NORTH CAROLINA PARALEGAL RESOURCE BINDER CHAPTER I EFFECTIVE UTILIZATION AND SUPERVISION OF PARALEGALS
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1 Table of Contents NORTH CAROLINA PARALEGAL RESOURCE BINDER CHAPTER I EFFECTIVE UTILIZATION AND SUPERVISION OF PARALEGALS I. INTRODUCTION...7 II. HIRING PARALEGALS...7 III. TRAINING AND CONTINUING EDUCATION...9 IV. UTILIZING PARALEGALS...10 A. Utilization Examples Bankruptcy Paralegal Duties Commercial Real Estate Paralegal Criminal Defense Attorney Estate Administration Paralegal Family Law Paralegal In-House Corporate Paralegal I In-House Corporate Paralegal II Intellectual Property Administrator...22 a. Trademark Prosecution...22 b. Trademark Licensing & Enforcement...22 c. Patent Prosecution...22 d. Patent Licensing...22 e. General IP Administration Nurse/Paralegal for an Insurance Defense Firm Products Liability Paralegal Workers Compensation Paralegal...25 V. RETENTION...26 VI. OVER-UTILIZATION...26 VII. OTHER RESOURCES...28 A. ABA Publications ABA Model Guidelines for the Utilization of Paralegal Services Economic Benefits of Paralegal Utilization...28 B. NCBA Publications Small Law Offi ce Resource Manual w/forms CD (2011), Fifth Edition Supervision of Paralegals: Why Utilize? How to Utilize, Proper Supervision...29 C. Other Publications The DuPont Legal Model and Paralegal Utilization...29 VIII. ABA s GUIDELINES FOR THE UTILIZATION OF PARALEGAL SERVICES...30 A. Guideline B. Guideline C. Guideline North Carolina Paralegal Resource Binder, Second Edition (2013) xi
2 IX. D. Guideline E. Guideline F. Guideline G. Guideline H. Guideline I. Guideline J. Guideline NC STATE BAR S GUIDELINES FOR THE USE OF PARALEGALS IN RENDERING LEGAL SERVICES...31 A. Introduction...31 B. Guidelines...32 C. Other Information For and About Paralegals Definition Certification Educational Programs Voluntary Associations and Associate and Affiliate Memberships...42 X. RELEVANT STATUTES, CASES AND RULES IN NORTH CAROLINA...45 A. Law Firms and Associations Rule 5.3 Responsibilities Regarding Non-Lawyer Assistants...45 a. Comment...45 b. Ethics Opinion Notes Rule 5.5 Unauthorized Practice of Law...48 a. Comment...49 b. Ethics Opinion Notes...54 c. Case Notes...55 (1) Authorized Practice Advisory Opinion XI. (a) On the Role of Laypersons in the Consummation of Residential Real Estate Transactions...56 (b) Issue (c) Opinion (d) Issue (e) Opinion d. Endnotes...59 EXCERPTS FROM THE NORTH CAROLINA GENERAL STATUTES AUTHORIZED PRACTICE COMMITTEE, THE NORTH CAROLINA STATE BAR...59 A Practice Law Defined...59 B Persons Other than Members of State Bar Prohibited from Practicing Law...60 C Limited Practice of Out-of-State Attorneys...60 D Summary Revocation of Permission Granted Out-of-State Attorneys to Practice...61 E Prohibition as to Practice of Law by Corporation...61 xii North Carolina Bar Association Foundation Continuing Legal Education
3 Table of Contents XII. F Rendering of Indigent Legal Services by Nonprofit Corporations...64 G Exacting Fee for Conducting Foreclosures Prohibited to All Except Licensed Attorneys...64 H District Attorneys, Upon Application, to Bring Injunction or Criminal Proceedings...65 I Punishment for Violations; Legal Clinics of Law Schools Excepted...65 J Unlawful for Anyone Except Attorney to Appear for Creditor in Insolvency and Certain Other Proceedings...65 K State Bar May Investigate and Enjoin Unauthorized Practice...65 L Solicitation of Retainer or Contract for Legal Services Prohibited; Division of Fees...66 M. Important Cases...67 FREQUENTLY ASKED QUESTIONS...67 CHAPTER II ETHICS FOR PROFESSIONAL PARALEGALS I. INTRODUCTION...77 II. NORTH CAROLINA BAR ASSOCIATION MODEL STANDARDS AND GUIDELINES FOR UTILIZATION OF PARALEGALS...78 A. Guidelines Guideline Guideline Guideline Guideline Guideline B. Standards...80 III. NORTH CAROLINA BAR ASSOCIATION PARALEGAL DIVISION CODE OF ETHICS AND PROFESSIONAL RESPONSIBILITY...81 A. Definition of a Paralegal Canon Canon Canon Canon Canon Canon Canon Canon Canon IV. APPENDIX A. Ethics Opinions Relating to Paralegals...83 North Carolina Paralegal Resource Binder, Second Edition (2013) xiii
