The difference between legal counsel and external lawyer isn’t always clear, with the distinction further obfuscated by legal counsel who wish to retain privilege over advice they provide the business.
A “legal counsel” could also be called a “general counsel” (typically a manager of other legal counsels) or an “inhouse counsel” (which means the same thing as “legal counsel”). A lawyer could also be known as a “solicitor” which differentiates the qualification from a “barrister” (who has the right to run cases in court in some jurisdictions).
Counsel or Council
The word “counsel” is used due to the person “counselling” their client, not to be confused with “council” which is a government body tasked with control of a set region.
The difference between a legal counsel and a lawyer
In essence, the difference is one of degree. A legal counsel operates as part of your business, is able to build structures and processes and able to work on fulfilling the strategy set by management. An external lawyer is instead there to do a limited task and then pass it back to the business. A legal counsel is also typically employed by the business as an employee (or engaged as a contractor), while the external lawyer acts on a project basis.
The line has been increasingly blurred in recent years, through fixed-fee, “all-you-can-eat” and retainer based arrangements which keep lawyers engaged for the one client. Lawyers are typically more expensive than legal counsel, due to the overheads of running a law firm, insurance costs and the scarcity of ongoing work. Legal counsel are typically only paid a salary, but also have the same rights as any other employee including redundancy, annual leave, etc.
The similarities between a legal counsel and a lawyer
Both legal counsel and external lawyers owe fiduciary duties to their client, but in the case of the legal counsel that client is its employer. Both types of lawyers are subject to confidentiality and loyalty requirements. A legal counsel typically does not hold insurance, though may still hold it through organisations such as the Association of Corporate Counsel.
A lawyer works for a firm that is registered with the local law society, and typically is required to hold professional indemnity insurance as part of running a practice.
Will a legal counsel or a lawyer give me better advice?
As we provide legal counsel services, Papillon Lawyers is clearly of the opinion that legal counsel will provide you more full, useful and practical advice.
If you’d like to speak to one of our expert legal counsels, please contact us at matthew.hodgkinson@papillonlawyers.com or set up a time in the Contact Us section above.
