North Carolina State Bar lawyer's handbook

              The 2013
Lawyer’s Handbook
Administrative Rules . . . . . . . . . . . . . . .2-1
Continuing Legal Education (CLE) . . . . . . .5-19
Discipline and Disability . . . . . . . . . . . . . . .3-1
Fee Dispute Resolution . . . . . . . . . . . . . . .5-6
IOLTA . . . . . . . . . . . . . . . . . . . . . . . . . . .5-13
Legal Specialization . . . . . . . . . . . . . . . . .5-28
Membership . . . . . . . . . . . . . . . . . . . . . . .2-1
Paralegal Certification . . . . . . . . . . . . . . . .7-1
Professional Organizations . . . . . . . . . . . . . . .6-1
Ethics Opinions . . . . . . . . . . . . . . . . . . .10-1
Index to Ethics Opinions . . . . . . . . . . .10-247
Gen. Stat. Chapter 84 . . . . . . . . . . . . . .1-1
IOLTA Q&A . . . . . . . . . . . . . . . . . . . .11-14
Rules of Professional Conduct . . . . . . .9-1
Rules Index . . . . . . . . . . . . . . . . . . . . . .9-72
Trust Accounting Q&A . . . . . . . . . . . .11-1
The North Carolina State Bar Lawyer’s
Handbook 2013 (Abridged)
An official publication of the North Carolina State Bar
containing the most frequently referenced rules of the
North Carolina State Bar, annotated Rules of Professional
Conduct, all ethics opinions adopted under the Rules and
Superseded (1985) Rules, and trust account guidelines.
NORTH CAROLINA
STATE BAR
Rotunda, New State Bar Headquarters
Actually, there are many stories. Every one of them
about someone in the legal field.
Lawyers are as vulnerable to personal and
professional problems as anyone else.
Competition, constant stress, long hours, and high
expectations can wear down even the most competent
and energetic lawyer. This can lead to depression,
stress, career problems, relationship issues, financial
problems, or alcohol and substance abuse.
So where's the uplifting part? That's where we come
in.
The Lawyer Assistance Program was created by
lawyers for lawyers. While we started as a way for
attorneys to deal with
alcohol related problems,
we now address any
personal issue confronted
by those in the legal
profession.
Our message to anyone
who may have a personal
issue, whether a lawyer, a
judge, or a law student, is don't wait. Every call we
take is confidential and is received by a professional
staff person. You can be confident that you're talking to
the right person and that no one will know about it.
We understand what it's like to face personal
problems within the profession, because we only help
lawyers.
Our service is not only confidential, it's free, paid
for with your yearly bar fees.
If you have a personal issue, or know someone who
does, we can be the crucial first step in turning things
around, a role we've played for many of your peers.
We have countless success stories we could tell, and
yes, they are uplifting. But we do our work quietly,
confidentially, and professionally so the stories will stay
with us.
We're here for you. Visit www.nclap.org; call
Eastern District: Ed Ward (919) 828-6425, Piedmont
Region: Towanda Garner (919) 719-9290, Western
District: Cathy Killian (704) 910-2310; or email us at
info@nclap.org. We can help if you get in touch
with us.
DEPRESSION, STRESS, CAREER ISSUES, AND ADDICTIONS.
BELIEVE IT OR NOT, THIS IS AN UPLIFTING STORY.
www.NCLAP.org
FREE l SAFE l CONFIDENTIAL
page 3
State Bar Officers
M. Keith Kapp - President
301 Fayetteville Street, Suite 1700
PO Drawer 1000
Raleigh, NC 27601
(919) 981-4024
James R. Fox - Past-President
Pike Electric Inc.
100 Pike Way
PO Box 868
Mount Airy, NC 27030
(336) 719-4611
Ronald G. Baker Sr. - President-Elect
4417 N. Croaton Highway
PO Drawer 1027
Kitty Hawk, NC 27949
(252) 261-2126
L. Thomas Lunsford II – Secretary/Treasurer
PO Box 25908
Raleigh, NC 27611-5908
(919) 828-4620
Ronald L. Gibson - Vice-President
831 Morehead St., Suite 860
Charlotte, NC 28202
(704) 377-1634
North Carolina State Bar
PO Box 25908
Raleigh, NC 27611-5908
(919) 828-4620
Address Changes
Kelly Beck kbeck@ncbar.gov
Beth McLamb bmclamb@ncbar.gov
Adam Maner amaner@ncbar.gov
Administration
Tom Lunsford tlunsford@ncbar.gov
Joe Cerone jcerone@ncbar.gov
Attorney-Client Assistance Program (receives
complaints from clients)
Judy Treadwell jtreadwell@ncbar.gov
Sandra L. Saxton ssaxton@ncbar.gov
Certificates of Good Standing
Kelly Beck kbeck@ncbar.gov
Beth McLamb bmclamb@ncbar.gov
Adam Maner amaner@ncbar.gov
Client Security Fund (reimbursement for client-victims
of lawyer theft)
Root Edmonson redmonson@ncbar.gov
Randy Ross rross@ncbar.gov
Continuing Legal Education
Debra Holland dholland@ncbar.gov
Lori Nicolicchia lnicolicchia@ncbar.gov
Emily Oakes eoakes@ncbar.gov
Julie Ferrer jferrer@ncbar.gov
Disciplinary Hearing Commission (DHC and final
disciplinary orders)
Dottie Miani (clerk) dmiani@ncbar.gov
District Bar Liaison
Peter Bolac pbolac@ncbar.gov
Ethics/Professional Responsibility
(answers inquiries about lawyer’s own conduct)
Nichole McLaughlin nmclaughlin@ncbar.gov
Suzanne Lever slever@ncbar.gov
Alice Neece Mine amine@ncbar.gov
Tom Lunsford tlunsford@ncbar.gov
Fee Dispute Resolution
Luella Crane lcrane@ncbar.gov
Krista Bennett kbennett@ncbar.gov
Grievance
Heather Pattle hpattle@ncbar.gov
Investigations
Joseph J. Commisso jcommisso@ncbar.gov
IOLTA (Interest on Lawyer’s Trust Accounts)
(919) 828-0477
(919) 821-9168 (Fax)
PO BOX 25996
Raleigh, NC 27611-5996
General email: iolta@ncbar.gov
Evelyn M. Pursley epursley@ncbar.gov
Claire Mills cmills@ncbar.gov
Erica Leventhall eleventhall@ncbar.gov
Aaliyah Pierce apierce@ncbar.gov
Lawyer Assistance Program (a confidential
program)
Robynn Moraites robynnmoraites@gmail.com
Ed Ward eward@ncbar.gov
Towanda Garner tgarner@ncbar.gov
Cathy Killian cathy.d.killian@gmail.com
Charlotte Office: (704) 892-5699
Raleigh Office: (919) 828-6425
www.nclap.org
Membership Records
Tammy Jackson tjackson@ncbar.gov
Kelly Beck kbeck@ncbar.gov
Beth McLamb bmclamb@ncbar.gov
Adam Maner amaner@ncbar.gov
Office of Counsel (legal department)
Heather Pattle hpattle@ncbar.gov
Katherine Jean kjean@ncbar.gov
Paralegal Certification
Kelly Farrow kfarrow@ncbar.gov
Alice Neece Mine amine@ncbar.gov
Professional Organizations (registers p.c./p.l.l.c’s )
Adam Maner amaner@ncbar.gov
Pro Hac Vice Registration
Martha Fletcher mfletcher@ncbar.gov
Publications - Media Kits and Orders
Jennifer Duncan ncbar@bellsouth.net
Martha Fletcher mfletcher@ncbar.gov
Specialization
Denise Mullen dmullen@ncbar.gov
Lanice Heidbrink lheidbrink@ncbar.gov
Alice Neece Mine amine@ncbar.gov
Student Practice Certificates (for 3rd year law
students)
Dottie Miani dmiani@ncbar.gov
Alice Neece Mine amine@ncbar.gov
Trust Account Random Audits
Joseph J. Commisso jcommisso@ncbar.gov
c/o Dawn Whaley dwhaley@ncbar.gov
Trust Account Support
Peter Bolac p.bolac@ncbar.gov
Unauthorized Practice of Law
David Johnson djohnson@ncbar.gov
State Bar Contacts
Visit the State Bar online at:
www.ncbar.gov
page 4
North Carolina General Statutes, Chapter 84:
Attorneys-at-Law: Selected
Statutes . . . . . . . . . . . . . . . . . . . G.S. Chap. 84
§ 84-2.1. "Practice law" defined . . . . . . . . . . . . . . . . . . . . . . . . . . .1-1
§ 84-4. Persons other than members of State Bar prohibited
from practicing law . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-1
§ 84-4.1. Limited practice of out-of-state attorneys . . . . . . . . . . . .1-1
§ 84-4.2. Summary revocation of permission granted
out-of-state attorneys to practice . . . . . . . . . . . . . . . . . . .1-1
§ 84-5. Prohibition as to practice of law by corporation . . . . .1-1
§ 84-5.1 Rendering of legal services by certain nonprofit
corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2
§ 84-8. Punishment for violations . . . . . . . . . . . . . . . . . . . . . . . .1-2
§ 84-15. Creation of North Carolina State Bar as an agency
of the State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2
§ 84-16. Membership and privileges . . . . . . . . . . . . . . . . . . . . . . .1-2
§ 84-17. Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-3
§ 84-18. Terms, election and appointment of councilors . . . . . . .1-3
§ 84-18.1. Membership and fees of district bars . . . . . . . . . . . . . . .1-3
§ 84-19. Judicial districts definition . . . . . . . . . . . . . . . . . . . . . . .1-4
§ 84-21. Organization of Council; publication of rules,
regulations and bylaws . . . . . . . . . . . . . . . . . . . . . . . . . .1-4
§ 84-22. Officers and committees of the North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-4
§ 84-23. Powers of Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-4
§ 84-28. Discipline and disbarment . . . . . . . . . . . . . . . . . . . . . . .1-4
§ 84-28.1. Disciplinary hearing commission . . . . . . . . . . . . . . . . . .1-5
§ 84-28.2. Persons immune from suit . . . . . . . . . . . . . . . . . . . . . . .1-5
§ 84-29. Evidence and witnesses . . . . . . . . . . . . . . . . . . . . . . . . .1-5
§ 84-30. Rights of accused person . . . . . . . . . . . . . . . . . . . . . . . .1-6
§ 84-32.1. Confidentiality of records . . . . . . . . . . . . . . . . . . . . . . .1-6
§ 84-34. Membership fees and list of members . . . . . . . . . . . . .1-6
§ 84-34.2. Specific statutory authority for certain fees . . . . . . . . . . .1-6
§ 84-36. Inherent powers of courts unaffected . . . . . . . . . . . . . . .1-6
§ 84-37. State Bar may investigate and enjoin
unauthorized activities . . . . . . . . . . . . . . . . . . . . . . . . . .1-6
27 NCAC Chapter 1
Subchapter A: Organization of the North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Subchap. 1A
Section .0200 Membership - Annual Membership Fees . . . . . . . . . . .2-1
.0201 Classes of Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-1
.0202 Register of Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-1
.0203 Annual Membership Fees; When Due . . . . . . . . . . . . . . . . .2-2
.0204 Good Standing Definition and Certificates . . . . . . . . . . . . . .2-2
Section .0800 Election and Appointment of State Bar Councilors . . . . .2-2
.0801 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-2
.0802 Election - When Held; Notice; Nominations . . . . . . . . .2-2
.0803 Election - Voting Procedures . . . . . . . . . . . . . . . . . . . . . .2-2
.0804 Procedures Governing Elections by Mail . . . . . . . . . . . . .2-2
.0805 Election and Appointment of State Bar Councilors . . . . .2-3
.0806 Procedures Governing Early Voting . . . . . . . . . . . . . . . . .2-3
.0807 Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
.0808 Bylaws Providing for Geographical Rotation or
Division of Representation . . . . . . . . . . . . . . . . . . . . . . .2-3
Section .0900 Organization of the Judicial District Bars . . . . . . . . . . . .2-3
.0901 Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
.0902 Annual Membership Fee . . . . . . . . . . . . . . . . . . . . . . . . .2-3
.0903 Fiscal Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
Section .1000 Model Bylaws For Use by Judicial District Bars . . . . . . .2-3
.1001 Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
.1002 Authority and Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
.1003 Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
.1004 Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
.1005 Councilor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
.1006 Annual Membership Fee . . . . . . . . . . . . . . . . . . . . . . . . .2-4
.1007 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
.1008 District Bar Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-5
.1009 Prohibited Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-5
.1010 Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-5
.1011 Board of Directors or Executive Committee . . . . . . . . . .2-5
.1012 Amendment of the Bylaws . . . . . . . . . . . . . . . . . . . . . . . .2-6
.1013 Selection of Nominees for District Court Judge . . . . . . .2-6
Section .1200 Filing Papers with and Serving the North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-6
.1201 When Papers Are Filed Under These Rules
and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-6
Section .1400 Rulemaking Procedures . . . . . . . . . . . . . . . . . . . . . . . . . .2-7
.1401 Publication for Comment . . . . . . . . . . . . . . . . . . . . . . . . . .2-7
.1402 Review by the Executive Committee . . . . . . . . . . . . . . . . . .2-7
.1403 Action by the Council and Review by the . . . . . . . . . . . . . . . .
