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small (250x250 max)
medium (500x500 max)
Large
Extra Large
large ( > 500x500)
Full Resolution
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Administrative Rules . . . . . . . . . . . . . . .11
Continuing Legal Education ( CLE) . . . . . . . .53
Discipline and Disability . . . . . . . . . . . . . . .16
Fee Dispute Resolution . . . . . . . . . . . . . . . .43
IOLTA . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
Legal Specialization . . . . . . . . . . . . . . . . . .61
Membership . . . . . . . . . . . . . . . . . . . . . . . .11
Paralegal Certification . . . . . . . . . . . . . . . . .83
Professional Organizations . . . . . . . . . . . . . . . .78
Ethics Opinions . . . . . . . . . . . . . . . . . .165
Index to Ethics Opinions . . . . . . . . . . . . . .352
IOLTA Q& A . . . . . . . . . . . . . . . . . . . . . .377
Rules of Professional Conduct . . . . . . . .91
Rules Index . . . . . . . . . . . . . . . . . . . . . . .156
Trust Accounting Q& A . . . . . . . . . . . . .366
The North Carolina State Bar Lawyer’s
Handbook 2008 ( Abridged)
An official publication of the North Carolina State Bar con-taining
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Superseded ( 1985) Rules, and trust account guidelines.
The 2008
Lawyer’s Handbook
The 2008 North Carolina State Bar Lawyer’s Handbook page 3
State Bar Officers
Irvin W. Hankins III - President
401 S. Tryon Street, Suite 3000
Charlotte, NC 28202
( 704) 372- 9000
John B. McMillan - President- Elect
3605 Glenwood Avenue, Suite 500
PO Box 20389
Raleigh, NC 27619- 0389
( 919) 787- 8880
Barbara B. ( Bonnie) Weyher - Vice- President
One Bank of America Plaza, Suite 1200
421 Fayetteville Street
PO Box 2889
Raleigh, NC 27602- 2889
( 919) 835- 0900
Steven D. Michael - Past- President
4820 N. Croatan Hwy.
PO Drawer 1027
Kitty Hawk, NC 27949
( 252) 261- 2126
L. Thomas Lunsford II – Secretary/ Treasurer
208 Fayetteville Street
PO Box 25908
Raleigh, NC 27611- 5908
( 919) 828- 4620
The following persons can also be reached by
contacting the State Bar at:
North Carolina State Bar
PO Box 25908
Raleigh, NC 27611- 5908
( 919) 828- 4620
Address Changes
Lenita Childree lchildree@ ncbar. gov
Kelly Beck kbeck@ ncbar. gov
Beth McLamb bmclamb@ ncbar. gov
Administration
Tom Lunsford tlunsford@ ncbar. gov
Sandra Melvin smelvin@ ncbar. gov
Attorney- Client Assistance Program ( receives
complaints from clients)
Judy Treadwell jtreadwell@ ncbar. gov
Melanie Kincaid mkincaid@ ncbar. gov
Sandra L. Saxton ssaxton@ ncbar. gov
Certificates of Good Standing
Lenita Childree lchildree@ ncbar. gov
Kelly Beck kbeck@ ncbar. gov
Beth McLamb bmclamb@ ncbar. gov
Client Security Fund ( reimbursement for client-victims
of lawyer theft)
Root Edmonson redmonson@ ncbar. gov
David Frederick dfrederick@ ncbar. gov
Continuing Legal Education
Debra Holland dholland@ ncbar. gov
Lori Nicolicchia lnicolicchia@ ncbar. gov
Emily Oakes eoakes@ ncbar. gov
Michelle Powell mpowell@ ncbar. gov
Disciplinary Hearing Commission ( DHC and final
disciplinary orders)
Dottie Miani ( clerk) dmiani@ ncbar. gov
Ethics/ Professional Responsibility
( answers inquiries about lawyer’s own conduct)
Alice Neece Mine amine@ ncbar. gov
Suzanne Lever slever@ ncbar. gov
Nichole McLaughlin nmclaughlin@ ncbar. gov
Tom Lunsford tlunsford@ ncbar. gov
Fee Dispute Resolution
Luella Crane lcrane@ ncbar. gov
Krista Bathurst kbathurst@ ncbar. gov
Grievance Records
Sonya Sells ssells@ ncbar. gov
Becky Carroll bcarroll@ ncbar. gov
Wondella Payne wpayne@ ncbar. gov
IOLTA ( Interest on Lawyer’s Trust Accounts)
( 919) 828- 0477
( 888) 828- 1718 ( toll- free fax)
PO BOX 2687
Raleigh, NC 27602- 2687
General email: iolta@ ncbar. gov
Evelyn M. Pursley epursley@ ncbar. gov
Claire Mills cmills@ ncbar. gov
Sonja Puryear spuryear@ ncbar. gov
Lawyer Assistance Program
PALS/ FRIENDS ( confidential program)
Don Carroll nclap@ bellsouth. net
Ed Ward eward@ ncbar. gov
Towanda Garner tgarner@ ncbar. gov
Ph: ( 800) 720- 7257
Web: www. nclap. org
Membership Records
Tammy Jackson tjackson@ ncbar. gov
Lenita Childree lchildree@ ncbar. gov
Kelly Beck kbeck@ ncbar. gov
Beth McLamb bmclamb@ ncbar. gov
Office of Counsel ( prosecution of lawyers)
Katherine Jean kjean@ ncbar. gov
Paralegal Certification
Alice Neece Mine amine@ ncbar. gov
Tara Wilder twilder@ ncbar. gov
Joyce Lindsay jlindsay@ ncbar. gov
Professional Organizations ( registers p. c./ p. l. l. c’s )
Tammy Jackson tjackson@ ncbar. gov
Lenita Childree lchildree@ ncbar. gov
Pro Hac Vice Registration
Martha Fletcher mfletcher@ ncbar. gov
Publications/ Media Kits
Jennifer Duncan ncbar@ bellsouth. net
Martha Fletcher mfletcher@ ncbar. gov
Publication Orders
Jennifer Duncan ncbar@ bellsouth. net
Martha Fletcher mfletcher@ ncbar. gov
Specialization
Alice Neece Mine amine@ ncbar. gov
Denise Mullen dmullen@ ncbar. gov
Joyce Lindsay jlindsay@ ncbar. gov
Student Practice Certificates ( for 3rd year law
students)
Dottie Miani dmiani@ ncbar. gov
Trust Account Random Audits
Bruno DeMolli
c/ o Dawn Whaley dwhaley@ 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 The 2008 North Carolina State Bar Lawyer’s Handbook
27 NCAC Chapter 1 . . . . . . . . . . . . . . . . . . . . .11
Subchapter A: Organization of the North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Section .0200 Membership - Annual Membership Fees . . . . . . . . . . . .11
.0201 Classes of Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
.0202 Register of Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
.0203 Annual Membership Fees; When Due . . . . . . . . . . . . . . . . .11
.0204 Certificate of Insurance Coverage . . . . . . . . . . . . . . . . . . . . .12
Section .0800 Election and Appointment of State Bar Councilors
.0801 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
.0802 Election - When Held; Notice; Nominations . . . . . . . . . .12
.0803 Election - Voting Procedures . . . . . . . . . . . . . . . . . . . . . .12
.0804 Procedures Governing Elections by Mail . . . . . . . . . . . . .12
.0805 Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
.0806 Bylaws Providing for Geographical Rotation or
Division of Representation . . . . . . . . . . . . . . . . . . . . . . . .13
Section .0900 Organization of the Judicial District Bars . . . . . . . . . . . .13
.0901 Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.0902 Annual Membership Fee . . . . . . . . . . . . . . . . . . . . . . . . . .13
.0903 Fiscal Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Section .1000 Model Bylaws For Use by Judicial District Bars . . . . . . . .13
.1001 Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.1002 Authority and Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.1003 Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.1004 Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.1005 Councilor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.1006 Annual Membership Fee . . . . . . . . . . . . . . . . . . . . . . . . . .14
.1007 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.1008 District Bar Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.1009 Prohibited Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.1010 Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
.1011 Board of Directors or Executive Committee . . . . . . . . . . .15
.1012 Amendment of the Bylaws . . . . . . . . . . . . . . . . . . . . . . . .16
.1013 Selection of Nominees for District Court Judge . . . . . . . .16
Section .1200 Filing Papers with and Serving the North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
.1201 When Papers Are Filed Under These Rules
and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Subchapter B: Discipline and Disability Rules . . . . . . . .16
Section .0100 Discipline and Disability of Attorneys . . . . . . . . . . . . . .16
.0101 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
.0102 Procedure for Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
.0103 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
.0104 State Bar Council: Powers and Duties in .
Discipline and Disability Matters . . . . . . . . . . . . . . . . . . . . .18
.0105 Chairperson of the Grievance Committee: Powers . .
and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
.0106 Grievance Committee: Powers and Duties . . . . . . . . . . . . . .18
.0107 Counsel: Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . . .19
.0108 Chairperson of the Hearing Commission:
Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
.0109 Hearing Committee: Powers and Duties . . . . . . . . . . . . . . .19
.0110 Secretary: Powers and Duties in Discipline
and Disability Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
.0111 Grievances: Form and Filing . . . . . . . . . . . . . . . . . . . . . . . .20
.0112 Investigations: Initial Determination . . . . . . . . . . . . . . . . . .20
.0113 Proceedings before the Grievance Committee . . . . . . . . . . .21
.0114 Formal Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
.0115 Effect of a Finding of Guilt in Any Criminal Case . . . . . . .24
.0116 Reciprocal Discipline & Disability Proceedings . . . . . . . . . .24
.0117 Surrender of License While Under Investigation . . . . . . . . .25
.0118 Disability Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
.0119 Enforcement of Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
.0120 Notice to Member of Action and Dismissal . . . . . . . . . . . . .26
.0121 Notice to Complainant . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
.0122 Appointment of Counsel to Protect Client’s Interests . . .
When Attorney Disappears, Dies, or is Transferred to
Disability Inactive Status . . . . . . . . . . . . . . . . . . . . . . . . . . .27
.0123 Imposition of Discipline; Findings of Incapacity or
Disability; Notice to Courts . . . . . . . . . . . . . . . . . . . . . . . . .27
.0124 Obligations of Disbarred or Suspended Attorneys . . . . . . . .27
.0125 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
.0126 Address of Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
.0127 Disqualification Due to Interest . . . . . . . . . . . . . . . . . . . . . .30
.0128 Trust Accounts; Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
.0129 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
.0130 Disciplinary Amnesty in Illicit Drug Use Cases . . . . . . . . . .31
Section .0200 Rules Governing Judicial District
Grievance Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
.0201 Organization of Judicial District Grievance Committees . . .31
.0202 Jurisdiction and Authority of District
Grievance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
.0203 Meetings of the District Grievance Committees . . . . . . . . .32
.0204 Procedure Upon Institution of a Grievance . . . . . . . . . . . . .32
.0205 Record Keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
.0206 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
.0207 Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
.0208 Letter to Complainant Where Local Grievance Alleges
Fee Dispute Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
.0209 Letter to Complainant Where Local Grievance Alleges
Fee Dispute and Other Violations . . . . . . . . . . . . . . . . . . . .34
.0210 Letter to Complainant/ Respondent Where District
Committee Recommends Finding of No Probable Cause . .34
.0211 Letter to Respondent Where District Committee
Recommends Finding of Probable Cause . . . . . . . . . . . . . .34
.0212 Letter to Complainant Where District Committee
Recommends Finding of Probable Cause . . . . . . . . . . . . . .35
.0213 Letter to Complainant Acknowledging Grievance . . . . . . . .35
.0214 Letter to Investigating Attorney Assigning Grievance . . . . .35
.0215 Letter to Complainant from Investigating Attorney . . . . . .35
.0216 Letter of Notice to Respondent Attorney . . . . . . . . . . . . . . .35
.0217 Letter Transmitting Completed File to North Carolina
State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
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 380
The 2008 North Carolina State Bar Lawyer’s Handbook page 5
Subchapter C: Rules Governing the Board of
Law Examiners and the Training of Law Students . . . . . .36
Section .0100 Rules Governing the Board of Law Examiners and the
Training of Law Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
.0101 Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
.0102 Examination of Applicants for License . . . . . . . . . . . . . . .36
.0103 Admission to Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
.0104 Approval of Rules and Regulations of Board of
Law Examiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
.0105 Approval of Law Schools . . . . . . . . . . . . . . . . . . . . . . . . .36
Section .0200 Rules Governing Practical Training of Law Students . . . .36
.0201 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
.0202 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
.0203 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
.0204 Certification as Legal Intern . . . . . . . . . . . . . . . . . . . . . . .37
.0205 Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
.0206 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
.0207 Use of Student's Name . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Subchapter D: Rules of the Standing Committees of the
North Carolina State Bar . . . . . . . . . . . . . . . . . . . . . . . .38
Section .0100 Procedures for Ruling on Questions of Legal Ethics . . . .38
.0101 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
.0102 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
.0103 Informal Ethics Advisories and Ethics Advisories . . . . . . . . .39
.0104 Formal Ethics Opinions and Ethics Decisions . . . . . . . . . . .39
Section .0200 Procedures for the Authorized Practice Committee . . . . .39
.0201 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
.0202 Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
.0203 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
.0204 State Bar Council - Powers and Duties . . . . . . . . . . . . . . .40
.0205 Chairperson of the Authorized Practice
Committee - Powers and Duties . . . . . . . . . . . . . . . . . . . .40
.0206 Authorized Practice Committee - Powers and Duties . . . .40
.0207 Counsel - Powers and Duties . . . . . . . . . . . . . . . . . . . . . .40
.0208 Suing for Injunctive Relief . . . . . . . . . . . . . . . . . . . . . . . .41
Section .0600 Rules Governing the Lawyer Assistance Program . . . . . . .41
.0601 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
.0602 Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
.0603 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .41
.0604 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
.0605 Appointment of Members; When; Removal . . . . . . . . . . .41
.0606 Term of Office and Succession . . . . . . . . . . . . . . . . . . . . .41
.0607 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .41
.0608 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . .41
.0609 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
.0610 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
.0611 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
.0612 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .42
.0613 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
.0614 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
.0615 Regional Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
.0616 Suspension for Impairment, Reinstatement . . . . . . . . . . .42
.0617 Consensual Suspension . . . . . . . . . . . . . . . . . . . . . . . . . . .43
.0618 Agents of the State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . .43
.0619 Judicial Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
.0620 Rehabilitation Contracts for Lawyers Impaired by
Substance Abuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
.0621 Evaluations for Substance Abuse, Alcoholism,
and/ or other Chemical Addictions . . . . . . . . . . . . . . . . . .43
.0622 Grounds for Compelling an Evaluation . . . . . . . . . . . . . .43
.0623 Failure to Comply with an Order Compelling
an Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Section .0700 Procedures for Fee Dispute Resolution . . . . . . . . . . . . .43
.0701 Purpose and Implementation . . . . . . . . . . . . . . . . . . . . . . . .43
.0702 Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
.0703 Coordinator of Fee Dispute Resolution . . . . . . . . . . . . . . . .44
.0704 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
.0705 Selection of Mediators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
.0706 Processing Requests for Fee Dispute Resolution . . . . . . . . . .44
.0707 Mediation Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
.0708 Finalizing the Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
.0709 Record Keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
.0710 District Bar Fee Dispute Resolution . . . . . . . . . . . . . . . . . . .45
Section .0900 Procedures for Administrative Committee . . . . . . . . . . .45
.0901 Transfer to Inactive Status . . . . . . . . . . . . . . . . . . . . . . . . . .45
.0902 Reinstatement from Inactive Status . . . . . . . . . . . . . . . . . . .45
.0903 Suspension for Failure to Fulfill Obligations of . . . . . . . . . . . . .
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
.0904 Compliance After Suspension for Failure to
Pay Fees or Assessed Costs, or to File Certificate of
Insurance Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
.0905 Pro Bono Practice by Out of State Lawyers . . . . . . . . . . . . .47
Section .1000 Rules Governing Reinstatement Hearings Before the . . .
