North Carolina State Bar Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the North Carolina State Bar, with full citations and source links on every page.
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When a client stops responding, can the lawyer take a fee and pay a doctor's lien out of the client's trust funds without the client's direction?
The opinion concluded that a lawyer may not take a fee from a client's trust balance or pay a doctor's lien out of it without the client's direction. The trust-account rule requires the lawyer to pay …
Can a firm keep employing a paralegal who, at a former firm, worked on the same case the new firm now handles for the opposing side?
The opinion concluded that the new firm may continue to employ the paralegal and stay in the case, but must take extreme care to ensure the paralegal is totally screened from any participation in the …
Can a part-time federal tribal-court prosecutor also represent criminal defendants arrested by the tribe's own police?
The opinion concluded that a lawyer the federal Bureau of Indian Affairs retains to prosecute in tribal court may represent criminal defendants arrested by the Cherokee Indian Police, because that pol…
Can a lawyer provide legal services to a prepaid legal services plan owned by the lawyer's spouse or family that markets through in-person or telephone solicitation?
The opinion concluded that a lawyer may participate in a prepaid plan that uses in-person or telephone solicitation only if the lawyer does not own or direct it, so a lawyer may not serve a plan owned…
Can a lawyer let a paralegal communicate and negotiate directly with the opposing insurer's claims adjuster?
The opinion concluded that a lawyer may permit a legal assistant to communicate and negotiate with the adverse party's insurance claims adjuster, so long as the assistant is directly supervised by the…
After a settlement, must a lawyer pay the client's medical providers directly, or follow the client's later instruction to pay the client instead?
The opinion concluded that a lawyer must disburse settlement proceeds as the client directs and so must pay the client directly when instructed, unless a medical provider has perfected a valid physici…
Can a lawyer agree to be one of a lender's 'approved' attorneys who do all the title work on the lender's loan closings?
The opinion concluded that a lawyer may ask lenders and title insurers to place him on an approved-attorney list, but may not give the lender any special remuneration in return for the listing; it exp…
Can a law firm with offices only in North Carolina submit a directory listing that includes attorneys in the firm who are not licensed in North Carolina?
The opinion concluded that a firm maintaining offices only in North Carolina may not submit biographical information to a legal directory about firm attorneys who are not licensed in North Carolina, b…
Can a lawyer interview a nonmanagerial employee of a represented corporate adversary without the consent of the corporation's counsel?
The opinion concluded that the no-contact rule reaches only employees with managerial responsibility or authority to speak for the corporation, so a rank-and-file co-employee whose own acts are not at…
When a builder will not cure punch-list items, can the closing attorney holding the construction escrow disburse the funds to the purchaser alone after notice and a waiting period?
The opinion concluded that a lawyer acting as escrow agent holds the funds in trust for all parties and may not, acting with only one party, disburse them to that party; where the escrow agreement doe…
Can two lawyers in the same public defender's office represent codefendants whose interests conflict?
The opinion concluded that a public defender's office is treated as a single law firm, so two staff lawyers may represent adverse codefendants only if they reasonably believe they can adequately repre…
After foreclosing as trustee under a deed of trust, can the attorney represent the foreclosure-sale purchaser against the former debtor?
The opinion concluded that an attorney serving as trustee under a deed of trust does not represent the debtor as a lawyer, so after foreclosing the attorney may represent a party adverse to the debtor…
Can a lawyer who is elected county commissioner keep representing the county school board, and what must the lawyer do when a school-board matter comes before the commissioners?
The opinion concluded that the lawyer and the lawyer's associate may represent the school board, but the lawyer should not personally represent it on matters coming before the commissioners and, when …
When a client sues over the quality of a lawyer's representation, what client confidences may the lawyer reveal to defend itself, and does it matter that the lawyer still represents the client on another matter?
The opinion concluded that the self-defense exception lets the firm reveal confidences to the extent necessary to answer the inadequate-representation charge, even though it is not a party to the suit…
If a lawyer joins a police organization's panel and handles cases for its members, when is the lawyer disqualified from representing criminal defendants or other adverse clients?
The opinion concluded that joining the panel does not automatically bar a lawyer from criminal defense work, but once the lawyer handles a member's case a current-client conflict bars adverse represen…
When a lawyer is appointed to defend an indigent client, must that lawyer appear personally, or can a partner appear as substitute counsel?
