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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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 lawyer who is also a notary public notarize documents, such as affidavits and pleadings, for use in legal proceedings in which the lawyer appears as counsel?
The opinion concluded that there is no ethical impediment to a lawyer acting as a notary public and notarizing documents for use in legal proceedings in which the lawyer appears. The earlier restricti…
Can a law firm join a private referral service whose ads call its lawyers 'the best' and that omits the disclosures a lawyer referral service must include?
The opinion concluded that the firm may not participate as described. Rule 2.2(c) lets a lawyer join a private referral service only if its advertisements state that a free list of all participating l…
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…
Must a law firm shred its waste paper or obtain guarantees from a recycler before recycling documents that may contain client confidences?
The opinion concluded that Rule 4 requires a lawyer to protect confidential information in waste paper, but does not generally compel any particular disposal method or require shredding. It is enough …
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…
Must a lawyer report suspected child abuse learned in confidence from clients to social services, despite a statute requiring 'any person' to report?
The opinion concluded that, as an ethical matter, a lawyer is not required to report child abuse learned in confidence from clients, because Rule 4 protects client confidences and nothing in the repor…
Can a lawyer disclose a client's identity and contagious-disease diagnosis to public health authorities without the client's consent?
The opinion concluded that a lawyer may not reveal a client's identity and contagious-disease infection to public health authorities without the client's consent. Because the information was gained in…
When a lawyer sends a settlement check to opposing counsel 'in trust' on the condition that release documents be signed first, is the sending lawyer a client, and what happens if the receiving lawyer breaks the condition?
The opinion concluded that opposing counsel who receives a conditionally delivered settlement check is not the sending lawyer's 'client' under Rule 10.1(b)(4) and owes no accounting. By accepting the …
Can a law firm list nonlawyers, such as paralegals, on its letterhead, and does it matter if the nonlawyer is a disbarred lawyer?
The opinion concluded that the Rules of Professional Conduct do not prohibit listing nonlawyers as nonlawyers on law firm letterhead. Rule 2.3(c) bars only listing unlicensed persons as attorneys affi…
When a client tells the lawyer to pay all settlement proceeds to her and not the medical providers, must the lawyer follow the client or honor the medical-lien statute?
The opinion concluded that, under RPC 69 and Rule 10.2(e), a lawyer must disburse settlement funds as the client instructs in the absence of a valid lien, and this is so whether the case settles befor…
Can plaintiff's counsel agree to bear all or part of the costs of litigation, whether in a class action or an ordinary civil suit?
The opinion concluded that an attorney may never ethically agree to be ultimately responsible for the costs of litigation. Rule 5.3(b) lets a lawyer advance litigation costs only if the client remains…
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 a lawyer let his own client contact the opposing represented party to negotiate a settlement without the other party's lawyer's consent?
The opinion concluded that opposing parties may communicate with each other, with or without their lawyers' consent, including to negotiate a settlement, and a lawyer may passively allow his client to…
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 two lawyers hold themselves out to the public as a law partnership if their agreement mainly shares office expenses?
The opinion concluded that two lawyers may hold themselves out as partners only if their association is in fact a firm. Whether a given arrangement is a bona fide partnership is a legal question outsi…
Can a lawyer pay for recorded advertising announcements attached to a commercial telephone legal-information service?
The opinion concluded that a lawyer may participate in a telephone service that pairs recorded legal information with the lawyer's recorded ads, as long as the ads are not false or misleading. Recorde…
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…
Can a law firm lease its own associate attorneys through a nonlawyer employee-leasing company that handles their payroll and benefits?
The opinion concluded that a firm may lease back its own associates through a nonlawyer employee-leasing company that handles payroll, taxes, and benefits, because the fee paid to the leasing company …
Can a legal aid lawyer draft pleadings and coach an indigent person to proceed pro se without appearing as counsel of record?
The opinion concluded that a lawyer may counsel a person who wishes to proceed pro se, including drafting pleadings, providing forms, and advising on litigation strategy, without entering an appearanc…
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 …
If a criminal case ends early, must a lawyer refund part of a flat fee even though the fee was described as nonrefundable?