Administrative Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
.1001 Reinstatement Hearings . . . . . . . . . . . . . . . . . . . . . . . . . .47
.1002 Review and Order of Council . . . . . . . . . . . . . . . . . . . . .48
Section .1300 Rules Governing the Administration of the Plan for
Interest on Lawyers' Trust Accounts ( IOLTA) . . . . . . . . . . . . . . . . . . . .48
.1301 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
.1302 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1303 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1304 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1305 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1306 Appointment of Members; When; Removal . . . . . . . . . . . .49
.1307 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1308 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1309 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1310 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .49
.1311 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .49
.1312 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1313 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.1314 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1315 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1316 IOLTA Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1317 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1318 Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1319 Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1320 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Section .1400 Rules Governing the Administration of the
Client Security Fund of the North Carolina State Bar . . . . . . . . . . . . . . .50
.1401 Purpose; Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.1402 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.1403 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .51
.1404 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.1405 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
page 6 The 2008 North Carolina State Bar Lawyer’s Handbook
.1406 Appointment of Members; When; Removal . . . . . . . . . . . .51
.1407 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.1408 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.1409 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.1410 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .52
.1411 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .52
.1412 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
.1413 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
.1414 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
.1415 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
.1416 Appropriate Uses of the Client Security Fund . . . . . . . . . . .52
.1417 Applications for Reimbursement . . . . . . . . . . . . . . . . . . . . .52
.1418 Processing Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
.1419 Subrogation for Reimbursement . . . . . . . . . . . . . . . . . . . . .53
.1420 Authority Reserved by the Supreme Court . . . . . . . . . . . . .53
Section .1500 Rules Governing the Administration of the
Continuing Legal Education Program . . . . . . . . . . . . . . . . . . . . . . . . . .53
.1501 Scope, Purpose, and Definitions . . . . . . . . . . . . . . . . . . . . .53
.1502 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
.1503 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .54
.1504 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
.1505 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
.1506 Appointment of Members; When; Removal . . . . . . . . . . . .54
.1507 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
.1508 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
.1509 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.1510 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .55
.1511 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .55
.1512 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.1513 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.1514 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.1515 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.1516 Powers, Duties, and Organization of the Board . . . . . . . . . .55
.1517 Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
.1518 Continuing Legal Education Program . . . . . . . . . . . . . . . . .56
.1519 Accreditation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
.1520 Accreditation of Sponsors and Programs . . . . . . . . . . . . . . .57
.1521 Credit Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
.1522 Annual Report and Compliance Period . . . . . . . . . . . . . . . .57
.1523 Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
.1524 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
.1525 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
.1526 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
.1527 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Section .1600 Regulations Governing the Administration of the
Continuing Legal Education Program . . . . . . . . . . . . . . . . . . . . . . . . . .59
.1601 General Requirements for Course Approval . . . . . . . . . . . .59
.1602 Course Content Requirements . . . . . . . . . . . . . . . . . . . . . . .59
.1603 Accredited Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
.1604 Accreditation of Prerecorded, Simultaneous Broadcast,
and Computer- Based Programs . . . . . . . . . . . . . . . . . . . . . .60
.1605 Computation of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
.1606 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1607 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1608 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1609 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1610 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1611 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
Section .1700 The Plan of Legal Specialization . . . . . . . . . . . . . . . . . .61
.1701 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1702 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1703 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .61
.1704 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1705 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1706 Appointment of Members; When; Removal . . . . . . . . . . . .62
.1707 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1708 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1709 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1710 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .62
.1711 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .62
.1712 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1713 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1714 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1715 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
.1716 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . . . .62
.1717 Retained Jurisdiction of the Council . . . . . . . . . . . . . . . . . . .63
.1718 Privileges Conferred and Limitations imposed . . . . . . . . . . .63
.1719 Specialty Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
.1720 Minimum Standards for Certification of Specialists . . . . . . .64
.1721 Minimum Standards for Continued Certification
of Specialists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64
.1722 Establishment of Additional Standards . . . . . . . . . . . . . . . .64
.1723 Revocation or Suspension of Certification as a Specialist . . .65
.1724 Right to Hearing and Appeal to Council . . . . . . . . . . . . . . .65
.1725 Areas of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
.1726 Certification Standards of the Specialties of Bankruptcy
Law, Estate Planning and Probate Law, Real Property
Law, Family Law, and Criminal Law . . . . . . . . . . . . . . . . . .65
Section .1800 Hearing and Appeal Rules of the Board of
Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
.1801 Reconsideration of Applications, Failure of Written
Examinations and Appeals . . . . . . . . . . . . . . . . . . . . . . . .65
.1802 Denial, Revocation, or Suspension of Continued
Certification as a Specialist . . . . . . . . . . . . . . . . . . . . . . . .67
.1803 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
.1804 Appeal to the Council . . . . . . . . . . . . . . . . . . . . . . . . . . .67
.1805 Judicial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
.1806 Additional Rules Pertaining to Hearing and Appeals . . . .67
Section .2100 Certification Standards for the Real Property
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
.2101 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .67
.2102 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
.2103 Recognition as a Specialist in Real Property Law . . . . . . . . .68
.2104 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .68
.2105 Standards for Certification as a Specialist in Real
Property Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
.2106 Standards for Continued Certification as a Specialist . . . . .68
.2107 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .69
Section .2200 Certification Standards for the Bankruptcy
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
.2201 Establishment of the Specialty Field . . . . . . . . . . . . . . . . . . .69
.2202 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
.2203 Recognition as a Specialist in Bankruptcy Law . . . . . . . . . .69
.2204 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .69
.2205 Standards for Certification as a Specialist in
Bankruptcy Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
.2206 Standards for Continued Certification as a Specialist . . . . .69
.2207 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .70
The 2008 North Carolina State Bar Lawyer’s Handbook page 7
Section .2300 Certification Standards for the Estate Planning and
Probate Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
.2301 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .70
.2302 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
.2303 Recognition as a Specialist in Estate Planning and
Probate Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
.2304 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .70
.2305 Standards for Certification as a Specialist in Estate
Planning and Probate Law . . . . . . . . . . . . . . . . . . . . . . . . . .70
.2306 Standards for Continued Certification as a Specialist . . . . .71
.2307 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .71
Section .2400 Certification Standards for the Family Law Specialty . .71
.2401 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .71
.2402 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
.2403 Recognition as a Specialist in Family Law . . . . . . . . . . . . . .71
.2404 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .71
.2405 Standards for Certification as a Specialist in Family Law . . .71
.2406 Standards for Continued Certification as a Specialist . . . . .72
.2407 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .72
Section .2500 Certification Standards for the Criminal Law Specialty . . .72
.2501 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .72
.2502 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
.2503 Recognition as a Specialist in Criminal Law . . . . . . . . . . . .72
.2504 Applicability of Provisions of the North Carolina
Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .73
.2505 Standards for Certification as a Specialist . . . . . . . . . . . . . . .73
.2506 Standards for Continued Certification as a Specialist . . . . .74
.2507 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .74
Section .2600 Certification Standards for the Immigration
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
.2601 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .74
.2602 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
.2603 Recognition as a Specialist in Immigration Law . . . . . . . . . .74
.2604 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
.2605 Standards for Certification as a Specialist in
Immigration Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
.2606 Standards for Continued Certification as a Specialist . . . . . .75
.2607 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .75
Section .2700 Certification Standards for the Workers’ Compensation
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
.2701 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .75
.2702 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
.2703 Recognition as a Specialist in Workers’ Compensation Law . .75
.2704 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
.2705 Standards for Certification as a Specialist in
Workers’ Compensation Law . . . . . . . . . . . . . . . . . . . . . . . .75
.2706 Standards for Continued Certification as a Specialist . . . . . .76
.2707 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .76
Section .2800 Certification Standards for the Social Security Disability
Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
.2801 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .76
.2802 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
.2803 Recognition as a Specialist in Social Security Disability Law . .77
.2804 Applicability of Provisions of the North Carolina Plan
of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
.2805 Standards for Certification as a Specialist in
Social Security Disability Law . . . . . . . . . . . . . . . . . . . . . . . . .77
.2806 Standards for Continued Certification as a Specialist . . . . . .77
.2807 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .78
Subchapter E: Regulations for Organizations Practicing Law . .78
Section .0100 Regulations for Professional Corporations and Professional
Limited Liability Companies Practicing Law . . . . . . . . . . . . . . . . . . . . .78
.0101 Authority, Scope, and Definitions . . . . . . . . . . . . . . . . . . . .78
.0102 Name of Professional Corporation or Professional
Limited Liability Company . . . . . . . . . . . . . . . . . . . . . . . . .78
.0103 Registration with the North Carolina State Bar . . . . . . . . . .79
.0104 Management and Financial Matters . . . . . . . . . . . . . . . . . . .80
.0105 General and Administrative Provisions . . . . . . . . . . . . . . . .81
Section .0200 Registration of Interstate and International
Law Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
.0201 Registration Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . .81
.0202 Conditions of Registration . . . . . . . . . . . . . . . . . . . . . . . . . .81
.0203 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
.0204 Certificate of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . .81
.0205 Effect of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
.0206 Non- renewal of Registration . . . . . . . . . . . . . . . . . . . . . . . . .82
Section .0300 Rules Concerning Prepaid Legal Services Plans . . . . . . .82
.0301 Registration Requirement . . . . . . . . . . . . . . . . . . . . . . . . .82
.0302 Registration Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
.0303 Requirement to File Amendments . . . . . . . . . . . . . . . . . .82
.0304 Advertising of State Bar Approval Prohibited . . . . . . . . . .82
.0305 Annual Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
.0306 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
.0307 Index of Registered Plans . . . . . . . . . . . . . . . . . . . . . . . . .82
.0308 State Bar May Not Approve or Disapprove Plans . . . . . . .83
.0309 State Bar Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
.0310 Definition of Prepaid Plan . . . . . . . . . . . . . . . . . . . . . . . . . .83
.0307 Index of Registered Plans . . . . . . . . . . . . . . . . . . . . . . . . .83
.0308 State Bar May Not Approve or Disapprove Plans . . . . . . .83
.0309 State Bar Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
.0310 Definition of Prepaid Plan . . . . . . . . . . . . . . . . . . . . . . . . . .83
Subchapter G: Certification of Paralegals . . . . . . . . . . . .83
Section .0100 The Plan for Certification of Paralegals . . . . . . . . . . . . . .83
.0101 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
.0102 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . .83
.0103 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .83
.0104 Size and Composition of Board . . . . . . . . . . . . . . . . . . . .83
.0105 Appointment of Members; When; Removal . . . . . . . . . . .84
.0106 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
.0107 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
.0108 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
.0109 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .84
.0110 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . .84
.0111 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
.0112 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
.0113 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
.0114 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
.0115 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .85
.0116 Retained Jurisdiction of the Council . . . . . . . . . . . . . . . .85
.0117 Conferred and Limitations Imposed . . . . . . . . . . . . . . . . .85
.0118 Certification Committee . . . . . . . . . . . . . . . . . . . . . . . . .85
.0119 Standards for Certification of Paralegals . . . . . . . . . . . . . .85
.0120 Standards for Continued Certification of Paralegals . . . . .86
page 8 The 2008 North Carolina State Bar Lawyer’s Handbook
.0121 Lapse, Suspension or Revocation of Certification . . . . . .86
.0122 Right to Review and Appeal to Council . . . . . . . . . . . . . .86
Section .0200 Rules Governing Continuing Paralegal Education . . . .87
.0201 Continuing Paralegal Education ( CPE) . . . . . . . . . . . . . . . .87
.0202 Accreditation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
.0203 General Course Approval . . . . . . . . . . . . . . . . . . . . . . . . . . .87
.0204 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
.0205 Computation of Hours of Instruction . . . . . . . . . . . . . . . . .88
Subchapter H: Registration of Attorneys Appearing . . . . . . .
Pro Hac Vice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
Section .0100 Registration Procedure . . . . . . . . . . . . . . . . . . . . . . . . .88
.0101 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
Title 27 of the North Carolina Administrative Code:
The North Carolina State Bar Chapter 2: Rules of
Professional Conduct . . . . . . . . . . . . . . . . . . . .91
Preamble and Scope
0.1 Preamble: A Lawyer’s Professional Responsibilities . . . . . . . . . . . . . . .91
0.2 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92
Terminology
Rule 1.0: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Client- Lawyer Relationship
Rule 1.1: Competence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
Rule 1.2: Scope of Representation and Allocation of Authority
Between Client and Lawyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95
Rule 1.3: Diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96
Rule 1.4: Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
Rule 1.5: Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
Rule 1.6: Confidentiality of Information . . . . . . . . . . . . . . . . . . . . . . . . .100
Rule 1.7: Conflict of Interest: Current Clients . . . . . . . . . . . . . . . . . . . . .103
Rule 1.8: Conflict of Interest: Current Clients: Specific Rules . . . . . . . . .109
Rule 1.9: Duties to Former Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
Rule 1.10: Imputation of Conflicts of Interest: General Rule . . . . . . . . . .113
Rule 1.11: Special Conflicts of Interest for Former
and Current Government Officers and Employees . . . . . . . . . . . . . . . . . .114
Rule 1.12: Former Judge, Arbitrator, Mediator, or Other
Third- Party Neutral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115
Rule 1.13: Organization as Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
Rule 1.14: Client with Diminished Capacity . . . . . . . . . . . . . . . . . . . . . .118
Rule 1.15: Safekeeping Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Rule 1.15- 1: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Rule 1.15- 2: General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Rule 1.15- 3: Records and Accountings . . . . . . . . . . . . . . . . . . . . . . . .120
Rule 1.15- 4: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123
Rule 1.16: Declining or Terminating Representation . . . . . . . . . . . . . . . .123
Rule 1.17: Sale of Law Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125
Rule 1.18: Duties to Prospective Client . . . . . . . . . . . . . . . . . . . . . . . . . .126
Rule 1.19: Sexual Relations with Clients Prohibited . . . . . . . . . . . . . . . . .127
Counselor
Rule 2.1: Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Rule 2.2: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128
Rule 2.3: Evaluation for Use by Third Persons . . . . . . . . . . . . . . . . . . . . .128
Rule 2.4: Lawyer Serving as Third- Party Neutral . . . . . . . . . . . . . . . . . . .128
Advocate
Rule 3.1: Meritious Claims and Contentions . . . . . . . . . . . . . . . . . . . . . .129
Rule 3.2: Expediting Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129
Rule 3.3: Candor Toward the Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . .129
Rule 3.4: Fairness to Opposing Party and Counsel . . . . . . . . . . . . . . . . . .131
Rule 3.5: Impartiality and Decorum of the Tribunal . . . . . . . . . . . . . . . .132
Rule 3.6: Trial Publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133
Rule 3.7: Lawyer as Witness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
Rule 3.8: Special Responsibilities of a Prosecutor . . . . . . . . . . . . . . . . . . .135
Transactions with Persons Other Than Clients
Rule 4.1: Truthfulness in Statements to Others . . . . . . . . . . . . . . . . . . . . .136
Rule 4.2: Communication with Person Represented by Counsel . . . . . . .136
Rule 4.3: Dealing with Unrepresented Person . . . . . . . . . . . . . . . . . . . . . .138
Rule 4.4: Respect for Rights of Third Persons . . . . . . . . . . . . . . . . . . . . . .138
Law Firms and Associations
Rule 5.1: Responsibilities of Partners, Managers,
and Supervisory Lawyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Rule 5.2: Responsibilities of a Subordinate Lawyer . . . . . . . . . . . . . . . . . .139
Rule 5.3: Responsibilities Regarding Nonlawyer Assistants . . . . . . . . . . . .140
Rule 5.4: Professional Independence of a Lawyer . . . . . . . . . . . . . . . . . . .141
Rule 5.5: Unauthorized Practice of Law . . . . . . . . . . . . . . . . . . . . . . . . . .141
Rule 5.6: Restrictions on Right to Practice . . . . . . . . . . . . . . . . . . . . . . .144
Rule 5.7: Responsibilities Regarding Law- Related Services . . . . . . . . . . . .144
Public Service
Rule 6.1: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Rule 6.2: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Rule 6.3: Membership in Legal Services Organization . . . . . . . . . . . . . . .145
Rule 6.4: Law Reform Activities Affecting Client Interests . . . . . . . . . . . .145
Rule 6.5: Limited Legal Services Programs . . . . . . . . . . . . . . . . . . . . . . . .145
Rule 6.6: Action as a Public Official . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Information About Legal Services
Rule 7.1: Communications Concerning a Lawyer’s Services . . . . . . . . . . .146
Rule 7.2: Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147
Rule 7.3: Direct Contact with Potential Clients . . . . . . . . . . . . . . . . . . . .148
Rule 7.4: Communication of Fields of Practice and Specialization . . . . . .150
Rule 7.5: Firm Names and Letterheads . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Rule 7.6: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
Maintaining the Integrity of the Profession
Rule 8.1: Bar Admission and Disciplinary Matters . . . . . . . . . . . . . . . . . .152
Rule 8.2: Judicial and Legal Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
Rule 8.3: Reporting Professional Misconduct . . . . . . . . . . . . . . . . . . . . . .152
Rule 8.4: Misconduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Rule 8.5: Disciplinary Authority; Choice of Law . . . . . . . . . . . . . . . . . . .154
Rules Index . . . . . . . . . . . . . . . . . . . . . . . . . .156
The 2008 North Carolina State Bar Lawyer’s Handbook page 9
Correlation Tables
Correlation Table 1: 1997 Revised Rules of Professional Conduct and
2003 Amended Revised Rules of Professional Conduct . . . . . . . . . . . . .159
Correlation Table 2: 1997 Revised Rules of Professional
Conduct and 1985 Rules of Professional Conduct ( Superceded) . . . . .160
Correlation Table 3: 1985 Rules of Professional Conduct
( Superceded), 1997 Revised Rules of Professional Conduct,
and 1973 Code of Professional Responsibility ( Superceded) . . . . . . . .162
Ethics Opinions . . . . . . . . . . . . . . . . . . . . . . . 165
Authorized Practice Advisory Opinions . . . . . . 349
Ethics Opinion Index . . . . . . . . . . . . . . . . . . . 352
Trust Accounting Questions and Answers . . . . 366
IOLTA Questions and Answers . . . . . . . . . . . . 377
page 10 The 2008 North Carolina State Bar Lawyer’s Handbook
The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter A— page 11
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
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.
History Note: Statutory Authority G. S. 84- 23; G. S. 84- 34
Readopted Effective December 8, 1994
Amended December 7, 1995
.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
Title 27 of the North Carolina Administrative Code
The North Carolina State Bar
Chapter 1
Rules and Regulations of the North Carolina State Bar
page 12— Subchapter A The 2008 North Carolina State Bar Lawyer’s Handbook
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 Certificate of Insurance Coverage
( a) Before July 1 of each year, each active member shall submit a certificate to
the secretary of the North Carolina State Bar on a form provided by the secre-tary
stating whether the member is engaged in the private practice of law and, if
so, whether the member is covered by a policy of professional liability insurance
issued by an insurer legally permitted to provide coverage in North Carolina. The
certificate may be submitted in electronic form or in an original document. If,
after having most recently submitted a certificate of insurance coverage asserting
that the member is covered by a policy of professional liability insurance cover-age,
a member for any reason ceases to be insured, the member shall immediately
advise the North Carolina State Bar of the changed circumstances in writing.
( b) Any active member who fails to submit the certificate of insurance cover-age
required above in a timely fashion may be suspended from active member-ship
in the North Carolina State Bar in accordance with the procedures set forth
in Rule .0903 of subchapter D.
( c) Any member failing to submit a certificate of insurance coverage in a time-ly
fashion shall pay a late fee of $ 30 to defray the administrative cost of enforc-ing
compliance with this rule; provided, however, that no late fee associated with
such failure shall be charged if the member is also liable for a late fee in regard to
failure to pay the annual membership fee or Client Security Fund assessment for
the same year in a timely fashion.
( d) Notwithstanding the foregoing:
( 1) A person licensed to practice law in North Carolina for the first time by
examination shall not be required to file a certificate of insurance coverage
during the year in which the person is admitted;
( 2) A person licensed to practice law in North Carolina serving in the armed
forces, in a legal or nonlegal capacity, shall not be required to file a certificate
of insurance coverage for any year in which the member is on active duty in
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
required to file a certificate of insurance coverage for the following 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
Adopted October 1, 2003
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 elec-tion
and shall give to each active member ( as defined in G. S. 84- 16) of the dis-trict
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, 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
.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
out in this section.
( b) Only active members of the judicial district bar may participate in elec-tions
conducted by mail.
( c) In districts which permit elections by mail, the notice sent to members
referred to in Rule .0802( e) of this subchapter shall advise that the election will
be held by mail.
( d) The judicial district bar shall mail a ballot to each active member of the
judicial district bar at the member's address of record on file with the North
Carolina State Bar. The ballot shall be accompanied by written instructions and
shall state when and where the ballot should be returned.
( e) Each ballot shall be sequentially numbered with a red identifying
numeral in the upper right hand corner of the ballot. The judicial district bar
shall maintain appropriate records respecting how many ballots were mailed to
prospective voters in each election, as well as how many ballots are returned.
( f) Only original ballots will be accepted. No photocopied or faxed ballots
will be accepted. Voting by computer or electronic mail will not be permitted.
History Note: Statutory Authority G. S. 84- 18; G. S. 84- 23
Adopted November 5, 1999
.0805 Vacancies
The unexpired term of any councilor whose office has become vacant
because of resignation, death, or any cause other than the expiration of a term,
The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter A— page 13
shall be filled within 90 days of the occurrence of the vacancy by an election
conducted in the same manner as above provided.
History Note: Statutory Authority G. S. 84- 18; 84- 23
Readopted Effective December 8, 1994
Amended November 5, 1999
.0806 Bylaws Providing for Geographical Rotation or Division of
Representation
Nothing contained herein shall prohibit the district bar of any judicial dis-trict
from adopting bylaws providing for the geographical rotation or division
of its councilor representation.
History Note: Statutory Authority G. S. 84- 18; 84- 23
Readopted Effective December 8, 1994
Amended November 5, 1999
Section .0900 Organization of the Judicial District
Bars
.0901 Bylaws
( a) Each judicial district bar shall adopt bylaws for its governance subject to
the approval of the council;
( b) Each judicial district bar shall submit its current bylaws to the secretary of
the North Carolina State Bar for review by the council on or before June 1, 1996;
( c) Pending review by the council, any bylaws submitted to the secretary on
behalf of a judicial district bar or which already exist in the files of the secretary
shall be deemed official and authoritative.
( d) All amendments to the bylaws of any judicial district bar must be filed
with the secretary within 30 days of adoption and shall have no force and effect
until approved by the council.
( e) The secretary shall maintain an official record for each judicial district bar
containing bylaws which have been approved by the council or for which
approval is pending.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.0902 Annual Membership Fee
If a judicial district bar elects to assess an annual membership fee from its
active members pursuant to N. C. G. S. § 84- 18.1( b), the following procedures
shall apply:
( a) Notice to State Bar. The judicial district bar shall notify the North
Carolina State Bar of its election to assess an annual membership fee each year at
least thirty days prior to mailing to its members the first invoice therefore, spec-ifying
the amount of the annual membership fee, the date after which payment
will be delinquent, and the amount of any late fee for delinquent payment.
( b) Accounting to State Bar. No later than thirty days after the end of the
judicial district bar's fiscal year, the judicial district bar shall provide the North
Carolina State Bar with an accounting of the annual membership fees it collect-ed
during such judicial district bar's fiscal year.
( c) Delinquency Date. The date upon which the annual membership fee shall
be delinquent if not paid shall be not later than ninety days after, and not soon-er
than thirty days after, the date of the first invoice for the annual membership
fee. The delinquency date shall be stated on the invoice and the invoice shall
advise each member that failure to pay the annual membership fee must be
reported to the North Carolina State Bar and may result in suspension of the
member's license to practice law.
( d) Late Fee. Each judicial district bar may impose, but shall not be required,
to impose a late fee of any amount not to exceed fifteen dollars ($ 15.00) for non-payment
of the annual membership fee on or before the stated delinquency date.
( e) Members Subject to Assessment. Only those lawyers who are active mem-bers
of a judicial district bar may be assessed an annual membership fee. A lawyer
who joins a judicial district bar after the beginning of its fiscal year shall be
exempt from the obligation to pay the annual membership fee for that fiscal year
only if the lawyer can demonstrate that he or she previously paid an annual mem-bership
fee to another judicial district bar with a fiscal year that runs contermi-nously,
for a period of three ( 3) months or more, with the fiscal year of the
lawyer's new judicial district bar.
( f) Hardship Waivers. A judicial district bar may not grant any waiver from
the obligation to pay the judicial district bar's annual membership fee. A judicial
district bar may waive the late fee upon a showing of good cause.
( g) Reporting Delinquent Members to State Bar. Twelve months after the
date of the first invoice for the annual membership fee, the judicial district bar
shall report to the North Carolina State Bar all of its members who have not paid
the annual membership fee or any late fee.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted December 20, 2000
Amended March 6, 2008
.0903 Fiscal Period
To avoid conflict with the assessment of the membership fees for the North
Carolina State Bar, each judicial district bar that assesses a membership fee shall
adopt a fiscal year that is not a calendar year.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted December 20, 2000
Section .1000 Model Bylaws For Use by Judicial
District Bars
.1001 Name
The name of this district bar shall be THE DISTRICT BAR OF THE
___________________________ JUDICIAL DISTRICT, and shall be here-inafter
referred to as the “ district bar”.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1002 Authority and Purpose
The district bar is formed pursuant to the provisions of Chapter 84 of the
North Carolina General Statutes to promote the purposes therein set forth and
to comply with the duties and obligations therein or thereunder imposed upon
the Bar of this judicial district.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1003 Membership
The members of the district bar shall consist of two classes: active and inac-tive.