North Carolina Supreme Court . . . . . . . . . . . . . . . . . . . . . . . . . . .2-7
Subchapter B: Discipline and Disability Rules . . . Subchap. 1B
Section .0100 Discipline and Disability of Attorneys . . . . . . . . . . . . .3-1
.0101 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-1
.0102 Procedure for Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . .3-1
.0103 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-1
.0104 State Bar Council: Powers and Duties in
Discipline and Disability Matters . . . . . . . . . . . . . . . . . . . . . . . . . . .3-2
.0105 Chairperson of the Grievance Committee: Powers
and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-2
.0106 Grievance Committee: Powers and Duties . . . . . . . . . . . . .3-3
.0107 Counsel: Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . .3-3
.0108 Chairperson of the Hearing Commission:
Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
.0109 Hearing Panel: Powers and Duties . . . . . . . . . . . . . . . . . . .3-4
.0110 Secretary: Powers and Duties in Discipline
and Disability Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-4
.0111 Grievances: Form and Filing . . . . . . . . . . . . . . . . . . . . . . . .3-4
.0112 Investigations: Initial Determination; Notice and
Response; Committee Referrals . . . . . . . . . . . . . . . . . . . . . .3-5
.0113 Proceedings Before the Grievance Committee . . . . . . . . . .3-6
.0114 Formal Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7
.0115 Effect of a Finding of Guilt in Any Criminal Case . . . . . . .3-9
Selected Provisions from the Rules of the North Carolina State Bar
Table of Contents
For a complete listing of all Rules of the State Bar, see page 11-23
page 5
.0116 Reciprocal Discipline & Disability Proceedings . . . . . . . . .3-10
.0117 Surrender of License While Under Investigation . . . . . . .3-11
.0118 Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-11
.0119 Enforcement of Powers . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
.0120 Notice to Member of Action and Dismissal . . . . . . . . . . . .3-12
.0121 Notice to Complainant . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
.0122 Appointment of Counsel to Protect Client’s Interests . . .
When Attorney Disappears, Dies, or is Transferred to
Disability Inactive Status . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
.0123 Imposition of Discipline; Findings of Incapacity or
Disability; Notice to Courts . . . . . . . . . . . . . . . . . . . . . . .3-13
.0124 Obligations of Disbarred or Suspended Attorneys . . . . . .3-13
.0125 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-13
.0126 Address of Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-16
.0127 Disqualification Due to Interest . . . . . . . . . . . . . . . . . . . .3-16
.0128 Trust Accounts; Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-16
.0129 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-16
.0130 Disciplinary Amnesty in Illicit Drug Use Cases . . . . . . . .3-17
Section .0200 Rules Governing Judicial District
Grievance Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-17
.0201 Organization of Judicial District Grievance Committees .3-17
.0202 Jurisdiction and Authority of District
Grievance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-17
.0203 Meetings of the District Grievance Committees . . . . . . . .3-18
.0204 Procedure Upon Institution of a Grievance . . . . . . . . . . .3-18
.0205 Record Keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-19
.0206 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-19
.0207 Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-19
.0208 Letter to Complainant Where Local Grievance Alleges
Fee Dispute Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-19
.0209 Letter to Complainant Where Local Grievance Alleges
Fee Dispute and Other Violations . . . . . . . . . . . . . . . . . . .3-20
.0210 Letter to Complainant/Respondent Where District
Committee Recommends Finding of No Probable Cause . .3-20
.0211 Letter to Respondent Where District Committee
Recommends Finding of Probable Cause . . . . . . . . . . . . .3-20
.0212 Letter to Complainant Where District Committee
Recommends Finding of Probable Cause . . . . . . . . . . . . .3-21
.0213 Letter to Complainant Acknowledging Grievance . . . . . .3-21
.0214 Letter to Investigating Attorney Assigning Grievance . . . .3-21
.0215 Letter to Complainant from Investigating Attorney . . . . .3-21
.0216 Letter of Notice to Respondent Attorney . . . . . . . . . . . . .3-21
.0217 Letter Transmitting Completed File to North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-22
Subchapter C: Rules Governing the Board
of Law Examiners and the Training of
Law Students . . . . . . . . . . . . . . . . . . . . . . . Subchap. 1C
Section .0100 Rules Governing the Board of Law Examiners and the
Training of Law Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0101 Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0102 Examination of Applicants for License . . . . . . . . . . . . . .4-1
.0103 Admission to Practice . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0104 Approval of Rules and Regulations of Board of
Law Examiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0105 Approval of Law Schools . . . . . . . . . . . . . . . . . . . . . . . . .4-1
Section .0200 Rules Governing Practical Training of Law Students . . . .4-1
.0201 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0202 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0203 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
.0204 Certification as Legal Intern . . . . . . . . . . . . . . . . . . . . . .4-2
.0205 Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-2
.0206 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-2
.0207 Use of Student's Name . . . . . . . . . . . . . . . . . . . . . . . . . .4-2
Subchapter D: Rules of the Standing Committees of the
North Carolina State Bar . . . . . . . . . . . . . . . .Subchap. 1D
Section .0100 Procedures for Ruling on Questions of Legal Ethics . . .5-1
.0101 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-1
.0102 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-1
.0103 Informal Ethics Advisories and Ethics Advisories . . . . . . . . .5-1
.0104 Formal Ethics Opinions and Ethics Decisions . . . . . . . . . . .5-2
.0105 Procedures for Meetings of the Ethics Committee . . . . . . . .5-2
Section .0200 Procedures for the Authorized Practice Committee . . . . .5-2
.0201 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-2
.0202 Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-2
.0203 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-2
.0204 State Bar Council - Powers and Duties . . . . . . . . . . . . . .5-3
.0205 Chairperson of the Authorized Practice
Committee - Powers and Duties . . . . . . . . . . . . . . . . . . .5-3
.0206 Authorized Practice Committee - Powers and Duties . . . .5-3
.0207 Counsel - Powers and Duties . . . . . . . . . . . . . . . . . . . . . .5-3
.0208 Suing for Injunctive Relief . . . . . . . . . . . . . . . . . . . . . . . .5-4
Section .0600 Rules Governing the Lawyer Assistance Program . . . . . .5-4
.0601 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-4
.0602 Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-4
.0603 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .5-4
.0604 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-4
.0605 Appointment of Members; When; Removal . . . . . . . . . .5-4
.0606 Term of Office and Succession . . . . . . . . . . . . . . . . . . . . .5-4
.0607 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .5-4
.0608 Appointment of Vice-Chairperson . . . . . . . . . . . . . . . . . .5-4
.0609 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-5
.0610 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-5
.0611 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-5
.0612 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .5-5
.0613 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-5
.0614 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-5
.0615 Regional Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-5
.0616 Suspension for Impairment, Reinstatement . . . . . . . . . . .5-5
.0617 Consensual Inactive Status . . . . . . . . . . . . . . . . . . . . . . . .5-6
.0618 Agents of the State Bar . . . . . . . . . . . . . . . . . . . . . . . . . .5-6
.0619 Judicial Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-6
.0620 Rehabilitation Contracts for Lawyers Impaired by
Substance Abuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-6
.0621 Evaluations for Substance Abuse, Alcoholism,
and/or other Chemical Addictions . . . . . . . . . . . . . . . . . .5-6
.0622 Grounds for Compelling an Evaluation . . . . . . . . . . . . . .5-6
.0623 Failure to Comply with an Order Compelling
an Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-6
Section .0700 Procedures for Fee Dispute Resolution . . . . . . . . . . . . .5-6
.0701 Purpose and Implementation . . . . . . . . . . . . . . . . . . . . . . .5-6
.0702 Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-7
.0703 Coordinator of Fee Dispute Resolution . . . . . . . . . . . . . . .5-7
.0704 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-7
.0705 Selection of Facilitators . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-7
.0706 Powers and Duties of the Vice-Chairperson . . . . . . . . . . . . .5-7
.0707 Processing Requests for Fee Dispute Resolution . . . . . . . . .5-7
.0708 Settlement Conference Proceedings . . . . . . . . . . . . . . . . . . .5-7
page 6
.0709 Record Keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-8
.0710 District Bar Fee Dispute Resolution . . . . . . . . . . . . . . . . . . .5-8
.0711 District Bar Settlement Conference Proceedings . . . . . . . . .5-8
Section .0900 Procedures for Administrative Committee . . . . . . . . . .5-8
.0901 Transfer to Inactive Status . . . . . . . . . . . . . . . . . . . . . . . . . .5-8
.0902 Reinstatement from Inactive Status . . . . . . . . . . . . . . . . . . .5-9
.0903 Suspension for Failure to Fulfill Obligations of . . . . . . . . . . . . .