The opinion concluded that, because a lawyer may never charge or collect a clearly excessive fee, the lawyer must look back at all the circumstances to decide whether the flat fee was reasonable; to t…
Can a lawyer give a title insurer a limited title opinion by updating (tacking onto) a prior lawyer's title search instead of doing a full search?
The opinion concluded that a lawyer could render a limited title opinion based on updating a prior search, without personally inspecting every document in the chain of title, if the lawyer fully discl…
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 lawyer put a clause in the engagement agreement requiring any future fee or malpractice dispute with the client to go to binding arbitration?
The opinion concluded that a lawyer may suggest, and even require by an engagement-letter clause, that future disputes with the client be referred to a private alternative dispute resolution program f…
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…
How long must a lawyer hold a missing client's trust funds before treating them as abandoned and paying them to the state escheat fund?
The opinion concluded that a lawyer must hold a known but unlocatable owner's trust funds and treat them as abandoned, payable to the state treasurer, only after a five-year period in which the princi…
Can a lawyer in one town be 'of counsel' to a law firm in another town while keeping his own separate practice?
The opinion concluded that a lawyer may be designated 'of counsel' to a North Carolina firm in another town when the two share a close, regular, and personal relationship for the practice of law and t…
When does a lawyer have a 'prior professional relationship' that allows in-person solicitation, and when must a firm's mailing be labeled an advertisement?
The opinion concluded a 'prior professional relationship' means an actual personal attorney-client relationship, so a lawyer could solicit clients he personally served but not clients served only by h…
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 North Carolina lawyers in an interstate firm let client funds be deposited in the firm's out-of-state trust account without the client's consent?
No. The opinion concluded that North Carolina lawyers could not allow client funds to be deposited in a trust account maintained outside North Carolina without the client's written direction, because …
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 operate a private lawyer referral service with only one participating attorney, or with attorneys who only share advertising costs?
No. The opinion concluded that advertising a private lawyer referral service with only one participant was misleading, so the service could not operate until at least one other attorney joined, and a …
Can a criminal defense lawyer interview a represented codefendant or cooperating witness over the objection of that person's lawyer, if the person consents?
No. The opinion concluded that the no-contact rule barred a lawyer, or the lawyer's investigator, from interviewing a represented codefendant or cooperating witness about the matter once the person's …
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…
Can a criminal defense lawyer interview a child prosecuting witness without the district attorney's consent?
The opinion concluded that a prosecuting witness is not represented by the district attorney for purposes of the no-contact rule, so defense counsel may interview the witness without the DA's consent,…
Does the no-contact rule require a lawyer to get permission before interviewing a nonparty witness who has her own lawyer for the same matter?
The opinion concluded that, once a lawyer learns a nonparty witness is represented by counsel concerning the matter, the lawyer must obtain that counsel's permission before discussing the matter with …
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 …
In settling a malpractice claim, can the accused lawyer require the client to drop or not file a State Bar grievance about the lawyer's conduct?
The opinion concluded that an accused lawyer may not condition settlement of a malpractice claim on the client refraining from filing, or agreeing to withdraw, a State Bar grievance; doing so is condu…
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 interview a former employee of an opposing corporation without first getting permission from the corporation's lawyer?
The opinion concluded that a lawyer may interview an unrepresented former employee of an adverse corporate party without the corporation's lawyer's permission. The no-contact rule protects only those …
Can a lawyer lend money to a personal injury client during the case, for living expenses or anything beyond litigation costs?
The opinion concluded that a lawyer generally may not advance or guarantee financial assistance to a client during contemplated or pending litigation. The one narrow exception lets the lawyer advance …
When a firm declines a case after reviewing medical records it paid for, can it withhold those records until the client repays the cost?
The opinion concluded that a firm that declines a case after evaluating it must turn over unconditionally to the client any material, such as medical records or expert opinions obtained on the client'…
Can a closing attorney hand the real estate agent the commission and seller-proceeds checks 'in trust' before recording the documents and depositing the funds?
The opinion concluded that a closing attorney may not deliver trust account checks to a real estate agent, even 'in trust' or conditionally, until the attorney has recorded the closing documents and d…
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 criminal defense lawyer pay a client's fine and court costs up front, expecting the client to reimburse him?
The opinion concluded that a lawyer may advance a client's fine and court costs from the lawyer's own funds while representing the client in pending litigation, so long as the client remains ultimatel…
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.