Thursday, May 8, 2025
ETHICS COMMITTEE ACTION
Ethics Opinion Adopted
2025 FEO 1, Obligations Related to Notice When Lawyer Leaves a Firm
Opinion sets out the requirements of the notice that must be set to affected clients when a lawyer leaves a law firm.
Ethics Opinions Published for Comment
Proposed 2025 FEO 2, Negotiating Licensure Reporting Capability During Mediation
Proposed opinion affirms prohibition on lawyers participating in a settlement agreement that includes a limitation on a party’s or counsel’s ability to report misconduct to the North Carolina State Bar and rules a lawyer serving as a mediator may not assist with or participate in a mediated settlement agreement that includes such a term.
Proposed 2025 FEO 3, Client Consent to Annual Rate Increase
Proposed opinion clarifies when and how a lawyer may increase the billing rate for services during the representation.
The Ethics Committee welcomes comments on the proposed formal ethics opinions. Comments may be submitted by email to ethicscomments@ncbar.gov.
GRIEVANCE COMMITTEE ACTION
The Grievance Committee considered 515 files this quarter, 427 of which were dismissed (83%).
In addition, the committee authorized the following dispositions:
- Referral of 13 files (involving 6 lawyers) to the DHC
- Referral of 9 lawyers to the Trust Accounting Compliance Program
- Referral of 2 lawyers to the Lawyer Assistance Program
- Dismissal of 3 files with Letters of Caution
- Dismissal of 15 files with Letters of Warning
- Admonitions in 8 files
- Reprimand in 7 files
- Censure in 7 files
- Dismissal in 13 files
- Denial of reconsideration in 1 file
RULE AMENDMENTS
Amendments Adopted - Pending Supreme Court Approval
At its meeting on April 25, 2025, the council voted to adopt the following rule amendments for transmission to the North Carolina Supreme Court for its approval. (For the complete text of the rule amendments, see the Spring 2025 edition of the Journal or visit the State Bar website: ncbar.gov.)
Amendments to the Rule Governing Officer Elections
• 27 NCAC 01A, Rule .0404 Elections
The rule amendment eliminates the requirement that elections for State Bar Council officers be held by secret ballot in conformance with G.S. 143-318.13(b), which states that “a public body may not vote by secret or written ballot.”
Amendments to the Rules Governing the Fee Dispute Resolution Program
• 27 N.C.A.C. 01D, Section .0700 Procedures for Fee Dispute Resolution Program
Rule .0706, Powers and Duties of the Vice-Chairperson
Rule .0707, Processing Requests for Fee Dispute Resolution
Rule .0708, Settlement Conference Procedure
The rule amendments clarify procedural aspects of the fee dispute resolution process, allow staff to determine that a matter is not appropriate for the program due to characteristics that would require expenditure of disproportionate program resources, and reallocate certain decision-making authority, including allowing staff to determine that a matter has reached impasse without input from the councilor overseeing the fee dispute program.
Proposed Rule Amendments for Publication
At its meeting on April 25, 2025, the council voted to publish for comment the following proposed rule amendments:
Proposed Amendments to the Rules of Professional Conduct
• Rule 1.15-2, General Rules
Amendments remove reference to State Bar trust account compliance counsel, as that position was eliminated in the recent restructuring of the Trust Account Compliance Department.
Proposed Amendments to the Rules Governing Discipline and Disability of Attorneys
• 27 NCAC 01B, Section .0100, Discipline and Disability of Attorneys
Rule .0125, Notice to Complainant;
Rule .0127, Imposition of Discipline: Findings of Incapacity or Disability; Notice to Courts
Amendments effectuate a recommendation of a 2024 legislative committee to eliminate the process whereby grievance complainants are notified that a respondent lawyer received private written discipline or a private letter of warning or caution, as this notification allows complainants to publicize what is supposed to be a private outcome.