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-10
.0904 Reinstatement from Suspension . . . . . . . . . . . . . . . . . . . .5-11
.0905 Pro Bono Practice by Out of State Lawyers . . . . . . . . . . . .5-12
Section .1000 Rules Governing Reinstatement Hearings Before the
Administrative Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-12
.1001 Reinstatement Hearings . . . . . . . . . . . . . . . . . . . . . . . . .5-12
.1002 Review and Order of Council . . . . . . . . . . . . . . . . . . . .5-13
Section .1300 Rules Governing the Administration of the Plan for
Interest on Lawyers' Trust Accounts (IOLTA) . . . . . . . . . . . . . . . . . . .5-13
.1301 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-13
.1302 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-13
.1303 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1304 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1305 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1306 Appointment of Members; When; Removal . . . . . . . . . . .5-14
.1307 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1308 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1309 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1310 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . .5-14
.1311 Appointment of Vice-Chairperson . . . . . . . . . . . . . . . . . . .5-14
.1312 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.14
.1313 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1314 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1315 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
.1316 IOLTA Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-15
.1317 Comparability Requirements for IOLTA Accounts . . . . . .5-15
.1318 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-16
.1319 Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-16
.1320 Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-16
.1321 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-16
Section .1400 Rules Governing the Administration of the
Client Security Fund of the North Carolina State Bar . . . . . . . . . . . . .5-16
.1401 Purpose; Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-16
.1402 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1403 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1404 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1405 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1406 Appointment of Members; When; Removal . . . . . . . . . . .5-17
.1407 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1408 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1409 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1410 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .5-17
.1411 Appointment of Vice-Chairperson . . . . . . . . . . . . . . . . . .5-17
.1412 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1413 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
.1414 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-18
.1415 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-18
.1416 Appropriate Uses of the Client Security Fund . . . . . . . . .5-18
.1417 Applications for Reimbursement . . . . . . . . . . . . . . . . . . . .5-18
.1418 Processing Applications . . . . . . . . . . . . . . . . . . . . . . . . . . .5-18
.1419 Subrogation for Reimbursement . . . . . . . . . . . . . . . . . . . .5-19
.1420 Authority Reserved by the Supreme Court . . . . . . . . . . . .5-19
Section .1500 Rules Governing the Administration of the
Continuing Legal Education Program . . . . . . . . . . . . . . . . . . . . . . . .5-19
.1501 Scope, Purpose, and Definitions . . . . . . . . . . . . . . . . . . . .5-19
.1502 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1503 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1504 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1505 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1506 Appointment of Members; When; Removal . . . . . . . . . . .5-20
.1507 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1508 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1509 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1510 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .5-20
.1511 Appointment of Vice-Chairperson . . . . . . . . . . . . . . . . . .5-20
.1512 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-20
.1513 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-21
.1514 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-21
.1515 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-21
.1516 Powers, Duties, and Organization of the Board . . . . . . . .5-21
.1517 Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-21
.1518 Continuing Legal Education Program . . . . . . . . . . . . . . .5-22
.1519 Accreditation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . .5-23
.1520 Accreditation of Sponsors and Programs . . . . . . . . . . . . . .5-23
.1521 Credit Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-23
.1522 Annual Report and Compliance Period . . . . . . . . . . . . . . .5-24
.1523 Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-24
.1524 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-24
.1525 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-25
.1526 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-25
.1527 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-25
Section .1600 Regulations Governing the Administration of the
Continuing Legal Education Program . . . . . . . . . . . . . . . . . . . . . . . .5-25
.1601 General Requirements for Course Approval . . . . . . . . . . .5-25
.1602 Course Content Requirements . . . . . . . . . . . . . . . . . . . . .5-26
.1603 Accredited Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-26
.1604 Accreditation of Prerecorded, Simultaneous Broadcast,
and Computer-Based Programs . . . . . . . . . . . . . . . . . . . . .5-26
.1605 Computation of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . .5-27
.1606 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-27
.1607 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1608 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1609 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1610 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1611 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
Section .1700 The Plan of Legal Specialization . . . . . . . . . . . . . . . .5-28
.1701 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1702 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1703 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1704 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1705 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1706 Appointment of Members; When; Removal . . . . . . . . . . .5-28
.1707 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1708 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1709 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-28
.1710 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .5-28
.1711 Appointment of Vice-Chairperson . . . . . . . . . . . . . . . . . .5-28
.1712 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-29
.1713 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-29
.1714 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-29
.1715 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-29
.1716 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .5-29
page 7
.1717 Retained Jurisdiction of the Council . . . . . . . . . . . . . . . . .5-29
.1718 Privileges Conferred and Limitations imposed . . . . . . . . .5-29
.1719 Specialty Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-30
.1720 Minimum Standards for Certification of Specialists . . . . .5-30
.1721 Minimum Standards for Continued Certification
of Specialists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-31
.1722 Establishment of Additional Standards . . . . . . . . . . . . . . .5-31
.1723 Revocation or Suspension of Certification as a Specialist . .5-31
.1724 Right to Hearing and Appeal to Council . . . . . . . . . . . . .5-32
.1725 Areas of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-32
.1726 Certification Standards of the Specialties of Bankruptcy
Law, Estate Planning and Probate Law, Real Property
Law, Family Law, and Criminal Law . . . . . . . . . . . . . . . . .5-32
Section .1800 Hearing and Appeal Rules of the Board of
Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-32
.1801 Incomplete Applications; Reconsideration of . . . . . . . . . . . . .
Applications Rejected by Specialty Committee; and . . . . . . .
Reconsideration Procedure . . . . . . . . . . . . . . . . . . . . . . .5-32
.1802 Denial, Revocation, or Suspension of Continued
Certification as a Specialist . . . . . . . . . . . . . . . . . . . . . .5-33
.1803 Reconsideration of Failed Examination . . . . . . . . . . . . .5-33
.1804 Appeal to the Council . . . . . . . . . . . . . . . . . . . . . . . . . .5-33
.1805 Judicial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-34
.1806 Additional Rules Pertaining to Hearing and Appeals . . .5-34
Section .2100 Certification Standards for the Real Property
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-34
.2101 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . .5-34
.2102 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-34
.2103 Recognition as a Specialist in Real Property Law . . . . . . .5-34
.2104 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . .5-34
.2105 Standards for Certification as a Specialist in Real
Property Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-34
.2106 Standards for Continued Certification as a Specialist . . . .5-35
.2107 Applicability of Other Requirements . . . . . . . . . . . . . . . .5-35
Section .2200 Certification Standards for the Bankruptcy
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-35
.2201 Establishment of the Specialty Field . . . . . . . . . . . . . . . . .5-35
.2202 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-35
.2203 Recognition as a Specialist in Bankruptcy Law . . . . . . . . .5-35
.2204 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . .5-35
.2205 Standards for Certification as a Specialist in
Bankruptcy Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-35
.2206 Standards for Continued Certification as a Specialist . . . .5-36
.2207 Applicability of Other Requirements . . . . . . . . . . . . . . . .5-36
Section .2300 Certification Standards for the Estate Planning and
Probate Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-36
.2301 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . .5-36
.2302 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-36
.2303 Recognition as a Specialist in Estate Planning and
Probate Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-36
.2304 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . .5-36
.2305 Standards for Certification as a Specialist in Estate
Planning and Probate Law . . . . . . . . . . . . . . . . . . . . . . . .5-36
.2306 Standards for Continued Certification as a Specialist . . . .5-37
.2307 Applicability of Other Requirements . . . . . . . . . . . . . . . .5-38
Section .2400 Certification Standards for the Family Law Specialty . . .5-38
.2401 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . .5-38
.2402 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-38
.2403 Recognition as a Specialist in Family Law . . . . . . . . . . . . .5-38
.2404 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . .5-38
.2405 Standards for Certification as a Specialist in Family Law . . . .5-38
.2406 Standards for Continued Certification as a Specialist . . . .5-39
.2407 Applicability of Other Requirements . . . . . . . . . . . . . . . .5-39
Section .2500 Certification Standards for the Criminal Law Specialty . .5-39
.2501 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . .5-39
.2502 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-39
.2503 Recognition as a Specialist in Criminal Law . . . . . . . . . . .5-39
.2504 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . .5-39
.2505 Standards for Certification as a Specialist . . . . . . . . . . . . .5-39
.2506 Standards for Continued Certification as a Specialist . . . .5-40
.2507 Applicability of Other Requirements . . . . . . . . . . . . . . . .5-40
.2508 Standards for Certification as a Specialist in Juvenile . . . . . . . . .
Delinquency Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-40
.2509 Standards for Continued Certification as a Specialist in . . . . . . .
Juvenile Delinquency Law . . . . . . . . . . . . . . . . . . . . . . . . .5-41
Section .2600 Certification Standards for the Immigration
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-41
.2601 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . .5-41
.2602 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-41
.2603 Recognition as a Specialist in Immigration Law . . . . . . . . .5-41
.2604 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-41
.2605 Standards for Certification as a Specialist in
Immigration Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-42
.2606 Standards for Continued Certification as a Specialist . . . . .5-42
.2607 Applicability of Other Requirements . . . . . . . . . . . . . . . . .5-42
Section .2700 Certification Standards for the Workers’ Compensation
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-43
.2701 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . .5-43
.2702 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-43
.2703 Recognition as a Specialist in Workers’ Compensation Law .5-43
.2704 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-43
.2705 Standards for Certification as a Specialist in
Workers’ Compensation Law . . . . . . . . . . . . . . . . . . . . . . .5-43
.2706 Standards for Continued Certification as a Specialist . . . . .5-43
.2707 Applicability of Other Requirements . . . . . . . . . . . . . . . . .5-44
Section .2800 Certification Standards for the Social Security Disability
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-44
.2801 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . .5-44
.2802 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-44
.2803 Recognition as a Specialist in Social Security Disability Law 5-44
.2804 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-44
.2805 Standards for Certification as a Specialist in
Social Security Disability Law . . . . . . . . . . . . . . . . . . . . . . .5-44
.2806 Standards for Continued Certification as a Specialist . . . . .5-45
.2807 Applicability of Other Requirements . . . . . . . . . . . . . . . . .5-45
Section .2900 Certification Standards for the Elder Law Specialty
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-45
.2901 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . .5-45
.2902 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-45
page 8
.2903 Recognition as a Specialist in Elder Law . . . . . . . . . . . . . .5-45
.2904 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-45
.2905 Standards for Certification as a Specialist in Elder Law . . .5-45
.2906 Standards for Continued Certification as a Specialist . . . . .5-46
.2907 Applicability of Other Requirements . . . . . . . . . . . . . . . . .5-47
Section .3000 Certification Standards for the Appellate . . . . . . . . . . . . . . . .
Practice Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-47
.3001 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . .5-47
.3002 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-47
.3003 Recognition as a Specialist in Appellate Practice . . . . . . . .5-47
.3004 Applicability of Provisions of the North Carolina Plan of . . . . .
Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-47
.3005 Standards for Certification as a Specialist in . . . . . . . . . . . . . . . .
Appellate Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-47
.3006 Standards for Continued Certification as a Specialist . . . . .5-48
.3007 Applicability of Other Requirements . . . . . . . . . . . . . . . . .5-48
.3008 Advisory Members of the Appellate Practice . . . . . . . . . . . . . . .
Specialty Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-48
Section .3100 Certification Standards for the Trademark Law Specialty . .5-48
.3101 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . .5-48
.3102 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-48
.3103 Recognition as a Specialist in Trademark Law . . . . . . . . . .5-48
.3104 Applicability of Provisions of the North Carolina Plan of . . . . .
Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-49
.3105 Standards for Certification as a Specialist in . . . . . . . . . . . . . . . .
Trademark Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-49
.3106 Standards for Continued Certification as a Specialist . . . . .5-49
.3107 Applicability of Other Requirements . . . . . . . . . . . . . . . . .5-49
Subchapter E: Regulations for Organizations . . . . . . . . . . . . . . .
Practicing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . .Subchap. 1E
Section .0100 Regulations for Professional Corporations and Professional
Limited Liability Companies Practicing Law . . . . . . . . . . . . . . . . . . . .6-1
.0101 Authority, Scope, and Definitions . . . . . . . . . . . . . . . . . . . .6-1
.0102 Name of Professional Corporation or Professional
Limited Liability Company . . . . . . . . . . . . . . . . . . . . . . . . .6-1
.0103 Registration with the North Carolina State Bar . . . . . . . . .6-1
.0104 Management and Financial Matters . . . . . . . . . . . . . . . . . .6-3
.0105 General and Administrative Provisions . . . . . . . . . . . . . . . .6-3
Section .0200 Registration of Interstate and International
Law Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-4
.0201 Registration Requirement . . . . . . . . . . . . . . . . . . . . . . . . . .6-4
.0202 Conditions of Registration . . . . . . . . . . . . . . . . . . . . . . . . .6-4
.0203 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-4
.0204 Certificate of Registration . . . . . . . . . . . . . . . . . . . . . . . . . .6-4
.0205 Effect of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-4
.0206 Non-renewal of Registration . . . . . . . . . . . . . . . . . . . . . . . . .6-4
Section .0300 Rules Concerning Prepaid Legal Services Plans . . . . . . .6-5
.0301 State Bar May Not Approve or Disapprove Plans . . . . . . . .6-5
.0302 Registration Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0303 Definition of Prepaid Plan . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0304 Registration Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0305 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0306 Requirement to File Amendments . . . . . . . . . . . . . . . . . . .6-5
.0307 Annual Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0308 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0309 Index of Registered Plans . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
.0310 Advertising of State Bar Approval Prohibited . . . . . . . . . . . .6-6
.0311 State Bar Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-6
.0312 Revocation of Registration . . . . . . . . . . . . . . . . . . . . . . . . .6-6
.0313 Hearing before the Authorized Practice Committee . . . . . .6-6
.0314 Action by the Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-6
Subchapter G: Certification of Paralegals . . . . .Subchap. 1G
Section .0100 The Plan for Certification of Paralegals . . . . . . . . . . . . .7-1
.0101 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-1
.0102 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . .7-1
.0103 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . .7-1
.0104 Size and Composition of Board . . . . . . . . . . . . . . . . . . . .7-1
.0105 Appointment of Members; When; Removal . . . . . . . . . .7-1
.0106 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-1
.0107 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-1
.0108 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2
.0109 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .7-2
.0110 Appointment of Vice-Chairperson . . . . . . . . . . . . . . . . . .7-2
.0111 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2
.0112 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2
.0113 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2
.0114 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2
.0115 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .7-2
.0116 Retained Jurisdiction of the Council . . . . . . . . . . . . . . . .7-2
.0117 Conferred and Limitations Imposed . . . . . . . . . . . . . . . .7-2
.0118 Certification Committee . . . . . . . . . . . . . . . . . . . . . . . . .7-2
.0119 Standards for Certification of Paralegals . . . . . . . . . . . . .7-3
.0120 Standards for Continued Certification of Paralegals . . . . .7-4
.0121 Lapse, Suspension or Revocation of Certification . . . . . .7-4
.0122 Right to Review and Appeal to Council . . . . . . . . . . . . .7-4
.0123 Inactive Status Upon Demonstration of Hardship . . . . . .7-4
Section .0200 Rules Governing Continuing Paralegal Education . . . .7-5
.0201 Continuing Paralegal Education (CPE) . . . . . . . . . . . . . . .7-5
.0202 Accreditation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-5
.0203 General Course Approval . . . . . . . . . . . . . . . . . . . . . . . . . .7-5
.0204 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-6
.0205 Computation of Hours of Instruction . . . . . . . . . . . . . . . . .7-6
Subchapter H: Registration of Attorneys Appearing . . . . . . . . .
