In today’s business environment, legal departments are expected to do more with less. And to do it faster, better, and with full regulatory compliance. But not every business can justify a full in-house legal team. What if there were a middle path?
What if your company could have a dedicated lawyer, housed in a professional law office, whose only client is you; and yet who enjoys the backing, resources, and supervision of a law firm?
Welcome to the idea of legal co-location: a modern twist on secondment, where the lawyer is placed in the law firm, not in your office, and still serves your business as if they were part of your in-house team.
Note: This is a business idea that we are exploring. Writing about it helps us talk about it with people.
👨⚖️ What Is Legal Co-Location?
At its core, this model works like this:
- The client (a company or group of companies) signs a 12-month service agreement with a law firm.
- The firm then recruits or assigns a dedicated counsel to serve the client exclusively.
- The lawyer is based in the firm’s office (not at the client’s premises) but works only on the client’s matters.
- The client pays a monthly service retainer, benefiting from predictable costs, consistent support, and expert legal service.
- The arrangement is renewable annually, with 3 months’ notice on either side for early termination.
🧩 Why Might This Make Sense?
This is not just theory. We’ve observed similar models among professionals in adjacent fields, such as auditors housing accountants in their own offices to serve large clients. It’s a blend of secondment, outsourcing, and managed service delivery.
It’s also inspired by server co-location, a business model where you place your server in a data center, and the data center manages the server. The server is dedicated for your use, but benefits from the data center’s infrastructure.
Let’s explore the potential benefits and challenges.
✅ Benefits for the Client
1. Dedicated Legal Attention
The assigned lawyer focuses exclusively on your business, understanding its culture, needs, and risks.
2. Cost Predictability
No need to hire a full-time employee with EPF, SOCSO, bonuses, and HR overhead. You pay a flat monthly retainer instead.
3. Access to a Firm’s Resources
Your assigned lawyer is backed by the firm’s senior lawyers, research tools, clerical staff, precedent libraries, and case management systems.
4. Professional Independence
Since the lawyer is housed offsite (in the law firm, not your office), professional distance is preserved. This supports ethical independence and objectivity, especially in sensitive matters.
5. Customisability
You can vet the lawyer. If the arrangement grows, you can upgrade from one lawyer to a small team.
🤔 Considerations and Caveats
1. Termination Risks
The assigned lawyer understands the engagement is tied to the client’s contract with the firm. If that ends, so does the assignment. (Eventually, unless he is re-engaged under a different client contract.)
2. Professional Ethics
The Bar Council’s Practice and Etiquette Rules must be strictly followed. Lawyers must remain independent, avoid conflicts of interest, and maintain confidentiality at all times.
3. Conflict Management
The firm must ensure that it does not take on matters adverse to the client’s interests during the engagement period.
4. Segregation of Files and Access
Proper systems must be in place to ensure client data is kept confidential and not mingled with other matters.
🧭 How Might It Work in Practice?
A sample arrangement might look like this:
- Contract Term: 12 months, renewable
- Termination: 3 months’ notice on either side
- Vetting: Client vets and approves assigned lawyer
- Location: Lawyer is based in the firm’s office
- Exclusivity: Lawyer serves only that client
- Fees: Monthly retainer (agreed in advance)
- Tools Provided: Internet, case management software, access to research databases
- Backups: A second lawyer or clerk can assist if needed during absences
⚖️ A Note on Ethics
This arrangement is only viable if it upholds the Legal Profession Act, the Bar Council’s Rulings, and the Practice and Etiquette Rules.
Key considerations include:
- Avoiding conflicts of interest
- Preserving the lawyer’s independent judgment
- Transparency with clients and third parties
- Ensuring that clients understand the nature of the arrangement
Lawyers remain officers of the court, and the sanctity of professional ethics is not negotiable. But within those boundaries, innovation is possible.
📈 Is This the Future?
For mid-sized companies without legal departments, this model offers a flexible alternative to hiring in-house. For law firms, it allows deeper client integration, while still retaining structural independence. For lawyers, it provides a sense of purpose, focus, and stability, while remaining within the firm’s ecosystem.
Legal co-location isn’t right for every business, or every lawyer. But it may just be the right fit for the right client at the right stage of growth.
As the legal landscape evolves, so must our models of service. The line between “external counsel” and “in-house” is becoming more nuanced; and perhaps, more collaborative.
If your company is exploring innovative ways to manage its legal risks while controlling costs, please reach out to us. This is an idea that we’re exploring, and we want to discuss it with potential clients. We’re curious to see where this idea might take us, and how we can support your business with this model.
Important Notice
The topic of legal co-location discussed within this article should understood by readers as subject to the approval of the Bar Council. Please do not consider this article as legal advice. In any case, please consult with a licensed legal practitioner before acting on the contents of this article.
Thanks for reading!