( a) Active members: The active members shall be all persons who, at the time
of the adoption of these bylaws or any time thereafter
( 1) are active members in good standing with the North Carolina State Bar;
and
( 2) reside in the judicial district; or
( 3) practice in the judicial district and elect to belong to the district bar as
provided in G. S. 84- 16.
( b) Inactive members: The inactive members shall be all persons, who, at the
time of the adoption of these bylaws or at any time thereafter
( 1) have been granted voluntary inactive status by the North Carolina State
Bar; and
( 2) reside in the judicial district; and
( 3) elect to participate, but not vote or hold office, in the district bar by giv-ing
written notice to the secretary of the district bar.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1004 Officers
The officers of the district bar shall be a president, a vice- president, and sec-retary
and/ or treasurer who shall be selected and shall serve for the terms set out
herein.
( a) President: The president serving at the time these bylaws are effective shall
continue to serve for a term ending at the next annual meeting following the
adoption or effective date of these bylaws. The president for the following term
shall be the then current vice- president. Thereafter, the duly elected vice- presi-dent
shall automatically succeed to the office of the president for a term of one,
two, or three years.
page 14— Subchapter A The 2008 North Carolina State Bar Lawyer’s Handbook
( b) Vice- president: The vice- president serving at the time these bylaws are
effective shall continue to serve for a term ending at the next annual meeting fol-lowing
the adoption or effective date of these bylaws, at which time said vice-president
shall succeed to the office of the president. Thereafter, the vice- presi-dent
shall be elected at the annual meeting as hereinafter provided for a term of
one, two, or three years.
( c) Secretary and/ or treasurer: The secretary and/ or the treasurer serving at the
time these bylaws are effective shall each continue to serve in their respective
offices until the expiration of the term of that office or until successors are
appointed by the president ( or be elected by the active members of the district
bar), whichever occurs later. In all other years, the secretary and/ or treasurer shall
be appointed by the president ( or be elected by the active members of the district
bar) to serve for a term of one, two, or three years.
( d) Election: Before ( or at) the annual meeting at which officers are to be
elected, the Nominating Committee shall submit the names of its nominees for
the office of vice- president to the secretary. Nominations from the floor shall be
permitted. If no candidate receives a majority of the votes cast, the candidate with
the lowest number of votes shall be eliminated and a run- off election shall imme-diately
be held among the remaining candidates. This procedure shall be repeat-ed
until a candidate receives a majority of the votes. 1
( e) Duties: The duties of the officers shall be those usual and customary for
such officers, including such duties as may be from time to time designated by
resolution of the district bar, the North Carolina State Bar Council or the laws
of the State of North Carolina.
( f) Vacancies: If a vacancy in the office of the vice- president, secretary- treas-urer
occurs, the vacancy will be filled by the board of directors, if any, and if there
is no board of directors, then by the vote of the active members at a special meet-ing
of such members. The successor shall serve until the next annual meeting of
the district bar. If the office of the president becomes vacant, the vice- president
shall succeed to the office of the president and the board of directors, if any, and
if there is no board of directors, then by the vote of the active members at a spe-cial
meeting of such members, will select a new vice- president, who shall serve
until the next annual meeting.
( g) Notification: Within 10 days following the annual meeting, or the filling
of a vacancy in any office, the president shall notify the executive director of the
North Carolina State Bar of the names, addresses and telephone numbers of all
officers of the district bar.
( h) Record of bylaws: The president shall ensure that a current copy of these
bylaws is filed with the office of the senior resident superior court judge with the
_________________________ Judicial District and with the executive director
of the North Carolina State Bar.
( i) Removal from office: The district bar, by a two- thirds vote of its active
members present at a duly called meeting, may, after due notice and an oppor-tunity
to be heard, remove from office any officer who has engaged in conduct
which renders the officer unfit to serve, or who has become disabled, or for other
good cause. The office of any officer who, during his or her term of office ceas-es
to be an active member of the North Carolina State Bar shall immediately be
deemed vacant and shall be filled as provided in Rule .1004( f) above.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1005 Councilor
The district bar shall be represented in the State Bar council by one or more
duly elected councilors, the number of councilors being determined pursuant to
G. S. 84- 17. Any councilor serving at the time of the adoption of these bylaws
shall complete the term of office to which he or she was previously elected.
Thereafter, elections shall be held as necessary. Nominations shall be made and
the election held as provided in G. S. 84- 18 and in Section .0800 et seq. of
Subchapter 1A of the Rules of the North Carolina State Bar ( 27 N. C. A. C. 1A
.0800 et seq.). If more than one council seat is to be filled, separate elections shall
be held for each vacant seat. A vacancy in the office of councilor shall be filled as
provided by Rule .0804 of Subchapter 1A ( 27 N. C. A. C. 1A .0804).
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
Amended November 5, 1999
.1006 Annual Membership Fee
( a) Each active member of the district bar shall:
( 1) Pay such annual membership fee, if any, as is prescribed by a majority
vote of the active members of the district bar present and voting at a duly
called meeting of the district bar, provided, however, that such fee may
never exceed the amount of the annual membership fee currently imposed
by the North Carolina State Bar. Each member shall pay the annual district
bar membership fee at the time and place set forth in the notice thereof
mailed to the member by the secretary- treasurer; and
( 2) Keep the secretary- treasurer notified of the member’s current mailing
address and telephone number.
( b) The annual membership fee shall be used to promote and maintain the
administration, activities and programs of the district bar.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1007 Meetings
( a) Annual meetings: The district bar shall meet each _____________ at a
time and place designated by the president. The president, secretary or other offi-cer
shall mail or deliver written notice of the annual meeting to each active mem-ber
of the district bar at the member’s last known mailing address on file with the
district bar at least ten days before the date of the annual meeting and shall so
certify in the official minutes of the meeting. Notice of the meeting mailed by
the executive director of the North Carolina State Bar shall also satisfy the notice
requirement. Failure to mail or deliver the notice as herein provided shall invali-date
any action at the annual meeting.
( b) Special meetings: Special meetings, if any, may be called at any time by
the president or the vice- president. The president, secretary or other officer shall
mail or deliver written notice of the special meeting to each active member of the
district bar at the member’s last known mailing address on file with the district
bar at least ten days before the date of any special meeting. Such notice shall set
forth the time and place for the special meeting and the purpose( s) thereof.
Failure to mail or deliver the notice shall invalidate any action taken at a special
meeting.
( c) Quorum: Twenty percent of the active members of the district bar shall
constitute a quorum, and a quorum shall be required to take official action on
behalf of the district bar. 2
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1008 District Bar Finances
( a) Fiscal Year: The district bar's fiscal year shall begin on____________ and
shall end on ____________.
( b) Duties of treasurer: The treasurer shall maintain the funds of the district
bar on deposit, initiate any necessary disbursements and keep appropriate finan-cial
records.
( c) Annual financial report: Each ________________ before the annual
meeting, the treasurer shall prepare the district bar's annual financial report for
review by the board of directors, if any, and submission to the district bar's annu-al
meeting and the North Carolina State Bar.
( d) District bar checks: All checks written on district bar accounts ( arising
from the collection of mandatory dues) that exceed $ 500 must be signed by two
of the following: ( 1) the treasurer, ( 2) any other officer, ( 3) another member of
the board of directors, or ( 4) the executive secretary/ director, if any.
( e) Fidelity bond: If it is anticipated that receipts from membership fees will
exceed $ 20,000 for any fiscal year, the district bar shall purchase a fidelity bond
at least equal in amount to the anticipated annual receipts to indemnify the dis-trict
bar for losses attributable to the malfeasance of the treasurer or any other
member having access to district bar funds.
( f) Taxpayer identification number: The treasurer shall be responsible for
obtaining a federal taxpayer identification number for the district bar.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
Amended July 22, 1999
.1009 Prohibited Activities
( a) Prohibited expenditures: Mandatory district bar dues, if any, shall not be
The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter A— page 15
used for the purchase of alcoholic beverages, gifts to public officials, including
judges, charitable contributions, recreational activities or expenses of spouses of
district bar members or officers. However, such expenditures may be made from
funds derived entirely from the voluntary contributions of district bar members.
( b) Political expenditures: The district bar shall not make any expenditures to
fund political and ideological activities.
( c) Political activities: The district bar shall not engage in any political or ide-ological
conduct or activity, including the endorsement of candidates and the
taking or advocation of positions on political issues, referendums, bond elections,
and the like, however, the district bar, and persons speaking on its behalf, may
take positions on, or comment upon, issues relating to the regulation of the legal
profession and issues or matters relating to the improvement of the quality and
availability of legal services to the general public.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1010 Committees
( a) Standing committee( s): The standing committees shall be the
Nominating Committee, Pro Bono Committee, Fee Dispute Resolution
Committee, Grievance Committee, and Professionalism Committee pro-vided
that, with respect to the Fee Dispute Resolution Committee and the
Grievance Committee, the district meets the State Bar guidelines relating
thereto.
( b) Fee Dispute Resolution Committee:
( 1) The Fee Dispute Resolution Committee shall consist of at least six
but not more than eighteen persons appointed by the president to stag-gered
three- year terms as provided in the district bar’s Fee Dispute
Resolution Plan.
( 2) The Fee Dispute Resolution Committee shall be responsible for
implementing a Fee Dispute Resolution Plan approved by the Council
of the North Carolina State Bar to resolve fee disputes efficiently, eco-nomically,
and expeditiously without litigation.
( c) Grievance Committee:
( 1) The Grievance Committee shall consist of at least five but not more
than thirteen persons appointed by the president to staggered three
year terms as provided by the Rules and Regulations of the North
Carolina State Bar governing Judicial District Grievance Committees.
( 2) The Grievance Committee shall assist the Grievance Committee of
the North Carolina State Bar by receiving grievances, investigating
grievances, evaluating grievances, informally mediating disputes, facil-itating
communication between lawyers and clients and referring
members of the public to other appropriate committees or agencies for
assistance.
( 3) The Grievance Committee shall operate in strict accordance with
the rules and policies of the North Carolina State Bar with respect to
district bar grievance committees.
( d) Special Committees: Special committees may be created and
appointed by the president.
( e) Nominating Committee:
( 1) The Nominating Committee shall be appointed by the officers ( or
the board of directors) of the district bar and shall consist of at least
three active members of the district bar who are not officers or direc-tors
of the district bar. 3
( 2) The Nominating Committee shall meet as necessary for the pur-pose
of nominating active members of the district bar as candidates for
officers and councilor( s) and the board of directors, if any.
( 3) The Nominating Committee members shall serve one- year terms
beginning on ___________________ and ending on
_________________.
( 4) Any active member whose name is submitted for consideration for
nomination to any office or as a councilor must have indicated his or
her willingness to serve if selected.
( f ) Pro Bono Committee:
( 1) The Pro Bono Committee shall consist of at least five active mem-bers
of the district bar appointed by the president.
( 2) The Pro Bono Committee shall meet at least once each quarter and
shall have the duty of encouraging members of the district bar to pro-vide
pro bono legal services. The committee shall also develop pro-grams
whereby attorneys not involved in other volunteer legal service
programs may provide pro bono legal service in their areas of concen-tration
and practice.
( 3) The members of the Pro Bono Committee shall serve one- year
terms commencing on __________________.
( g) Professionalism Committee:
( 1) The Professionalism Committee shall consist of the three immediate
past presidents of the district bar or such other members of the district bar
as shall be appointed by the president.
( 2) The purpose of the Professionalism Committee shall be the promotion
of professionalism and thereby the bolstering of public confidence in the
legal profession. The committee may further enhance professionalism
through CLE programs and, when appropriate, through confidential peer
intervention in association with the Professionalism Support Initiative ( PSI)
which is sponsored and supported by the Chief Justice’s Commission on
Professionalism. The PSI effort is to investigate and informally assist with
client- lawyer, lawyer- lawyer, and lawyer- judge relationships to ameliorate
disputes, improve communications, and repair relationships. The
Professionalism Committee shall have no authority to discipline any lawyer
or judge, or to force any lawyer or judge to take any action. The commit-tee
shall not investigate or attempt to resolve complaints of professional
misconduct cognizable under the Rules of Professional Conduct and shall
act in accordance with Rules 1.6( c) and 8.3 of the Rules of Professional
Conduct. The committee shall consult and work with the Chief Justice’s
Commission on Professionalism when appropriate.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
Amended March 6, 2002; March 6, 2008
.1011 Board of Directors or Executive Committee
( a) Membership of board: A board of directors consisting of at least
_______ active members of the district bar shall be elected. At all times, the
board of directors shall include at least one director from each county in the
judicial district. The board of directors serving when these bylaws become
effective shall continue to serve until the following annual meeting.
Beginning on ______________________ immediately after the effective
date of these bylaws, the president shall appoint an initial board of directors
who shall serve three- year terms commencing on ______________, except
that the terms of the initial members of the board shall be staggered at one-year
intervals to ensure continuity and experience. To effect the staggered
initial terms, the president will determine which of the initial members shall
serve terms of less than three years.
The State Bar councilor ( or councilors) from the judicial district shall be
an ex officio member ( or members) of the district bar board of directors or
Executive Committee.
( b) Terms of directors: After the initial staggered terms of the board of
directors expire, successors shall be elected by the active members at the
annual district bar meeting, as set out in Rule .1004( d) above, and Rule
.1011( c ) and ( d) below. Following the completion of the initial staggered
terms, the directors shall serve three- year terms beginning on
____________________ following their election.
( c) Designated and at- large seats in multi- county districts: In multi-county
districts, one seat on the board of directors shall be set aside and des-ignated
for each county in the district. Only active members of the district
bar who reside or work in the designated county may be elected to a desig-nated
county seat. All other seats on the board of directors shall be at- large
seats which may be filled by any active member of the district bar.
( d) Elections: When one or more seats on the board of directors become
vacant, an election shall be held at the annual meeting of the district bar.
Except as otherwise provided herein, the election shall be conducted as pro-vided
for in Rule .1004( d) above. The candidates receiving the highest
number of votes cast will be elected, regardless of whether any of the candi-dates
received a majority of the votes cast, provided that designated seats will
be filled by the candidates receiving the highest number of votes who live or
page 16— Subchapter A The 2008 North Carolina State Bar Lawyer’s Handbook
work in the designated county, regardless of whether any of the candidates
received a majority of the votes cast.
( e) Vacancies: If a vacancy occurs on the board of directors, the president
( or the board of directors) shall appoint a successor who shall serve until the
next annual meeting of the district bar. If the vacancy occurs in a designat-ed
seat for a particular county within the district, the successor will be
selected from among the active members of the district bar who live or work
in the designated county.
( f) Duties of board of directors: The board of directors shall have the
responsibilities described Rules .1004( f ) and .1007( c ) above. The board of
directors shall also consult with the officers regarding any matters of district
bar business or policy arising between meetings and may act for the district
bar on an emergency basis if necessary, provided that any such action shall
be provisional pending its consideration by the district bar at its next duly
called meeting. The board of directors may not impose on its own authori-ty
any sort of fee upon the membership.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1012 Amendment of the Bylaws
The membership of the district bar, by a ( majority, two- thirds, etc.) vote
of the active members present at any duly called meeting at which there is a
quorum present and voting throughout, may amend these bylaws in ways
not inconsistent with the constitution of the United States, the policies and
rules of the North Carolina State Bar and the laws of the United States and
North Carolina.
History Note: Statutory Authority G. S. 84- 18.1; 84- 23
Adopted March 7, 1996
.1013 Selection of Nominees for District Court Judge
Unless otherwise required by law, the following procedures shall be used
to determine the nominees to be recommended to the Governor pursuant
to N. C. Gen. Stat. § 7A- 142 for vacant district court judgeships in the judi-cial
district.
( a) Meeting for Nominations: The nominees shall be selected by secret,
written ballot of those members present at a meeting of the district bar
called for this purpose. Fifteen ( 15) days notice of the meeting shall be
given, by mail, to the last known address of each district bar member.
Alternatively, if a bylaw permitting elections by mail is adopted by the dis-trict
bar, the procedures set forth in the bylaw and in Rule .0804 of
Subchapter 1A of the Rules of the North Carolina State Bar ( 27 N. C. A. C.
1A, .0804), shall be followed.
( b) Candidates: Persons who want to be considered for the vacancy shall
notify the President in writing five ( 5) days prior to the meeting at which
the election will be conducted or, if the election is by mail, five ( 5) days
prior to the mailing of the ballots.
( c) Voting: Each district bar member may vote for three candidates.
Cumulative voting is prohibited.
( d) Submission to Governor: The three candidates receiving the highest
number of votes shall be the nominees to fill the vacancy on the district
court and their names, and vote totals, shall be transmitted to the Governor.
In the event of a tie for third place, the names of those candidates involved
in the tie shall be transmitted to the Governor together with the names of
the two candidates receiving the highest number of votes.
Statutory Authority G. S. 84- 18.1; 84- 23; 7A- 142
Adopted February 27, 2003
Endnotes:
1. The procedure for voting for, and election of, councilors is set by
statute and rules of the North Carolina State Bar. District bar voting proce-dure
with regard to matters relating to district bar dues is now statutorily
prescribed in North Carolina General Statutes Section 84- 18.1. The proce-dure,
but not the manner or method of conducting the vote, to submit
nominations to the governor to fill vacancies on the district court bench is
set forth in North Carolina General Statutes Section 7A- 142. It is suggest-ed
that, for voting upon, and elections for, other district bar matters and
issues, the district bars be permitted to adopt bylaws providing for proce-dures
as may seem appropriate for each district bar. Such rules might address
notice provisions, including how much notice is given and permissible
methods of giving notice, what shall constitute a quorum ( see footnote 2),
and how any such election shall be conducted ( including whether or not
members must be present to vote, whether proxies will be permitted,
whether or not absentee or some other form of mail ballot will be allowed
and whether or not cumulative voting should be permitted when elections
for multiple candidates or positions are being conducted).
2. Consistent with the comment contained in footnote 1, each district
bar should be permitted to adopt bylaws providing for what shall constitute
a quorum based upon each district bar’s particular situation and circum-stances.
The above provision regarding quorum should be considered only
as a a suggestion, and individual district bars may wish to provide that a dif-ferent
percentage of the membership shall constitute a quorum. Other
methods of defining a quorum should also be permitted. For example, in
certain of the larger district bars, any quorum based on a percentage of the
membership, except for a very nominal percentage, may be difficult to
attain. One alternate quorum provision might read as follows: A quorum
shall be those present at any membership meeting for which proper notice
was given.
3. The composition of the Nominating Committee set forth above is a
suggestion only. The district bars may choose to constitute their nominat-ing
committees in a different manner, as for example, letting the committee
consist of the three most immediate past presidents of the district bar who
are still active members of the district bar as defined herein. Smaller district
bars may choose to have no Nominating Committee and nominate and
elect officers from the floor at the annual meeting of the district bar.
Section .1200 Filing Papers with and Serving
the North Carolina State Bar
.1201 When Papers Are Filed Under These Rules and Regulations
Whenever in these rules and regulation there is a requirement that peti-tions,
notices or other documents be filed with or served on the North
Carolina State Bar or the council, the same shall be filed with or served on
the secretary of the North Carolina State Bar.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
SUBCHAPTER B
Discipline and Disability Rules
Section .0100 Discipline and Disability of Attorneys
.0101 General Provisions
Discipline for misconduct is not intended as punishment for wrongdoing but
is for the protection of the public, the courts, and the legal profession. The fact
that certain misconduct has remained unchallenged when done by others, or
when done at other times, or that it has not been made the subject of earlier dis-ciplinary
proceedings, will not be a defense to any charge of misconduct by a
member.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
.0102 Procedure for Discipline
( a) The procedure to discipline members of the bar of this state will be in
accordance with the provisions hereinafter set forth.
( b) District bars will not conduct separate proceedings to discipline members of
the bar but will assist and cooperate with the North Carolina State Bar in report-ing
and investigating matters of alleged misconduct on the part of its members.
( c) Concurrent Jurisdiction of State Bar and Courts
( 1) The Council of the North Carolina State Bar is vested, as an agency of the
state, with the control of the discipline, disbarment, and restoration of attor-neys
practicing law in this state.
The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter B— page 17
( 2) The courts of this state have inherent authority to take disciplinary action
against attorneys practicing therein, even in relation to matters not pending
in the court exercising disciplinary authority.
( 3) The authority of the North Carolina State Bar and the courts to discipline
attorneys is separate and distinct, the North Carolina State Bar having
derived its jurisdiction by legislative act and the courts from the inherent
power of the courts themselves.
( 4) Neither the North Carolina State Bar nor the courts are authorized or
empowered to act for or in the name of the other, and the disciplinary action
taken by either entity should be clearly delineated as to the source or basis for
the action being taken.
( 5) It is the position of the North Carolina State Bar that no trial court has
the authority to preempt a North Carolina State Bar disciplinary proceeding
with a pending civil or criminal court proceeding involving attorney conduct,
or to dismiss a disciplinary proceeding pending before the North Carolina
State Bar.