Pro Hac Vice . . . . . . . . . . . . . . . . . . . . . . . . . . . .Subchap. 1H
Section .0100 Registration Procedure . . . . . . . . . . . . . . . . . . . . . . . . .8-1
.0101 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-1
Title 27 of the North Carolina Administrative Code:
The North Carolina State Bar Chapter 2: Rules of
Professional Conduct . . . . . . . . . . . . . . . . . . .9-1
Preamble and Scope
0.1 Preamble: A Lawyer’s Professional Responsibilities . . . . . . . . . . . . . .9-2
0.2 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-3
Terminology
Rule 1.0: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-4
Client-Lawyer Relationship
Rule 1.1: Competence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-5
Rule 1.2: Scope of Representation and Allocation of Authority
Between Client and Lawyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-6
Rule 1.3: Diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-8
Rule 1.4: Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-8
page 9
Rule 1.5: Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-9
Rule 1.6: Confidentiality of Information . . . . . . . . . . . . . . . . . . . . . . . .9-12
Rule 1.7: Conflict of Interest: Current Clients . . . . . . . . . . . . . . . . . . . .9-15
Rule 1.8: Conflict of Interest: Current Clients: Specific Rules . . . . . . . .9-21
Rule 1.9: Duties to Former Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-24
Rule 1.10: Imputation of Conflicts of Interest: General Rule . . . . . . . .9-26
Rule 1.11: Special Conflicts of Interest for Former
and Current Government Officers and Employees . . . . . . . . . . . . . . . .9-27
Rule 1.12: Former Judge, Arbitrator, Mediator, or Other
Third-Party Neutral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-28
Rule 1.13: Organization as Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-29
Rule 1.14: Client with Diminished Capacity . . . . . . . . . . . . . . . . . . . . .9-30
Rule 1.15: Safekeeping Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-32
Rule 1.15-1: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-32
Rule 1.15-2: General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-32
Rule 1.15-3: Records and Accountings . . . . . . . . . . . . . . . . . . . . . . .9-33
Rule 1.15-4: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-36
Rule 1.16: Declining or Terminating Representation . . . . . . . . . . . . . . .9-36
Rule 1.17: Sale of Law Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-38
Rule 1.18: Duties to Prospective Client . . . . . . . . . . . . . . . . . . . . . . . . .9-39
Rule 1.19: Sexual Relations with Clients Prohibited . . . . . . . . . . . . . . .9-40
Counselor
Rule 2.1: Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-40
Rule 2.2: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-41
Rule 2.3: Evaluation for Use by Third Persons . . . . . . . . . . . . . . . . . . .9-41
Rule 2.4: Lawyer Serving as Third-Party Neutral . . . . . . . . . . . . . . . . . .9-41
Advocate
Rule 3.1: Meritious Claims and Contentions . . . . . . . . . . . . . . . . . . . .9-42
Rule 3.2: Expediting Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-42
Rule 3.3: Candor Toward the Tribunal . . . . . . . . . . . . . . . . . . . . . . . . .9-42
Rule 3.4: Fairness to Opposing Party and Counsel . . . . . . . . . . . . . . . .9-44
Rule 3.5: Impartiality and Decorum of the Tribunal . . . . . . . . . . . . . . .9-45
Rule 3.6: Trial Publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-47
Rule 3.7: Lawyer as Witness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-48
Rule 3.8: Special Responsibilities of a Prosecutor . . . . . . . . . . . . . . . . . .9-48
Transactions with Persons Other Than Clients
Rule 4.1: Truthfulness in Statements to Others . . . . . . . . . . . . . . . . . . .9-49
Rule 4.2: Communication with Person Represented by Counsel . . . . .9-50
Rule 4.3: Dealing with Unrepresented Person . . . . . . . . . . . . . . . . . . . .9-51
Rule 4.4: Respect for Rights of Third Persons . . . . . . . . . . . . . . . . . . . .9-52
Law Firms and Associations
Rule 5.1: Responsibilities of Partners, Managers,
and Supervisory Lawyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-53
Rule 5.2: Responsibilities of a Subordinate Lawyer . . . . . . . . . . . . . . . .9-53
Rule 5.3: Responsibilities Regarding Nonlawyer Assistants . . . . . . . . . .9-54
Rule 5.4: Professional Independence of a Lawyer . . . . . . . . . . . . . . . . .9-54
Rule 5.5: Unauthorized Practice of Law . . . . . . . . . . . . . . . . . . . . . . . . .9-55
Rule 5.6: Restrictions on Right to Practice . . . . . . . . . . . . . . . . . . . . . .9-58
Rule 5.7: Responsibilities Regarding Law-Related Services . . . . . . . . . .9-58
Public Service
Rule 6.1: Voluntary Pro Bono Publico Service . . . . . . . . . . . . . . . . . . . .9-59
Rule 6.2: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-60
Rule 6.3: Membership in Legal Services Organization . . . . . . . . . . . . . .9-60
Rule 6.4: Law Reform Activities Affecting Client Interests . . . . . . . . . .9-60
Rule 6.5: Limited Legal Services Programs . . . . . . . . . . . . . . . . . . . . . . .9-60
Rule 6.6: Action as a Public Official . . . . . . . . . . . . . . . . . . . . . . . . . . .9-61
Information About Legal Services
Rule 7.1: Communications Concerning a Lawyer’s Services . . . . . . . . .9-61
Rule 7.2: Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-63
Rule 7.3: Direct Contact with Potential Clients . . . . . . . . . . . . . . . . . .9-64
Rule 7.4: Communication of Fields of Practice and Specialization . . . .9-66
Rule 7.5: Firm Names and Letterheads . . . . . . . . . . . . . . . . . . . . . . . . .9-66
Rule 7.6: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-67
Maintaining the Integrity of the Profession
Rule 8.1: Bar Admission and Disciplinary Matters . . . . . . . . . . . . . . . .9-67
Rule 8.2: Judicial and Legal Officials . . . . . . . . . . . . . . . . . . . . . . . . . . .9-68
Rule 8.3: Reporting Professional Misconduct . . . . . . . . . . . . . . . . . . . .9-68
Rule 8.4: Misconduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-69
Rule 8.5: Disciplinary Authority; Choice of Law . . . . . . . . . . . . . . . . . .9-70
Rules Index . . . . . . . . . . . . . . . . . . . . . . . .9-72
Ethics Opinions . . . . . . . . . . . . . . . . . . . . .10-1
Authorized Practice Advisory Opinions . . .10-249
Ethics Opinion Index . . . . . . . . . . . . . . . .10-252
Additional Resources . . . . . . . . . . . . . . . . . .11-1
Trust Accounting Questions and Answers . . . . . . . . . . . . . . . . . . . . . .11-1
IOLTA Questions and Answers . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-14
Correlation Tables
Correlation Table 1: 1997 Revised Rules of Professional Conduct and 2003
Amended Revised Rules of Professional Conduct . . . . . . . . . . . . . . . .11-17
Correlation Table 2: 1997 Revised Rules of Professional
Conduct and 1985 Rules of Professional Conduct (Superceded) . . . .11-18
Correlation Table 3: 1985 Rules of Professional Conduct
(Superceded), 1997 Revised Rules of Professional Conduct,
and 1973 Code of Professional Responsibility (Superceded) . . . . . . .11-20
Headings for the Complete Rules of the North Carolina State Bar . . .11-23
Cover photo courtesy of Sandra Melvin, State Bar Office Manager.
G.S. Chap. 84: 1-1
§ 84-2.1. "Practice law" defined.
The phrase "practice law" as used in this Chapter is defined to be performing
any legal service for any other person, firm or corporation, with or without com-pensation,
specifically including the preparation or aiding in the preparation of
deeds, mortgages, wills, trust instruments, inventories, accounts or reports of
guardians, trustees, administrators or executors, or preparing or aiding in the prepa-ration
of any petitions or orders in any probate or court proceeding; abstracting or
passing upon titles, the preparation and filing of petitions for use in any court,
including administrative tribunals and other judicial or quasi judicial bodies, or
assisting by advice, counsel, or otherwise in any legal work; and to advise or give
opinion upon the legal rights of any person, firm or corporation: Provided, that the
above reference to particular acts which are specifically included within the defini-tion
of the phrase "practice law" shall not be construed to limit the foregoing gen-eral
definition of the term, but shall be construed to include the foregoing partic-ular
acts, as well as all other acts within the general definition. The phrase "practice
law" does not encompass the writing of memoranda of understanding or other
mediation summaries by mediators at community mediation centers authorized by
G.S. 7A 38.5 or by mediators of personnel matters for The University of North
Carolina or a constituent institution.
§ 84-4. Persons other than members of State Bar
prohibited from practicing law.
Except as otherwise permitted by law, it shall be unlawful for any person or
association of persons, except active members of the Bar of the State of North
Carolina admitted and licensed to practice as attorneys at law, to appear as attor-ney
or counselor at law in any action or proceeding before any judicial body,
including the North Carolina Industrial Commission, or the Utilities
Commission; to maintain, conduct, or defend the same, except in his own behalf
as a party thereto; or, by word, sign, letter, or advertisement, to hold out himself,
or themselves, as competent or qualified to give legal advice or counsel, or to pre-pare
legal documents, or as being engaged in advising or counseling in law or act-ing
as attorney or counselor at law, or in furnishing the services of a lawyer or
lawyers; and it shall be unlawful for any person or association of persons except
active members of the Bar, for or without a fee or consideration, to give legal advice
or counsel, perform for or furnish to another legal services, or to prepare directly
or through another for another person, firm or corporation, any will or testamen-tary
disposition, or instrument of trust, or to organize corporations or prepare for
another person, firm or corporation, any other legal document. Provided, that
nothing herein shall prohibit any person from drawing a will for another in an
emergency wherein the imminence of death leaves insufficient time to have the
same drawn and its execution supervised by a licensed attorney at law. The provi-sions
of this section shall be in addition to and not in lieu of any other provisions
of this Chapter. Provided, however, this section shall not apply to corporations
authorized to practice law under the provisions of Chapter 55B of the General
Statutes of North Carolina.
§ 84-4.1. Limited practice of out of state attorneys.
Any attorney domiciled in another state, and regularly admitted to practice in
the courts of record of and in good standing in that state, having been retained as
attorney for a party to any civil or criminal legal proceeding pending in the General
Court of Justice of North Carolina, the North Carolina Utilities Commission, the
North Carolina Industrial Commission, the Office of Administrative Hearings of
North Carolina, or any administrative agency, may, on motion, be admitted to
practice in that forum for the sole purpose of appearing for a client in the pro-ceeding.
The motion required under this section shall be signed by the attorney
and shall contain or be accompanied by:
(1) The attorney's full name, post office address, bar membership number, and
status as a practicing attorney in another state.
(2) A statement, signed by the client, setting forth the client's address and
declaring that the client has retained the attorney to represent the client in the pro-ceeding.
(3) A statement that unless permitted to withdraw sooner by order of the court,
the attorney will continue to represent the client in the proceeding until its final
determination, and that with reference to all matters incident to the proceeding,
the attorney agrees to be subject to the orders and amenable to the disciplinary
action and the civil jurisdiction of the General Court of Justice and the North
Carolina State Bar in all respects as if the attorney were a regularly admitted and
licensed member of the Bar of North Carolina in good standing.
(4) A statement that the state in which the attorney is regularly admitted to
practice grants like privileges to members of the Bar of North Carolina in good
standing.
