Delegates, the governing body of the
State Bar Association, approved a report recommending that New York
adopt an in-house counsel rule. Forty-three other states and the
District of Columbia have adopted similar in-house counsel rules.
The 77,000-member New York State Bar Association is the largest
voluntary state bar association in the nation. Its programs and
activities have served the public and improved the justice system since
1876.
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