North Carolina State Bar lawyer's handbook

              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Superseded ( 1985) Rules, and trust account guidelines.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.

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( 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