I'm licensed in two other states but not in Rhode Island. Can I serve as general counsel to a Rhode Island insurance company, advising it on its legal obligations?

Plain-English summary

An attorney asked whether he could serve as general counsel for a Rhode Island-based insurance company with offices in all fifty states. The attorney is licensed to practice in two states but not in Rhode Island. He explained that the company uses Rhode Island counsel for litigation and other matters, but that he would like to provide guidance to the company about the legal obligations or limitations imposed on it by law and regulations.

The opinion invokes the Panel's own jurisdictional rule. Under Rule 2 of the Rules of the Rhode Island Supreme Court Ethics Advisory Panel, the Panel accepts requests "from any member of the Rhode Island Bar in good standing concerning his or her prospective conduct as an attorney under the Rules of Professional Conduct." Because the inquiring attorney is not a Rhode Island Bar member, the Panel declines to respond to the inquiry and instead refers the attorney to the Rhode Island General Laws, specifically the statute governing the unauthorized practice of law.

In practice

Under this opinion, the Panel does not reach the merits of whether an out-of-state lawyer may serve as general counsel to a Rhode Island company. The declination rests on the Panel's jurisdictional limit under its Rule 2 to Rhode Island Bar members inquiring about their own prospective conduct, and the opinion directs the attorney to the state's unauthorized-practice-of-law statute for the governing law.

Common questions

Q: Did the Panel decide whether a non-RI lawyer can be general counsel to a RI company?

A: No. The opinion declines to respond on jurisdictional grounds and refers the attorney to Rhode Island's unauthorized-practice-of-law statute.

Q: Why did the Panel decline?

A: The opinion cites Rule 2 of the Panel's rules, under which it accepts requests only from Rhode Island Bar members in good standing about their own prospective conduct; the inquiring attorney is not a Rhode Island Bar member.

Background and rules framework

The opinion turns not on a Rule of Professional Conduct but on the Panel's charter. Rule 2 of the Rules of the Rhode Island Supreme Court Ethics Advisory Panel limits the Panel to requests from Rhode Island Bar members in good standing about their own prospective conduct. For the substantive question, the opinion refers the attorney to the Rhode Island General Laws governing the unauthorized practice of law.

Citations and references

Rules of Professional Conduct:

• None cited. The opinion rests on Rule 2 of the Rules of the Rhode Island Supreme Court Ethics Advisory Panel (the Panel's jurisdictional charter), not on a Rule of Professional Conduct.

Statutes:

• Rhode Island General Laws governing the unauthorized practice of law (referenced generally; not quoted in the opinion)

See also

• RI EAP Opinion 2013-03: whether a fee-sharing arrangement with a nonlawyer violates the Rules
• RI EAP Opinion 2006-05: whether an attorney may employ a nurse in the practice

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2093-13.pdf

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Final
ETHICS ADVISORY PANEL
Opinion #93-13, Request #343
Issued March 15, 1993

An attorney requests guidance regarding the propriety of serving as general counsel for a Rhode Island based insurance company. The insurance company has offices in all fifty states. The attorney is licensed to practice in two states but is not licensed to practice law in Rhode Island. The attorney states that the company utilizes Rhode Island counsel for litigation and other matters. However, the attorney would like to provide guidance to the insurance company concerning the legal obligations or limitations imposed on the company by law and regulations.

Pursuant to the Panel rules, the Panel "shall accept requests from any member of the Rhode Island Bar in good standing concerning his or her prospective conduct as an attorney under the Rules of Professional Conduct. . .". Rule 2, Rules of the Rhode Island Supreme Court Ethics Advisory Panel. The Panel declines to respond to the inquiry but refers the attorney to the Rhode Island General Laws, specifically the statute governing The Unauthorized Practice of Law.