( 6) Whenever the North Carolina State Bar learns that a court has initiated
an inquiry or proceeding regarding alleged improper or unethical conduct of
an attorney, the North Carolina State Bar may defer to the court and stay its
own proceeding pending completion of the court’s inquiry or proceeding.
Upon request, the North Carolina State Bar will assist in the court’s inquiry
or proceeding.
( 7) If the North Carolina State Bar finds probable cause and institutes disci-plinary
proceedings against an attorney for conduct which subsequently
becomes an issue in a criminal or civil proceeding, the court may, in its dis-cretion,
defer its inquiry pending the completion of the North Carolina State
Bar’s proceedings.
( 8) Upon the filing of a complaint by the North Carolina State Bar, the
North Carolina State Bar will send a copy of the complaint to the chief resi-dent
superior court judge and to all superior court judges regularly assigned
to the district in which the attorney maintains his or her law office. The
North Carolina State Bar will send a copy of the complaint to the district
attorney in the district in which the attorney maintains a law office if the
complaint alleges criminal activity by the attorney.
( 9) The North Carolina State Bar will encourage judges to contact the North
Carolina State Bar to determine the status of any relevant complaints filed
against an attorney before the court takes disciplinary action against the attor-ney.
History Note: Statutory Authority G. S. 84- 23; G. S. 84- 36
Readopted Effective December 8, 1994
.0103 Definitions
Subject to additional definitions contained in other provisions of this sub-chapter,
the following words and phrases, when used in this subchapter, will
have, unless the context clearly indicates otherwise, the meanings given to them
in this rule.
( 1) Admonition - a written form of discipline imposed in cases in which an
attorney has committed a minor violation of the Rules of Professional Conduct.
( 2) Appellate division - the appellate division of the general court of justice.
( 3) Board - the Board of Continuing Legal Education.
( 4) Board of Continuing Legal Education - a standing committee of the
council responsible for the administration of a program of mandatory continu-ing
legal education and law practice assistance.
( 5) Censure - a written form of discipline more serious than a reprimand
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 potential sig-nificant
harm to a client, the administration of justice, the profession, or a mem-ber
of the public, but the misconduct does not require suspension of the attor-ney’s
license.
( 6) Certificate of conviction - a certified copy of any judgment wherein a
member of the North Carolina State Bar is convicted of a criminal offense.
( 7) Chairperson of the Grievance Committee - councilor appointed to serve
as chairperson of the Grievance Committee of the North Carolina State Bar.
( 8) Commission - the Disciplinary Hearing Commission of the North
Carolina State Bar.
( 9) Commission chairperson - the chairperson of the Disciplinary Hearing
Commission of the North Carolina State Bar.
( 10) Complainant or complaining witness - any person who has complained
of the conduct of any member of the North Carolina State Bar to the North
Carolina State Bar.
( 11) Complaint - a formal pleading filed in the name of the North Carolina
State Bar with the commission against a member of the North Carolina State Bar
after a finding of probable cause.
( 12) Consolidation of cases - a hearing by a hearing committee of multiple
charges, whether related or unrelated in substance, brought against one defen-dant.
( 13) Council - the Council of the North Carolina State Bar.
( 14) Councilor - a member of the Council of the North Carolina State Bar.
( 15) Counsel - the counsel of the North Carolina State Bar appointed by the
council.
( 16) Court or courts of this state - a court authorized and established by the
constitution or laws of the state of North Carolina.
( 17) Criminal offense showing professional unfitness - the commission of,
attempt to commit, conspiracy to commit, solicitation or subornation of any
felony or any crime that involves false swearing, misrepresentation, deceit, extor-tion,
theft, bribery, embezzlement, false pretenses, fraud, interference with the
judicial or political process, larceny, misappropriation of funds or property, over-throw
of the government, perjury, willful failure to file a tax return, or any other
offense involving moral turpitude or showing professional unfitness.
( 18) Defendant - a member of the North Carolina State Bar against whom a
finding of probable cause has been made.
( 19) Disabled or disability - a mental or physical condition which signifi-cantly
impairs the professional judgment, performance, or competence of an
attorney.
( 20) Grievance - alleged misconduct.
( 21) Grievance Committee - the Grievance Committee of the North
Carolina State Bar or any of its panels acting as the Grievance Committee
respecting the grievances and other matters referred to it by the chairperson of
the Grievance Committee.
( 22) Hearing committee - a hearing committee designated under Rule
.0108( a)( 2), .0114( d), .0114( x), .0118( b)( 2), .0125( a)( 6), .0125( b)( 7) or
.0125( c)( 2) of this subchapter.
( 23) Illicit drug - any controlled substance as defined in the North Carolina
Controlled Substances Act, section 5, chapter 90, of the North Carolina General
Statutes, or its successor, which is used or possessed without a prescription or in
violation of the laws of this state or the United States.
( 24) Incapacity or incapacitated - condition determined in a judicial pro-ceeding
under the laws of this or any other jurisdiction that an attorney is men-tally
defective, an inebriate, mentally disordered, or incompetent from want of
understanding to manage his or her own affairs by reason of the excessive use of
intoxicants, drugs, or other cause.
( 25) Investigation - the gathering of information with respect to alleged mis-conduct,
alleged disability, or a petition for reinstatement.
( 26) Investigator - any person designated to assist in the investigation of
alleged misconduct or facts pertinent to a petition for reinstatement.
( 27) Lawyer Assistance Program Board – the Lawyer Assistance Program
Board of the North Carolina State Bar.
( 28) Letter of caution - communication from the Grievance Committee to
an attorney stating that the past conduct of the attorney, while not the basis for
discipline, is unprofessional or not in accord with accepted professional practice.
( 29) Letter of notice - a communication to a respondent setting forth the sub-stance
of a grievance.
( 30) Letter of warning - written communication from the Grievance
Committee or the commission to an attorney stating that past conduct of the
attorney, while not the basis for discipline, is an unintentional, minor, or techni-cal
violation of the Rules of Professional Conduct and may be the basis for dis-cipline
if continued or repeated.
( 31) Member - a member of the North Carolina State Bar.
( 32) Office of the Counsel - the office and staff maintained by the counsel of
the North Carolina State Bar.
( 33) Office of the secretary - the office and staff maintained by the secretary-treasurer
of the North Carolina State Bar.
page 18— Subchapter B The 2008 North Carolina State Bar Lawyer’s Handbook
( 34) Party - after a complaint has been filed, the North Carolina State Bar as
plaintiff or the member as defendant.
( 35) Plaintiff - after a complaint has been filed, the North Carolina State Bar.
( 36) Preliminary hearing - hearing by the Grievance Committee to determine
whether probable cause exists.
( 37) Probable cause - a finding by the Grievance Committee that there is rea-sonable
cause to believe that a member of the North Carolina State Bar is guilty
of misconduct justifying disciplinary action.
( 38) Reprimand - a written form of discipline more serious than an admoni-tion
issued in cases in which a defendant has violated one or more provisions of
the Rules of Professional Conduct and has caused harm or potential harm to a
client, the administration of justice, the profession, or a member of the public,
but the misconduct does not require a censure.
( 39) Respondent - a member of the North Carolina State Bar who has been
accused of misconduct or whose conduct is under investigation, but as to which
conduct there has not yet been a determination of whether probable cause exists.
( 40) Secretary - the secretary- treasurer of the North Carolina State Bar.
( 41) Supreme Court - the Supreme Court of North Carolina.
( 42) Will - when used in these rules, means a direction or order which is
mandatory or obligatory.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
Amended February 3, 2000
.0104 State Bar Council: Powers and Duties in Discipline and Disability
Matters
The Council of the North Carolina State Bar will have the power and duty
( 1) to supervise and conduct disciplinary proceedings in accordance with the
provisions hereinafter set forth;
( 2) to appoint members of the commission as provided by statute;
( 3) to appoint a counsel. The counsel will serve at the pleasure of the coun-cil.
The counsel will be a member of the North Carolina State Bar but will not
be permitted to engage in the private practice of law;
( 4) to order the transfer of a member to disability inactive status when such
member has been judicially declared incompetent or has been involuntarily com-mitted
to institutional care because of incompetence or disability;
( 5) to accept or reject the surrender of the license to practice law of any mem-ber
of the North Carolina State Bar;
( 6) to order the disbarment of any member whose resignation is accepted;
( 7) to review the report of any hearing committee upon a petition for rein-statement
of a disbarred attorney and to make final determination as to whether
the license will be restored.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
Amended September 7, 1995
.0105 Chairperson of the Grievance Committee: Powers and Duties
( a) The chairperson of the Grievance Committee will have the power and
duty
( 1) to supervise the activities of the counsel;
( 2) to recommend to the Grievance Committee that an investigation be ini-tiated;
( 3) to recommend to the Grievance Committee that a grievance be dis-missed;
( 4) to direct a letter of notice to a respondent or direct the counsel to issue
letters of notice in such cases or under such circumstances as the chairperson
deems appropriate;
( 5) to issue, at the direction and in the name of the Grievance Committee, a
letter of caution, letter of warning, an admonition, a reprimand, or a censure
to a member;
( 6) to notify a respondent that a grievance has been dismissed, and to notify
the complainant in accordance with Rule .0121 of this subchapter;
( 7) to call meetings of the Grievance Committee;
( 8) to issue subpoenas in the name of the North Carolina State Bar or direct
the secretary to issue such subpoenas;
( 9) to administer or direct the administration of oaths or affirmations to wit-nesses;
( 10) to sign complaints and petitions in the name of the North Carolina State
Bar;
( 11) to determine whether proceedings should be instituted to activate a sus-pension
which has been stayed;
( 12) to enter orders of reciprocal discipline in the name of the Grievance
Committee;
( 13) to direct the counsel to institute proceedings in the appropriate forum
to determine if an attorney is in violation of an order of the Grievance
Committee, the commission, or the council;
( 14) to rule on requests for reconsideration of decisions of the Grievance
Committee regarding grievances;
( 15) to tax costs of the disciplinary procedures against any defendant against
whom the Grievance Committee imposes discipline, including a minimum
administrative cost of $ 50;
( 16) in his or her discretion, to refer grievances primarily attributable to
unsound law office management to a program of law office management
training approved by the State Bar and to so notify the complainant;
( 17) to dismiss a grievance upon request of the complainant, where it appears
that there is no probable cause to believe that the respondent has violated the
Rules of Professional Conduct and where counsel consents to the dismissal;
( 18) to dismiss a grievance where it appears that the grievance has not been
filed within the time period set out in Rule .0111( e);
( 19) to dismiss a grievance where it appears that the complaint, even if true,
fails to state a violation of the Revised Rules of Professional Conduct and
where counsel consents to the dismissal;
( 20) to dismiss a grievance where it appears that there is no probable cause to
believe that the respondent has violated the Revised Rules of Professional
Conduct and where counsel and a member of the Grievance Committee des-ignated
by the committee consent to the dismissal.
( 21) to appoint a subcommittee to make recommendations to the council for
such amendments to the Discipline and Disability Rules as the subcommit-tee
deems necessary or appropriate.
( b) The president, vice- chairperson, or a member of the Grievance
Committee designated by the president or the chairperson or vice- chairperson of
the committee may perform the functions, exercise the power, and discharge the
duties of the chairperson or any vice- chairperson when the chairperson or a vice-chairperson
is absent or disqualified.
( c) The chairperson may delegate his or her authority to the president, the
vice chairperson of the committee, or a member of the Grievance Committee.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
Amended February 20, 1995; March 6, 1997; October 2, 1997; March 3,
1999; February 3, 2000
.0106 Grievance Committee: Powers and Duties
The Grievance Committee will have the power and duty
( 1) to direct the counsel to investigate any alleged misconduct or disability of
a member of the North Carolina State Bar coming to its attention;
( 2) to hold preliminary hearings, find probable cause and direct that com-plaints
be filed;
( 3) to dismiss grievances upon a finding of no probable cause;
( 4) to issue a letter of caution to a respondent in cases wherein misconduct is
not established but the activities of the respondent are unprofessional or not in
accord with accepted professional practice. The letter of caution will recommend
that the respondent be more professional in his or her practice in one or more
ways which are to be specifically identified;
( 5) to issue a letter of warning to a respondent in cases wherein no probable
cause is found but it is determined by the Grievance Committee that the con-duct
of the respondent is an unintentional, minor, or technical violation of the
Rules of Professional Conduct. The letter of warning will advise the attorney that
he or she may be subject to discipline if such conduct is continued or repeated.
The warning will specify in one or more ways the conduct or practice for which
the respondent is being warned. A copy of the letter of warning will be main-tained
in the office of the counsel for three years subject to the confidentiality
provisions of Rule .0129 of this subchapter;
( 6) to issue an admonition in cases wherein the defendant has committed a
The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter B— page 19
minor violation of the Rules of Professional Conduct;
( 7) to issue a reprimand wherein the defendant has violated one or more pro-visions
of the Rules of Professional Conduct, and has caused harm or potential
harm to a client, the administration of justice, the profession, or a member of the
public, but the misconduct does not require a censure;
( 8) to issue a censure in cases wherein the defendant has violated one or more
provisions of the Rules of Professional Conduct and has caused significant harm
or potential significant harm to a client, the administration of justice, the pro-fession,
or a member of the public, but the misconduct does not require suspen-sion
of the defendant’s license;
( 9) to direct that a petition be filed seeking a determination whether a mem-ber
of the North Carolina State Bar is disabled;
( 10) to include in any order of admonition, reprimand, or censure a provi-sion
requiring the defendant to complete a reasonable amount of continuing
legal education in addition to the minimum amount required by the North
Carolina Supreme Court;
( 11) in its discretion, to refer grievances primarily attributable to unsound law
office management to a program of law office management training approved by
the State Bar in accordance with Rule .0112( i) of this subchapter.
( 12) in its discretion, to refer grievances primarily attributable to the respon-dent's
substance abuse or mental health problem to the Lawyer Assistance
Program in accordance with Rule .0112( j) of this subchapter.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
Amended March 3, 1999; December 20, 2000
.0107 Counsel: Powers and Duties
The counsel will have the power and duty
( 1) to initiate an investigation concerning alleged misconduct of a member;
( 2) to direct a letter of notice to a respondent when authorized by the chair-person
of the Grievance Committee;
( 3) to investigate all matters involving alleged misconduct whether initiated
by the filing of a grievance or otherwise;
( 4) to recommend to the chairperson of the Grievance Committee that a
matter be dismissed, that a letter of caution, or a letter of warning be issued, or
that the Grievance Committee hold a preliminary hearing;
( 5) to prosecute all disciplinary proceedings before the Grievance Committee,
hearing committees, and the courts;
( 6) to represent the North Carolina State Bar in any trial, hearing, or other
proceeding concerning the alleged disability of a member;
( 7) to appear on behalf of the North Carolina State Bar at hearings conduct-ed
by the Grievance Committee, hearing committees, or any other agency or
court concerning any motion or other matter arising out of a disciplinary or dis-ability
proceeding;
( 8) to appear at hearings conducted with respect to petitions for reinstate-ment
of license by suspended or disbarred attorneys or by attorneys transferred
to disability inactive status, to cross- examine witnesses testifying in support of
such petitions, and to present evidence, if any, in opposition to such petitions;
( 9) to employ such deputy counsel, investigators, and other administrative
personnel in such numbers as the council may authorize;
( 10) to maintain permanent records of all matters processed and of the dis-position
of such matters;
( 11) to perform such other duties as the council may direct;
( 12) after a finding of probable cause by the Grievance Committee, to desig-nate
the particular violations of the Rules of Professional Conduct to be alleged
in a formal complaint filed with the commission;
( 13) to file amendments to complaints and petitions arising out of the same
transactions or occurrences as the allegations in the original complaints or peti-tions,
in the name of the North Carolina State Bar, with the prior approval of the
chairperson of the Grievance Committee;
( 14) after a complaint is filed with the commission, to dismiss any or all
claims in the complaint or to negotiate and recommend consent orders of disci-pline
to the hearing committee.
History Note: Statutory Authority G. S. 84- 23; G. S. 84- 31
Readopted Effective December 8, 1994
Amended March 3, 1999
.0108 Chairperson of the Hearing Commission: Powers and Duties
( a) The chairperson of the Disciplinary Hearing Commission of the North
Carolina State Bar will have the power and duty
( 1) to receive complaints alleging misconduct and petitions alleging the dis-ability
of a member filed by the counsel; petitions requesting reinstatement
of license by members who have been involuntarily transferred to disability
inactive status, suspended, or disbarred; motions seeking the activation of sus-pensions
which have been stayed; and proposed consent orders of disbar-ment;
( 2) to assign three members of the commission, consisting of two members
of the North Carolina State Bar and one nonlawyer to hear complaints, peti-tions,
motions, and posthearing motions pursuant to Rule .0114( z)( 2) of this
subchapter. The chairperson will designate one of the attorney members as
chairperson of the hearing committee. No committee member who hears a
disciplinary matter may serve on the committee which hears the attorney’s
reinstatement petition. The chairperson of the commission may designate
himself or herself to serve as one of the attorney members of any hearing
committee and will be chairperson of any hearing committee on which he or
she serves. Posthearing motions filed pursuant to Rule .0114( z)( 2) of this sub-chapter
will be considered by the same hearing committee assigned to the
original trial proceeding. Hearing committee members who are ineligible or
unable to serve for any reason will be replaced with members selected by the
commission chairperson;
( 3) to set the time and place for the hearing on each complaint or petition;
( 4) to subpoena witnesses and compel their attendance and to compel the
production of books, papers, and other documents deemed necessary or
material to any hearing. The chairperson may designate the secretary to issue
such subpoenas;
( 5) to consolidate, in his or her discretion for hearing, two or more cases in
which a subsequent complaint or complaints have been served upon a defen-dant
within ninety days of the date of service of the first or a preceding com-plaint;
( 6) to enter orders disbarring members by consent;
( 7) to enter an order suspending a member pending disposition of a discipli-nary
proceeding when the member has been convicted of a serious crime or
has pled no contest to a serious crime and the court has accepted the plea.
( b) The vice- chairperson of the Disciplinary Hearing Commission may per-form
the function of the chairperson in any matter when the chairperson is
absent or disqualified.
History Note: Statutory Authority G. S. 84- 23
Readopted Effective December 8, 1994
Amended September 7, 1995
.0109 Hearing Committee: Powers and Duties
Hearing committees of the Disciplinary Hearing Commission of the North
Carolina State Bar will have the following powers and duties:
( 1) to hold hearings on complaints alleging misconduct, or petitions seeking
a determination of disability or reinstatement, or motions seeking the activation
of suspensions which have been stayed, and to conduct proceedings to determine
if persons or corporations should be held in contempt pursuant to G. S. 84-
28.1( b1);
( 2) to enter orders regarding discovery and other procedures in connection
with such hearings, including, in disability matters, the examination of a mem-ber
by such qualified medical experts as the committee will designate;
( 3) to subpoena witnesses and compel their attendance, and to compel the
production of books, papers, and other documents deemed necessary or materi-al
to any hearing. Subpoenas will be issued by the chairperson of the hearing
committee in the name of the commission. The chairperson may direct the sec-retary
to issue such subpoenas;
( 4) to administer or direct the administration of oaths or affirmations to wit-nesses
at hearings;
( 5) to make findings of fact and conclusions of law;
( 6) to enter orders dismissing complaints in matters before the committee;
( 7) to enter orders of discipline against or letters of warning to defendants in
matters before the committee;
( 8) to tax costs of the disciplinary proceedings against any defendant against
page 20— Subchapter B The 2008 North Carolina State Bar Lawyer’s Handbook
whom discipline is imposed, provided, however, that such costs will not include
the compensation of any member of the council, committees, or agencies of the
North Carolina State Bar;
( 9) to enter orders transferring a member to disability inactive status;
( 10) to report to the council its findings of fact and recommendations after
hearings on petitions for reinstatement of disbarred attorneys;
( 11) to grant or deny petitions of attorneys seeking transfer from disability
inactive status to active status;
( 12) to enter orders reinstating suspended attorneys or denying reinstate-ment.
An order denying reinstatement may include additional sanctions in the
event violations of the petitioner’s order of suspension are found;
( 13) to enter orders activating suspensions which have been stayed or con-tinuing
the stays of such suspensions.
( 14) to enter orders holding persons and corporations in contempt pursuant
to G. S. 84- 28.1( b1) and imposing such sanctions allowed by law.