Proposed Amendments to the Rules Governing Continuing Legal Education Requirements
• 27 NCAC 01D, Section .1500, Rule .1520, Requirements for Program Approval
The proposed amendment to the CLE rules requires sponsors to submit approval applications for all online programs, not just on-demand programs. Lawyers would no longer be permitted to submit course applications for any online programs.
Proposed Amendments to the Rules Governing the Practical Training of Law Students
• 27 NCAC 01C, Section .200, Practical Training of Law Students
The proposed amendments to the rules governing the practical training of law students would permit certain law school graduates to engage in limited supervised practice at government agencies and legal services organizations.
Proposed Amendments to the Rules Governing the Client Security Fund
• 27 NCAC 01D, Section .1400, Rules Governing the Administration of the Client Security Fund of the North Carolina State Bar
Rule .1401, Purpose; Definitions
Rule .1412, Source of Funds
Rule .1417, Applications for Reimbursement
Rule .1418, Processing Applications
The proposed revisions submitted by the Client Security Fund Board (1) provide for the CSF to receive funds maintained in attorney trust accounts that are frozen pursuant to an injunction and cannot be identified due to an attorney’s trust accounting deficiencies; (2) allow the Office of Counsel to seek court-ordered disbursement of such unidentifiable funds to the CSF; (3) allow for the CSF to reimburse claimants who suffered a loss occasioned by an attorney’s mismanagement and/or mishandling of funds rather than through dishonesty; and (4) add to the administrative rules a regularly relied upon theory for reimbursing claims: it is dishonest for an attorney to take an advance fee and fail to perform any meaningful legal services on behalf of the client.
The council welcomes your comments on these proposed rule amendments. Comments may be submitted by email to ethicscomments@ncbar.gov or by mail to Peter Bolac, The North Carolina State Bar, PO Box 25908, Raleigh, NC 27611.
APPOINTMENTS
At its meeting on April 25, 2025, the council made the following appointments:
Disciplinary Hearing Commission (DHC) – The Council appointed the Hon. Cheri Beasley, Heidi Bloom, Rick Glazier, and Bradley Schulz to three-year terms and reappointed Christon Halkiotis and Jaye Meyer to three-year terms. The Council appointed Jaye Meyer to serve a one-year term as chair and DeWitt “Mac” McCarley to serve a one-year term as vice chair.
Inmate Grievance Resolution Board – Pursuant to statute, the Council approved sending a list of names to the Governor for his appointment that includes current board member Travis F. Ellis and lawyers Joshua Delaney and Cheryl Sullivan.
Upcoming Appointments: Submit Your Interest Form
Anyone interested in being appointed to serve on any of the State Bar’s boards or commissions should complete the “Boards and Commissions Interest Form.” The deadline for completion of the interest form is July 7, 2025. Your information will be included in the agenda materials for the quarterly meeting of the council in July 2025.
The council will make the following appointments at its July quarterly business meeting:
IOLTA Board of Trustees (three appointments; three-year terms; two consecutive terms) There are five appointments to be made by the State Bar Council. Three lawyer members are not eligible for reappointment.
North Carolina Interest on Lawyers’ Trust Accounts (NC IOLTA) provides access to justice by funding high-quality legal assistance. Due to limited resources and insufficient funding, only a fraction of North Carolinians have access to the critical legal services they need to thrive. As the philanthropic focus of the North Carolina State Bar, we work directly with lawyers and financial institutions to set up interest-bearing trust accounts. We use the funds generated to award grants to organizations that provide legal aid to individuals, families, and children, working toward a North Carolina where all can fairly navigate the justice system to have their basic needs met and rights protected.
Board of Legal Specialization (two appointments; three-year term; two consecutive terms) There are two appointments to be made by the State Bar Council. Two lawyers are eligible for reappointment.
The Board of Legal Specialization, established by the North Carolina State Bar in 1983, certifies lawyers in 15 areas of law to enhance legal services and improve lawyer competency. The program identifies lawyers with special knowledge and proficiency, aiding the public in finding suitable legal services, and encourages continuing legal education among lawyers.
Filed Under: General News