4 Formal Ethics Opinion 5 July 15, 2011 Representation of Lender in Contested Foreclosure When Corporate Trustee is Owned by Spouse and Paralegal...84 a. Inquiry...84 b. Opinion Formal Ethics Opinion 13 October 20, 2006 Non-Lawyer Signing a Lawyer s Name to a Pleading...85 a. Inquiry...85 b. Opinion...85 c. Rule 5.3 Responsibilities Regarding Non-Lawyer Assistants...85 d. Rule 5.5 Unauthorized Practice of Law Formal Ethics Opinion 13 January 25, 2008 Billing at Hourly Rate for Intra-Office Communications...86 a. Inquiry...86 b. Opinion...87 c. Establishing a Reasonable Hourly Rate for Services...87 d. Disclosing the Basis for the Amounts to be Charged...88 e. Avoiding Wasteful, Unnecessary, or Redundant Procedures...88 f. Total Cost to the Client May Not Be Clearly Excessive Formal Ethics Opinion 6 October 21, 2005 Compensation of Non-Lawyer Employee Who Represents Social Security Claimants...89 a. Inquiry # b. Opinion # c. Inquiry # d. Opinion # e. Inquiry # f. Opinion # g. Inquiry # h. Opinion # Formal Ethics Opinion 9 January 24, 2003 Delegation to Non-Lawyer Assistant of Certain Tasks Associated with a Residential Real Estate Transaction...91 a. Introduction...91 b. Inquiry...92 c. Opinion RPC 176 July 21, 1994 Conflict of Interest Involving a. Paralegal...93 b. Inquiry...93 c. Opinion RPC 183 October 21, 1994 Role of Paralegal in Deposition...93 a. Inquiry # b. Opinion # c. Inquiry # xiv North Carolina Bar Association Foundation Continuing Legal Education
5 Table of Contents d. Opinion # e. Inquiry # f. Opinion # Formal Ethics Opinion 10 July 27, 2001 Appearance of Non-Lawyer at Calendar Call...95 a. Inquiry...95 b. Opinion...95 c. Endnote...96 V. APPENDIX A. Rules and Regulations of the North Carolina State Bar Subchapter G Certification of Paralegals...96 a Purpose The Plan for Certification of Paralegals...96 b. Section.0200 Rules Governing Continuing Paralegal Education...96 (1).0201 Continuing Paralegal Education (CPE)...96 (2).0203 General Course Approval...97 (3).0204 Fees...99 B. Board of Paralegal Certification...99 VI. APPENDIX A. Rules of Professional Conduct Relating to Paralegals Rule Safekeeping Property: General Rules Rule Records and Accountings Rule 1.6 Confidentiality of Information Rule 1.7 Conflict of Interest: Current Clients Rule 5.3 Responsibilities Regarding Non-Lawyer Assistants a. Comment Rule 5.5 Unauthorized Practice of Law Rule 7.1 Communications Concerning a Lawyer s Services Rule 7.2 Advertising Rule 7.3 Direct Contact with Prospective Clients VII. GLOSSARY CHAPTER III NOTARY PUBLIC I. NOTARY PUBLIC ACT PART 1: GENERAL PROVISIONS A. 10B-1 Short Title B. 10B-2 Purposes C. 10B-3 Definitions PART 2: COMMISSIONING A. 10B-5 Qualifications B. 10B-6 Application for Commission North Carolina Paralegal Resource Binder, Second Edition (2013) xv
6 C. 10B-7 Statement of Personal Qualification D. 10B-8 Course of Study and Examination E. 10B-9 Length of Term and Jurisdiction F. 10B-10 Commission; Oath of Office G. 10B-11 Recommissioning H. 10B-12 Notarized Declaration I. 10B-13 Application Fee J. 10B-14 Instructor s Certification PART 3: NOTARIAL ACTS, POWERS AND LIMITATIONS A. 10B-20 Powers and Limitations B. 10B-21 Notaries ex Offi cio C. 10B-22 False Certificate; Foreign Language Certificates D. 10B-23 Improper Records E. 10B-24 Testimonials PART 4: FEES A. 10B-30 Imposition and Waiver of Fees B. 10B-31 Fees for Notarial Acts C. 10B-32 Notice of Fees PART 5: SIGNATURE AND SEAL A. 10B-35 Official Signature B. 10B-36 Official Seal C. 10B-37 Seal Image PART 6: CERTIFICATE FORMS A. 10B-40 Notarial Certificates in General B. 10B-41 Notarial Certificate for an Acknowledgment C. 10B-42 Notarial Certificate for a Verification or of Subscribing Witness D. 10B-42.1 Notarial Certificate for a Verification of Nonsubscribing Witness E. 10B-43 Notarial Certificate for an Oath or Affirmation PART 7: CHANGES IN STATUS A. 10B-50 Change of Address B. 10B-51 Change of Name C. 10B-52 Change of County D. 10B-53 Change of Both Name and County E. 10B-54 Resignation F. 10B-55 Disposition of Seal; Death of Notary PART 8: ENFORCEMENT, SANCTIONS AND REMEDIES A. 10B-60 Enforcement and Penalties PART 9: VALIDATION OF NOTARIAL ACTS A. 10B-65 Acts of Notaries Public in Certain Instances Validated B. 10B-66 Certain Notarial Acts Validated C. 10B-67 Erroneous Commission Expiration Date Cured xvi North Carolina Bar Association Foundation Continuing Legal Education