History Note: Statutory Authority G. S. 84- 23; G. S. 84- 28; G. S. 84- 28.1
Readopted Effective December 8, 1994
Amended March 3, 1999
.0110 Secretary: Powers and Duties in Discipline and Disability Matters
The secretary will have the following powers and duties in regard to discipline
and disability procedures:
( 1) to receive grievances for transmittal to the counsel, to receive complaints
and petitions for transmittal to the commission chairperson, and to receive affi-davits
of surrender of license for transmittal to the council;
( 2) to issue summonses and subpoenas when so directed by the president, the
chairperson of the Grievance Committee, the chairperson of the commission, or
the chairperson of any hearing committee;
( 3) to maintain a record and file of all grievances not dismissed by the
Grievance Committee;
( 4) to perform all necessary ministerial acts normally performed by the clerk
of the superior court in complaints filed before the commission;
( 5) to enter orders of reinstatement where petitions for reinstatement of sus-pended
attorneys are unopposed by the counsel;
( 6) to dismiss reinstatement petitions based on the petitioner’s failure to com-ply
with the rules governing
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| Rating | |
| Title | North Carolina State Bar lawyer's handbook |
| Other Title | State Bar lawyer's handbook; Lawyer's handbook |
| Date | 2008 |
| Description | 2008 |
| Digital Characteristics-A | 3.21 MB; 388 p. |
| Digital Format | application/pdf |
| Pres File Name-M | pubs_serial_ncsblawyershandbook2008.pdf |
| Pres Local File Path-M | \Preservation_content\StatePubs\pubs_borndigital\images_master\ |
| Full Text | Administrative Rules . . . . . . . . . . . . . . .11 Continuing Legal Education ( CLE) . . . . . . . .53 Discipline and Disability . . . . . . . . . . . . . . .16 Fee Dispute Resolution . . . . . . . . . . . . . . . .43 IOLTA . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Legal Specialization . . . . . . . . . . . . . . . . . .61 Membership . . . . . . . . . . . . . . . . . . . . . . . .11 Paralegal Certification . . . . . . . . . . . . . . . . .83 Professional Organizations . . . . . . . . . . . . . . . .78 Ethics Opinions . . . . . . . . . . . . . . . . . .165 Index to Ethics Opinions . . . . . . . . . . . . . .352 IOLTA Q& A . . . . . . . . . . . . . . . . . . . . . .377 Rules of Professional Conduct . . . . . . . .91 Rules Index . . . . . . . . . . . . . . . . . . . . . . .156 Trust Accounting Q& A . . . . . . . . . . . . .366 The North Carolina State Bar Lawyer’s Handbook 2008 ( Abridged) An official publication of the North Carolina State Bar con-taining 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. The 2008 Lawyer’s Handbook The 2008 North Carolina State Bar Lawyer’s Handbook page 3 State Bar Officers Irvin W. Hankins III - President 401 S. Tryon Street, Suite 3000 Charlotte, NC 28202 ( 704) 372- 9000 John B. McMillan - President- Elect 3605 Glenwood Avenue, Suite 500 PO Box 20389 Raleigh, NC 27619- 0389 ( 919) 787- 8880 Barbara B. ( Bonnie) Weyher - Vice- President One Bank of America Plaza, Suite 1200 421 Fayetteville Street PO Box 2889 Raleigh, NC 27602- 2889 ( 919) 835- 0900 Steven D. Michael - Past- President 4820 N. Croatan Hwy. PO Drawer 1027 Kitty Hawk, NC 27949 ( 252) 261- 2126 L. Thomas Lunsford II – Secretary/ Treasurer 208 Fayetteville Street PO Box 25908 Raleigh, NC 27611- 5908 ( 919) 828- 4620 The following persons can also be reached by contacting the State Bar at: North Carolina State Bar PO Box 25908 Raleigh, NC 27611- 5908 ( 919) 828- 4620 Address Changes Lenita Childree lchildree@ ncbar. gov Kelly Beck kbeck@ ncbar. gov Beth McLamb bmclamb@ ncbar. gov Administration Tom Lunsford tlunsford@ ncbar. gov Sandra Melvin smelvin@ ncbar. gov Attorney- Client Assistance Program ( receives complaints from clients) Judy Treadwell jtreadwell@ ncbar. gov Melanie Kincaid mkincaid@ ncbar. gov Sandra L. Saxton ssaxton@ ncbar. gov Certificates of Good Standing Lenita Childree lchildree@ ncbar. gov Kelly Beck kbeck@ ncbar. gov Beth McLamb bmclamb@ ncbar. gov Client Security Fund ( reimbursement for client-victims of lawyer theft) Root Edmonson redmonson@ ncbar. gov David Frederick dfrederick@ ncbar. gov Continuing Legal Education Debra Holland dholland@ ncbar. gov Lori Nicolicchia lnicolicchia@ ncbar. gov Emily Oakes eoakes@ ncbar. gov Michelle Powell mpowell@ ncbar. gov Disciplinary Hearing Commission ( DHC and final disciplinary orders) Dottie Miani ( clerk) dmiani@ ncbar. gov Ethics/ Professional Responsibility ( answers inquiries about lawyer’s own conduct) Alice Neece Mine amine@ ncbar. gov Suzanne Lever slever@ ncbar. gov Nichole McLaughlin nmclaughlin@ ncbar. gov Tom Lunsford tlunsford@ ncbar. gov Fee Dispute Resolution Luella Crane lcrane@ ncbar. gov Krista Bathurst kbathurst@ ncbar. gov Grievance Records Sonya Sells ssells@ ncbar. gov Becky Carroll bcarroll@ ncbar. gov Wondella Payne wpayne@ ncbar. gov IOLTA ( Interest on Lawyer’s Trust Accounts) ( 919) 828- 0477 ( 888) 828- 1718 ( toll- free fax) PO BOX 2687 Raleigh, NC 27602- 2687 General email: iolta@ ncbar. gov Evelyn M. Pursley epursley@ ncbar. gov Claire Mills cmills@ ncbar. gov Sonja Puryear spuryear@ ncbar. gov Lawyer Assistance Program PALS/ FRIENDS ( confidential program) Don Carroll nclap@ bellsouth. net Ed Ward eward@ ncbar. gov Towanda Garner tgarner@ ncbar. gov Ph: ( 800) 720- 7257 Web: www. nclap. org Membership Records Tammy Jackson tjackson@ ncbar. gov Lenita Childree lchildree@ ncbar. gov Kelly Beck kbeck@ ncbar. gov Beth McLamb bmclamb@ ncbar. gov Office of Counsel ( prosecution of lawyers) Katherine Jean kjean@ ncbar. gov Paralegal Certification Alice Neece Mine amine@ ncbar. gov Tara Wilder twilder@ ncbar. gov Joyce Lindsay jlindsay@ ncbar. gov Professional Organizations ( registers p. c./ p. l. l. c’s ) Tammy Jackson tjackson@ ncbar. gov Lenita Childree lchildree@ ncbar. gov Pro Hac Vice Registration Martha Fletcher mfletcher@ ncbar. gov Publications/ Media Kits Jennifer Duncan ncbar@ bellsouth. net Martha Fletcher mfletcher@ ncbar. gov Publication Orders Jennifer Duncan ncbar@ bellsouth. net Martha Fletcher mfletcher@ ncbar. gov Specialization Alice Neece Mine amine@ ncbar. gov Denise Mullen dmullen@ ncbar. gov Joyce Lindsay jlindsay@ ncbar. gov Student Practice Certificates ( for 3rd year law students) Dottie Miani dmiani@ ncbar. gov Trust Account Random Audits Bruno DeMolli c/ o Dawn Whaley dwhaley@ 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 The 2008 North Carolina State Bar Lawyer’s Handbook 27 NCAC Chapter 1 . . . . . . . . . . . . . . . . . . . . .11 Subchapter A: Organization of the North Carolina State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Section .0200 Membership - Annual Membership Fees . . . . . . . . . . . .11 .0201 Classes of Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 .0202 Register of Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 .0203 Annual Membership Fees; When Due . . . . . . . . . . . . . . . . .11 .0204 Certificate of Insurance Coverage . . . . . . . . . . . . . . . . . . . . .12 Section .0800 Election and Appointment of State Bar Councilors .0801 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 .0802 Election - When Held; Notice; Nominations . . . . . . . . . .12 .0803 Election - Voting Procedures . . . . . . . . . . . . . . . . . . . . . .12 .0804 Procedures Governing Elections by Mail . . . . . . . . . . . . .12 .0805 Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 .0806 Bylaws Providing for Geographical Rotation or Division of Representation . . . . . . . . . . . . . . . . . . . . . . . .13 Section .0900 Organization of the Judicial District Bars . . . . . . . . . . . .13 .0901 Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 .0902 Annual Membership Fee . . . . . . . . . . . . . . . . . . . . . . . . . .13 .0903 Fiscal Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Section .1000 Model Bylaws For Use by Judicial District Bars . . . . . . . .13 .1001 Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 .1002 Authority and Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . .13 .1003 Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 .1004 Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 .1005 Councilor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 .1006 Annual Membership Fee . . . . . . . . . . . . . . . . . . . . . . . . . .14 .1007 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 .1008 District Bar Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 .1009 Prohibited Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 .1010 Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 .1011 Board of Directors or Executive Committee . . . . . . . . . . .15 .1012 Amendment of the Bylaws . . . . . . . . . . . . . . . . . . . . . . . .16 .1013 Selection of Nominees for District Court Judge . . . . . . . .16 Section .1200 Filing Papers with and Serving the North Carolina State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 .1201 When Papers Are Filed Under These Rules and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Subchapter B: Discipline and Disability Rules . . . . . . . .16 Section .0100 Discipline and Disability of Attorneys . . . . . . . . . . . . . .16 .0101 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 .0102 Procedure for Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 .0103 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 .0104 State Bar Council: Powers and Duties in . Discipline and Disability Matters . . . . . . . . . . . . . . . . . . . . .18 .0105 Chairperson of the Grievance Committee: Powers . . and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 .0106 Grievance Committee: Powers and Duties . . . . . . . . . . . . . .18 .0107 Counsel: Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . . .19 .0108 Chairperson of the Hearing Commission: Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 .0109 Hearing Committee: Powers and Duties . . . . . . . . . . . . . . .19 .0110 Secretary: Powers and Duties in Discipline and Disability Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 .0111 Grievances: Form and Filing . . . . . . . . . . . . . . . . . . . . . . . .20 .0112 Investigations: Initial Determination . . . . . . . . . . . . . . . . . .20 .0113 Proceedings before the Grievance Committee . . . . . . . . . . .21 .0114 Formal Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 .0115 Effect of a Finding of Guilt in Any Criminal Case . . . . . . .24 .0116 Reciprocal Discipline & Disability Proceedings . . . . . . . . . .24 .0117 Surrender of License While Under Investigation . . . . . . . . .25 .0118 Disability Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 .0119 Enforcement of Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 .0120 Notice to Member of Action and Dismissal . . . . . . . . . . . . .26 .0121 Notice to Complainant . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 .0122 Appointment of Counsel to Protect Client’s Interests . . . When Attorney Disappears, Dies, or is Transferred to Disability Inactive Status . . . . . . . . . . . . . . . . . . . . . . . . . . .27 .0123 Imposition of Discipline; Findings of Incapacity or Disability; Notice to Courts . . . . . . . . . . . . . . . . . . . . . . . . .27 .0124 Obligations of Disbarred or Suspended Attorneys . . . . . . . .27 .0125 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 .0126 Address of Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 .0127 Disqualification Due to Interest . . . . . . . . . . . . . . . . . . . . . .30 .0128 Trust Accounts; Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 .0129 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 .0130 Disciplinary Amnesty in Illicit Drug Use Cases . . . . . . . . . .31 Section .0200 Rules Governing Judicial District Grievance Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 .0201 Organization of Judicial District Grievance Committees . . .31 .0202 Jurisdiction and Authority of District Grievance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 .0203 Meetings of the District Grievance Committees . . . . . . . . .32 .0204 Procedure Upon Institution of a Grievance . . . . . . . . . . . . .32 .0205 Record Keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 .0206 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 .0207 Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 .0208 Letter to Complainant Where Local Grievance Alleges Fee Dispute Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 .0209 Letter to Complainant Where Local Grievance Alleges Fee Dispute and Other Violations . . . . . . . . . . . . . . . . . . . .34 .0210 Letter to Complainant/ Respondent Where District Committee Recommends Finding of No Probable Cause . .34 .0211 Letter to Respondent Where District Committee Recommends Finding of Probable Cause . . . . . . . . . . . . . .34 .0212 Letter to Complainant Where District Committee Recommends Finding of Probable Cause . . . . . . . . . . . . . .35 .0213 Letter to Complainant Acknowledging Grievance . . . . . . . .35 .0214 Letter to Investigating Attorney Assigning Grievance . . . . .35 .0215 Letter to Complainant from Investigating Attorney . . . . . .35 .0216 Letter of Notice to Respondent Attorney . . . . . . . . . . . . . . .35 .0217 Letter Transmitting Completed File to North Carolina State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 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 380 The 2008 North Carolina State Bar Lawyer’s Handbook page 5 Subchapter C: Rules Governing the Board of Law Examiners and the Training of Law Students . . . . . .36 Section .0100 Rules Governing the Board of Law Examiners and the Training of Law Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 .0101 Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 .0102 Examination of Applicants for License . . . . . . . . . . . . . . .36 .0103 Admission to Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 .0104 Approval of Rules and Regulations of Board of Law Examiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 .0105 Approval of Law Schools . . . . . . . . . . . . . . . . . . . . . . . . .36 Section .0200 Rules Governing Practical Training of Law Students . . . .36 .0201 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 .0202 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 .0203 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 .0204 Certification as Legal Intern . . . . . . . . . . . . . . . . . . . . . . .37 .0205 Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 .0206 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 .0207 Use of Student's Name . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Subchapter D: Rules of the Standing Committees of the North Carolina State Bar . . . . . . . . . . . . . . . . . . . . . . . .38 Section .0100 Procedures for Ruling on Questions of Legal Ethics . . . .38 .0101 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 .0102 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 .0103 Informal Ethics Advisories and Ethics Advisories . . . . . . . . .39 .0104 Formal Ethics Opinions and Ethics Decisions . . . . . . . . . . .39 Section .0200 Procedures for the Authorized Practice Committee . . . . .39 .0201 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 .0202 Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 .0203 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 .0204 State Bar Council - Powers and Duties . . . . . . . . . . . . . . .40 .0205 Chairperson of the Authorized Practice Committee - Powers and Duties . . . . . . . . . . . . . . . . . . . .40 .0206 Authorized Practice Committee - Powers and Duties . . . .40 .0207 Counsel - Powers and Duties . . . . . . . . . . . . . . . . . . . . . .40 .0208 Suing for Injunctive Relief . . . . . . . . . . . . . . . . . . . . . . . .41 Section .0600 Rules Governing the Lawyer Assistance Program . . . . . . .41 .0601 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 .0602 Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 .0603 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .41 .0604 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 .0605 Appointment of Members; When; Removal . . . . . . . . . . .41 .0606 Term of Office and Succession . . . . . . . . . . . . . . . . . . . . .41 .0607 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .41 .0608 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . .41 .0609 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 .0610 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 .0611 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 .0612 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .42 .0613 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 .0614 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 .0615 Regional Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 .0616 Suspension for Impairment, Reinstatement . . . . . . . . . . .42 .0617 Consensual Suspension . . . . . . . . . . . . . . . . . . . . . . . . . . .43 .0618 Agents of the State Bar . . . . . . . . . . . . . . . . . . . . . . . . . . .43 .0619 Judicial Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 .0620 Rehabilitation Contracts for Lawyers Impaired by Substance Abuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 .0621 Evaluations for Substance Abuse, Alcoholism, and/ or other Chemical Addictions . . . . . . . . . . . . . . . . . .43 .0622 Grounds for Compelling an Evaluation . . . . . . . . . . . . . .43 .0623 Failure to Comply with an Order Compelling an Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Section .0700 Procedures for Fee Dispute Resolution . . . . . . . . . . . . .43 .0701 Purpose and Implementation . . . . . . . . . . . . . . . . . . . . . . . .43 .0702 Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 .0703 Coordinator of Fee Dispute Resolution . . . . . . . . . . . . . . . .44 .0704 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 .0705 Selection of Mediators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 .0706 Processing Requests for Fee Dispute Resolution . . . . . . . . . .44 .0707 Mediation Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 .0708 Finalizing the Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 .0709 Record Keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 .0710 District Bar Fee Dispute Resolution . . . . . . . . . . . . . . . . . . .45 Section .0900 Procedures for Administrative Committee . . . . . . . . . . .45 .0901 Transfer to Inactive Status . . . . . . . . . . . . . . . . . . . . . . . . . .45 .0902 Reinstatement from Inactive Status . . . . . . . . . . . . . . . . . . .45 .0903 Suspension for Failure to Fulfill Obligations of . . . . . . . . . . . . . Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 .0904 Compliance After Suspension for Failure to Pay Fees or Assessed Costs, or to File Certificate of Insurance Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 .0905 Pro Bono Practice by Out of State Lawyers . . . . . . . . . . . . .47 Section .1000 Rules Governing Reinstatement Hearings Before the . . . Administrative Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 .1001 Reinstatement Hearings . . . . . . . . . . . . . . . . . . . . . . . . . .47 .1002 Review and Order of Council . . . . . . . . . . . . . . . . . . . . .48 Section .1300 Rules Governing the Administration of the Plan for Interest on Lawyers' Trust Accounts ( IOLTA) . . . . . . . . . . . . . . . . . . . .48 .1301 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 .1302 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1303 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1304 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1305 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1306 Appointment of Members; When; Removal . . . . . . . . . . . .49 .1307 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1308 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1309 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1310 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .49 .1311 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .49 .1312 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1313 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 .1314 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1315 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1316 IOLTA Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1317 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1318 Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1319 Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1320 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Section .1400 Rules Governing the Administration of the Client Security Fund of the North Carolina State Bar . . . . . . . . . . . . . . .50 .1401 Purpose; Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 .1402 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 .1403 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .51 .1404 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 .1405 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 page 6 The 2008 North Carolina State Bar Lawyer’s Handbook .1406 Appointment of Members; When; Removal . . . . . . . . . . . .51 .1407 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 .1408 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 .1409 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 .1410 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .52 .1411 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .52 .1412 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 .1413 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 .1414 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 .1415 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 .1416 Appropriate Uses of the Client Security Fund . . . . . . . . . . .52 .1417 Applications for Reimbursement . . . . . . . . . . . . . . . . . . . . .52 .1418 Processing Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 .1419 Subrogation for Reimbursement . . . . . . . . . . . . . . . . . . . . .53 .1420 Authority Reserved by the Supreme Court . . . . . . . . . . . . .53 Section .1500 Rules Governing the Administration of the Continuing Legal Education Program . . . . . . . . . . . . . . . . . . . . . . . . . .53 .1501 Scope, Purpose, and Definitions . . . . . . . . . . . . . . . . . . . . .53 .1502 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 .1503 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .54 .1504 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 .1505 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 .1506 Appointment of Members; When; Removal . . . . . . . . . . . .54 .1507 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 .1508 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 .1509 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 .1510 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .55 .1511 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .55 .1512 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 .1513 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 .1514 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 .1515 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 .1516 Powers, Duties, and Organization of the Board . . . . . . . . . .55 .1517 Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 .1518 Continuing Legal Education Program . . . . . . . . . . . . . . . . .56 .1519 Accreditation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 .1520 Accreditation of Sponsors and Programs . . . . . . . . . . . . . . .57 .1521 Credit Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 .1522 Annual Report and Compliance Period . . . . . . . . . . . . . . . .57 .1523 Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 .1524 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 .1525 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 .1526 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 .1527 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 Section .1600 Regulations Governing the Administration of the Continuing Legal Education Program . . . . . . . . . . . . . . . . . . . . . . . . . .59 .1601 General Requirements for Course Approval . . . . . . . . . . . .59 .1602 Course Content Requirements . . . . . . . . . . . . . . . . . . . . . . .59 .1603 Accredited Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 .1604 Accreditation of Prerecorded, Simultaneous Broadcast, and Computer- Based Programs . . . . . . . . . . . . . . . . . . . . . .60 .1605 Computation of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 .1606 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1607 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1608 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1609 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1610 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1611 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Section .1700 The Plan of Legal Specialization . . . . . . . . . . . . . . . . . .61 .1701 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1702 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1703 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . .61 .1704 Size of Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1705 Lay Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1706 Appointment of Members; When; Removal . . . . . . . . . . . .62 .1707 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1708 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1709 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1710 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . . . .62 .1711 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . . . .62 .1712 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1713 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1714 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1715 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 .1716 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . . . .62 .1717 Retained Jurisdiction of the Council . . . . . . . . . . . . . . . . . . .63 .1718 Privileges Conferred and Limitations imposed . . . . . . . . . . .63 .1719 Specialty Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 .1720 Minimum Standards for Certification of Specialists . . . . . . .64 .1721 Minimum Standards for Continued Certification of Specialists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 .1722 Establishment of Additional Standards . . . . . . . . . . . . . . . .64 .1723 Revocation or Suspension of Certification as a Specialist . . .65 .1724 Right to Hearing and Appeal to Council . . . . . . . . . . . . . . .65 .1725 Areas of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 .1726 Certification Standards of the Specialties of Bankruptcy Law, Estate Planning and Probate Law, Real Property