(5) A statement to the effect that the attorney has associated and is personally
appearing in the proceeding, with an attorney who is a resident of this State, has
agreed to be responsible for filing a registration statement with the North Carolina
State Bar, and is duly and legally admitted to practice in the General Court of
Justice of North Carolina, upon whom service may be had in all matters connect-ed
with the legal proceedings, or any disciplinary matter, with the same effect as if
personally made on the foreign attorney within this State.
(6) A statement accurately disclosing a record of all that attorney's disciplinary
history. Discipline shall include (i) public discipline by any court or lawyer regula-tory
organization, and (ii) revocation of any pro hac vice admission.
(7) A fee in the amount of two hundred twenty five dollars ($225.00), of which
two hundred dollars ($200.00) shall be remitted to the State Treasurer for support
of the General Court of Justice and twenty five dollars ($25.00) shall be transmit-ted
to the North Carolina State Bar to regulate the practice of out of state attorneys
as provided in this section.
Compliance with the foregoing requirements does not deprive the court of the
discretionary power to allow or reject the application.
§ 84-4.2. Summary revocation of permission granted
out of state attorneys to practice.
Permission granted under G.S. 84-4.1 may be summarily revoked by the
General Court of Justice or any agency, including the North Carolina Utilities
Commission, on its own motion and in its discretion.
§ 84-5. Prohibition as to practice of law by
corporation.
(a) It shall be unlawful for any corporation to practice law or appear as an
attorney for any person in any court in this State, or before any judicial body
or the North Carolina Industrial Commission, Utilities Commission, or the
Department of Commerce, Division of Employment Security, or hold itself
out to the public or advertise as being entitled to practice law; and no corpo-ration
shall organize corporations, or draw agreements, or other legal docu-ments,
or draw wills, or practice law, or give legal advice, or hold itself out in
any manner as being entitled to do any of the foregoing acts, by or through any
person orally or by advertisement, letter or circular. The provisions of this sec-tion
shall be in addition to and not in lieu of any other provisions of Chapter
84. Provided, that nothing in this section shall be construed to prohibit a bank-ing
corporation authorized and licensed to act in a fiduciary capacity from per-forming
any clerical, accounting, financial or business acts required of it in the
performance of its duties as a fiduciary or from performing ministerial and cler-ical
acts in the preparation and filing of such tax returns as are so required, or
from discussing the business and financial aspects of fiduciary relationships.
Provided, however, this section shall not apply to corporations authorized to
North Carolina General Statutes, Chapter 84
Attorneys-at-Law: Selected Statutes
G.S. Chap. 84: 1-2
practice law under the provisions of Chapter 55B of the General Statutes of
North Carolina.
To further clarify the foregoing provisions of this section as they apply to cor-porations
which are authorized and licensed to act in a fiduciary capacity:
(1) A corporation authorized and licensed to act in a fiduciary capacity shall
not:
a. Draw wills or trust instruments; provided that this shall not be construed
to prohibit an employee of such corporation from conferring and cooperat-ing
with an attorney who is not a salaried employee of the corporation, at the
request of such attorney, in connection with the attorney's performance of
services for a client who desires to appoint the corporation executor or trustee
or otherwise to utilize the fiduciary services of the corporation.
b. Give legal advice or legal counsel, orally or written, to any customer or
prospective customer or to any person who is considering renunciation of the
right to qualify as executor or administrator or who proposes to resign as
guardian or trustee, or to any other person, firm or corporation.
c. Advertise to perform any of the acts prohibited herein; solicit to perform
any of the acts prohibited herein; or offer to perform any of the acts prohib-ited
herein.
(2) Except as provided in subsection (b) of this section, when any of the fol-lowing
acts are to be performed in connection with the fiduciary activities of
such a corporation, said acts shall be performed for the corporation by a duly
licensed attorney, not a salaried employee of the corporation, retained to per-form
legal services required in connection with the particular estate, trust or
other fiduciary matter:
a. Offering wills for probate.
b. Preparing and publishing notice of administration to creditors.
c. Handling formal court proceedings.
d. Drafting legal papers or giving legal advice to spouses concerning rights to
an elective share under Article 1A of Chapter 30 of the General Statutes.
e. Resolving questions of domicile and residence of a decedent.
f. Handling proceedings involving year's allowances of widows and children.
g. Drafting deeds, notes, deeds of trust, leases, options and other contracts.
h. Drafting instruments releasing deeds of trust.
i. Drafting assignments of rent.
j. Drafting any formal legal document to be used in the discharge of the cor-porate
fiduciary's duty.
k. In matters involving estate and inheritance taxes, gift taxes, and federal and
State income taxes:
1. Preparing and filing protests or claims for refund, except requests for a
refund based on mathematical or clerical errors in tax returns filed by it as
a fiduciary.
2. Conferring with tax authorities regarding protests or claims for refund,
except those based on mathematical or clerical errors in tax returns filed by
it as a fiduciary.
3. Handling petitions to the tax court.
l. Performing legal services in insolvency proceedings or before a referee in
bankruptcy or in court.
m. In connection with the administration of an estate or trust:
1. Making application for letters testamentary or letters of administration.
2. Abstracting or passing upon title to property.
3. Handling litigation relating to claims by or against the estate or trust.
4. Handling foreclosure proceedings of deeds of trust or other security
instruments which are in default.
(3) When any of the following acts are to be performed in connection with the
fiduciary activities of such a corporation, the corporation shall comply with the
following:
a. The initial opening and inventorying of safe deposit boxes in connection
with the administration of an estate for which the corporation is executor or
administrator shall be handled by, or with the advice of, an attorney, not a
salaried employee of the corporation, retained by the corporation to perform
legal services required in connection with that particular estate.
b. The furnishing of a beneficiary with applicable portions of a testator's will
relating to such beneficiary shall, if accompanied by any legal advice or opin-ion,
be handled by, or with the advice of, an attorney, not a salaried employ-ee
of the corporation, retained by the corporation to perform legal services
required in connection with that particular estate or matter.
c. In matters involving estate and inheritance taxes and federal and State
income taxes, the corporation shall not execute waivers of statutes of limita-tions
without the advice of an attorney, not a salaried employee of the cor-poration,
retained by the corporation to perform legal services in connection
with that particular estate or matter.
d. An attorney, not a salaried employee of the corporation, retained by the
corporation to perform legal services required in connection with an estate or
trust shall be furnished copies of inventories and accounts proposed for filing
with any court and proposed federal estate and North Carolina inheritance
tax returns and, on request, copies of proposed income and intangibles tax
returns, and shall be afforded an opportunity to advise and counsel the cor-porate
fiduciary concerning them prior to filing.
(b) Nothing in this section shall prohibit an attorney retained by a corporation,
whether or not the attorney is also a salaried employee of the corporation, from rep-resenting
the corporation or an affiliate, or from representing an officer, director, or
employee of the corporation or an affiliate in any matter arising in connection with
the course and scope of the employment of the officer, director, or employee.
Notwithstanding the provisions of this subsection, the attorney providing such rep-resentation
shall be governed by and subject to all of the Rules of Professional
Conduct of the North Carolina State Bar to the same extent as all other attorneys
licensed by this State.
§ 84-5.1. Rendering of legal services by certain non-profit
corporations.
(a) Subject to the rules and regulations of the North Carolina State Bar, as
approved by the Supreme Court of North Carolina, a nonprofit corporation, tax
exempt under 26 U.S.C. § 501(c)(3), organized or authorized under Chapter 55A
of the General Statutes of North Carolina and operating as a public interest law
firm as defined by the applicable Internal Revenue Service guidelines or for the pri-mary
purpose of rendering indigent legal services, may render such services pro-vided
by attorneys duly licensed to practice law in North Carolina, for the purposes
for which the nonprofit corporation was organized. The nonprofit corporation
must have a governing structure that does not permit an individual or group of
individuals other than an attorney duly licensed to practice law in North Carolina
to control the manner or course of the legal services rendered and must continual-ly
satisfy the criteria established by the Internal Revenue Service for 26 U.S.C. §
501(c)(3) status, whether or not any action has been taken to revoke that status.
(b) In no instance may legal services rendered by a nonprofit corporation under
subsection (a) of this section be conditioned upon the purchase or payment for any
product, good, or service other than the legal service rendered.
§ 84-8. Punishment for violations.
(a) Any person, corporation, or association of persons violating any of the pro-visions
of G.S. 84 4 through G.S. 84 6 or G.S. 84 9 shall be guilty of a Class 1 mis-demeanor.
(b) No person shall be entitled to collect any fee for services performed in vio-lation
of G.S. 84 4 through G.S. 84 6, G.S. 84 9, or G.S. 84 10.1.
§ 84-15. Creation of North Carolina State Bar as
an agency of the State.
There is hereby created as an agency of the State of North Carolina, for the pur-poses
and with the powers hereinafter set forth, the North Carolina State Bar.
§ 84-16. Membership and privileges.
The membership of the North Carolina State Bar shall consist of two classes,
active and inactive.
The active members shall be all persons who have obtained a license or certifi-cate,
entitling them to practice law in the State of North Carolina, who have paid
the membership dues specified, and who have satisfied all other obligations of
membership. No person other than a member of the North Carolina State Bar
shall practice in any court of the State except foreign attorneys as provided by
statute and natural persons representing themselves.
G.S. Chap. 84: 1-3
Inactive members shall be:
(1) All persons who have obtained a license to practice law in the State but who
have been found by the Council to be not engaged in the practice of law and not
holding themselves out as practicing attorneys and not occupying any public or
private positions in which they may be called upon to give legal advice or counsel
or to examine the law or to pass upon, adjudicate, or offer an opinion concerning
the legal effect of any act, document, or law.
(2) Persons allowed by the Council solely to represent indigent clients on a pro
bono basis under the supervision of an active member employed by a nonprofit
corporation qualified to render legal services pursuant to G.S. 84-5.1.
All active members shall be required to pay annual membership fees, and shall
have the right to vote in elections held by the district bar in the judicial district in
which the member resides. If a member desires to vote with the bar of some dis-trict
in which the member practices, other than that in which the member resides,
the member may do so by filing with the Secretary of the North Carolina State Bar
a statement in writing that the member desires to vote in the other district; pro-vided,
however, that in no case shall the member be entitled to vote in more than
one district.
§ 84-17. Government.
The government of the North Carolina State Bar is vested in a council of the
North Carolina State Bar referred to in this Chapter as the "Council." The Council
shall be composed of a variable number of councilors equal to the number of judi-cial
districts plus 16, the officers of the North Carolina State Bar, who shall be
councilors during their respective terms of office, and each retiring president of the
North Carolina State Bar who shall be a councilor for one year from the date of
expiration of his term as president. Notwithstanding any other provisions of the
law, the North Carolina State Bar may borrow money and may acquire, hold, rent,
encumber, alienate, lease, and otherwise deal with real or personal property in the
same manner as any private person or corporation, subject only to the approval of
the Governor and the Council of State as to the borrowing of money and the
acquisition, rental, encumbering, leasing and sale of real property. The Council
shall be competent to exercise the entire powers of the North Carolina State Bar in
respect of the interpretation and administration of this Article, the borrowing of
money, the acquisition, lease, sale, or mortgage of property, real or personal, the
seeking of amendments to this Chapter, and all other matters. There shall be one
councilor from each judicial district and 16 additional councilors. The additional
councilors shall be allocated and reallocated by the North Carolina State Bar every
six years based on the number of active members of each judicial district bar
according to the records of the North Carolina State Bar and in accordance with a
formula to be adopted by the North Carolina State Bar, to insure an allocation
based on lawyer population of each judicial district bar as it relates to the total num-ber
of active members of the State Bar.
A councilor whose seat has been eliminated due to a reallocation shall contin-ue
to serve on the Council until expiration of the remainder of the current term.
A councilor whose judicial district is altered by the General Assembly during the
councilor's term shall continue to serve on the Council until the expiration of the
term and shall represent the district wherein the councilor resides or with which
the councilor has elected to be affiliated. If before the alteration of the judicial dis-trict
of the councilor the judicial district included both the place of residence and
the place of practice of the councilor, and if after the alteration of the judicial dis-trict
the councilor's place of residence and place of practice are located in different
districts, the councilor must, not later than 10 days from the effective date of the
alteration of the district, notify the Secretary of the North Carolina State Bar of an
election to affiliate with and represent either the councilor's district of residence or
district of practice.
