Latest state allows in-house counsel to skip the bar exam

The Utah Supreme Court recently adopted a measure permitting in-house attorneys to represent their companies even if they have not taken the state bar exam. Instead, in-house counsel can receive a limited license to practice law.
Rules on admitting out-of-state lawyers vary widely from state to state. Some jurisdictions permit attorneys to waive in at any time, while in others only lawyers licensed in certain states can waive in, while others are required to take all or some portion of the bar exam. And some states simply require all lawyers to take the entire bar exam.
Utah is one of 25 states that allow in-house lawyers to register for a limited license. Twelve states – Arizona, Arkansas, Delaware, Georgia, Massachusetts, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, South Dakota and Wyoming – have adopted the American Bar Association’s new Rule 5.5, which tacitly permits limited licenses, according to the Association of Corporate Counsel’s website. Maine, New York and Vermont are currently considering the rule.
Susan Hackett, general counsel of the Association of Corporate Counsel, said the change by Utah “recognizes the reality that in-house counsel who work for their employer/client are not in any way endangering the public by practicing. The idea that lawyers have to stay within geographic boundaries is nonsensical in this environment.”
However, Hackett is critical of the requirement that attorneys practicing under the new measure must register.
That provision makes it “cost the state significantly more to administer the system,” she said.
She concedes, however, that the registration process does make it easier to see who is taking advantage of the change.
Opponents of the change suggest that a better practice for corporations might be to associate with local counsel.
“In my experience, in-house counsel do not make terribly great litigators,” said Jonathan B. Wilson, the senior vice president of legal and corporate development for Web.Com, Inc. in Atlanta. “It’s not a great idea.”
Wilson also claims in-house lawyers at most companies handle many issues on any given day, and pulling them away to litigate a case can be detrimental for the company.
“If my company were sued in Utah, I would darn well want counsel who know the rules in Utah,” he said.
But according to Hackett, local counsel is unnecessary in many cases when in-house counsel is providing limited representation on a temporary basis.
You can read or download the full text of the ABA’s Rule 5.5 in the Important Documents section of New England In-House’s website: www.newenglandhouse.com.
Attorneys wishing to register for a limited license to practice in Utah have until Nov. 7 to do so. An application can be downloaded from the Utah State Bar’s website: www.utahbar.org/admissions.