The New York Court of Appeals has new rule allowing out-of-state attorneys to serve as in house counsel to corporations and various other entities located in the State of New York.  Newly added 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 the State of New York without passing the New York bar exam.

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.  Chief Judge Jonathan Lippman also lauded the rule: “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.”

In house counsel admitted under this new rule, however, will be limited to advising their employer on business-related legal issues. Like other attorneys in New York, they will be required to register with the Appellate Division and will be subject to New York’s professional conduct and disciplinary rules.