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However the question can arise as to what distinguishes a contracted in-house lawyer with multiple contracts (who we’ll call the in-house lawyer) from an external lawyer in their own practice available to the public (who we’ll call the private practitioner). In order to provide a clear case for recognising contracted in-house lawyers, and differentiating them from private practitioners, one or more defining points of difference need to be identified.

The defining points will determine the rules that are applicable to that lawyer and the annual practising cost (as to payment of the inspectorate and Fidelity Fund levies) although both in-house lawyers under contracts for service and private practitioners are required to undertake Flying Start before the lawyer is able to practise on his or her own account.

There will be a fundamental difference in the nature of the relationship with the client organisation and the nature of the contract that is entered into. Chapter 4 of the Rules provides that a lawyer must be available to the public and private practitioners will generally advertise their availability to the public or a section of it and would not need client permission to take on other clients (barring any conflict issues).  However, in-house lawyers are not required to comply with chapter 4.  A contracted in-house lawyer will not hold themselves out as available to the public, and will likely need the permission of the client organisation to carry out other work. Just to complicate things further though, Rule 15.1.5 does allow an in-house lawyer engaged on a part time to practise on his or her own account outside the hours of the engagement.  You could therefore be an in-house lawyer for one client (employed or engaged under a contract for service) and a private practitioner for another client, as long as you are qualified to practise on your own account. The work of in-house lawyers will be set by their client organisations, including task prioritisation and timing. Private practitioners will generally negotiate the timeframes with their clients based on their other work. Trust account management is not necessary for an in-house role. However, not all private practitioners run trust accounts either.

Billing practices will be quite different, with in-house lawyers negotiating remuneration, and it will be set out in their agreement. Private practitioners have obligations under Chapter 9 of the Rules to provide clients information on their services and fees but in-house lawyers are not required to comply with Chapter 9 (Rule 15.3)

The work of in-house lawyers will usually be covered by the insurance of their client organisation, but private practitioners will not generally be covered by their clients’ insurance and will have disclosed to their clients the status of their professional indemnity arrangements (Rule 3.4(b))

Other considerations that impact lawyers in determining whether to operate under a contract for services or employment as an in-house lawyer, or be engaged as a private practitioner include variety of client work, tax arrangements, leave provisions, certainty of work and autonomy. Organisations are often guided by head count and cost considerations as to whether they want to engage staff or use external consultants.  CLANZ is happy to provide guidance to members considering these issues to ensure they have the opportunity to choose and negotiate the arrangements that suits them best.

Please contact Helen Mackay, CLANZ Executive Officer, on helen.mackay@lawsociety.org.nz if you would like to discuss these issues further.

What is your career history?

I started work as a law clerk at Bell Gully in 1997, fresh from Canterbury University where I secured a LLB Hons and BA (majoring in Political Science).  For the next 6 years, I worked in Bell Gully’s Wellington office in their corporate/commercial department working first in the financial services area and then moving into energy, general corporate and securities law.  I also spent a few stints on secondment at various clients including ANZ and NGC which was incredibly valuable.  I left in December 2002 to have my two children and then returned to work for a brief stint as legal counsel at a Wellington Investment Bank, McDouall Stuart in 2007.  I then focussed on community work for the next two years helping to set up a local playgroup, the Thorndon Residents Association and chairing my children’s creche for a couple of years before launching Urban Harvest in February 2010.

Tell us about your business and what inspired you to start it.

Urban Harvest is an online fresh food market which delivers fresh local food to Wellingtonian’s homes (and offices) twice a week.  It operates like a farmers market – but online – with each of our 60+ producers having their own stall.  Customers order food online by 9:30pm on a Sunday (for Tuesday delivery) or Wednesday (for Friday delivery), our producers then pick, make, bake or catch their produce the next day and deliver it to our factory in Wellington.  We collate the orders and deliver them out to people’s doors in our lovely red chiller bags.  The food is deliciously fresh and tasty and all product has been tested by Al Brown, celebrity chef and co-owner of Logan Brown, who is our quality assessor and writes recipes for our customers using market produce.  It’s all about making life simple for busy people. Check it out at www.urbanharvest.co.nz.

I was inspired to start Urban Harvest when I was doing market research for another project I’m involved with – the Hill St Farmers Market. As part of an online survey, I asked respondents if they would be interested in buying on line from people they trust. I received an amazingly positive response! Plus I have a husband who likes good food and would send me off to all corners of Wellington to source ingredients for his recipes.  After dragging screaming kids to yet another grocery store, I decided there had to be a better way. And that is Urban Harvest. The food is fresher, tastier and I know more about where it comes from. Plus I can shop from the comfort of my couch and have it delivered right to my door. No battling traffic, rain, queues or kids as I drag them from shop to shop.

Plus I loved the idea of creating something new from scratch – a business that was customer focussed, innovative, interesting, flexible and fun. And it is all that and more. I can truly say I love going to work each day! 

How do your legal skills come into play in your new role?

I am constantly using my legal skills in my new business – whether it’s drafting employment contracts, negotiating partnerships and contracts with producers or other suppliers or dealing with competitors.  Law has provided a fantastic grounding for managing a new business.  Plus, it means I’m used to the long hours you need to put in to any start up business!

What is your favourite recipe at the moment?

Anything my husband cooks! I’m not a great cook… but I do love good food and thankfully my husband is a fantastic cook. But if I had to choose a recipe, it would probably be Al Brown’s Crisp Pork Belly with Asian Slaw. Or otherwise his Roasted Groper with Tomato & Basil Salad and Tamarind Dressing is divine as well. Top it off with some Chocolate Gelato from Carello del Gelato and I’m in heaven!