The opinion concluded that the Rules do not require the appointed lawyer to appear personally; a partner may appear as substitute counsel so long as the substitution does not prejudice the client, the…
When a lender prepares the closing documents and the lawyer represents only the lender, does the lawyer owe the borrower any duties, and can the lender waive the lawyer's liability?
The opinion concluded that the lender, having a primary interest, may prepare the documents without unauthorized practice; if the lawyer timely tells the borrower he represents only the lender, the la…
Can the lawyer who represents a vehicle owner in a tort suit also file a coverage declaratory judgment action naming both the owner and the liability carrier as plaintiffs?
The opinion concluded yes, because in the declaratory judgment action over coverage for the non-permissive driver, the interests of the owner and the insurance carrier would not be in conflict.
Can a lawyer who routinely defends an insurer's insureds take a new case suing one of that insurer's insureds, and does it matter if the lawyer also represents the insurer directly?
The opinion concluded that because the insureds, not the insurer, are the lawyer's primary clients, the lawyer may sue another insured of the same insurer; but where the lawyer also represents the ins…
Can one assistant attorney general represent a state hospital's patients in Medicaid appeals against a state agency that another assistant attorney general represents?
The opinion concluded that the hospital attorney may handle the Medicaid appeals against the agency, provided no confidential information is shared with the agency's attorney, because the imputed-disq…
Can a lawyer who represents the county school board seek confiscated cash for the board when the same lawyer also represents the criminal defendant from whom the cash was seized?
The opinion concluded that the lawyer may not, without the criminal client's consent, pursue the confiscated funds for the school board, because the client could have a superior claim if her convictio…
When a lawyer's partner sits on a city council, can the lawyer sue the city for a client whose claim the council denied, if the partner is screened?
The opinion concluded that the lawyer may continue to represent the contractor in a civil action against the city if the council-member partner is screened from the litigation and apportioned no part …
After being appointed to defend an indigent criminal client, can the lawyer accept private payment from that client to keep representing them in the same case?
The opinion concluded that appointed counsel may not accept payment from the client because appointment rules and the illegal-fee rule limit compensation to what the court awards; if the client wants …
Can a law firm treat a single all-inclusive fee as earned, deposit it all in its general account, and pay litigation costs from there if the client agreed in writing?
The opinion concluded no: part of an all-inclusive 'fee' that is really intended to cover litigation costs is an entrustment, and the trust-accounting rules require funds received in a fiduciary capac…
Can a law firm require all clients to pay a nonrefundable retainer, and how is a true retainer different from an advance fee deposit for trust-accounting purposes?
The opinion concluded that a lawyer may charge a reasonable nonrefundable retainer as consideration for the exclusive use of the lawyer's services and, because the arrangement is unusual, should expla…
Can lawyers who are minority owners of a real estate brokerage refer clients to it, and can their firm close transactions the brokerage brokered?
The opinion concluded that the lawyer-owners may refer clients to the brokerage if they disclose their ownership and reasonably believe the referral is in the client's best interest, but their firm ma…
Can a lawyer join a title company's network and conduct loan closings using documents the lender prepared, and what must the lawyer tell the borrower?
The opinion concluded that because the lender has a primary interest in the closing documents, the lender may prepare them and the lawyer does not assist the unauthorized practice of law by conducting…
Can a lawyer who jointly represented both spouses for years later represent one of them in their divorce, and can a former associate of that firm represent the other spouse?
The opinion concluded that a lawyer who had represented both spouses in numerous financial matters may not, over the other spouse's objection, continue representing the husband in the divorce, because…
When a law firm dissolves, what duties do the principals owe to clients and to each other?
The opinion concluded that dissolving lawyers must continue serving clients until matters conclude or withdrawal is permitted, notify clients in a way that preserves their free choice of counsel, deal…
Can a lawyer skip the trust account for a small recording fee by depositing the client's single check for the fee and recording cost into the general account?
The opinion concluded that all funds received as a fiduciary must go into the trust account no matter how small, but a lawyer may avoid an intermediate trust deposit by advancing the recording cost fr…
Can a lawyer who is trustee in a foreclosure file a motion in the debtor's bankruptcy to lift the automatic stay?