In addition to the councilors, there shall be three public members not
licensed to practice law in this or any other state who shall be appointed by the
Governor. The public members may vote and participate in all matters before
the Council to the same extent as councilors elected or appointed from the var-ious
judicial districts.
§ 84-18. Terms, election and appointment of
councilors.
(a) Except as set out in this section, the terms of councilors are fixed at three
years commencing on the first day of January in the year following their election.
A year shall be the calendar year. No councilor may serve more than three succes-sive
three year terms but a councilor may serve an unlimited number of three suc-cessive
three year terms provided a three year period of nonservice intervenes in
each instance. Any councilor serving a partial term of 18 months or more is con-sidered
to have served a full term and shall be eligible to be elected to only two suc-cessive
three year terms in addition to the partial term. Any councilor serving a par-tial
term of less than 18 months is eligible to be elected to three successive three
year terms in addition to the partial term. This paragraph shall not apply to offi-cers
of the State Bar.
The secretary of a judicial district bar shall notify the secretary treasurer of the
State Bar in writing of any additions to or deletions from the delegation of coun-cilors
representing the district within 90 days of the effective date of the change.
No new councilor shall assume a seat until official notice of the election has been
given to the secretary treasurer of the State Bar.
Any active member of the North Carolina State Bar is eligible to serve as a
councilor from the judicial district in which the member is eligible to vote.
(b) The Council may promulgate rules to govern the election and appointment
of councilors. The election and appointment of councilors shall be as follows:
Each judicial district bar shall elect one eligible North Carolina State Bar mem-ber
for each Council vacancy in the district. Any vacancy occurring after the elec-tion,
whether caused by resignation, death, reconfiguration of the district by the
General Assembly, or otherwise shall be filled by the judicial district bar in which
the vacancy occurs. The appointment shall be for the unexpired portion of the
term and shall be certified to the Council by the judicial district bar. Any appoint-ed
councilor shall be subject to the terms set forth in subsection (a) of G.S. 84-18.
(c) Public members shall serve three year terms. No public member shall serve
more than two complete consecutive terms. The Secretary of the North Carolina
State Bar shall promptly inform the Governor when any seat occupied by a public
member becomes vacant. The successor shall serve the remainder of the term. Any
public member serving a partial term of 18 months or more is considered to have
served a full term and is eligible to be elected to only one additional three year term
in addition to the partial term. Any public member serving a partial term of less
than 18 months is eligible to be elected to two successive three year terms in addi-tion
to the partial term.
§ 84-18.1. Membership and fees of district bars.
(a) The district bar shall be a subdivision of the North Carolina State Bar sub-ject
to the general supervisory authority of the Council and may adopt rules, reg-ulations
and bylaws that are not inconsistent with this Article. A copy of any rules,
regulations and bylaws that are adopted, along with any subsequent amendments,
shall be transmitted to the Secretary Treasurer of the North Carolina State Bar.
(b) Any district bar may from time to time by a majority vote of the members
present at a duly called meeting prescribe an annual membership fee to be paid by
its active members as a service charge to promote and maintain its administration,
activities and programs. The fee shall be in addition to, but shall not exceed, the
amount of the membership fee prescribed by G.S. 84-34 for active members of the
North Carolina State Bar. The district bar may also charge a late fee, which shall
not exceed fifteen dollars ($15.00), for the failure to pay judicial district bar dues
on time. The district bar shall mail a written notice to every active member of the
district bar at least 30 days before any meeting at which an election is held to
impose or increase mandatory district bar dues. Every active member of a district
bar which has prescribed an annual membership fee shall keep its secretary treas-urer
notified of his correct mailing address and shall pay the prescribed fee at the
time and place set forth in the demand for payment mailed to him by its secretary
treasurer. The name of each active member of a district bar who is more than 12
full calendar months in arrears in the payment of any fee shall be furnished by the
secretary treasurer of the district bar to the Council. In the exercise of its powers as
set forth in G.S. 84-23, the Council shall thereupon take disciplinary or other
action with reference to the delinquent as it considers necessary and proper.
G.S. Chap. 84: 1-4
§ 84-19. Judicial districts definition.
For purposes of this Article, the term "judicial district" refers to prosecutorial
districts established by the General Assembly and includes the High Point Superior
Court District as described under G.S. 7A 41(b)(13). The term "district bar"
means the bar of a judicial district as defined by this section.
§ 84-21. Organization of Council; publication of rules,
regulations and bylaws.
(a) The Council shall adopt the rules pursuant to G.S. 45A 9.
(b) The rules and regulations adopted by the Council under this Article may
be amended by the Council from time to time in any manner not inconsistent
with this Article. Copies of all rules and regulations and of all amendments adopt-ed
by the Council shall be certified to the Chief Justice of the Supreme Court of
North Carolina, entered by the North Carolina Supreme Court upon its minutes,
and published in the next ensuing number of the North Carolina Reports and in
the North Carolina Administrative Code: Provided, that the court may decline to
have so entered upon its minutes any rules, regulations and amendments which in
the opinion of the Chief Justice are inconsistent with this Article.
§ 84-22. Officers and committees of the North
Carolina State Bar.
The officers of the North Carolina State Bar and the Council shall consist of a
president, president elect, vice president and an immediate past president, who
shall be deemed members of the Council in all respects. The president, president
elect and vice president need not be members of the Council at the time of their
election. There shall be a secretary treasurer who shall also have the title of execu-tive
director, but who shall not be a member of the Council. All officers shall be
elected annually by the Council at an election to take place at the annual meeting
of the North Carolina State Bar. The regular term of all officers is one year. The
Council is the judge of the election and qualifications of its members.
In addition to the committees and commissions as may be specifically estab-lished
or authorized by law, the North Carolina State Bar may have committees,
standing or special, as from time to time the Council deems appropriate for the
proper discharge of the duties and functions of the North Carolina State Bar. The
Council shall determine the number of members, composition, method of
appointment or election, functions, powers and duties, structure, authority to act,
and other matters relating to each committee. Any committee may, at the discre-tion
of the appointing or electing authority, be composed of Council members or
members of the North Carolina State Bar who are not members of the Council,
or of lay persons, or of any combination.
§ 84-23. Powers of Council.
(a) The Council is vested, as an agency of the State, with the authority to reg-ulate
the professional conduct of licensed lawyers and State Bar certified paralegals.
Among other powers, the Council shall administer this Article; take actions that
are necessary to ensure the competence of lawyers and State Bar certified paralegals;
formulate and adopt rules of professional ethics and conduct; investigate and pros-ecute
matters of professional misconduct; grant or deny petitions for reinstatement;
resolve questions pertaining to membership status; arbitrate disputes concerning
legal fees; certify legal specialists and paralegals and charge fees to applicants and
participants necessary to administer these certification programs; determine
whether a member is disabled; maintain an annual registry of interstate and inter-national
law firms doing business in this State; and formulate and adopt procedures
for accomplishing these purposes. The Council may do all things necessary in the
furtherance of the purposes of this Article that are not otherwise prohibited by law.
(b) The Council or any committee of the Council, including the Client
Security Fund and the Disciplinary Hearing Commission or any committee of the
Commission, may subpoena financial records of any licensed lawyers, lawyers
whose licenses have been suspended, or disbarred lawyers, relating to any account
into which client or fiduciary funds have been deposited.
(c) The Council may publish an official journal concerning matters of interest
to the legal profession.
(d) The Council may acquire, hold, rent, encumber, alienate, lease, and other-wise
deal with real or personal property in the same manner as any private person
or corporation, subject only to the approval of the Governor and the Council of
State as to the acquisition, rental, encumbering, leasing and sale of real property.
The Council may borrow money upon its bonds, notes, debentures, or other evi-dences
of indebtedness sold through public or private sale pursuant to a loan agree-ment
or a trust agreement or indenture with a trustee, with such borrowing either
unsecured or secured by a mortgage on the Council's interest in real or personal
property, and engage and contract with attorneys, underwriters, financial advisors,
and other parties as necessary for such borrowing, with such borrowing and secu-rity
subject to the approval of the Governor and the Council of State. The Council
may utilize the services of the Purchase and Contract Division of the Department
of Administration to procure personal property, in accordance with the provisions
of Article 3 of Chapter 143 of the General Statutes. However, the Council shall: (i)
submit all proposed contracts for supplies, materials, printing, equipment, and
contractual services that exceed one million dollars ($1,000,000) authorized by this
subsection to the Attorney General or the Attorney General's designee for review
as provided in G.S. 114 8.3; and (ii) include in all contracts to be awarded by the
Council under this subsection a standard clause which provides that the State
Auditor and internal auditors of the Council may audit the records of the con-tractor
during and after the term of the contract to verify accounts and data affect-ing
fees and performance. The Council shall not award a cost plus percentage of
cost agreement or contract for any purpose.
§ 84-28. Discipline and disbarment.
(a) Any attorney admitted to practice law in this State is subject to the discipli-nary
jurisdiction of the Council under such rules and procedures as the Council
shall adopt as provided in G.S. 84-23.
(b) The following acts or omissions by a member of the North Carolina State
Bar or any attorney admitted for limited practice under G.S. 84-4.1, individually
or in concert with any other person or persons, shall constitute misconduct and
shall be grounds for discipline whether the act or omission occurred in the course
of an attorney client relationship or otherwise:
(1) Conviction of, or a tender and acceptance of a plea of guilty or no contest
to, a criminal offense showing professional unfitness;
(2) The violation of the Rules of Professional Conduct adopted and promul-gated
by the Council in effect at the time of the act;
(3) Knowing misrepresentation of any facts or circumstances surrounding any
complaint, allegation or charge of misconduct; failure to answer any formal
inquiry or complaint issued by or in the name of the North Carolina State Bar
in any disciplinary matter; or contempt of the Council or any committee of the
North Carolina State Bar.
(c) Misconduct by any attorney shall be grounds for:
(1) Disbarment;
(2) Suspension for a period up to but not exceeding five years, any portion of
which may be stayed upon reasonable conditions to which the offending attor-ney
consents;
(3) Censure - A censure is a written form of discipline more serious than a rep-rimand
issued in cases in which an attorney has violated one or more provisions
of the Rules of Professional Conduct and has caused significant harm or poten-tial
significant harm to a client, the administration of justice, the profession or
members of the public, but the protection of the public does not require sus-pension
of the attorney's license;
(4) Reprimand - A reprimand is a written form of discipline more serious than
an admonition issued in cases in which an attorney has violated one or more
provisions of the Rules of Professional Conduct, but the protection of the pub-lic
does not require a censure. A reprimand is generally reserved for cases in
which the attorney's conduct has caused harm or potential harm to a client, the
administration of justice, the profession, or members of the public; or
(5) Admonition - An admonition is a written form of discipline imposed in
cases in which an attorney has committed a minor violation of the Rules of
Professional Conduct.
Any order disbarring or suspending an attorney may impose reasonable condi-tions
precedent to reinstatement. No attorney who has been disbarred by the
Disciplinary Hearing Commission, the Council, or by order of any court of this
State may seek reinstatement to the practice of law prior to five years from the effec-
G.S. Chap. 84: 1-5
tive date of the order of disbarment. Any order of the Disciplinary Hearing
Commission or the Grievance Committee imposing an admonition, reprimand,
censure, or stayed suspension may also require the attorney to complete a reason-able
amount of continuing legal education in addition to the minimum amount
required by the North Carolina Supreme Court.
(d) Any attorney admitted to practice law in this State, who is convicted of or
has tendered and has had accepted, a plea of guilty or no contest to, a criminal
offense showing professional unfitness, may be disciplined based upon the convic-tion,
without awaiting the outcome of any appeals of the conviction. An order of
discipline based solely upon a conviction of a criminal offense showing profession-al
unfitness shall be vacated immediately upon receipt by the Secretary of the
North Carolina State Bar of a certified copy of a judgment or order reversing the
conviction. The fact that the attorney's criminal conviction has been overturned on
appeal shall not prevent the North Carolina State Bar from conducting a discipli-nary
proceeding against the attorney based upon the same underlying facts or
events that were the subject of the criminal proceeding.
(d1) An attorney who is disciplined as provided in subsection (d) of this section
may petition the court in the trial division in the judicial district where the con-viction
occurred for an order staying the disciplinary action pending the outcome
of any appeals of the conviction. The court may grant or deny the stay in its dis-cretion
upon such terms as it deems proper. A stay of the disciplinary action by the
court shall not prevent the North Carolina State Bar from going forward with a
disciplinary proceeding against the attorney based upon the same underlying facts
or events that were the subject of the criminal proceeding.
