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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Can a lawyer keep defending an insured and its employee after the insurer first denied coverage, then agreed to defend under a reservation of rights and filed a coverage declaratory judgment action?
The opinion concluded that the lawyer may continue to represent the nursing home and nurse, because nothing in the facts disclosed a disqualifying conflict of interest. The lawyer had represented only…
After representing an estate's executor, can the same lawyer defend that former executor in a suit brought against him by the successor administrator on the estate's behalf?
The opinion concluded that the lawyer may not continue defending the former executor, because representing a personal representative in his official capacity means representing the estate as an entity…
Can a law firm represent a county when one of its partners has just been elected to the county board of commissioners?
The opinion concluded that the firm may continue to represent the county. It is not unethical for a partner, associate, or firm of an attorney who serves on a governing board to represent that board, …
Can a law firm take an assignment of a client's judgment as payment or security for fees while it is still handling the appeal of that judgment?
The opinion concluded that a firm may not take an assignment of a client's judgment while it is conducting the appeal of that judgment, because Rule 5.3(a) bars a lawyer from acquiring a proprietary i…
Can a lawyer who represents a county in appellate and tax matters also sue the county's department of social services on behalf of other clients?
The opinion concluded that the lawyer may take the case against the county's department of social services, but only with the consent of both the county and the new clients. A lawyer generally may not…
Can one attorney represent both an injured child and the parents, who have their own emotional-distress claim, against the same physician?
The opinion concluded that, although the interests of parents and child are potentially in conflict, the same attorney may represent the parents and through them the child in pre-suit negotiation, and…
Can an Attorney General's staff lawyer give a trial judge ex parte advice on the merits of a case in which the state is a party but not yet represented by the AG?
The opinion concluded that a member of the AG's staff may not make such an ex parte communication if that lawyer or someone in the same division would likely represent the state on appeal, because the…
Can one firm represent parents on their own injury claims and also the injured child whose claim shares the same settlement fund?
The opinion concluded that a firm cannot represent both the parents on their individual claims and the child, through the parents as guardians ad litem, when a single insurer's settlement fund must be…
Can a borrower's lawyer render a legal opinion to the lender bank, and does doing so create an attorney-client relationship or conflict with the bank?
The opinion concluded that the borrower's lawyer may ethically render the requested legal opinion to the bank with the borrower's consent. Rendering the opinion does not create an attorney-client rela…
Can an insurer-retained defense lawyer waive an affirmative defense, like the statute of limitations, on behalf of both the insurer and the insured without the insured's consent?
The opinion concluded that, unless the insured has contractually surrendered to the insurer the authority to waive affirmative defenses, the defense lawyer should not waive such a defense without the …
Can the underinsured-motorist insurer's lawyer talk to the defendant directly, and can the liability insurer's defense lawyer represent the defendant on the insurer's motion to bow out?
The opinion concluded that the UIM insurer's lawyer, defending in the defendant's name, may not communicate with the defendant without the defense lawyer's consent because the defendant is represented…
When a lawyer represented two clients jointly at a closing, can the lawyer later tell one client's new counsel what was said between the lawyer and the other client?
The opinion concluded that a lawyer who represented both the owner and the mortgagee at a loan closing may disclose to the mortgagee's later counsel what the lawyer told the owner about the affidavit,…
When a defense lawyer represents both the insured and the insurer, can the lawyer advise them on a settlement that helps the insured but exposes the insurer?
The opinion concluded that a lawyer who represents both the insured and the insurer must communicate a settlement proposal to both, but because the proposal (a consent admission of liability capped at…
When a defense lawyer represents both the insured and the insurer, can the lawyer advise on a consent settlement that adds a punitive-damages claim the insurer says it does not cover?
The opinion concluded that a lawyer representing both the insured and the insurer must communicate the proposal to both, but because allowing the punitive-damages amendment and capping enforcement at …
Can an assistant district attorney also serve on the county school board, given that criminal fines and forfeitures are paid to the board?
The opinion concluded that an assistant district attorney may prosecute criminal cases while serving on the county board of education. Any theoretical conflict between the board's interest in maximizi…
Can a public defender also serve on the county school board, given that criminal fines and forfeitures are paid to the board of education?
The opinion concluded that a public defender may serve on the county board of education even though criminal fines and forfeitures are payable to the board. Any theoretical conflict between the board'…
Can a lawyer who represents the borrower also give the lender a legal opinion that the loan does not violate usury or banking laws?
The opinion concluded that a borrower's lawyer may render a legal opinion to the lender bank that the loan does not violate applicable laws. Although the bank's and borrower's interests could conflict…
If an insured revokes his earlier consent to dismiss his counterclaim so the insurer can settle, can the defense lawyer dismiss it anyway?
