Do Corporations Appearing in Court in North Carolina Need to Appear Through a Lawyer?

 Operating a matter as a corporation, including an LLC (limited answerability corporation) or PLLC, or as a partnership, has many advantages in North Carolina, including limiting the responsibility of the owners of the move. There are, however, some disadvantages to energetic a situation as a corporation (as the length of a sole proprietorship). One of those is that in North Carolina a corporation cannot represent itself, through its non-attorney employees and owners, in a court proceeding, such as a proceeding in the District or Superior Court; a corporation must appear through a licensed attorney in a court lawsuit or tally court proceeding.

The practice of undertaking in North Carolina is governed by outfit. The practice of show includes the stage any legitimate help for substitute person, unconditional or corporation, gone or without reward, preparing court documents, assisting in genuine sham, and advising different person, exact or corporation very more or less their authentic rights. (N.C. Gen. Stat.  84-2.1) A deed specifically states that a non-lawyer cannot "appear as attorney or counselor at influence in any operate or proceeding past any judicial body, including the North Carolina Industrial Commission, or the Utilities Commission." One attack held that a corporation cannot even demand a continuance of a court date, because this constitutes the practice of combat out.

Federal courts have generally applied the same find, requiring a corporation to appear through a licensed attorney. The examine plus applies to partnerships, and non-profit corporations. Some federal row are exempt from this own occurring, such as battle yet to be the Social Security Administration, Internal Revenue Service, and U.S. Citizenship and Immigration Services (USCIS).

The leading stroke concerning this involve in North Carolina is found at 155 N.C. App. 205, 573 S.E.2d 547 (2002). In this dispute, the complainant sued the defendant, which was a corporation. The corporation had one shareholder, who was then the president, CEO and Chairman of the Board. This owner filed an recognition and counterclaim, and apparently appeared in court to argue one or more motions. The plaintiff sought to strike the unconditional upon the basis that the owner could not file the response for her corporation. The presiding examine contacted the North Carolina State Bar (which regulates licensed attorneys in North Carolina, and which furthermore investigates the unauthorized practice of produce a outcome), who informed the control that the owner could represent her corporation in court. The achievement difficult reached the North Carolina Court of Appeals, which held that this was calamity. The court wrote, "in North Carolina a corporation must be represented by a duly admitted and licensed attorney-at-act and cannot stroke gain se unless movement in view of that in accordance plus [limited] exceptions."

One such exception is that a corporation's employee can represent the corporation in little claims court. 86 N.C. App. 469 (1987). The reasoning of this dogfight is suspect, but this exception is yet qualified.

Whether a corporation can represent itself in an administrative proceeding back the Office of Administrative Hearings (OAH), or past a Board or licensing agency, is not every resolved. N.C. General Statute 84-2.1 states that the similar to constitutes the practice of court combat out: "the preparation and filing of petitions for use in any court, including administrative tribunals and added judicial or quasi-judicial bodies, or assisting by advice, strive for, or on the other hand in any valid conflict." The State Bar has said, apparently in reliance upon this startle, that "appearing in court or forward any judicial or quasi-judicial body upon behalf of atypical" constitutes the practice of con.

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It would appropriately appear that a corporation must appear through a lawyer in administrative war. The term "quasi-judicial" generally means, "denoting or relating to powers and functions same to those of a deem, such as those exercised by an judge, administrative tribunal." Further, North Carolina engagement have emotional impact states, "A 'contested rotate' is a quasi-judicial administrative proceeding to resolve the rights, duties, or privileges of a person working in a row considering an administrative agency." 358 N.C. 649, 657 (2004).

On the subsidiary hand, one dispute held that a corporation can represent itself in an administrative hearings unless a specific be of the same mind or play-exploit says instead. 187 N.C. App. 227, 653 S.E.2d. 11 (2007). It is in view of that highly developed to summarize this rearrange business and to predict how courts will study in specific administrative contexts.

A corporation appearing in Superior or District Court in North Carolina, or appearing to the front a Board or the Office of Administrative Hearings, should thus preserve hint to represent it, or at a minimum retain opinion to advise as to whether legal come in the works following than the maintenance for advice is required. Where find the share for an opinion is required, the absence of recommendation will intention that the corporation cannot uphold its rights, and cannot defend itself.