Multistate Professional Responsibility Examination (MPRE)Regulation of the Legal ProfessionMedium
Attorney Brenda, licensed in State A, works for a large corporation as its sole in-house counsel in State B, where she is not licensed. State B's rules permit in-house counsel, licensed in another U.S. jurisdiction, to practice for their employer without being admitted to the State B bar, provided they register with the State B bar. Brenda has been working for the corporation for six months but has not yet registered. During this period, she drafted and negotiated several complex contracts exclusively for her employer. Is Brenda's conduct ethical?
- ANo, because she failed to register as required by State B's rules.
- BYes, provided she promptly registers upon learning of the requirement.
- CYes, because her practice is limited to her employer and does not involve offering services to the public.
- DNo, because she is practicing law in State B without being admitted to its bar.
Show answer & explanationAnswer & explanation
Correct answer: A. No, because she failed to register as required by State B's rules.
Many jurisdictions provide an exception for in-house counsel to practice for their employer without local admission, but this exception is typically conditioned upon registration with the local bar. Brenda's failure to register means she has not met the requirements for this exception and is therefore engaged in unauthorized practice.
Why the other options are wrong
- B. Prompt registration upon learning of the requirement might mitigate future issues, but it does not retroactively make her past unauthorized practice ethical.
- C. While her practice is limited to her employer, the 'provided' clause in the rule is critical. The exception is conditional, not absolute.
- D. This is partially correct, but the specific reason for it being unethical is the failure to meet the registration requirement for the in-house counsel exception.
In-House Counsel Exception
Some jurisdictions allow lawyers licensed elsewhere to serve as in-house counsel for an organizational employer without local admission, often requiring registration with the local bar.
- Practice is limited to the employer's affairs.
- Does not authorize practice for the general public.
- Compliance with specific jurisdictional requirements (e.g., registration) is mandatory.
Memory trick: In-house, in-bounds, if you register for all rounds.