(e) Any attorney admitted to practice law in this State who is disciplined in
another jurisdiction shall be subject to the same discipline in this State: Provided,
that the discipline imposed in the other jurisdiction does not exceed that provided
for in subsection (c) above and that the attorney was not deprived of due process
in the other jurisdiction.
(f) Upon application by the North Carolina State Bar, misconduct by an attor-ney
admitted to practice in this State may be restrained or enjoined where the
necessity for prompt action exists regardless of whether a disciplinary proceeding
in the matter of the conduct is pending. The application shall be filed in the
Superior Court of Wake County and shall be governed by the procedure set forth
in G.S. 1A 1, Rule 65.
(g) Any member of the North Carolina State Bar may be transferred to dis-ability
inactive status for mental incompetence, physical disability, or substance
abuse interfering with the attorney's ability to competently engage in the practice
of law under the rules and procedures the Council adopts pursuant to G.S. 84-23.
(h) There shall be an appeal of right by either party from any final order of the
Disciplinary Hearing Commission to the North Carolina Court of Appeals.
Review by the appellate division shall be upon matters of law or legal inference.
The procedures governing any appeal shall be as provided by statute or court rule
for appeals in civil cases. A final order which imposes disbarment or suspension for
18 months or more shall not be stayed except upon application, under the rules of
the Court of Appeals, for a writ of supersedeas. A final order imposing suspension
for less than 18 months or any other discipline except disbarment shall be stayed
pending determination of any appeal of right.
(i) The North Carolina State Bar may invoke the process of the General Court
of Justice to enforce the powers of the Council or any committee to which the
Council delegates its authority.
(j) The North Carolina State Bar may apply to appropriate courts for orders
necessary to protect the interests of clients of missing, suspended, disbarred, dis-abled,
or deceased attorneys.
The senior regular resident judge of the superior court of any district wherein
a member of the North Carolina State Bar resides or maintains an office shall have
the authority and power to enter orders necessary to protect the interests of the
clients, including the authority to order the payment of compensation by the
member or the estate of a deceased or disabled member to any attorney appointed
to administer or conserve the law practice of the member. Compensation awarded
to a member serving under this section awarded from the estate of a deceased
member shall be considered an administrative expense of the estate for purposes of
determining priority of payment.
§ 84-28.1. Disciplinary hearing commission.
(a) There shall be a disciplinary hearing commission of the North Carolina
State Bar which shall consist of 20 members. Twelve of these members shall be
members of the North Carolina State Bar, and shall be appointed by the Council.
The other eight shall be citizens of North Carolina not licensed to practice law
in this or any other state, four of whom shall be appointed by the Governor, two
by the General Assembly upon the recommendation of the President Pro
Tempore of the Senate in accordance with G.S. 120 121, and two by the General
Assembly upon the recommendation of the Speaker of the House of
Representatives in accordance with G.S. 120 121. The Council shall designate
one of its appointees as chair and another as vice chair. The chair shall have active-ly
practiced law in the courts of the State for at least 10 years. Except as set out
herein, the terms of members of the commission are set at three years com-mencing
on the first day of July of the year of their appointment. The Council,
the Governor, and the General Assembly respectively, shall appoint members to
fill unexpired terms when vacancies are created by resignation, disqualification,
disability or death, except that vacancies in appointments made by the General
Assembly may also be filled as provided by G.S. 120 122. No member may serve
more than a total of seven years or a one year term and two consecutive three year
terms: Provided, that any member or former member who is designated chair
may serve one additional three year term in that capacity. No member of the
Council may be appointed to the commission.
(b) The disciplinary hearing commission of the North Carolina State Bar, or
any committee of the disciplinary hearing commission, may hold hearings in dis-cipline,
incapacity and disability matters, make findings of fact and conclusions of
law after these hearings, enter orders necessary to carry out the duties delegated to
it by the Council, and tax the costs to an attorney who is disciplined or is found to
be incapacitated or disabled.
(b1) The disciplinary hearing commission of the North Carolina State Bar, or
any committee thereof, acting through its chairman, shall have the power to hold
persons, firms or corporations in contempt as provided in Chapter 5A.
(c) Members of the disciplinary hearing commission shall receive the same per
diem and travel expenses as are authorized for members of State commissions
under G.S. 138 5.
§ 84-28.2. Persons immune from suit.
Persons shall be immune from suit for all statements made without malice, and
intended for transmittal to the North Carolina State Bar or any board, committee,
officer, agent or employee thereof, or given in any investigation or proceedings, per-taining
to alleged misconduct or disability or to reinstatement of an attorney. The
protection of this immunity does not exist, however, as to statements made to oth-ers
not intended for this use.
§ 84-29. Evidence and witnesses.
In any investigation of charges of professional misconduct or disability or in
petitions for reinstatement, the Council and any committee thereof, and the disci-plinary
hearing commission, and any committee thereof, may administer oaths
and affirmations and shall have the power to subpoena and examine witnesses
under oath, and to compel their attendance, and the production of books, papers
and other documents or writings deemed by it necessary or material to the inquiry.
Each subpoena shall be issued under the hand of the secretary treasurer or the pres-ident
of the Council or the chair of the committee appointed to hear the charges,
and shall have the force and effect of a summons or subpoena issued by a court of
record, and any witness or other person who shall refuse or neglect to appear in
obedience thereto, or to testify or produce the books, papers, or other documents
or writings required, shall be liable to punishment for contempt either by the
Council or its committee or a hearing committee of the disciplinary hearing com-mission
through its chair pursuant to the procedures set out in Chapter 5A of the
General Statutes, but with the right to appeal therefrom. Depositions may be taken
in any investigations of professional misconduct as in civil proceedings, but the
Council or the committee hearing the case may, in its discretion, whenever it
believes that the ends of substantial justice so require, direct that any witness with-in
the State be brought before it. Witnesses giving testimony under a subpoena
before the Council or any committee thereof, or the disciplinary hearing commis-sion
or any committee thereof, or by deposition, shall be entitled to the same fees
as in civil actions.
In cases heard before the Council or any committee thereof or the disciplinary
G.S. Chap. 84: 1-6
hearing commission or any committee thereof, if the party shall be convicted of the
charges, the party shall be taxed with the cost of the hearings: Provided, however,
that the bill of costs shall not include any compensation to the members of the
Council or committee before whom the hearings are conducted.
§ 84-30. Rights of accused person.
Any person who shall stand charged with an offense cognizable by the council
or any committee thereof or the disciplinary hearing commission or any commit-tee
thereof shall have the right to invoke and have exercised in his favor the pow-ers
of the council or any committee, in respect of compulsory process for witness-es
and for the production of books, papers, and other writings and documents, and
shall also have the right to be represented by counsel.
§ 84‑32.1. Confidentiality of records.
(a) All documents, papers, letters, recordings, electronic records, or other doc-umentary
materials, regardless of physical form or characteristic, in the possession
of the State Bar or its staff, employees, legal counsel, councilors, and Grievance
Committee advisory members concerning any investigation, inquiry, complaint,
disability, or disciplinary matter in connection with the State Bar Grievance
Committee, the State Bar's Trust Accounting Supervisory Program, or any audit of
an attorney trust account shall not be considered public records within the mean-ing
of Chapter 132 of the General Statutes.
(b) All documents, papers, letters, recordings, electronic records, or other doc-umentary
materials containing or reflecting the deliberations of the Disciplinary
Hearing Commission in disciplinary or disability matters shall not be considered
public records within the meaning of Chapter 132 of the General Statutes.
(c) Notwithstanding any other provision of this section, any record, paper, or
other document containing information collected and compiled by or on behalf of
the State Bar that is admitted as evidence in any hearing before the Disciplinary
Hearing Commission, or any court or tribunal, shall be a public record within the
meaning of Chapter 132 of the General Statutes unless it is admitted into evidence
under seal by order of the Disciplinary Hearing Commission, or the court or tri-bunal
in which the proceeding is held.
(d) All documents, papers, letters, recordings, electronic records, or other doc-umentary
materials in the possession of the State Bar or its staff, employees, legal
counsel, and Lawyer Assistance Program volunteers, relating in any way to a mem-ber's
participation or prospective participation in the Lawyer Assistance Program,
including, but not limited to, any medical, counseling, substance abuse, or mental
health records, shall not be considered public records within the meaning of
Chapter 132 of the General Statutes. Neither the State Bar nor any person acting
under the authority of the State Bar or of the Lawyer Assistance Program shall be
required to produce or testify regarding the contents or existence of such
documents. (2011‑267, s. 5.)
§ 84-34. Membership fees and list of members.
Every active member of the North Carolina State Bar shall, prior to the first
day of July of each year, pay to the secretary-treasurer an annual membership fee
in an amount determined by the Council but not to exceed three hundred dol-lars
($300.00), plus a surcharge of fifty dollars ($50.00) for the implementation
of Article 22D of Chapter 163 of the General Statutes, and every member shall
notify the secretary-treasurer of the member's correct mailing address. Any mem-ber
who fails to pay the required dues by the last day of June of each year shall be
subject to a late fee in an amount determined by the Council but not to exceed
thirty dollars ($30.00). All dues for prior years shall be as were set forth in the
General Statutes then in effect. The membership fee shall be regarded as a serv-ice
charge for the maintenance of the several services authorized by this Article,
and shall be in addition to all fees required in connection with admissions to
practice, and in addition to all license taxes required by law. The fee shall not be
prorated: Provided, that no fee shall be required of an attorney licensed after this
Article shall have gone into effect until the first day of January of the calendar
year following that in which the attorney was licensed; but this proviso shall not
apply to attorneys from other states admitted on certificate. The fees shall be dis-bursed
by the secretary-treasurer on the order of the Council. The fifty-dollar
($50.00) surcharge shall be sent on a monthly schedule to the State Board of
Elections. The secretary-treasurer shall annually, at a time and in a law magazine
or daily newspaper to be prescribed by the Council, publish an account of the
financial transactions of the Council in a form to be prescribed by it. The secre-tary-
treasurer shall compile and keep currently correct from the names and mail-ing
addresses forwarded to the secretary-treasurer and from any other available
sources of information a list of members of the North Carolina State Bar and fur-nish
to the clerk of the superior court in each county, not later than the first day
of October in each year, a list showing the name and address of each attorney for
that county who has not complied with the provisions of this Article. The name
of each of the active members who are in arrears in the payment of membership
fees shall be furnished to the presiding judge at the next term of the superior court
after the first day of October of each year, by the clerk of the superior court of
each county wherein the member or members reside, and the court shall there-upon
take action that is necessary and proper. The names and addresses of attor-neys
so certified shall be kept available to the public. The Secretary of Revenue is
hereby directed to supply the secretary-treasurer, from records of license tax pay-ments,
with any information for which the secretary-treasurer may call in order
to enable the secretary-treasurer to comply with this requirement.
The list submitted to several clerks of the superior court shall also be submit-ted
to the Council at its October meeting of each year and it shall take the action
thereon that is necessary and proper.
§ 84-34.2. Specific statutory authority for certain
fees.
In addition to fees the Council is elsewhere authorized to charge and collect,
the Council may charge and collect the following fees in amounts determined by
the Council:
(1) A reinstatement fee for any attorney seeking reinstatement from inactive
status, administrative suspension, or suspension for failure to comply with the
annual continuing legal education requirements.
(2) A registration fee and annual renewal fee for an interstate or internation-al
law firm.
(3) An attendance fee for continuing legal education programs that may
include a fee to support the Chief Justice's Commission on Professionalism.
(4) A late fee for failing to file timely the continuing legal education annual
report form, for failure to pay attendance fees, or failure to complete the annual
continuing legal education requirements.
(5) An administrative fee for any attorney against whom discipline has been
imposed.
§ 84-36. Inherent powers of courts unaffected.
Nothing contained in this Article shall be construed as disabling or abridging
the inherent powers of the court to deal with its attorneys.
§ 84-37. State Bar may investigate and enjoin unau-thorized
activities.