The opinion concluded that the lawyer may not voluntarily dismiss the insured's counterclaim with prejudice once the insured has revoked authority to do so, even though the insured signed an advance a…
Can a lawyer let staff pick a court reporting service based on prizes the service awards employees who place the most business with it?
The opinion concluded that a lawyer may not permit the choice of a court reporting service to be influenced by prizes a service offers the lawyer's employees, because the prospect of prizes could comp…
Can a lawyer who sits on a hospital's advisory ethics committee sue that hospital or one of its staff doctors for another client?
The opinion concluded that a lawyer who serves on a hospital's advisory ethics committee is not automatically disqualified from representing a client adverse to the hospital or a staff doctor, on a ma…
When an insured demands copies of defense counsel's case-assessment letters to the insurer, must the lawyer hand over that work product?
The opinion concluded that defense counsel representing both insured and insurer was not required to furnish the insured the lawyer's case-assessment correspondence sent to the insurer, but owed prima…
When an insured asks defense counsel to send a policy-limits demand to set up a bad-faith claim against the insurer, what can the lawyer do?
The opinion concluded that insurer-retained defense counsel, who represents both insured and insurer, could not counsel the insured about a bad-faith claim or send a settlement demand against the insu…
Can a lawyer for a condominium association sue one of the association's own members for the association?
Yes. The opinion concluded that a lawyer for a condominium association represents the entity itself, not its individual members, so the lawyer may sue a member on the association's behalf without a co…
Can a lawyer who serves as trustee on a deed of trust switch sides and represent the lender in the foreclosure, bankruptcy, or a loan workout?
The opinion concluded a lawyer could resign as trustee and then represent the lender in a contested foreclosure or related bankruptcy, but could not, while still serving as trustee, act as the lender'…
Can a lawyer close a real estate deal brokered by the firm that employs the lawyer's own secretary as a part-time broker?
The opinion concluded that a lawyer may close such a transaction, but must consider whether his independent judgment for the lender and broker would be materially impaired by a desire to advance his s…
At a real estate closing, must the attorney collect all earnest money in certified funds and handle every dollar, and can the buyer's lawyer charge the seller a fee?
The opinion concluded that a closing attorney need not collect earnest money in certified funds and may disburse against provisionally credited funds when virtually certain the deposit will clear and …
Can a town attorney who advises the police department, or members of his firm, represent criminal defendants arrested by that town's police?
The opinion concluded that a lawyer who serves as town attorney and advises the police department in effect represents the police, so representing criminal defendants arrested by town police would be …
Can a lawyer (or the lawyer's firm) give a title opinion on property sold by an entity in which the lawyer's spouse owns a small amount of stock?
The opinion concluded that whether a lawyer is disqualified from rendering a title opinion because of a personal financial interest in the selling entity turns on the significance of that interest, no…
While serving as trustee under a deed of trust, can a lawyer also act as the lender's attorney in a contested foreclosure, deficiency, or bankruptcy matter?
The opinion concluded that a lawyer serving as trustee under a deed of trust may not take an adversarial role against either the borrower or the lender in any matter arising from the foreclosure, incl…
Can a lawyer reveal a client's identity to his own malpractice insurer to secure coverage for a potential claim by that client?
The opinion concluded that, where the lawyer has already disclosed the client's wrongdoing without naming the client, the client's identity becomes a confidence that may not be revealed except under t…
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 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 …
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…
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 …
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 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…
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…
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 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 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…
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 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 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 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…
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…
When two married lawyers practice at opposing firms in the same city, are the firms disqualified from adverse matters, and when do the spouse lawyers need client consent?
The opinion concluded that the firms are not disqualified and need no screen; the related-lawyer rule bars only a spouse from directly representing an interest adverse to the other spouse's client wit…
Must a lawyer who served as deed-of-trust trustee, and who once represented the seller, resign as trustee when the foreclosure becomes contested?
The opinion concluded that a lawyer-trustee who represented the seller at closing is not ethically required to resign as trustee in a contested foreclosure, so long as he does not currently represent …
Can a lawyer hire a licensed bail bondsman as his part-time private investigator and list him on the firm letterhead?
The opinion concluded that the lawyer may not enter into the proposed contractual relationship with the bail bondsman, because it gives an appearance of impropriety.
Can a lawyer who once clerked at a firm now represent that firm's former client against the firm in a fee-collection suit?
The opinion concluded yes, because the client the lawyer now represents and the client the firm previously represented are the same person, so there is no confidentiality breach or conflict of interes…
Browse North Carolina State Bar opinions by topic
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.