Every law firm needs at least one qualified lawyer who is answerable for making sure that the firm complies with its ethical duties. Many firms have enlarged upon this role, having one or more full-time inside counsel as well as an in-house ethics committee and support staff.
The ethics rules encourage law firms to have inside lawyers play this role, and firms protect the arrangement by providing confidentiality to the usual internal workings of this process. A growing number of courts, however, have rejected assertions of attorney-client privilege for internal firm discussions when the firm develops interests that conflict with the interests of current firm clients. In those instances, retention of outside counsel can cure the problem, so firms need to know when to seek outside legal advice.