(a) The Council or any committee appointed by it for that purpose may
inquire into and investigate any charges or complaints of (i) unauthorized or
unlawful practice of law or (ii) the use of the designations, "North Carolina
Certified Paralegal," "North Carolina State Bar Certified Paralegal," or "Paralegal
Certified by the North Carolina State Bar Board of Paralegal Certification," by
individuals who have not been certified in accordance with the rules adopted by
the North Carolina State Bar. The Council may bring or cause to be brought and
maintained in the name of the North Carolina State Bar an action or actions,
upon information or upon the complaint of any person or entity against any per-son
or entity that engages in rendering any legal service, holds himself or herself
out as a North Carolina certified paralegal by use of the designations set forth in
this subsection, or makes it a practice or business to render legal services that are
unauthorized or prohibited by law. No bond for cost shall be required in the pro-ceeding.
(b) In an action brought under this section, the final judgment if in favor of
the plaintiff shall perpetually restrain the defendant or defendants from the com-mission
or continuance of the unauthorized or unlawful act or acts. A temporary
G.S. Chap. 84: 1-7
injunction to restrain the commission or continuance of the act or acts may be
granted upon proof or by affidavit, that the defendant or defendants have violat-ed
any of the laws applicable to unauthorized or unlawful practice of law or the
unauthorized use of the designations set forth in subsection (a) of this section or
any other designation implying certification by the State Bar. The provisions of
law relating generally to injunctions as provisional remedies in actions shall apply
to a temporary injunction and the proceedings for temporary injunctions.
(c) The venue for actions brought under this section shall be the superior
court of any county in which the relevant acts are alleged to have been commit-ted
or in which there appear reasonable grounds that they will be committed in
the county where the defendants in the action reside, or in Wake County.
(d) The plaintiff in the action shall be entitled to examine the adverse party
and witnesses before filing complaint and before trial in the same manner as pro-vided
by law for examining parties.
(e) This section shall not repeal or limit any remedy now provided in cases of
unauthorized or unlawful practice of law. Nothing contained in this section shall
be construed as disabling or abridging the inherent powers of the court in these
matters.
(f) The Council or its duly appointed committee may issue advisory opinions
in response to inquiries from members or the public regarding whether contem-plated
conduct would constitute the unauthorized practice of law.
Subchap. 1A: 2-1
Section .0200 Membership - Annual Membership
Fees
.0201 Classes of Membership
(a) Two Classes of Membership
Members of the North Carolina State Bar shall be divided into two classes:
active members and inactive members.
(b) Active Members
The active members shall be all persons who have obtained licenses entitling
them to practice law in North Carolina, including persons serving as justices or
judges of any state or federal court in this state, unless classified as inactive mem-bers
by the council. All active members must pay the annual membership fee.
(c) Inactive Members
(1) The inactive members shall include:
(A) all persons who have been admitted to the practice of law in North
Carolina but who the council has found are not engaged in the practice of
law or holding themselves out as practicing attorneys and who do not occu-py
any public or private position in which they may be called upon to give
legal advice or counsel or to examine the law or to pass upon the legal effect
of any act, document, or law, and
(B) those persons granted emeritus pro bono status by the council and
allowed to represent indigent clients on a pro bono basis under the super-vision
of active members working for nonprofit corporations organized
pursuant to Chapter 55A of the General Statutes of North Carolina for the
sole purpose of rendering legal services to indigents.
(2) Inactive members of the North Carolina State Bar may not practice law,
except as provided in this rule for persons granted emeritus pro bono status,
and are exempt from payment of membership dues during the period in
which they are inactive members. For purposes of the State Bar's member-ship
records, the category of inactive members shall be further divided into
the following subcategories:
(A) Retired/nonpracticing
This subcategory includes those members who are not engaged in the prac-tice
of law or holding themselves out as practicing attorneys and who are
retired, hold positions unrelated to the practice of law, or practice law in
other jurisdictions.
(B) Disability inactive status
This subcategory includes members who suffer from a mental or physical
condition which significantly impairs the professional judgment, perform-ance,
or competence of an attorney, as determined by the courts, the coun-cil,
or the Disciplinary Hearing Commission.
(C) Disciplinary suspensions/disbarments
This subcategory includes those members who have been suspended from
the practice of law or who have been disbarred by the courts, the council,
or the Disciplinary Hearing Commission for one or more violations of the
Rules of Professional Conduct.
(D) Administrative suspensions
This subcategory includes those members who have been suspended from
the practice of law, pursuant to the procedure set forth in Rule .0903 of
subchapter 1D, for failure to fulfill the obligations of membership.
(E) Emeritus pro bono status
This subcategory includes those members who are permitted by the coun-cil
to represent indigent persons under the supervision of active members
who are employed by nonprofit corporations duly authorized to provide
legal services to such persons. This status may be withdrawn by the coun-cil
for good cause shown pursuant to the procedure set forth in Rule .0903
of subchapter 1D.
History Note: Statutory Authority G.S. 84-16; G.S. 84-23
Readopted Effective December 8, 1994
Amended March 6, 2008
.0202 Register of Members
(a) Initial Registration with State Bar
Every member shall register by completing and returning to the North
Carolina State Bar a signed registration card containing the following informa-tion:
(1) name and address;
(2) date;
(3) date passed examination to practice in North Carolina;
(4) date and place sworn in as an attorney in North Carolina;
(5) date and place of birth;
(6) list of all other jurisdictions where the member has been admitted to the
practice of law and date of admission;
(7) whether suspended or disbarred from the practice of law in any jurisdic-tion
or court, and if so, when and where, and when readmitted.
(b) Membership Records of State Bar
The secretary shall keep a permanent register for the enrollment of members
of the North Carolina State Bar. In appropriate places therein entries shall be
made showing the address of each member, date of registration and class of mem-bership,
date of transfer from one class to another, if any, date and period of sus-pension,
if any, and such other useful data which the council may from time to
time require.
(c) Updating Membership Information.
Each year before July 1, every member shall provide or verify the member's
current name, mailing address, and e-mail address.
History Note: Statutory Authority G.S. 84-23; G.S. 84-34
Readopted Effective December 8, 1994
Title 27 of the North Carolina Administrative Code
The North Carolina State Bar
Chapter 1
Rules and Regulations of the North Carolina State Bar
Editor’s Note: The Rules and Regulations of the North Carolina State Bar are published officially in the North Carolina Reports and the North Carolina
Administrative Code - Title 27. They may be cited properly with reference to the Administrative Code. For example, Rule 7.4 of the Revised Rules of Professional
Conduct would be cited as 27 NCAC 2 7.4.
SUBCHAPTER A
Organization of the North Carolina State Bar
Subchap. 1A: 2-2
Amended December 7, 1995; October 7, 2010
.0203 Annual Membership Fees; When Due
(a) Amount and Due Date
The annual membership fee shall be in the amount as provided by law and
shall be due and payable to the secretary of the North Carolina State Bar on
January 1 of each year and the same shall become delinquent if not paid before
July 1 of each year.
(b) Late Fee
Any attorney who fails to pay the entire annual membership fee in the
amount provided by law and the annual Client Security Fund assessment
approved by the North Carolina Supreme Court before July 1 of each year shall
also pay a late fee of $30.
(c) Waiver of All or Part of Dues
No part of the annual membership fee or Client Security Fund assessment
shall be prorated or apportioned to fractional parts of the year, and no part of the
membership fee or Client Security Fund assessment shall be waived or rebated
for any reason with the following exceptions:
(1) A person licensed to practice law in North Carolina for the first time by
examination shall not be liable for dues or the Client Security Fund assess-ment
during the year in which the person is admitted;
(2) A person licensed to practice law in North Carolina serving in the armed
forces, whether in a legal or nonlegal capacity, will be exempt from payment
of dues and Client Security Fund assessment for any year in which the mem-ber
is on active duty in the military service;
(3) A person licensed to practice law in North Carolina who files a petition
for inactive status on or before December 31 of a given year shall not be liable
for the membership fee or the Client Security Fund assessment for the fol-lowing
year if the petition is granted. A petition shall be deemed timely if it
is postmarked on or before December 31.
History Note: Statutory Authority G.S. 84-23; G.S. 84-34
Readopted Effective December 8, 1994
Amended September 7, 1995; December 7, 1995; March 7, 1996
.0204 Good Standing Definition and Certificates
(a) Definition
A lawyer who is an active member of the North Carolina State Bar and who
is not subject to a pending administrative or disciplinary suspension or disbarment
order or an order of suspension that has been stayed is in good standing with the
North Carolina State Bar. An administrative or disciplinary suspension or disbar-ment
order is “pending” if the order has been announced in open court by a state
court of competent jurisdiction or by the Disciplinary Hearing Commission, or
if the order has been entered by a state court of competent jurisdiction, by the
Council or by the Disciplinary Hearing Commission but has not taken effect.
“Good standing” makes no reference to delinquent membership obligations, prior
discipline, or any disciplinary charges or grievances that may be pending.
(b) Certificate of Good Standing for Active Member
Upon application and payment of the prescribed fee, the Secretary of the
North Carolina State Bar shall issue a certificate of good standing to any active
member of the State Bar who is in good standing and who is current on all pay-ments
owed to the North Carolina State Bar. A certificate of good standing will
not be issued unless the member pays any delinquency shown on the financial
records of the North Carolina State Bar including outstanding judicial district
bar dues. If the member contends that there is good cause for non-payment of
some or all of the amount owed, the member may subsequently demonstrate
good cause to the Administrative Committee pursuant to the procedure set forth
in Rule .0903(e)(1) of subchapter 1D of these rules. If the member shows good
cause, the contested amount shall be refunded to the member.
(c) Certificate of Good Standing for Inactive Member
Upon application, the Secretary of the North Carolina State Bar shall issue a
certificate of good standing to any inactive member of the State Bar who was in
good standing at the time that the member was granted inactive status and who
is not subject to any disciplinary order or pending disciplinary order. The cer-tificate
shall state that the member is inactive and is ineligible to practice law in
North Carolina.
History Note: Statutory Authority G.S. 84-23
Adopted March 8, 2012
Section .0800 Election and Appointment of State
Bar Councilors
.0801 Purpose
The purpose of these rules is to promulgate fair, open, and uniform proce-dures
to elect and appoint North Carolina State Bar councilors in all judicial
district bars. These rules should encourage a broader and more diverse partici-pation
and representation of all attorneys in the election and appointment of
councilors.
History Note: Statutory Authority G.S. 84-23
Readopted Effective December 8, 1994
.0802 Election - When Held; Notice; Nominations
(a) Every judicial district bar, in any calendar year at the end of which the
term of one or more of its councilors will expire, shall fill said vacancy or vacan-cies
at an election to be held during that year.
(b) The officers of the district bar shall fix the time and place of such election
and shall give to each active member (as defined in G.S. 84-16) of the district bar
a written notice thereof directed to him or her at his or her address on file with
the North Carolina State Bar, which notice shall be placed in the United States
Mail, postage prepaid, at least 30 days prior to the date of the election.
(c) The district bar shall submit its written notice of the election to the
North Carolina State Bar, at least six weeks before the date of the election.
(d) The North Carolina State Bar will, at its expense, mail these notices.
(e) The notice shall state the date, time and place of the election, give the
number of vacancies to be filled, identify how and to whom nominations may
be made before the election, and advise that all elections must be by a majori-ty
of the votes cast. If the election will be held at a meeting of the bar, the notice
will also advise that additional nominations may be made from the floor at the
meeting itself. In judicial districts that permit elections by mail or early voting,
the notice to members shall advise that nominations may be made in writing
directed to the president of the district bar and received prior to a date set out
in the notice. Sufficient notice shall be provided to permit nominations
received from district bar members to be included on the printed ballots.
History Note: Statutory Authority G.S. 84-18; G.S. 84-23
Readopted Effective December 8, 1994
Amended November 5, 1999; August 27, 2013
.0803 Election - Voting Procedures
(a) All nominations made either before or at the meeting shall be voted on
by secret ballot.
(b) Cumulative voting shall not be permitted.
(c) Nominees receiving a majority of the votes cast shall be declared elected.
History Note: Statutory Authority G.S. 84-18; G.S. 84-23
Readopted Effective December 8, 1994
Amended November 5, 1999
.0804 Procedures Governing Elections by Mail
(a) Judicial district bars may adopt bylaws permitting elections by mail, in
accordance with procedures approved by the N.C. State Bar Council and as set