The opinion concluded that a foreclosure trustee owes a fiduciary duty to both borrower and lender and may not act as an advocate for either; because moving to lift the bankruptcy stay puts the lawyer…
Can a lawyer keep representing the husband in a divorce when a partner once did legal work for the wife, both before and after joining the firm?
The opinion concluded that the lawyer may continue representing the husband over the wife's objection, provided the partner gained no confidential information material to the domestic case while repre…
Can a closing attorney disburse loan proceeds before recording when the realtor and seller demand it, even though the lender's instructions require recording first?
The opinion concluded that the attorney may not ignore the lender's instruction that recording precede disbursement: the lender is the attorney's client, the trust rules require disbursing entrusted f…
Can a board-certified legal specialist advertise using variations of the official specialty designations rather than the exact wording?
The opinion concluded that a board-certified specialist may use variations of the official designations so long as the variations are not false, misleading, or deceptive, because nonmisleading variati…
After representing a husband in a custody case against his first wife, can the lawyer later represent his second wife in divorcing him?
The opinion concluded that because the prior custody case is not substantially related to the new divorce, the lawyer may represent the second wife, but may not reveal the husband's confidences or sec…
Can a plaintiff's lawyer send settlement demands directly to the insurer that is providing defense counsel for the adverse party?
The opinion concluded no, unless defense counsel consents, because an insurer that provides counsel to defend its insured against a liability claim is itself a represented party under the no-contact r…
Can North Carolina lawyers use a placement service that matches contract attorneys with firms for temporary work and takes a fee out of what the firm pays?
The opinion concluded that lawyers may contract with such a placement service because the arrangement does not impair their independent judgment, provided the lawyers guard against conflicts and prote…
Can a firm holding a client's refunded appeal-bond money in trust keep it to satisfy unpaid fees the client owes?
The opinion concluded that the firm may not apply the refunded appeal-bond funds to unpaid fees unless its agreement with the client authorizes taking fees from funds held for the client, because trus…
Can a lawyer hold public seminars about accidents to attract clients, and may staff phone or mail invitations to the public?
The opinion concluded that the lawyer may hold the seminars and may mail invitations to people chosen randomly from the phone book or by bulk occupant mailing, but may not telephone people to invite t…
Can a lawyer charge a contingent fee to collect undisputed medical-payments benefits under a liability policy?
The opinion concluded that an elevated contingent fee is unreasonable where there is no real risk of nonpayment, as with undisputed med-pay claims; without genuine uncertainty about recovery at the ti…
Can a North Carolina firm designate as 'of counsel' a lawyer who is licensed in the state but is in the office only a few days a month?
The opinion concluded that nothing in the Rules specifically addresses 'of counsel,' and a firm may use that designation for a North Carolina-licensed lawyer who has a close, continuing in-house assoc…
When a criminal client is charged under an alias hiding a prior record, must defense counsel disclose it, and what happens if the client testifies falsely?
The opinion concluded that before trial counsel has no duty to disclose the client's true name or record and must keep it confidential; at trial counsel may not present perjured testimony or defraud t…
May a real estate attorney rely on a title search performed by an unsupervised nonlawyer abstract firm when rendering title opinions?
The opinion concluded that an attorney may not rely on a title abstract or search performed by a nonlawyer the attorney neither supervised nor evaluated; doing so is not preparation adequate under the…
Could a law firm mail personalized letters offering its services to people who had asked the Chamber of Commerce about relocating to the area?
The opinion concluded that the firm could not, because the personally addressed letters to prospective newcomer clients were prohibited written solicitation under the then-current Rule 2.4(b) and did …
Can a North Carolina firm list a renowned law professor licensed only in another state on its letterhead as 'of counsel' or as a 'consulting attorney'?
The opinion concluded that the firm may not list the professor either way, because he is not licensed in North Carolina and maintains no office or practice in the state where he is licensed, so any su…
Can a lawyer personally bid on and buy a client's property at an execution sale when no other bidders appear?
The opinion concluded that the lawyer may not bid as a matter of course, but may do so if he first obtains the client's informed consent and reasonably believes his personal interest will not adversel…
May a North Carolina firm with offices only in NC list a 'corresponding' foreign lawyer on its letterhead when that lawyer is not a partner, associate, or of counsel?