7 II. D. 10B-68 Technical Defects Cured E. 10B-69 Official Forms Cured F. 10B-70 Certain Notarial Acts for Local Government Agencies Validated G. 10B-71 Certain Notarial Acts Validated When Recommissioned Notary Failed to Again Take Oath H. 10B-99 Presumption of Regularity ELECTRONIC NOTARY ACT A. 10B-100 Short Title B. 10B-101 Definitions C. 10B-102 Scope of This Article PART 2: REGISTRATION A. 10B-105 Qualifications B. 10B-106 Registration With the Secretary of State C. 10B-107 Course of Instruction D. 10B-108 Fees for Registration PART 3: ELECTRONIC NOTARIAL ACTS, POWERS AND LIMITATIONS A. 10B-115 Types of Electronic Notarial Acts B. 10B-116 Prohibitions C. 10B-117 Notarial Components of Electronic Document D. 10B-118 Maximum Fees PART 4: ELECTRONIC NOTARY RECORDS, MAINTENANCE AND DISPOSITION A. 10B-125 Electronic Signature, Electronic Seal B. 10B-126 Security Measures C. 10B-127 Maintenance of Electronic Device D. 10B-128 Disposition of Records PART 5: CERTIFICATE FORMS A. 10B-135 Validity of Notarial Certificates B. 10B-136 Form of Evidence of Authority of Electronic Notarial Act C. 10B-137 Certificate of Authority for Electronic Notarial Act PART 6: ENFORCEMENT A. 10B-145 Restriction or Revocation of Registration B. 10B-146 Wrongful Manufacture, Distribution, or Possession of Software or Hardware III. Table of Contents SUBCHAPTER 7B NOTARY PUBLIC SECTION A. Section.0100 General Provisions NCAC 07B.0101 Scope NCAC 07B.0102 Definitions NCAC 07B.0103 Location, Hours and Contact Information NCAC 07B.0104 Forms NCAC 07B.0105 Fees NCAC 07B.0106 Waiver North Carolina Paralegal Resource Binder, Second Edition (2013) xvii
8 7. 18 NCAC 07B.0107 Continuing Obligations of Notaries B. Section.0200 Applications NCAC 07B.0201 General C. Section.0300 Initial Appointment NCAC 07B.0301 Initial Commission NCAC 07B.0302 Timing of Filing of Initial Application D. Section.0400 Reappointment of Notaries Public NCAC 07B.0401 Reappointment NCAC 07B.0402 Reappointment Test NCAC 07B.0403 Application After Reappointment Denial Based on Failing Test E. Section.0500 Commissions NCAC 07B.0501 Appointment and Issuance of Commissioning Certificate NCAC 07B.0502 Commissioning Certificate Date NCAC 07B.0503 Oath of Office and Delivery of Commissioning Certificate NCAC 07B.0504 Reappointment if Oath Not Taken Within 45 Days NCAC 07B.0505 Term of Office F. Section.0600 Notary Public Course Providers Reserved G. Section.0700 Notary Public Certified Instructor NCAC 07B.0701 Instructor Certification Scope NCAC 07B.0702 Instructor Certification General NCAC 07B.0703 Timing of Instructor Certification Application NCAC 07B.0704 Department Rejection of Applications NCAC 07B.0705 Fees NCAC 07B.0706 Verification that Applicant Continues to Meet Requirements for a Notary Commission NCAC 07B.0707 Other Verifications NCAC 07B.0708 Evidence of Minimum Experience NCAC 07B.0709 Journal as Evidence of Experience NCAC 07B.0710 Employer Affidavit as Evidence of Experience NCAC 07B.0711 Alternative Evidence of Experience NCAC 07B.0712 Recommendations NCAC 07B.0713 Oral Presentation Requirement for Applicant NCAC 07B.0714 Notary Public Instructor Certification and Recertification Examinations NCAC 07B.0715 Additional Requirements NCAC 07B.0716 Minimum Instructional Duties of Certified Notary Public Instructors xviii North Carolina Bar Association Foundation Continuing Legal Education