Law, Family Law, and Criminal Law . . . . . . . . . . . . . . . . . .65 Section .1800 Hearing and Appeal Rules of the Board of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 .1801 Reconsideration of Applications, Failure of Written Examinations and Appeals . . . . . . . . . . . . . . . . . . . . . . . .65 .1802 Denial, Revocation, or Suspension of Continued Certification as a Specialist . . . . . . . . . . . . . . . . . . . . . . . .67 .1803 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 .1804 Appeal to the Council . . . . . . . . . . . . . . . . . . . . . . . . . . .67 .1805 Judicial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 .1806 Additional Rules Pertaining to Hearing and Appeals . . . .67 Section .2100 Certification Standards for the Real Property Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 .2101 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .67 .2102 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 .2103 Recognition as a Specialist in Real Property Law . . . . . . . . .68 .2104 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .68 .2105 Standards for Certification as a Specialist in Real Property Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 .2106 Standards for Continued Certification as a Specialist . . . . .68 .2107 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .69 Section .2200 Certification Standards for the Bankruptcy Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 .2201 Establishment of the Specialty Field . . . . . . . . . . . . . . . . . . .69 .2202 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 .2203 Recognition as a Specialist in Bankruptcy Law . . . . . . . . . .69 .2204 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .69 .2205 Standards for Certification as a Specialist in Bankruptcy Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 .2206 Standards for Continued Certification as a Specialist . . . . .69 .2207 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .70 The 2008 North Carolina State Bar Lawyer’s Handbook page 7 Section .2300 Certification Standards for the Estate Planning and Probate Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 .2301 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .70 .2302 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 .2303 Recognition as a Specialist in Estate Planning and Probate Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 .2304 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .70 .2305 Standards for Certification as a Specialist in Estate Planning and Probate Law . . . . . . . . . . . . . . . . . . . . . . . . . .70 .2306 Standards for Continued Certification as a Specialist . . . . .71 .2307 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .71 Section .2400 Certification Standards for the Family Law Specialty . .71 .2401 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .71 .2402 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 .2403 Recognition as a Specialist in Family Law . . . . . . . . . . . . . .71 .2404 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .71 .2405 Standards for Certification as a Specialist in Family Law . . .71 .2406 Standards for Continued Certification as a Specialist . . . . .72 .2407 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .72 Section .2500 Certification Standards for the Criminal Law Specialty . . .72 .2501 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .72 .2502 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72 .2503 Recognition as a Specialist in Criminal Law . . . . . . . . . . . .72 .2504 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . .73 .2505 Standards for Certification as a Specialist . . . . . . . . . . . . . . .73 .2506 Standards for Continued Certification as a Specialist . . . . .74 .2507 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .74 Section .2600 Certification Standards for the Immigration Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 .2601 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .74 .2602 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 .2603 Recognition as a Specialist in Immigration Law . . . . . . . . . .74 .2604 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 .2605 Standards for Certification as a Specialist in Immigration Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 .2606 Standards for Continued Certification as a Specialist . . . . . .75 .2607 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .75 Section .2700 Certification Standards for the Workers’ Compensation Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .2701 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .75 .2702 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .2703 Recognition as a Specialist in Workers’ Compensation Law . .75 .2704 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .2705 Standards for Certification as a Specialist in Workers’ Compensation Law . . . . . . . . . . . . . . . . . . . . . . . .75 .2706 Standards for Continued Certification as a Specialist . . . . . .76 .2707 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .76 Section .2800 Certification Standards for the Social Security Disability Law Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 .2801 Establishment of Specialty Field . . . . . . . . . . . . . . . . . . . . . .76 .2802 Definition of Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 .2803 Recognition as a Specialist in Social Security Disability Law . .77 .2804 Applicability of Provisions of the North Carolina Plan of Legal Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 .2805 Standards for Certification as a Specialist in Social Security Disability Law . . . . . . . . . . . . . . . . . . . . . . . . .77 .2806 Standards for Continued Certification as a Specialist . . . . . .77 .2807 Applicability of Other Requirements . . . . . . . . . . . . . . . . . .78 Subchapter E: Regulations for Organizations Practicing Law . .78 Section .0100 Regulations for Professional Corporations and Professional Limited Liability Companies Practicing Law . . . . . . . . . . . . . . . . . . . . .78 .0101 Authority, Scope, and Definitions . . . . . . . . . . . . . . . . . . . .78 .0102 Name of Professional Corporation or Professional Limited Liability Company . . . . . . . . . . . . . . . . . . . . . . . . .78 .0103 Registration with the North Carolina State Bar . . . . . . . . . .79 .0104 Management and Financial Matters . . . . . . . . . . . . . . . . . . .80 .0105 General and Administrative Provisions . . . . . . . . . . . . . . . .81 Section .0200 Registration of Interstate and International Law Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 .0201 Registration Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . .81 .0202 Conditions of Registration . . . . . . . . . . . . . . . . . . . . . . . . . .81 .0203 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 .0204 Certificate of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . .81 .0205 Effect of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 .0206 Non- renewal of Registration . . . . . . . . . . . . . . . . . . . . . . . . .82 Section .0300 Rules Concerning Prepaid Legal Services Plans . . . . . . .82 .0301 Registration Requirement . . . . . . . . . . . . . . . . . . . . . . . . .82 .0302 Registration Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 .0303 Requirement to File Amendments . . . . . . . . . . . . . . . . . .82 .0304 Advertising of State Bar Approval Prohibited . . . . . . . . . .82 .0305 Annual Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 .0306 Registration Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 .0307 Index of Registered Plans . . . . . . . . . . . . . . . . . . . . . . . . .82 .0308 State Bar May Not Approve or Disapprove Plans . . . . . . .83 .0309 State Bar Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 .0310 Definition of Prepaid Plan . . . . . . . . . . . . . . . . . . . . . . . . . .83 .0307 Index of Registered Plans . . . . . . . . . . . . . . . . . . . . . . . . .83 .0308 State Bar May Not Approve or Disapprove Plans . . . . . . .83 .0309 State Bar Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 .0310 Definition of Prepaid Plan . . . . . . . . . . . . . . . . . . . . . . . . . .83 Subchapter G: Certification of Paralegals . . . . . . . . . . . .83 Section .0100 The Plan for Certification of Paralegals . . . . . . . . . . . . . .83 .0101 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 .0102 Jurisdiction: Authority . . . . . . . . . . . . . . . . . . . . . . . . . . .83 .0103 Operational Responsibility . . . . . . . . . . . . . . . . . . . . . . . .83 .0104 Size and Composition of Board . . . . . . . . . . . . . . . . . . . .83 .0105 Appointment of Members; When; Removal . . . . . . . . . . .84 .0106 Term of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 .0107 Staggered Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 .0108 Succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 .0109 Appointment of Chairperson . . . . . . . . . . . . . . . . . . . . . .84 .0110 Appointment of Vice- Chairperson . . . . . . . . . . . . . . . . . .84 .0111 Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 .0112 Fiscal Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 .0113 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 .0114 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 .0115 Powers and Duties of the Board . . . . . . . . . . . . . . . . . . . .85 .0116 Retained Jurisdiction of the Council . . . . . . . . . . . . . . . .85 .0117 Conferred and Limitations Imposed . . . . . . . . . . . . . . . . .85 .0118 Certification Committee . . . . . . . . . . . . . . . . . . . . . . . . .85 .0119 Standards for Certification of Paralegals . . . . . . . . . . . . . .85 .0120 Standards for Continued Certification of Paralegals . . . . .86 page 8 The 2008 North Carolina State Bar Lawyer’s Handbook .0121 Lapse, Suspension or Revocation of Certification . . . . . .86 .0122 Right to Review and Appeal to Council . . . . . . . . . . . . . .86 Section .0200 Rules Governing Continuing Paralegal Education . . . .87 .0201 Continuing Paralegal Education ( CPE) . . . . . . . . . . . . . . . .87 .0202 Accreditation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 .0203 General Course Approval . . . . . . . . . . . . . . . . . . . . . . . . . . .87 .0204 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 .0205 Computation of Hours of Instruction . . . . . . . . . . . . . . . . .88 Subchapter H: Registration of Attorneys Appearing . . . . . . . Pro Hac Vice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 Section .0100 Registration Procedure . . . . . . . . . . . . . . . . . . . . . . . . .88 .0101 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 Title 27 of the North Carolina Administrative Code: The North Carolina State Bar Chapter 2: Rules of Professional Conduct . . . . . . . . . . . . . . . . . . . .91 Preamble and Scope 0.1 Preamble: A Lawyer’s Professional Responsibilities . . . . . . . . . . . . . . .91 0.2 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92 Terminology Rule 1.0: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 Client- Lawyer Relationship Rule 1.1: Competence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 Rule 1.2: Scope of Representation and Allocation of Authority Between Client and Lawyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 Rule 1.3: Diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Rule 1.4: Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97 Rule 1.5: Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98 Rule 1.6: Confidentiality of Information . . . . . . . . . . . . . . . . . . . . . . . . .100 Rule 1.7: Conflict of Interest: Current Clients . . . . . . . . . . . . . . . . . . . . .103 Rule 1.8: Conflict of Interest: Current Clients: Specific Rules . . . . . . . . .109 Rule 1.9: Duties to Former Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Rule 1.10: Imputation of Conflicts of Interest: General Rule . . . . . . . . . .113 Rule 1.11: Special Conflicts of Interest for Former and Current Government Officers and Employees . . . . . . . . . . . . . . . . . .114 Rule 1.12: Former Judge, Arbitrator, Mediator, or Other Third- Party Neutral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Rule 1.13: Organization as Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116 Rule 1.14: Client with Diminished Capacity . . . . . . . . . . . . . . . . . . . . . .118 Rule 1.15: Safekeeping Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 Rule 1.15- 1: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 Rule 1.15- 2: General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 Rule 1.15- 3: Records and Accountings . . . . . . . . . . . . . . . . . . . . . . . .120 Rule 1.15- 4: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123 Rule 1.16: Declining or Terminating Representation . . . . . . . . . . . . . . . .123 Rule 1.17: Sale of Law Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125 Rule 1.18: Duties to Prospective Client . . . . . . . . . . . . . . . . . . . . . . . . . .126 Rule 1.19: Sexual Relations with Clients Prohibited . . . . . . . . . . . . . . . . .127 Counselor Rule 2.1: Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Rule 2.2: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128 Rule 2.3: Evaluation for Use by Third Persons . . . . . . . . . . . . . . . . . . . . .128 Rule 2.4: Lawyer Serving as Third- Party Neutral . . . . . . . . . . . . . . . . . . .128 Advocate Rule 3.1: Meritious Claims and Contentions . . . . . . . . . . . . . . . . . . . . . .129 Rule 3.2: Expediting Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129 Rule 3.3: Candor Toward the Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . .129 Rule 3.4: Fairness to Opposing Party and Counsel . . . . . . . . . . . . . . . . . .131 Rule 3.5: Impartiality and Decorum of the Tribunal . . . . . . . . . . . . . . . .132 Rule 3.6: Trial Publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 Rule 3.7: Lawyer as Witness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134 Rule 3.8: Special Responsibilities of a Prosecutor . . . . . . . . . . . . . . . . . . .135 Transactions with Persons Other Than Clients Rule 4.1: Truthfulness in Statements to Others . . . . . . . . . . . . . . . . . . . . .136 Rule 4.2: Communication with Person Represented by Counsel . . . . . . .136 Rule 4.3: Dealing with Unrepresented Person . . . . . . . . . . . . . . . . . . . . . .138 Rule 4.4: Respect for Rights of Third Persons . . . . . . . . . . . . . . . . . . . . . .138 Law Firms and Associations Rule 5.1: Responsibilities of Partners, Managers, and Supervisory Lawyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139 Rule 5.2: Responsibilities of a Subordinate Lawyer . . . . . . . . . . . . . . . . . .139 Rule 5.3: Responsibilities Regarding Nonlawyer Assistants . . . . . . . . . . . .140 Rule 5.4: Professional Independence of a Lawyer . . . . . . . . . . . . . . . . . . .141 Rule 5.5: Unauthorized Practice of Law . . . . . . . . . . . . . . . . . . . . . . . . . .141 Rule 5.6: Restrictions on Right to Practice . . . . . . . . . . . . . . . . . . . . . . .144 Rule 5.7: Responsibilities Regarding Law- Related Services . . . . . . . . . . . .144 Public Service Rule 6.1: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Rule 6.2: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Rule 6.3: Membership in Legal Services Organization . . . . . . . . . . . . . . .145 Rule 6.4: Law Reform Activities Affecting Client Interests . . . . . . . . . . . .145 Rule 6.5: Limited Legal Services Programs . . . . . . . . . . . . . . . . . . . . . . . .145 Rule 6.6: Action as a Public Official . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146 Information About Legal Services Rule 7.1: Communications Concerning a Lawyer’s Services . . . . . . . . . . .146 Rule 7.2: Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147 Rule 7.3: Direct Contact with Potential Clients . . . . . . . . . . . . . . . . . . . .148 Rule 7.4: Communication of Fields of Practice and Specialization . . . . . .150 Rule 7.5: Firm Names and Letterheads . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Rule 7.6: Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152 Maintaining the Integrity of the Profession Rule 8.1: Bar Admission and Disciplinary Matters . . . . . . . . . . . . . . . . . .152 Rule 8.2: Judicial and Legal Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . .152 Rule 8.3: Reporting Professional Misconduct . . . . . . . . . . . . . . . . . . . . . .152 Rule 8.4: Misconduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Rule 8.5: Disciplinary Authority; Choice of Law . . . . . . . . . . . . . . . . . . .154 Rules Index . . . . . . . . . . . . . . . . . . . . . . . . . .156 The 2008 North Carolina State Bar Lawyer’s Handbook page 9 Correlation Tables Correlation Table 1: 1997 Revised Rules of Professional Conduct and 2003 Amended Revised Rules of Professional Conduct . . . . . . . . . . . . .159 Correlation Table 2: 1997 Revised Rules of Professional Conduct and 1985 Rules of Professional Conduct ( Superceded) . . . . .160 Correlation Table 3: 1985 Rules of Professional Conduct ( Superceded), 1997 Revised Rules of Professional Conduct, and 1973 Code of Professional Responsibility ( Superceded) . . . . . . . .162 Ethics Opinions . . . . . . . . . . . . . . . . . . . . . . . 165 Authorized Practice Advisory Opinions . . . . . . 349 Ethics Opinion Index . . . . . . . . . . . . . . . . . . . 352 Trust Accounting Questions and Answers . . . . 366 IOLTA Questions and Answers . . . . . . . . . . . . 377 page 10 The 2008 North Carolina State Bar Lawyer’s Handbook The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter A— page 11 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 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. History Note: Statutory Authority G. S. 84- 23; G. S. 84- 34 Readopted Effective December 8, 1994 Amended December 7, 1995 .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 Title 27 of the North Carolina Administrative Code The North Carolina State Bar Chapter 1 Rules and Regulations of the North Carolina State Bar page 12— Subchapter A The 2008 North Carolina State Bar Lawyer’s Handbook 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 Certificate of Insurance Coverage ( a) Before July 1 of each year, each active member shall submit a certificate to the secretary of the North Carolina State Bar on a form provided by the secre-tary stating whether the member is engaged in the private practice of law and, if so, whether the member is covered by a policy of professional liability insurance issued by an insurer legally permitted to provide coverage in North Carolina. The certificate may be submitted in electronic form or in an original document. If, after having most recently submitted a certificate of insurance coverage asserting that the member is covered by a policy of professional liability insurance cover-age, a member for any reason ceases to be insured, the member shall immediately advise the North Carolina State Bar of the changed circumstances in writing. ( b) Any active member who fails to submit the certificate of insurance cover-age required above in a timely fashion may be suspended from active member-ship in the North Carolina State Bar in accordance with the procedures set forth in Rule .0903 of subchapter D. ( c) Any member failing to submit a certificate of insurance coverage in a time-ly fashion shall pay a late fee of $ 30 to defray the administrative cost of enforc-ing compliance with this rule; provided, however, that no late fee associated with such failure shall be charged if the member is also liable for a late fee in regard to failure to pay the annual membership fee or Client Security Fund assessment for the same year in a timely fashion. ( d) Notwithstanding the foregoing: ( 1) A person licensed to practice law in North Carolina for the first time by examination shall not be required to file a certificate of insurance coverage during the year in which the person is admitted; ( 2) A person licensed to practice law in North Carolina serving in the armed forces, in a legal or nonlegal capacity, shall not be required to file a certificate of insurance coverage for any year in which the member is on active duty in 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 required to file a certificate of insurance coverage for the following 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 Adopted October 1, 2003 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 elec-tion and shall give to each active member ( as defined in G. S. 84- 16) of the dis-trict 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, 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 .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 out in this section. ( b) Only active members of the judicial district bar may participate in elec-tions conducted by mail. ( c) In districts which permit elections by mail, the notice sent to members referred to in Rule .0802( e) of this subchapter shall advise that the election will be held by mail. ( d) The judicial district bar shall mail a ballot to each active member of the judicial district bar at the member's address of record on file with the North Carolina State Bar. The ballot shall be accompanied by written instructions and shall state when and where the ballot should be returned. ( e) Each ballot shall be sequentially numbered with a red identifying numeral in the upper right hand corner of the ballot. The judicial district bar shall maintain appropriate records respecting how many ballots were mailed to prospective voters in each election, as well as how many ballots are returned. ( f) Only original ballots will be accepted. No photocopied or faxed ballots will be accepted. Voting by computer or electronic mail will not be permitted. History Note: Statutory Authority G. S. 84- 18; G. S. 84- 23 Adopted November 5, 1999 .0805 Vacancies The unexpired term of any councilor whose office has become vacant because of resignation, death, or any cause other than the expiration of a term, The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter A— page 13 shall be filled within 90 days of the occurrence of the vacancy by an election conducted in the same manner as above provided. History Note: Statutory Authority G. S. 84- 18; 84- 23 Readopted Effective December 8, 1994 Amended November 5, 1999 .0806 Bylaws Providing for Geographical Rotation or Division of Representation Nothing contained herein shall prohibit the district bar of any judicial dis-trict from adopting bylaws providing for the geographical rotation or division of its councilor representation. History Note: Statutory Authority G. S. 84- 18; 84- 23 Readopted Effective December 8, 1994 Amended November 5, 1999 Section .0900 Organization of the Judicial District Bars .0901 Bylaws ( a) Each judicial district bar shall adopt bylaws for its governance subject to the approval of the council; ( b) Each judicial district bar shall submit its current bylaws to the secretary of the North Carolina State Bar for review by the council on or before June 1, 1996; ( c) Pending review by the council, any bylaws submitted to the secretary on behalf of a judicial district bar or which already exist in the files of the secretary shall be deemed official and authoritative. ( d) All amendments to the bylaws of any judicial district bar must be filed with the secretary within 30 days of adoption and shall have no force and effect until approved by the council. ( e) The secretary shall maintain an official record for each judicial district bar containing bylaws which have been approved by the council or for which approval is pending. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .0902 Annual Membership Fee If a judicial district bar elects to assess an annual membership fee from its active members pursuant to N. C. G. S. § 84- 18.1( b), the following procedures shall apply: ( a) Notice to State Bar. The judicial district bar shall notify the North Carolina State Bar of its election to assess an annual membership fee each year at least thirty days prior to mailing to its members the first invoice therefore, spec-ifying the amount of the annual membership fee, the date after which payment will be delinquent, and the amount of any late fee for delinquent payment. ( b) Accounting to State Bar. No later than thirty days after the end of the judicial district bar's fiscal year, the judicial district bar shall provide the North Carolina State Bar with an accounting of the annual membership fees it collect-ed during such judicial district bar's fiscal year. ( c) Delinquency Date. The date upon which the annual membership fee shall be delinquent if not paid shall be not later than ninety days after, and not soon-er than thirty days after, the date of the first invoice for the annual membership fee. The delinquency date shall be stated on the invoice and the invoice shall advise each member that failure to pay the annual membership fee must be reported to the North Carolina State Bar and may result in suspension of the member's license to practice law. ( d) Late Fee. Each judicial district bar may impose, but shall not be required, to impose a late fee of any amount not to exceed fifteen dollars ($ 15.00) for non-payment of the annual membership fee on or before the stated delinquency date. ( e) Members Subject to Assessment. Only those lawyers who are active mem-bers of a judicial district bar may be assessed an annual membership fee. A lawyer who joins a judicial district bar after the beginning of its fiscal year shall be exempt from the obligation to pay the annual membership fee for that fiscal year only if the lawyer can demonstrate that he or she previously paid an annual mem-bership fee to another judicial district bar with a fiscal year that runs contermi-nously, for a period of three ( 3) months or more, with the fiscal year of the lawyer's new judicial district bar. ( f) Hardship Waivers. A judicial district bar may not grant any waiver from the obligation to pay the judicial district bar's annual membership fee. A judicial district bar may waive the late fee upon a showing of good cause. ( g) Reporting Delinquent Members to State Bar. Twelve months after the date of the first invoice for the annual membership fee, the judicial district bar shall report to the North Carolina State Bar all of its members who have not paid the annual membership fee or any late fee. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted December 20, 2000 Amended March 6, 2008 .0903 Fiscal Period To avoid conflict with the assessment of the membership fees for the North Carolina State Bar, each judicial district bar that assesses a membership fee shall adopt a fiscal year that is not a calendar year. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted December 20, 2000 Section .1000 Model Bylaws For Use by Judicial District Bars .1001 Name The name of this district bar shall be THE DISTRICT BAR OF THE ___________________________ JUDICIAL DISTRICT, and shall be here-inafter referred to as the “ district bar”. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1002 Authority and Purpose The district bar is formed pursuant to the provisions of Chapter 84 of the North Carolina General Statutes to promote the purposes therein set forth and to comply with the duties and obligations therein or thereunder imposed upon the Bar of this judicial district. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1003 Membership The members of the district bar shall consist of two classes: active and inac-tive. ( a) Active members: The active members shall be all persons who, at the time of the adoption of these bylaws or any time thereafter ( 1) are active members in good standing with the North Carolina State Bar; and ( 2) reside in the judicial district; or ( 3) practice in the judicial district and elect to belong to the district bar as provided in G. S. 84- 16. ( b) Inactive members: The inactive members shall be all persons, who, at the time of the adoption of these bylaws or at any time thereafter ( 1) have been granted voluntary inactive status by the North Carolina State Bar; and ( 2) reside in the judicial district; and ( 3) elect to participate, but not vote or hold office, in the district bar by giv-ing written notice to the secretary of the district bar. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1004 Officers The officers of the district bar shall be a president, a vice- president, and sec-retary and/ or treasurer who shall be selected and shall serve for the terms set out herein. ( a) President: The president serving at the time these bylaws are effective shall continue to serve for a term ending at the next annual meeting following the adoption or effective date of these bylaws. The president for the following term shall be the then current vice- president. Thereafter, the duly elected vice- presi-dent shall automatically succeed to the office of the president for a term of one, two, or three years. page 14— Subchapter A The 2008 North Carolina State Bar Lawyer’s Handbook ( b) Vice- president: The vice- president serving at the time these bylaws are effective shall continue to serve for a term ending at the next annual meeting fol-lowing the adoption or effective date of these bylaws, at which time said vice-president shall succeed to the office of the president. Thereafter, the vice- presi-dent shall be elected at the annual meeting as hereinafter provided for a term of one, two, or three years. ( c) Secretary and/ or treasurer: The secretary and/ or the treasurer serving at the time these bylaws are effective shall each continue to serve in their respective offices until the expiration of the term of that office or until successors are appointed by the president ( or be elected by the active members of the district bar), whichever occurs later. In all other years, the secretary and/ or treasurer shall be appointed by the president ( or be elected by the active members of the district bar) to serve for a term of one, two, or three years. ( d) Election: Before ( or at) the annual meeting at which officers are to be elected, the Nominating Committee shall submit the names of its nominees for the office of vice- president to the secretary. Nominations from the floor shall be permitted. If no candidate receives a majority of the votes cast, the candidate with the lowest number of votes shall be eliminated and a run- off election shall imme-diately be held among the remaining candidates. This procedure shall be repeat-ed until a candidate receives a majority of the votes. 1 ( e) Duties: The duties of the officers shall be those usual and customary for such officers, including such duties as may be from time to time designated by resolution of the district bar, the North Carolina State Bar Council or the laws of the State of North Carolina. ( f) Vacancies: If a vacancy in the office of the vice- president, secretary- treas-urer occurs, the vacancy will be filled by the board of directors, if any, and if there is no board of directors, then by the vote of the active members at a special meet-ing of such members. The successor shall serve until the next annual meeting of the district bar. If the office of the president becomes vacant, the vice- president shall succeed to the office of the president and the board of directors, if any, and if there is no board of directors, then by the vote of the active members at a spe-cial meeting of such members, will select a new vice- president, who shall serve until the next annual meeting. ( g) Notification: Within 10 days following the annual meeting, or the filling of a vacancy in any office, the president shall notify the executive director of the North Carolina State Bar of the names, addresses and telephone numbers of all officers of the district bar. ( h) Record of bylaws: The president shall ensure that a current copy of these bylaws is filed with the office of the senior resident superior court judge with the _________________________ Judicial District and with the executive director of the North Carolina State Bar. ( i) Removal from office: The district bar, by a two- thirds vote of its active members present at a duly called meeting, may, after due notice and an oppor-tunity to be heard, remove from office any officer who has engaged in conduct which renders the officer unfit to serve, or who has become disabled, or for other good cause. The office of any officer who, during his or her term of office ceas-es to be an active member of the North Carolina State Bar shall immediately be deemed vacant and shall be filled as provided in Rule .1004( f) above. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1005 Councilor The district bar shall be represented in the State Bar council by one or more duly elected councilors, the number of councilors being determined pursuant to G. S. 84- 17. Any councilor serving at the time of the adoption of these bylaws shall complete the term of office to which he or she was previously elected. Thereafter, elections shall be held as necessary. Nominations shall be made and the election held as provided in G. S. 84- 18 and in Section .0800 et seq. of Subchapter 1A of the Rules of the North Carolina State Bar ( 27 N. C. A. C. 1A .0800 et seq.). If more than one council seat is to be filled, separate elections shall be held for each vacant seat. A vacancy in the office of councilor shall be filled as provided by Rule .0804 of Subchapter 1A ( 27 N. C. A. C. 1A .0804). History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 Amended November 5, 1999 .1006 Annual Membership Fee ( a) Each active member of the district bar shall: ( 1) Pay such annual membership fee, if any, as is prescribed by a majority vote of the active members of the district bar present and voting at a duly called meeting of the district bar, provided, however, that such fee may never exceed the amount of the annual membership fee currently imposed by the North Carolina State Bar. Each member shall pay the annual district bar membership fee at the time and place set forth in the notice thereof mailed to the member by the secretary- treasurer; and ( 2) Keep the secretary- treasurer notified of the member’s current mailing address and telephone number. ( b) The annual membership fee shall be used to promote and maintain the administration, activities and programs of the district bar. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1007 Meetings ( a) Annual meetings: The district bar shall meet each _____________ at a time and place designated by the president. The president, secretary or other offi-cer shall mail or deliver written notice of the annual meeting to each active mem-ber of the district bar at the member’s last known mailing address on file with the district bar at least ten days before the date of the annual meeting and shall so certify in the official minutes of the meeting. Notice of the meeting mailed by the executive director of the North Carolina State Bar shall also satisfy the notice requirement. Failure to mail or deliver the notice as herein provided shall invali-date any action at the annual meeting. ( b) Special meetings: Special meetings, if any, may be called at any time by the president or the vice- president. The president, secretary or other officer shall mail or deliver written notice of the special meeting to each active member of the district bar at the member’s last known mailing address on file with the district bar at least ten days before the date of any special meeting. Such notice shall set forth the time and place for the special meeting and the purpose( s) thereof. Failure to mail or deliver the notice shall invalidate any action taken at a special meeting. ( c) Quorum: Twenty percent of the active members of the district bar shall constitute a quorum, and a quorum shall be required to take official action on behalf of the district bar. 2 History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1008 District Bar Finances ( a) Fiscal Year: The district bar's fiscal year shall begin on____________ and shall end on ____________. ( b) Duties of treasurer: The treasurer shall maintain the funds of the district bar on deposit, initiate any necessary disbursements and keep appropriate finan-cial records. ( c) Annual financial report: Each ________________ before the annual meeting, the treasurer shall prepare the district bar's annual financial report for review by the board of directors, if any, and submission to the district bar's annu-al meeting and the North Carolina State Bar. ( d) District bar checks: All checks written on district bar accounts ( arising from the collection of mandatory dues) that exceed $ 500 must be signed by two of the following: ( 1) the treasurer, ( 2) any other officer, ( 3) another member of the board of directors, or ( 4) the executive secretary/ director, if any. ( e) Fidelity bond: If it is anticipated that receipts from membership fees will exceed $ 20,000 for any fiscal year, the district bar shall purchase a fidelity bond at least equal in amount to the anticipated annual receipts to indemnify the dis-trict bar for losses attributable to the malfeasance of the treasurer or any other member having access to district bar funds. ( f) Taxpayer identification number: The treasurer shall be responsible for obtaining a federal taxpayer identification number for the district bar. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 Amended July 22, 1999 .1009 Prohibited Activities ( a) Prohibited expenditures: Mandatory district bar dues, if any, shall not be The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter A— page 15 used for the purchase of alcoholic beverages, gifts to public officials, including judges, charitable contributions, recreational activities or expenses of spouses of district bar members or officers. However, such expenditures may be made from funds derived entirely from the voluntary contributions of district bar members. ( b) Political expenditures: The district bar shall not make any expenditures to fund political and ideological activities. ( c) Political activities: The district bar shall not engage in any political or ide-ological conduct or activity, including the endorsement of candidates and the taking or advocation of positions on political issues, referendums, bond elections, and the like, however, the district bar, and persons speaking on its behalf, may take positions on, or comment upon, issues relating to the regulation of the legal profession and issues or matters relating to the improvement of the quality and availability of legal services to the general public. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1010 Committees ( a) Standing committee( s): The standing committees shall be the Nominating Committee, Pro Bono Committee, Fee Dispute Resolution Committee, Grievance Committee, and Professionalism Committee pro-vided that, with respect to the Fee Dispute Resolution Committee and the Grievance Committee, the district meets the State Bar guidelines relating thereto. ( b) Fee Dispute Resolution Committee: ( 1) The Fee Dispute Resolution Committee shall consist of at least six but not more than eighteen persons appointed by the president to stag-gered three- year terms as provided in the district bar’s Fee Dispute Resolution Plan. ( 2) The Fee Dispute Resolution Committee shall be responsible for implementing a Fee Dispute Resolution Plan approved by the Council of the North Carolina State Bar to resolve fee disputes efficiently, eco-nomically, and expeditiously without litigation. ( c) Grievance Committee: ( 1) The Grievance Committee shall consist of at least five but not more than thirteen persons appointed by the president to staggered three year terms as provided by the Rules and Regulations of the North Carolina State Bar governing Judicial District Grievance Committees. ( 2) The Grievance Committee shall assist the Grievance Committee of the North Carolina State Bar by receiving grievances, investigating grievances, evaluating grievances, informally mediating disputes, facil-itating communication between lawyers and clients and referring members of the public to other appropriate committees or agencies for assistance. ( 3) The Grievance Committee shall operate in strict accordance with the rules and policies of the North Carolina State Bar with respect to district bar grievance committees. ( d) Special Committees: Special committees may be created and appointed by the president. ( e) Nominating Committee: ( 1) The Nominating Committee shall be appointed by the officers ( or the board of directors) of the district bar and shall consist of at least three active members of the district bar who are not officers or direc-tors of the district bar. 3 ( 2) The Nominating Committee shall meet as necessary for the pur-pose of nominating active members of the district bar as candidates for officers and councilor( s) and the board of directors, if any. ( 3) The Nominating Committee members shall serve one- year terms beginning on ___________________ and ending on _________________. ( 4) Any active member whose name is submitted for consideration for nomination to any office or as a councilor must have indicated his or her willingness to serve if selected. ( f ) Pro Bono Committee: ( 1) The Pro Bono Committee shall consist of at least five active mem-bers of the district bar appointed by the president. ( 2) The Pro Bono Committee shall meet at least once each quarter and shall have the duty of encouraging members of the district bar to pro-vide pro bono legal services. The committee shall also develop pro-grams whereby attorneys not involved in other volunteer legal service programs may provide pro bono legal service in their areas of concen-tration and practice. ( 3) The members of the Pro Bono Committee shall serve one- year terms commencing on __________________. ( g) Professionalism Committee: ( 1) The Professionalism Committee shall consist of the three immediate past presidents of the district bar or such other members of the district bar as shall be appointed by the president. ( 2) The purpose of the Professionalism Committee shall be the promotion of professionalism and thereby the bolstering of public confidence in the legal profession. The committee may further enhance professionalism through CLE programs and, when appropriate, through confidential peer intervention in association with the Professionalism Support Initiative ( PSI) which is sponsored and supported by the Chief Justice’s Commission on Professionalism. The PSI effort is to investigate and informally assist with client- lawyer, lawyer- lawyer, and lawyer- judge relationships to ameliorate disputes, improve communications, and repair relationships. The Professionalism Committee shall have no authority to discipline any lawyer or judge, or to force any lawyer or judge to take any action. The commit-tee shall not investigate or attempt to resolve complaints of professional misconduct cognizable under the Rules of Professional Conduct and shall act in accordance with Rules 1.6( c) and 8.3 of the Rules of Professional Conduct. The committee shall consult and work with the Chief Justice’s Commission on Professionalism when appropriate. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 Amended March 6, 2002; March 6, 2008 .1011 Board of Directors or Executive Committee ( a) Membership of board: A board of directors consisting of at least _______ active members of the district bar shall be elected. At all times, the board of directors shall include at least one director from each county in the judicial district. The board of directors serving when these bylaws become effective shall continue to serve until the following annual meeting. Beginning on ______________________ immediately after the effective date of these bylaws, the president shall appoint an initial board of directors who shall serve three- year terms commencing on ______________, except that the terms of the initial members of the board shall be staggered at one-year intervals to ensure continuity and experience. To effect the staggered initial terms, the president will determine which of the initial members shall serve terms of less than three years. The State Bar councilor ( or councilors) from the judicial district shall be an ex officio member ( or members) of the district bar board of directors or Executive Committee. ( b) Terms of directors: After the initial staggered terms of the board of directors expire, successors shall be elected by the active members at the annual district bar meeting, as set out in Rule .1004( d) above, and Rule .1011( c ) and ( d) below. Following the completion of the initial staggered terms, the directors shall serve three- year terms beginning on ____________________ following their election. ( c) Designated and at- large seats in multi- county districts: In multi-county districts, one seat on the board of directors shall be set aside and des-ignated for each county in the district. Only active members of the district bar who reside or work in the designated county may be elected to a desig-nated county seat. All other seats on the board of directors shall be at- large seats which may be filled by any active member of the district bar. ( d) Elections: When one or more seats on the board of directors become vacant, an election shall be held at the annual meeting of the district bar. Except as otherwise provided herein, the election shall be conducted as pro-vided for in Rule .1004( d) above. The candidates receiving the highest number of votes cast will be elected, regardless of whether any of the candi-dates received a majority of the votes cast, provided that designated seats will be filled by the candidates receiving the highest number of votes who live or page 16— Subchapter A The 2008 North Carolina State Bar Lawyer’s Handbook work in the designated county, regardless of whether any of the candidates received a majority of the votes cast. ( e) Vacancies: If a vacancy occurs on the board of directors, the president ( or the board of directors) shall appoint a successor who shall serve until the next annual meeting of the district bar. If the vacancy occurs in a designat-ed seat for a particular county within the district, the successor will be selected from among the active members of the district bar who live or work in the designated county. ( f) Duties of board of directors: The board of directors shall have the responsibilities described Rules .1004( f ) and .1007( c ) above. The board of directors shall also consult with the officers regarding any matters of district bar business or policy arising between meetings and may act for the district bar on an emergency basis if necessary, provided that any such action shall be provisional pending its consideration by the district bar at its next duly called meeting. The board of directors may not impose on its own authori-ty any sort of fee upon the membership. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1012 Amendment of the Bylaws The membership of the district bar, by a ( majority, two- thirds, etc.) vote of the active members present at any duly called meeting at which there is a quorum present and voting throughout, may amend these bylaws in ways not inconsistent with the constitution of the United States, the policies and rules of the North Carolina State Bar and the laws of the United States and North Carolina. History Note: Statutory Authority G. S. 84- 18.1; 84- 23 Adopted March 7, 1996 .1013 Selection of Nominees for District Court Judge Unless otherwise required by law, the following procedures shall be used to determine the nominees to be recommended to the Governor pursuant to N. C. Gen. Stat. § 7A- 142 for vacant district court judgeships in the judi-cial district. ( a) Meeting for Nominations: The nominees shall be selected by secret, written ballot of those members present at a meeting of the district bar called for this purpose. Fifteen ( 15) days notice of the meeting shall be given, by mail, to the last known address of each district bar member. Alternatively, if a bylaw permitting elections by mail is adopted by the dis-trict bar, the procedures set forth in the bylaw and in Rule .0804 of Subchapter 1A of the Rules of the North Carolina State Bar ( 27 N. C. A. C. 1A, .0804), shall be followed. ( b) Candidates: Persons who want to be considered for the vacancy shall notify the President in writing five ( 5) days prior to the meeting at which the election will be conducted or, if the election is by mail, five ( 5) days prior to the mailing of the ballots. ( c) Voting: Each district bar member may vote for three candidates. Cumulative voting is prohibited. ( d) Submission to Governor: The three candidates receiving the highest number of votes shall be the nominees to fill the vacancy on the district court and their names, and vote totals, shall be transmitted to the Governor. In the event of a tie for third place, the names of those candidates involved in the tie shall be transmitted to the Governor together with the names of the two candidates receiving the highest number of votes. Statutory Authority G. S. 84- 18.1; 84- 23; 7A- 142 Adopted February 27, 2003 Endnotes: 1. The procedure for voting for, and election of, councilors is set by statute and rules of the North Carolina State Bar. District bar voting proce-dure with regard to matters relating to district bar dues is now statutorily prescribed in North Carolina General Statutes Section 84- 18.1. The proce-dure, but not the manner or method of conducting the vote, to submit nominations to the governor to fill vacancies on the district court bench is set forth in North Carolina General Statutes Section 7A- 142. It is suggest-ed that, for voting upon, and elections for, other district bar matters and issues, the district bars be permitted to adopt bylaws providing for proce-dures as may seem appropriate for each district bar. Such rules might address notice provisions, including how much notice is given and permissible methods of giving notice, what shall constitute a quorum ( see footnote 2), and how any such election shall be conducted ( including whether or not members must be present to vote, whether proxies will be permitted, whether or not absentee or some other form of mail ballot will be allowed and whether or not cumulative voting should be permitted when elections for multiple candidates or positions are being conducted). 2. Consistent with the comment contained in footnote 1, each district bar should be permitted to adopt bylaws providing for what shall constitute a quorum based upon each district bar’s particular situation and circum-stances. The above provision regarding quorum should be considered only as a a suggestion, and individual district bars may wish to provide that a dif-ferent percentage of the membership shall constitute a quorum. Other methods of defining a quorum should also be permitted. For example, in certain of the larger district bars, any quorum based on a percentage of the membership, except for a very nominal percentage, may be difficult to attain. One alternate quorum provision might read as follows: A quorum shall be those present at any membership meeting for which proper notice was given. 3. The composition of the Nominating Committee set forth above is a suggestion only. The district bars may choose to constitute their nominat-ing committees in a different manner, as for example, letting the committee consist of the three most immediate past presidents of the district bar who are still active members of the district bar as defined herein. Smaller district bars may choose to have no Nominating Committee and nominate and elect officers from the floor at the annual meeting of the district bar. Section .1200 Filing Papers with and Serving the North Carolina State Bar .1201 When Papers Are Filed Under These Rules and Regulations Whenever in these rules and regulation there is a requirement that peti-tions, notices or other documents be filed with or served on the North Carolina State Bar or the council, the same shall be filed with or served on the secretary of the North Carolina State Bar. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 SUBCHAPTER B Discipline and Disability Rules Section .0100 Discipline and Disability of Attorneys .0101 General Provisions Discipline for misconduct is not intended as punishment for wrongdoing but is for the protection of the public, the courts, and the legal profession. The fact that certain misconduct has remained unchallenged when done by others, or when done at other times, or that it has not been made the subject of earlier dis-ciplinary proceedings, will not be a defense to any charge of misconduct by a member. