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Of counsel is a designation provided by law firms for lawyers that are neither associates nor partners but are affiliated with the firm.
The defense contains four elements: (1) The defendant made a complete disclosure to counsel concerning the matter at issue, (2) the defendant sought advice as to the legality of his conduct, (3) the defendant received advice that his conduct was legal, and (4) the defendant relied on that advice in good faith.
Reliance on counsel is but a means of establishing "good faith" or "due care." If a problem requires the use of professional advice of a nonlegal nature, obtaining and relying on such advice should also satisfy these requirements.
Advice and counsel means legal assistance that is limited to the review of information relevant to the client's legal problem(s) and counseling the client on the relevant law and/or suggested course of action.
Definition: Advice of counsel refers to the guidance given by lawyers to their clients. It can also be used as a defense in certain legal cases where a party seeks to avoid liability or punishment by claiming that they acted reasonably and in good faith on the advice of their attorney.
In order to assert advice of counsel, a defendant must have made a full disclosure of all material facts to his or her attorney, received advice as to the specific course of conduct that he or she followed, and relied on the advice in good faith.
The ?advice of counsel defense? is typically raised as an Affirmative Defense to refute the allegation that the insurer acted in ?bad-faith? by showing that it retained expert legal counsel to specifically address the issues regarding the coverage of a property claim or settlement of a liability action.