9 Table of Contents IV NCAC 07B.0717 Evaluations of Instruction NCAC 07B.0718 Eligibility for Recertification of Notary Public Instructor NCAC 07B.0719 Notary Public Instructor Recertification Requirements NCAC 07B.0720 Denial of Notary Public Instructor Certification or Recertification H. Section.0800 Investigations Reserved I. Section.0900 Enforcement and Disciplinary Action NCAC 07B.0901 Factors Considered in Disciplinary Actions NCAC 07B.0902 General Application Denial NCAC 07B.0903 Executed Document Violations NCAC 07B.0904 Complete and Lawful Notarial Act Violations NCAC 07B.0905 Other Violations NCAC 07B.0906 Minimum Sanction NCAC 07B.0907 Appeal Procedures J. Section.1000 Public Records and Requests for Information NCAC 07B.1001 Public Information SUBCHAPTER 7C ELECTRONIC NOTARY STANDARDS A. Section.0100 General Provisions NCAC 07C.0101 Scope NCAC 07C.0102 Definitions B. Section.0200 Registration NCAC 07C.0201 Application NCAC 07C.0202 Oath of Office and Delivery of Commission NCAC 07C.0203 Re-Registration C. Section.0300 Course of Instruction NCAC 07C.0301 Approved Course of Study for Electronic Notaries Public D. Section.0400 Electronic Notary Standards NCAC 07C.0401 Electronic Notary Signature NCAC 07C.0402 Electronic Notary Seal NCAC 07C.0403 Physical Presence Requirement for Electronic Notarization E. Section.0500 Electronic Notary Solution Providers NCAC 07C.0501 Electronic Notary Solution Provider Application NCAC 07C.0502 Criteria for Approval of Electronic Notary Solution Providers NCAC 07C.0503 Electronic Notary Solution Provider Changes North Carolina Paralegal Resource Binder, Second Edition (2013) xix
10 F. Section.0600 Security Requirements NCAC 07C.0601 Separate Attestations NCAC 07C.0602 Electronic Notary Seals NCAC 07C.0603 Employers of Electronic Notaries NCAC 07C.0604 Protected Access G. Section.0700 Records of Electronic Notarial Acts Reserved H. Section.0800 Electronic Notary Act Investigation and Enforcement Reserved V. HELPFUL LINKS CHAPTER IV e-discovery THE BASICS I. A BRIEF HISTORY II. AN e-discovery VOCABULARY III. THE ELECTRONIC DISCOVERY REFERENCE MODEL ( EDRM ) A. Information Management Advise them of their Legal Obligation They Must Immediately Suspend their Usual Procedures They Must Take Reasonable Steps to Preserve Information Advise them of the Consequences Be Sure All Key Personnel are Notified Advise them of the Timeframe B. Identification C. Preservation and Collection D. Processing, Review and Analysis E. Production F. Presentation IV. MISCELLANEOUS A. Safe Harbor B. Cloud Computing C. Electronic Data Management Assistance CHAPTER V USEFUL INTERNET RESOURCES 1. Secretary of State Secretary of State in Other States Voter Registration Information United State Postal Service Nursing Homes Daycare Centers xx North Carolina Bar Association Foundation Continuing Legal Education
11 Table of Contents 7. North Carolina Occupational Boards NC Medical Board Department of Corrections NC Courts Website NC Industrial Commission Workers Comp Name Search System Driving, Criminal and Civil Records DMV/DOT Accident Sketcher Vital Records County Websites State and Local Government Links Google for Legal Professionals Google Scholar Real Estate Records Medical Terms and Codes Medical Record Copy Statutes Address/Phone Number Searches What County Am I In? Bankruptcy Records Attorneys and Judges State Employee Directory Experts NC Association of Private Investigators National Association of Professional Process Servers Historical Stock Quotes SEC Filings Better Business Bureau Federal Agency Index Group Scheduling Remote Computer Access Date and Time Apps for your Smartphone APPENDIX EFFECTIVE ATTORNEY/PARALEGAL TEAMS I. INTRODUCTION II. DEVELOPING THE PROFESSIONAL RELATIONSHIP III. BUILDING TRUST IV. IMPORTANCE OF COMMUNICATION V. SKILLS TO BRING TO THE TABLE VI. REMEMBER IT S YOUR ATTORNEY S BAR LICENSE (AND YOUR CERTIFICATION) North Carolina Paralegal Resource Binder, Second Edition (2013) xxi
12 VII. VIII. IX. WHEN TO NOT LISTEN TO YOUR ATTORNEY A SHARED VISION CONCLUSION xxii North Carolina Bar Association Foundation Continuing Legal Education
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