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 .0102 Procedure for Discipline ( a) The procedure to discipline members of the bar of this state will be in accordance with the provisions hereinafter set forth. ( b) District bars will not conduct separate proceedings to discipline members of the bar but will assist and cooperate with the North Carolina State Bar in report-ing and investigating matters of alleged misconduct on the part of its members. ( c) Concurrent Jurisdiction of State Bar and Courts ( 1) The Council of the North Carolina State Bar is vested, as an agency of the state, with the control of the discipline, disbarment, and restoration of attor-neys practicing law in this state. The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter B— page 17 ( 2) The courts of this state have inherent authority to take disciplinary action against attorneys practicing therein, even in relation to matters not pending in the court exercising disciplinary authority. ( 3) The authority of the North Carolina State Bar and the courts to discipline attorneys is separate and distinct, the North Carolina State Bar having derived its jurisdiction by legislative act and the courts from the inherent power of the courts themselves. ( 4) Neither the North Carolina State Bar nor the courts are authorized or empowered to act for or in the name of the other, and the disciplinary action taken by either entity should be clearly delineated as to the source or basis for the action being taken. ( 5) It is the position of the North Carolina State Bar that no trial court has the authority to preempt a North Carolina State Bar disciplinary proceeding with a pending civil or criminal court proceeding involving attorney conduct, or to dismiss a disciplinary proceeding pending before the North Carolina State Bar. ( 6) Whenever the North Carolina State Bar learns that a court has initiated an inquiry or proceeding regarding alleged improper or unethical conduct of an attorney, the North Carolina State Bar may defer to the court and stay its own proceeding pending completion of the court’s inquiry or proceeding. Upon request, the North Carolina State Bar will assist in the court’s inquiry or proceeding. ( 7) If the North Carolina State Bar finds probable cause and institutes disci-plinary proceedings against an attorney for conduct which subsequently becomes an issue in a criminal or civil proceeding, the court may, in its dis-cretion, defer its inquiry pending the completion of the North Carolina State Bar’s proceedings. ( 8) Upon the filing of a complaint by the North Carolina State Bar, the North Carolina State Bar will send a copy of the complaint to the chief resi-dent superior court judge and to all superior court judges regularly assigned to the district in which the attorney maintains his or her law office. The North Carolina State Bar will send a copy of the complaint to the district attorney in the district in which the attorney maintains a law office if the complaint alleges criminal activity by the attorney. ( 9) The North Carolina State Bar will encourage judges to contact the North Carolina State Bar to determine the status of any relevant complaints filed against an attorney before the court takes disciplinary action against the attor-ney. History Note: Statutory Authority G. S. 84- 23; G. S. 84- 36 Readopted Effective December 8, 1994 .0103 Definitions Subject to additional definitions contained in other provisions of this sub-chapter, the following words and phrases, when used in this subchapter, will have, unless the context clearly indicates otherwise, the meanings given to them in this rule. ( 1) Admonition - a written form of discipline imposed in cases in which an attorney has committed a minor violation of the Rules of Professional Conduct. ( 2) Appellate division - the appellate division of the general court of justice. ( 3) Board - the Board of Continuing Legal Education. ( 4) Board of Continuing Legal Education - a standing committee of the council responsible for the administration of a program of mandatory continu-ing legal education and law practice assistance. ( 5) Censure - a written form of discipline more serious than a reprimand 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 potential sig-nificant harm to a client, the administration of justice, the profession, or a mem-ber of the public, but the misconduct does not require suspension of the attor-ney’s license. ( 6) Certificate of conviction - a certified copy of any judgment wherein a member of the North Carolina State Bar is convicted of a criminal offense. ( 7) Chairperson of the Grievance Committee - councilor appointed to serve as chairperson of the Grievance Committee of the North Carolina State Bar. ( 8) Commission - the Disciplinary Hearing Commission of the North Carolina State Bar. ( 9) Commission chairperson - the chairperson of the Disciplinary Hearing Commission of the North Carolina State Bar. ( 10) Complainant or complaining witness - any person who has complained of the conduct of any member of the North Carolina State Bar to the North Carolina State Bar. ( 11) Complaint - a formal pleading filed in the name of the North Carolina State Bar with the commission against a member of the North Carolina State Bar after a finding of probable cause. ( 12) Consolidation of cases - a hearing by a hearing committee of multiple charges, whether related or unrelated in substance, brought against one defen-dant. ( 13) Council - the Council of the North Carolina State Bar. ( 14) Councilor - a member of the Council of the North Carolina State Bar. ( 15) Counsel - the counsel of the North Carolina State Bar appointed by the council. ( 16) Court or courts of this state - a court authorized and established by the constitution or laws of the state of North Carolina. ( 17) Criminal offense showing professional unfitness - the commission of, attempt to commit, conspiracy to commit, solicitation or subornation of any felony or any crime that involves false swearing, misrepresentation, deceit, extor-tion, theft, bribery, embezzlement, false pretenses, fraud, interference with the judicial or political process, larceny, misappropriation of funds or property, over-throw of the government, perjury, willful failure to file a tax return, or any other offense involving moral turpitude or showing professional unfitness. ( 18) Defendant - a member of the North Carolina State Bar against whom a finding of probable cause has been made. ( 19) Disabled or disability - a mental or physical condition which signifi-cantly impairs the professional judgment, performance, or competence of an attorney. ( 20) Grievance - alleged misconduct. ( 21) Grievance Committee - the Grievance Committee of the North Carolina State Bar or any of its panels acting as the Grievance Committee respecting the grievances and other matters referred to it by the chairperson of the Grievance Committee. ( 22) Hearing committee - a hearing committee designated under Rule .0108( a)( 2), .0114( d), .0114( x), .0118( b)( 2), .0125( a)( 6), .0125( b)( 7) or .0125( c)( 2) of this subchapter. ( 23) Illicit drug - any controlled substance as defined in the North Carolina Controlled Substances Act, section 5, chapter 90, of the North Carolina General Statutes, or its successor, which is used or possessed without a prescription or in violation of the laws of this state or the United States. ( 24) Incapacity or incapacitated - condition determined in a judicial pro-ceeding under the laws of this or any other jurisdiction that an attorney is men-tally defective, an inebriate, mentally disordered, or incompetent from want of understanding to manage his or her own affairs by reason of the excessive use of intoxicants, drugs, or other cause. ( 25) Investigation - the gathering of information with respect to alleged mis-conduct, alleged disability, or a petition for reinstatement. ( 26) Investigator - any person designated to assist in the investigation of alleged misconduct or facts pertinent to a petition for reinstatement. ( 27) Lawyer Assistance Program Board – the Lawyer Assistance Program Board of the North Carolina State Bar. ( 28) Letter of caution - communication from the Grievance Committee to an attorney stating that the past conduct of the attorney, while not the basis for discipline, is unprofessional or not in accord with accepted professional practice. ( 29) Letter of notice - a communication to a respondent setting forth the sub-stance of a grievance. ( 30) Letter of warning - written communication from the Grievance Committee or the commission to an attorney stating that past conduct of the attorney, while not the basis for discipline, is an unintentional, minor, or techni-cal violation of the Rules of Professional Conduct and may be the basis for dis-cipline if continued or repeated. ( 31) Member - a member of the North Carolina State Bar. ( 32) Office of the Counsel - the office and staff maintained by the counsel of the North Carolina State Bar. ( 33) Office of the secretary - the office and staff maintained by the secretary-treasurer of the North Carolina State Bar. page 18— Subchapter B The 2008 North Carolina State Bar Lawyer’s Handbook ( 34) Party - after a complaint has been filed, the North Carolina State Bar as plaintiff or the member as defendant. ( 35) Plaintiff - after a complaint has been filed, the North Carolina State Bar. ( 36) Preliminary hearing - hearing by the Grievance Committee to determine whether probable cause exists. ( 37) Probable cause - a finding by the Grievance Committee that there is rea-sonable cause to believe that a member of the North Carolina State Bar is guilty of misconduct justifying disciplinary action. ( 38) Reprimand - a written form of discipline more serious than an admoni-tion issued in cases in which a defendant has violated one or more provisions of the Rules of Professional Conduct and has caused harm or potential harm to a client, the administration of justice, the profession, or a member of the public, but the misconduct does not require a censure. ( 39) Respondent - a member of the North Carolina State Bar who has been accused of misconduct or whose conduct is under investigation, but as to which conduct there has not yet been a determination of whether probable cause exists. ( 40) Secretary - the secretary- treasurer of the North Carolina State Bar. ( 41) Supreme Court - the Supreme Court of North Carolina. ( 42) Will - when used in these rules, means a direction or order which is mandatory or obligatory. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 Amended February 3, 2000 .0104 State Bar Council: Powers and Duties in Discipline and Disability Matters The Council of the North Carolina State Bar will have the power and duty ( 1) to supervise and conduct disciplinary proceedings in accordance with the provisions hereinafter set forth; ( 2) to appoint members of the commission as provided by statute; ( 3) to appoint a counsel. The counsel will serve at the pleasure of the coun-cil. The counsel will be a member of the North Carolina State Bar but will not be permitted to engage in the private practice of law; ( 4) to order the transfer of a member to disability inactive status when such member has been judicially declared incompetent or has been involuntarily com-mitted to institutional care because of incompetence or disability; ( 5) to accept or reject the surrender of the license to practice law of any mem-ber of the North Carolina State Bar; ( 6) to order the disbarment of any member whose resignation is accepted; ( 7) to review the report of any hearing committee upon a petition for rein-statement of a disbarred attorney and to make final determination as to whether the license will be restored. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 Amended September 7, 1995 .0105 Chairperson of the Grievance Committee: Powers and Duties ( a) The chairperson of the Grievance Committee will have the power and duty ( 1) to supervise the activities of the counsel; ( 2) to recommend to the Grievance Committee that an investigation be ini-tiated; ( 3) to recommend to the Grievance Committee that a grievance be dis-missed; ( 4) to direct a letter of notice to a respondent or direct the counsel to issue letters of notice in such cases or under such circumstances as the chairperson deems appropriate; ( 5) to issue, at the direction and in the name of the Grievance Committee, a letter of caution, letter of warning, an admonition, a reprimand, or a censure to a member; ( 6) to notify a respondent that a grievance has been dismissed, and to notify the complainant in accordance with Rule .0121 of this subchapter; ( 7) to call meetings of the Grievance Committee; ( 8) to issue subpoenas in the name of the North Carolina State Bar or direct the secretary to issue such subpoenas; ( 9) to administer or direct the administration of oaths or affirmations to wit-nesses; ( 10) to sign complaints and petitions in the name of the North Carolina State Bar; ( 11) to determine whether proceedings should be instituted to activate a sus-pension which has been stayed; ( 12) to enter orders of reciprocal discipline in the name of the Grievance Committee; ( 13) to direct the counsel to institute proceedings in the appropriate forum to determine if an attorney is in violation of an order of the Grievance Committee, the commission, or the council; ( 14) to rule on requests for reconsideration of decisions of the Grievance Committee regarding grievances; ( 15) to tax costs of the disciplinary procedures against any defendant against whom the Grievance Committee imposes discipline, including a minimum administrative cost of $ 50; ( 16) in his or her discretion, to refer grievances primarily attributable to unsound law office management to a program of law office management training approved by the State Bar and to so notify the complainant; ( 17) to dismiss a grievance upon request of the complainant, where it appears that there is no probable cause to believe that the respondent has violated the Rules of Professional Conduct and where counsel consents to the dismissal; ( 18) to dismiss a grievance where it appears that the grievance has not been filed within the time period set out in Rule .0111( e); ( 19) to dismiss a grievance where it appears that the complaint, even if true, fails to state a violation of the Revised Rules of Professional Conduct and where counsel consents to the dismissal; ( 20) to dismiss a grievance where it appears that there is no probable cause to believe that the respondent has violated the Revised Rules of Professional Conduct and where counsel and a member of the Grievance Committee des-ignated by the committee consent to the dismissal. ( 21) to appoint a subcommittee to make recommendations to the council for such amendments to the Discipline and Disability Rules as the subcommit-tee deems necessary or appropriate. ( b) The president, vice- chairperson, or a member of the Grievance Committee designated by the president or the chairperson or vice- chairperson of the committee may perform the functions, exercise the power, and discharge the duties of the chairperson or any vice- chairperson when the chairperson or a vice-chairperson is absent or disqualified. ( c) The chairperson may delegate his or her authority to the president, the vice chairperson of the committee, or a member of the Grievance Committee. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 Amended February 20, 1995; March 6, 1997; October 2, 1997; March 3, 1999; February 3, 2000 .0106 Grievance Committee: Powers and Duties The Grievance Committee will have the power and duty ( 1) to direct the counsel to investigate any alleged misconduct or disability of a member of the North Carolina State Bar coming to its attention; ( 2) to hold preliminary hearings, find probable cause and direct that com-plaints be filed; ( 3) to dismiss grievances upon a finding of no probable cause; ( 4) to issue a letter of caution to a respondent in cases wherein misconduct is not established but the activities of the respondent are unprofessional or not in accord with accepted professional practice. The letter of caution will recommend that the respondent be more professional in his or her practice in one or more ways which are to be specifically identified; ( 5) to issue a letter of warning to a respondent in cases wherein no probable cause is found but it is determined by the Grievance Committee that the con-duct of the respondent is an unintentional, minor, or technical violation of the Rules of Professional Conduct. The letter of warning will advise the attorney that he or she may be subject to discipline if such conduct is continued or repeated. The warning will specify in one or more ways the conduct or practice for which the respondent is being warned. A copy of the letter of warning will be main-tained in the office of the counsel for three years subject to the confidentiality provisions of Rule .0129 of this subchapter; ( 6) to issue an admonition in cases wherein the defendant has committed a The 2008 North Carolina State Bar Lawyer’s Handbook Subchapter B— page 19 minor violation of the Rules of Professional Conduct; ( 7) to issue a reprimand wherein the defendant has violated one or more pro-visions of the Rules of Professional Conduct, and has caused harm or potential harm to a client, the administration of justice, the profession, or a member of the public, but the misconduct does not require a censure; ( 8) to issue a censure in cases wherein the defendant has violated one or more provisions of the Rules of Professional Conduct and has caused significant harm or potential significant harm to a client, the administration of justice, the pro-fession, or a member of the public, but the misconduct does not require suspen-sion of the defendant’s license; ( 9) to direct that a petition be filed seeking a determination whether a mem-ber of the North Carolina State Bar is disabled; ( 10) to include in any order of admonition, reprimand, or censure a provi-sion requiring the defendant to complete a reasonable amount of continuing legal education in addition to the minimum amount required by the North Carolina Supreme Court; ( 11) in its discretion, to refer grievances primarily attributable to unsound law office management to a program of law office management training approved by the State Bar in accordance with Rule .0112( i) of this subchapter. ( 12) in its discretion, to refer grievances primarily attributable to the respon-dent's substance abuse or mental health problem to the Lawyer Assistance Program in accordance with Rule .0112( j) of this subchapter. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 Amended March 3, 1999; December 20, 2000 .0107 Counsel: Powers and Duties The counsel will have the power and duty ( 1) to initiate an investigation concerning alleged misconduct of a member; ( 2) to direct a letter of notice to a respondent when authorized by the chair-person of the Grievance Committee; ( 3) to investigate all matters involving alleged misconduct whether initiated by the filing of a grievance or otherwise; ( 4) to recommend to the chairperson of the Grievance Committee that a matter be dismissed, that a letter of caution, or a letter of warning be issued, or that the Grievance Committee hold a preliminary hearing; ( 5) to prosecute all disciplinary proceedings before the Grievance Committee, hearing committees, and the courts; ( 6) to represent the North Carolina State Bar in any trial, hearing, or other proceeding concerning the alleged disability of a member; ( 7) to appear on behalf of the North Carolina State Bar at hearings conduct-ed by the Grievance Committee, hearing committees, or any other agency or court concerning any motion or other matter arising out of a disciplinary or dis-ability proceeding; ( 8) to appear at hearings conducted with respect to petitions for reinstate-ment of license by suspended or disbarred attorneys or by attorneys transferred to disability inactive status, to cross- examine witnesses testifying in support of such petitions, and to present evidence, if any, in opposition to such petitions; ( 9) to employ such deputy counsel, investigators, and other administrative personnel in such numbers as the council may authorize; ( 10) to maintain permanent records of all matters processed and of the dis-position of such matters; ( 11) to perform such other duties as the council may direct; ( 12) after a finding of probable cause by the Grievance Committee, to desig-nate the particular violations of the Rules of Professional Conduct to be alleged in a formal complaint filed with the commission; ( 13) to file amendments to complaints and petitions arising out of the same transactions or occurrences as the allegations in the original complaints or peti-tions, in the name of the North Carolina State Bar, with the prior approval of the chairperson of the Grievance Committee; ( 14) after a complaint is filed with the commission, to dismiss any or all claims in the complaint or to negotiate and recommend consent orders of disci-pline to the hearing committee. History Note: Statutory Authority G. S. 84- 23; G. S. 84- 31 Readopted Effective December 8, 1994 Amended March 3, 1999 .0108 Chairperson of the Hearing Commission: Powers and Duties ( a) The chairperson of the Disciplinary Hearing Commission of the North Carolina State Bar will have the power and duty ( 1) to receive complaints alleging misconduct and petitions alleging the dis-ability of a member filed by the counsel; petitions requesting reinstatement of license by members who have been involuntarily transferred to disability inactive status, suspended, or disbarred; motions seeking the activation of sus-pensions which have been stayed; and proposed consent orders of disbar-ment; ( 2) to assign three members of the commission, consisting of two members of the North Carolina State Bar and one nonlawyer to hear complaints, peti-tions, motions, and posthearing motions pursuant to Rule .0114( z)( 2) of this subchapter. The chairperson will designate one of the attorney members as chairperson of the hearing committee. No committee member who hears a disciplinary matter may serve on the committee which hears the attorney’s reinstatement petition. The chairperson of the commission may designate himself or herself to serve as one of the attorney members of any hearing committee and will be chairperson of any hearing committee on which he or she serves. Posthearing motions filed pursuant to Rule .0114( z)( 2) of this sub-chapter will be considered by the same hearing committee assigned to the original trial proceeding. Hearing committee members who are ineligible or unable to serve for any reason will be replaced with members selected by the commission chairperson; ( 3) to set the time and place for the hearing on each complaint or petition; ( 4) to subpoena witnesses and compel their attendance and to compel the production of books, papers, and other documents deemed necessary or material to any hearing. The chairperson may designate the secretary to issue such subpoenas; ( 5) to consolidate, in his or her discretion for hearing, two or more cases in which a subsequent complaint or complaints have been served upon a defen-dant within ninety days of the date of service of the first or a preceding com-plaint; ( 6) to enter orders disbarring members by consent; ( 7) to enter an order suspending a member pending disposition of a discipli-nary proceeding when the member has been convicted of a serious crime or has pled no contest to a serious crime and the court has accepted the plea. ( b) The vice- chairperson of the Disciplinary Hearing Commission may per-form the function of the chairperson in any matter when the chairperson is absent or disqualified. History Note: Statutory Authority G. S. 84- 23 Readopted Effective December 8, 1994 Amended September 7, 1995 .0109 Hearing Committee: Powers and Duties Hearing committees of the Disciplinary Hearing Commission of the North Carolina State Bar will have the following powers and duties: ( 1) to hold hearings on complaints alleging misconduct, or petitions seeking a determination of disability or reinstatement, or motions seeking the activation of suspensions which have been stayed, and to conduct proceedings to determine if persons or corporations should be held in contempt pursuant to G. S. 84- 28.1( b1); ( 2) to enter orders regarding discovery and other procedures in connection with such hearings, including, in disability matters, the examination of a mem-ber by such qualified medical experts as the committee will designate; ( 3) to subpoena witnesses and compel their attendance, and to compel the production of books, papers, and other documents deemed necessary or materi-al to any hearing. Subpoenas will be issued by the chairperson of the hearing committee in the name of the commission. The chairperson may direct the sec-retary to issue such subpoenas; ( 4) to administer or direct the administration of oaths or affirmations to wit-nesses at hearings; ( 5) to make findings of fact and conclusions of law; ( 6) to enter orders dismissing complaints in matters before the committee; ( 7) to enter orders of discipline against or letters of warning to defendants in matters before the committee; ( 8) to tax costs of the disciplinary proceedings against any defendant against page 20— Subchapter B The 2008 North Carolina State Bar Lawyer’s Handbook whom discipline is imposed, provided, however, that such costs will not include the compensation of any member of the council, committees, or agencies of the North Carolina State Bar; ( 9) to enter orders transferring a member to disability inactive status; ( 10) to report to the council its findings of fact and recommendations after hearings on petitions for reinstatement of disbarred attorneys; ( 11) to grant or deny petitions of attorneys seeking transfer from disability inactive status to active status; ( 12) to enter orders reinstating suspended attorneys or denying reinstate-ment. An order denying reinstatement may include additional sanctions in the event violations of the petitioner’s order of suspension are found; ( 13) to enter orders activating suspensions which have been stayed or con-tinuing the stays of such suspensions. ( 14) to enter orders holding persons and corporations in contempt pursuant to G. S. 84- 28.1( b1) and imposing such sanctions allowed by law. History Note: Statutory Authority G. S. 84- 23; G. S. 84- 28; G. S. 84- 28.1 Readopted Effective December 8, 1994 Amended March 3, 1999 .0110 Secretary: Powers and Duties in Discipline and Disability Matters The secretary will have the following powers and duties in regard to discipline and disability procedures: ( 1) to receive grievances for transmittal to the counsel, to receive complaints and petitions for transmittal to the commission chairperson, and to receive affi-davits of surrender of license for transmittal to the council; ( 2) to issue summonses and subpoenas when so directed by the president, the chairperson of the Grievance Committee, the chairperson of the commission, or the chairperson of any hearing committee; ( 3) to maintain a record and file of all grievances not dismissed by the Grievance Committee; ( 4) to perform all necessary ministerial acts normally performed by the clerk of the superior court in complaints filed before the commission; ( 5) to enter orders of reinstatement where petitions for reinstatement of sus-pended attorneys are unopposed by the counsel; ( 6) to dismiss reinstatement petitions based on the petitioner’s failure to com-ply with the rules governing |
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