The opinion concluded that a North Carolina firm with offices only in the state may not list a 'corresponding French lawyer' or similar non-licensed person on its letterhead, because such a listing is…
Can one firm represent the estates of both the pilot and the passenger killed in the same plane crash when the defendant will likely join the pilot's estate?
The opinion concluded that a firm may represent both estates if it obtains informed consent from both and reasonably judges that neither representation will be adversely affected, but it must keep eva…
Can a lawyer take a medical malpractice case against a hospital when two hospital agents in the case are the lawyer's former and current clients from unrelated divorce matters?
The opinion concluded that the lawyer may proceed as to the former client, whose unrelated child-custody matter ended years earlier and was not substantially related, but should not undertake the malp…
Can a real estate closing lawyer file IRS Form 1099 disclosing the parties' sale price and tax IDs without violating client confidentiality, and must clients be told?
The opinion concluded that the lawyer may disclose the Form 1099 information because tax law requires it, so client consent is not needed, but the lawyer should inform the clients and other affected p…
Can one lawyer represent an estate administratrix in both her official fiduciary capacity and her individual capacity when creditors sue her in both roles?
The opinion concluded that the lawyer may not represent the administratrix in both her official and individual capacities where her personal interests may be adverse to the estate, including the minor…
Can a lawyer send an initial demand letter to an adverse party without naming the client when revealing the client's identity could expose the client to retaliation?
The opinion concluded that the lawyer may send a demand letter for an undisclosed client, because nothing in the rules bars negotiating for an undisclosed principal and the client's identity is confid…
Can insurer-appointed defense counsel for uninsured motorists withdraw once the insurer settles with its own insured and wants to pursue subrogation against those same motorists?
The opinion concluded that the lawyer may not simply withdraw from the uninsured motorists he represents; he must comply with the tribunal's rules, take reasonable steps to avoid foreseeable prejudice…
Can a lawyer cold-call companies, or have a company's bank or accountant set up a pitch meeting, to solicit the company's legal business?
The opinion concluded that cold calls and approaches routed through a company's bank or accountant to solicit its business are prohibited solicitation for pecuniary gain; even in a permissible meeting…
Can a lawyer represent clients in a suit to set aside deeds he drafted when his firm's secretary, who notarized the deeds, will be a witness?
The opinion concluded that the lawyer may take the representation, because the advocate-witness rule bars employment only when the lawyer or another lawyer in the firm ought to be a witness; it does n…
Can a firm bringing a shareholder derivative action on behalf of a corporation also represent a landlord suing that same corporation for back rent?
The opinion concluded that the firm may not represent both, because in the derivative action it effectively represents the corporation, and it cannot at the same time sue that corporation for the land…
Must a lawyer who learns that another lawyer closed a deal with a known title defect and a false no-encumbrances affidavit report that conduct, and must the lawyer report a client's possible crimes?
The opinion concluded that a lawyer who knows another lawyer committed the apparent violations must report them to the State Bar, and that the rules do not require an attorney to report a party's poss…
What may a lawyer appointed conservator of a deceased lawyer's files do with old inactive files, and can the estate notify clients and then destroy unclaimed files?
The opinion concluded that the bar cannot bind the estate or the widow, but the conservator attorney must protect client confidences under Rule 4, should not transfer a case to another lawyer without …
Can an injured plaintiff's lawyer contact the unrepresented at-fault driver to take a statement and urge him to press his insurer to pay policy limits?
The opinion concluded that the lawyer may communicate with and take a statement from the unrepresented adverse driver and may tell him to consult his own counsel, but may not advise him to demand that…
Can a county attorney who occasionally advises the county Department of Social Services serve as guardian ad litem for abused or neglected children whose interests may conflict with DSS?
The opinion concluded that the county attorney may not serve as guardian ad litem in any proceeding in which the Department of Social Services is or may be involved, because advising DSS as county att…
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Legal ethics opinions from the North Carolina State Bar interpret the rules of professional conduct for working lawyers, in response to inquiries from members and committees. They are not binding like court discipline decisions, but courts and discipline boards treat formal opinions as substantial guidance on how the rules apply. Every opinion above has a plain-English question and short answer, plus a link to the original source on the bar's site.